Where should I get my first dog/puppy from?

My daughter(11yo) and I are starting the process of getting a new dog.This will be our first.We live in a large 2 br apt(Phila,PA) but only have a balcony and no yard. We definitely are interested in the smaller breeds and have narrowed it down to a Bichon,Min Poodle,Cav King Charles,or even a small mixed breed.We have visited the local shelters, but most of the dogs there were wild, a little scary, and huge - mostly pit bulls.There are some rescues in our area and they even have some breeds we like, but they do not let anyone adopt without previous vet references. A good friend got her poodle mix puppy from a pet store - a pretty good one.Their animals are cared for by a local vet and come w/ health screening and guarantee. They also keep them in an open and socialized environment, not in those cages other pet stores use. I know pet stores are frowned upon, but it seems just as hard to find a decent breeder that sells puppies for a reasonable price: $400 or less. Help us find a pup