We loved Las Lagunillas because of the artistic surrounding. It's very close to the city center, the port and the main attractions. Still, the street is very quiet. Despite the bohemian look of the neighborhood, the place is very safe.
A coffee+tea corner at the ground floor comes very handy. The terrace is nice (we had a wonderful breakfast there, in a sunny morning) but a little messy, the view from there is limited by walls.
Our room, n.3 at the ground floor, was small but well organized, with a roomy bathroom. The only weak point was the lack of openings/air. There's only one small window open onto the stairway (= little privacy and noise coming in). This is probably not so important in Summer, when you'll base your comfort on air conditioning.
All the house is in very good conditions and there are several other rooms. We would certainly go back to Lagunillas, if we went to Malaga again, but we would look for another room, even at slightly higher cost.