good deals are very hard to find in KW. The parks are a good idea if you are not looking to experience Key West's nightlife - which i totally recommend. Not a good idea to drive back late at night with drinks, it gets very dark and lots of cops around.

if you can afford it, pay a little more and stay in one of the b&b. Like someone said, most of them are very well kept and have been remodeled. you cannot tell from the outside, but some have amazing backyards, with pools, bars, etc...