This is closer to the town centre than it looks on the map. Maximum 15 minutes walk by the main postcard viewpoint road and about the same by the path that runs directly behind the house, over the hill and down into the centre. Either way, you'll get a great view of the Watzmann.
We were very happy with the b&b itself. Our room was pretty large, with four windows and a partial view towards the Obersalzberg hillside, so we could see what the weather was up to. The room was very quiet, well heated and had an en-suite shower room. There's no tv, but the price of the room is extremely reasonable and I think you could hire one if you wanted, whilst one is available in the downstairs breakfast room.
Breakfast was good for the price point, with rolls, cold meat, corn flakes, cake and egg and it filled us up for the day ahead. The owner was very pleasant and friendly and made us feel welcome in her home.
There's a bus stop just outside the house, with line 837 being the timetable to download from the RVO website (bus stop Krankenhaus). There's a bus at 8.50am into town which has direct connections at the railway station at 9.15 to Salzburg, Koenigssee and elsewhere. If there are no buses, it's 10 Euro by taxi.
The house is about 200m from the path to Kneifelspitze (90 minutes), which has the best view in Berchtesgaden, and you could also walk to Maria Gern in about 30-40 minutes.
The only suggestion for improvement I'd make is that it would be great to have wi-fi or maybe access to a computer.
We liked the place enough to be already planning a return with our children next Christmas, so have no hesitation in recommending it.