Saadi's place is GREAT. It might be 20-30min to downtown, but you can always hop on the train one block away. PLUS on Saturdays, the farmers' market is RIGHT THERE (literally a 5-minute walk), so if you're into fresh produce and Oregon-made products, you should definitely check it out. The coffee stand about a block and a half north called Ole Latte has great coffee, too, for coffee lovers.
We were five people but the place was so roomy that we had no space issue. We also cooked a lot, and everything we needed was right there. The decks on the first and second floors were awesome in the morning and at night when it wasn't chilly (we were there in April).
All in all, a great place to stay!