San Felipe is located 125 miles south of the US border, on the east side of Baja California, on the Sea of Cortez. The primary way of getting there from the US is driving south on Mexico's Federal Highway 5, coming from Calexico, California. The closest major airport is in San Diego, 5 hours away.
San Felipe is a remote desert community which was founded in 1916 as a commercial fishing port. Although fishing is still a major source of income for the city, now tourism and retirement living contributes significantly. The best time for tourists is November through March, as the weather is warm and dry. The summer months can get very hot and humid, although summer is a good time to avoid crowds if you can handle the weather. The busiest time is during college spring break weeks.
The population is around 25000 people, and this includes foreign residents. As mentioned, more people are choosing San Felipe as a retirement area, opting cash out of the US and move there, where living can be considerably cheaper.
In addition to just relaxing and enjoying the slower pace of life, many people choose to visit for the activities the Sea of Cortez provides, including fishing, swimming and diving. Because of the high salt content of the water, swimming and floating are almost effortless. Also, around the time of new and full moons, large tides develop which cause the water to rise and fall dramatically.