I lived in Cabo (or slept in my truck at other times) but if I ever took a hotel room in the Cabos area, there was only one choice--Senor Mananas in San Jose. Forget the glass wall ghettos--THIS is as close to the Baja experience as you're going to get this time out.
It's a sprawling collection of bungalows and rooms, with common kitchens and big breezy living rooms under thatched 'palapa' roofs. You cook in a nice communal kitchen if you wish (or barbecue). Sprawl on a sofa (better yet, one of the hammocks), grab a book, play some chess, shoot the breeze with people who've been coming back there for years. Great owners, great neighbors, a unique experience. And just steps from 'downtown' San Jose---if you want to call it that--where the little plaza is full of candle-lit tables in the evening, fine cuisine to pizza. Stroll over by the church afterwards, nodding to the kids and moms in the square, and get a homemade ice cream cone. When was the last time you showed you friends pictures you took of the inside of your hotel?
Oh, did I mention--$35-35 US a night?