Since you said you liked water sports, I asked questions about Cabarete/Sosua about a year ago and I found out hotels that were recommended to me, unfortunately I had to cancel my plans, and stayed in the south/central area.
Cabarete Hotels: that were recommended to me for under 35US a night:
Hotel Kaoba have website at
www.kaoba.com
La Punta (right on beach)
Casa Blanca (near beach)
Sosua hotels, if you are thinking about going to Sosua, I am unsure of your budgets but a member here has rooms at his establishment, a plug for Rocky's: I believe for between 15-20US a night. The others will be along within a day and can fill you in on all you want to know about the north coast. I go to the south coast/central area so I can't offer any more assistance. But have fun in the north coast.
dale7(Howard)