Palafito means house on stilts over the water. This is a lovely one. You can walk to several restaurants on the same level. Going into center of Castro entails a very, very steep walk or use a taxi.
This apartment was very well equipped and lovely. See if you can get water view but street view ok.
Main problem is that owner, manager is only present at certain hours..she speaks only limited English...is pleasant enough but if she is not present, no one is there to assist you.
I would still recommend this place