Having read other reviews before going to Cabo Santa Cruz in July 2003, I was somewhat apprehensive. I needn't have been. Cabo Santa Cruz was great. It is a fantastic location with a great view across the ocean and the sunsets are magnificent. True, 'luxury' appartment my be pushing it a bit but it was clean, comfortable and homely. It was more like staying in someone's house rather than the usual sterile condo feel, which suited us. No air con mind and it gets warm in the afternoon but the ceiling fans help.
Ocean Beach is an interesting area, a little bit ageing hippy-ish but safe enough. The police are high profile (quad bikes) but they are mainly interested in what's happening on the beach ~ sleeping there is frowned on.
Only real negative ~ parking, or lack of it. Don't bother with Newport Ave, you can't park. OK at Cabo though, you have your own spot.
Recommendation : ask for appartment 5040 ~ that's the best.