I love the location, because it is a quick walk to the center of town, it is quieter than the center of town, and it is on a gated residential street. (Ajijic is a loud place, especially at night when dogs bark like crazy. I would not recommend staying in the center of town for this reason.)
The location would not be good for everyone. The casita is 2 blocks north of the highway (carretera) that runs east-west from village to village. Most of the restaurants and shops are on Colon, which runs north-south on the south side (lake side) of the highway. It's a reasonable walk to the shops from the casita, but do be aware that the streets are cobblestone, and there are no sidewalks. We are not talking little gravel streets or pavers - these are pretty big rocks that have been "cobbled" together to make streets.
Next, understand that you are walking downhill toward town, and walking uphill to go home. This is an important point, because the location is appropriate for able people who can walk unassisted. It is not appropriate for anyone with a walking problem or a child to carry. Don't even think about bringing a stroller.
If you rent a vehicle, you will be pleased to know you can park behind the locked gate. If you are not from Mexico, you may want to think twice about driving. Remember, you are guilty until proven innocent, and that includes swapping out your casita for a jail cell. Read about it before making a decision.
The casita is absolutely charming. It has everything you will need for a comfortable stay. The best part is the large patio with super comfy furniture and a view of the lake and mountains. I love it. Highly recommended.