Yes, this is a great location, and could be a reasonable place to stay while visiting SF. However, here are my concerns:
There is just enough areas of disrepair and a bit dirty to make me concerned about the overall cleanliness.
The carpet is quite stained and gives the impression of being dirty.
The common areas should be cleaned daily--tub, floors, bath mat, hand towels, trash, etc.
The lock on the bathroom door needs to be replaced.
Waste baskets in the rooms would be nice.
With that, I would be willing to pay $10 a night more.