One thing you might run into that will limit your selection is in finding an apartment that is both a) furnished and b) doesn't require a long term contract beyond a month or two. Furnished apartments that can be rented on a month to month basis can certainly be found but many more places will be eliminated from your consideration. If you limit your selection further to the downtown commercial district your choices will probably be almost nil unless you choose a hotel with monthly rates. Some may have studio type apartments with kitchenettes and some may simply be regular hotel rooms with long term rates? Are cooking facilities a requirement or will you be eating out for every meal?
You'll certainly have much more options if you are willing to accept the usually short, cheap and frequent bus service (and only slightly more costly though still cheap taxi service) from surrounding areas. For example, I've walked on more than one occasion from Linda Vista to downtown, though it is probably longer than many would prefer to go (about 20-30 minutes). Of course, usually I opted for a bus or cab. The bus stops no more than 50 feet from Linda Vista's front gate and passes by every 10 minutes, cabs pass just as frequently or you can also phone for one. The bus costs only about 25 cents each way, takes about 10-15 minutes tops (because of stops and traffic) and lets you off at A5 C1/3 (or 5 blocks from the BM which is a bit of a pain). Cabs will take you door to door in 5 minutes for usually about less than a buck each way. Cab and bus service from the San Pedro/Los Yoses area east of downtown is even more regular, quick and cheap (and there are a lot of worthwhile places to go around there.
In addition to the places mentioned above, I believe the Hotel Castillo has monthly rates for their rooms as well and is located well within walking distance of the BM near the Sportsmans Lodge and New Fantasy. However, I also suspect that both Gran Via and Castillo only have their regular hotel rooms to offer for those longer term rates. If you want a real apartment with at least a kitchenette so you can cook at least some of your meals, you'll have to look elsewhere. Then again, that might not matter to you.
The Scotland Apartments have also been mentioned on this board. I didn't stay there but I did check them out. They are located east of downtown about halfway to San Pedro (C25 A3? in Barrio California). Their better apartments are much nicer than Linda Vista and they're closer to downtown but cost nearly as much as staying at a hotel. Personally, I didn't think they were worth it, YMMV.
I also checked out the Apartotel Los Yoses, which offer furnished short term rentals and was close to where I was going to school, but it was basically a hotel with a front desk and I wasn't sure how they would be about guests and so decided against it.
One last possibility that I have some direct knowledge about is the Casa Conde. Its a 5-10 minute cab ride south of downtown (not sure of the buses). They offer monthly rates on their apartments. I'm sure they will be higher end than the other places mentioned so far, but they are VERY nice, with full kitchen, washer/dryer, stereo, 27" color TV, jacuzzi-bath, nicely furnished, etc. etc. Your guests would be very impressed and personally, though it is smaller than what I'm currently used to, I could actually see living in such a place here in the US.
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