We found a very nice and well equipped apartment just in the middle of Alfama. Exactly as shown on the pictures. Bars, restaurants just everything nearby as well as some mini markets. The metro is a 5 minutes walk away. A 24h ticket for 6€ is recommended which can be used for metro, cable car as well as for the elevators and escalator as often as you need.
We have been welcomed by Alexandre which is just a friendly and "charming" guy. Like his apartments. We even got some small drinks, a bottle of wine and chocolate bar on our welcome. We enjoyed our 3 night stay and would recommend this apartment.