City?

Sahira wrote:

We have visited the DR five times as tourists and we have fallen in love with this country and its people.
During our travels we have sat down and spoken to many of the locals about their life and where they think would be the best place to live.

And what did they say?

Sahira wrote:

We really want to make a life there and of course open a small family based business.

What kind of business are you thinking of?

Sahira wrote:

Which City would best suit the kind of lifestyle we are searching for?

What kind of lifestyle are you fond of?
If it's really city life you're after there isn't much choice:
Santo Domingo, Santiago, San Francisco de Macoris.

Sahira wrote:

... hotels in certain cities that are basic i.e. not all inclusive, it's impossible.

In all cities (as mentioned above) you'll find those hotels, in fact AI would normally be the exception as such hotels are mainly found in tourist areas.

Sahira wrote:

We also need a link to local properties for rent.

A first overview you'd get from
http://www.supercasa.com/
A good and reliable RE agent is not easy to find.
I strongly recommend not to buy within the first year of your stay and use that time to get to know the "culture" more and to find out whether the DR is for you indeed.
All the best.

m'frog