Hi Sam,
I don't think you'll find DR is inexpensive compared to the U.S. if you want to match your U.S. lifestyle. To match it will likely cost more.
I prefer the north coast area from Cofresi to Cabarete, though I must admit I've never been to the Punta Cana/Bavaro area. If you're wanting to live in a real city away from the beach amongst 99% Dominican population, I prefer Santiago over Santo Domingo (though Santo Domingo's got a lot going for it).
DR's a great place, as you have heard and many on this board can attest to. However, it's also quite a different place from Florida and not for everyone. Life is not always simple or easy, even for those with money (thought it definitely helps smooth out the bumps in the road).
How familiar are you with Latin American countries? How's your Spanish or willingness to learn? How's your tolerance for things not working like you expect all or most of the time (electricity, water, cable, internet, mechanics, laws, police, etc, etc)? How's your tolerance for adapting to different food products?
The $175,000 will buy you a nice house in a 'gringo tourist town', but not on the beach these days. It can buy you a house on the beach away from town - but there are often many issues associated with that (lack of infrastructure and possibly security).
The advice... don't dare buy anything during your first 10 day visit. Look, come back & look again, then come back & look some more. Ask a lot of questions - and ask them of different sources. Don't expect that just because a development looks nice that it functions as one in the U.S. does. Two condo or housing develpments within a quarter mile of each other can deliver astoundingly different quality of life depending on how they're managed. It takes time to know what's what. Desireable areas are not that easy for a first, second, or possibly even 10th time visitor to pick out. Then rent for 6 months to a year. If you still want to buy a house at that point, then is the time to do some serious looking... AFTER you know you really like it & are comfortable with the area in which you're looking.
Sound negative? I think most here will attest it's just realistic. And yes, I too am considering property after spending more than 4 years in the country.