The location is great. Do note the street is steep if you are not into walking that way. But note may placees in Lisbon are like that :)
I definately suggest bringing ear-plugs - all the walls are thin and I was able to hear the neighbours talking and walking very clearly (not jumping and shouting - just regular neighbours behavior).
The space is small but if you do not plan to spend a lot of time there you'll be fine.
Communication with the host was good.