Isabel's place is in a great location - right next to tram 28 and close to lots and lots of eateries. There's an excellent place to eat at the end of the road called San Telmo - definitely worth a visit, really, really great food. Not far away is the Time Out market - great if you're unsure what to eat and want a safe bet, loads of options, just be prepared to hunt for a table! Pastanaga (which is literally next-door!) is also a nice family run place where you'll be well looked after.
We had fun exploring the local area too, wandering the back streets which we found safe and full of life. No need to go anywhere near the tourist areas as everything you need is on your doorstep if you're prepared to take a chance. Isabel was also a great host, taking us us through her recommendations when we arrived and checking in with us towards the end of our stay to make sure we were ok. Thoroughly recommend staying at her place!