Pathara Guest House is located in the old city next to a bunch of other hostels, bars and restaurants. We really enjoyed our stay at this place. We booked a room with a view of the mountain, but the thick haze meant we didn't see much of it during our stay. There is wifi available in your room, and laundry available downstairs for 20 baht. What more could anyone want? There is also great street food up the street near tapae gate. Our room cost 300 baht a night!