The primary objective of this paper is to build classification models and strategies to identify breathing sound anomalies (wheeze, crackle) for automated diagnosis of respiratory and pulmonary diseases. In this work we propose a deep CNN-RNN model that classifies respiratory sounds based on Mel-spectrograms. We also implement a patient specific model tuning strategy that first screens respiratory patients and then builds patient specific classification models using limited patient data for reliable anomaly detection. Moreover, we devise a local log quantization strategy for model weights to reduce the memory footprint for deployment in memory constrained systems such as wearable devices. The proposed hybrid CNN-RNN model achieves a score of 66.31% on four-class classification of breathing cycles for ICBHI'17 scientific challenge respiratory sound database. When the model is re-trained with patient specific data, it produces a score of 71.81% for leave-one-out validation. The proposed weight quantization technique achieves ~4X reduction in total memory cost without loss of performance. The main contribution of the paper is as follows: Firstly, the proposed model is able to achieve state of the art score on the ICBHI'17 dataset. Secondly, deep learning models are shown to successfully learn domain specific knowledge when pre-trained with breathing data and produce significantly superior performance compared to generalized models. Finally, local log quantization of trained weights is shown to be able to reduce the memory requirement significantly. This type of patient-specific re-training strategy can be very useful in developing reliable long-term automated patient monitoring systems particularly in wearable healthcare solutions.