Melbourne has never failed me and nothing happened in Melbourne can ruin my mood. Katie's place is in a great location, I would say it is basically in Fitzroy with a step away to Carlton so you are close to both - Carlton and Fitzroy charms.
Queen Victoria Market is a nice 20 minutes walk passing through Carlton Garden and Melbourne Museum and Lygon street with its "Italian" vibes. And from Queen Vic, you are basically in Melbourne CBD in no time.
So many good cafes, bakery, pubs around and Coles Supermarket was just less than 10 minutes walk.
I would just like to leave a tip for those staying here, that if you plan to stay for more than a couple of days, you might want to know that without a dryer, it is difficult to wash and dry clothes and towels so make sure you bring enough. There was no salt and pepper provided so make sure you buy them when you shop for groceries during your stay.
There are so so so many nice place for food - try The Olive Jar (6 minutes walk) for good, homey Italian, The Dan Hotel (5 minutes away), French Lettuce Bakery for what they say the Best Vanilla Slice in Melbourne (5 minutes walk), Stagger's Lee cafe for a good coffee (12 minutes away) and just waaay tooo many more... Melbourne has never failed me!!