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Powered Mixer and Cabs

I've had really good luck buying used gear. Your $700 should end up
buying you gear that originally cost $1400-$2000.
(When trying out used mixers, test every channel, and every knob for
malfunctions.- Listen to the speakers loud/closely for any problems)

I'd check here every day:
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Here's some interesting deals I found in the Pittsburgh area craigslist:

Offer him $700, this should be a great setup.
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(if this does work good, its a steal)
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(nice set for the price)
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The thing I don't like about powered mixers is you're stuck with however many channels are on it. That's what made me decide to get a mixer and power amps. Right now I currently have a Mackie 16 channel 4 bus mixer with 2 QSC RMX 2450 power amps that power 2 Yamaha club series 2x15 cabs with horns. Sounds great, powerful as hell. That would be what i'd do if I were you.
 
The thing I don't like about powered mixers is you're stuck with however many channels are on it. That's what made me decide to get a mixer and power amps. Right now I currently have a Mackie 16 channel 4 bus mixer with 2 QSC RMX 2450 power amps that power 2 Yamaha club series 2x15 cabs with horns. Sounds great, powerful as hell. That would be what i'd do if I were you.

You can always start with a powered mixer and add a separate amp & speakers onto it.
 
Like said before, the mixer and power amp decision is better. It leaves more room for upgrading and adding. If you want more tracks, you can get more tracks and still have power. If you want more power, you can get more people and still have the tracks.

I always check the clearance section of musicians friends for stuff like this.
http://www.musiciansfriend.com/product/Behringer-Eurorack-UB1204PRO-Mixer?sku=631235V

Power amps are pretty cheap on ebay
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and then craigslist is always a win.