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My brother and I are selling our beautiful, renovated, colonial home in Patzcuaro, Michoacan, Mexico for $199,000 USD. It's 3000 sq ft, 3 bedrooms/3 bathrooms, and fully furnished (with appliances). It has two interior patios, a wood burning fireplace, a completely modern kitchen, a washer/dryer, and is lush with plants. All of the wood furniture and ceramics tiles are custom made by local artisans. Patzcuaro is a tranquil mountain town, surrounded by artisan villages and dormant volcanoes. It's about 45 minutes from Morelia, 3 hours from Guadalajara, 4 hours from Mexico City and 3.5 hours to Ixtapa/Zihuatanejo. We lived there for many years and are sad to sell it, but hope that it can be someone else's dream home.
Here's a link to pictures of the house: http://www.ecomexico.org/realestateforsale.html
And some info about Patzcuaro: http://www.ecomexico.org/visit.html