"Give me $30,000 on Space Invaders, $20,000 on Pong, and $15,000 on Frogger."

To answer your question about the 203k, yes this property would qualify in this scenario as long as the residential portion of the property is larger (51% or more) than the commercial space. 

Btw we are not financial planners by trade, but work pretty adjacent to this space.

I typically operate within the residential space and have a few rentals.

You can have your own separate space with a side by side or up/down duplex. 

Put locks on each bedroom door so individual tenants have security of their personal belongings.You need a really good set of rules regarding shared common space, cleaning, kitchen use, bathroom use, etc.Be very clear about the rules up front, and selective about who you put in there.

Being that you're an agent, you have an advantage in the real estate space. 

I mentioned this to 2 agents and they looked at me like I was a space alien. 

Are buyers looking for more urban spaces, or is suburban living still on the rise?

They didn't want men gambling away the house in a poker game and leaving the women and children without a place to live.The intent I think for a home to be designated your homestead is that is where you live.