This was our 3rd time in Lisbon. You can't get better than the Alfama neighborhood. Walk to everything. Great for kids. Jose Eduardo is the best host we've had from multiple Airbnb stays all over the world. He spent nearly an hour showing us maps of the city and telling us where to go and what to see. His English will help some of you out as well.
The bathroom is small, so if you are bigger than me (240 lbs and 6ft tall) it might be difficult. But I made it work.
I loved our stay in Alfama. The little bar/restaurant underneath is nice as well. Great place to stay. With one of the best hosts you'll find.