Seattlelite here. If you're looking at hotels and want to save money, I'd recommend near the airport because you can easily catch the light rail into downtown for the tourist attractions and, when you're ready, you can swing over to the airport and pick up your rental car to go explore other areas (i.e. Olympic National Park, Victoria or Vancouver, BC, etc).
AirBnB is great around here too! What type of neighborhood do you want? Ballard, Fremont, Wallingford are very trendy and hip. Laurelhurst, Phinney Ridge, and West Seattle are more family-friendly. Downtown is touristy. Things on the East Side (Redmond, Bellevue) are very tech-saturated and have lots of great ethnic finds and lots of good luxury, but aren't really "Seattle".
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