Our first trip to Portugal had to be done on a budget; Our stay in A Formosa was reasonably priced and we felt quite secure. An added bonus was meeting other people who were also staying in the same building. We found alll associated with the building to be very helpful. Sara and João were very accommodating, changing dates we stayed with ease. Be sure to learn where the router is so you can reboot it, too. ;)
Skip the taxis, everything you need is within walking distance. Great experience...