The Midland sub-basin has the least costly O&G extraction price of the entire Permian (as per Dallas Fed energy surveys), so you often see activity there while the rest of the PB is shut in.

Live in one and rent out the rest.

First of all, I was embarrassed to go anywhere because my disability, and secondly, due to my disability, I didn't have many employment opportunities like the rest, leaving me out of the money loop.

The first option is better, especially if the basement is separated from the rest of the house. 

Average household value in my state/area is about 750k and I would need to assume a little over 350k of the rest of the mortgage bringing the monthly payment to roughly bout 1500 which is easily doable with my income.  

Myself ; ) Not having an official lender on this deal was pretty awesome.

The state where I live is pushing to stop evictions for the rest of the year.

This is a hyper-local question, likely dictated by local zoning laws.You'd need to ask the zoning officials in the municipality where the property is located. 

Buy a 2-4 unit home and live in one unit and rent out the rest.

I absorb the background check fee as it is a small price to pay for dodging the bullet.Once background checks are complete, we meet again for a lease signing, at which point I collect the rest of the move-in fees.