We live nearby and stayed here while getting our house painted. Woodstock is a great, safe, and quiet neighborhood for Portland visitors, esp. visitors with kids. There are several bus lines within a short walking distance that can take you downtown (Bus 10 for weekday; Bus 17 or 19 for weekends) or north towards Hawthorne (Bus 75). Woodstock Park has lots of play equipment if you want to stay neighborhood-local but need to get out with the kids for an hour.
Ryan's place is great! We have an infant, and I was worried about having a crying baby with us. This place is kids-welcoming. Our baby slept in the pack 'n play (with the infant level insert) in the big room with us. The place is very clean, which is something we loved. The kitchen had everything for cooking, so you can easily go to Safeway or Trader Joes to cook dinner and keep your travel costs low, that is assuming you can pull yourself away from all the good food on the Woodstock main strip. There was great attention to detail everywhere. I would put Ryan's place on the level with some of the higher end more standard bed and breakfasts we have stayed at. I get the impression that they want to do more than just rent out their basement but actually provide a great stay for their guests. Perhaps the only down side is the noise from the house above. If you are extra sensitive to noise, then it may bother you, but it is pretty standard noise for an apartment with neighbors above. Everything else was so great that we didn't mind the noise.....and with a crying baby I am sure they heard some of our noise, too!