My Wife Kimberly Moses is a Agent here in Vacaville CA, (Vaca Vally KW office) I love the culture and attitude that KW creates.

You're looking for someone who can give you advice on what you should do based on your unique situation. 

I live in the basement because usually the basement level is the "lesser" of the two levels so you can maximize the rental income of the property by renting out the "nicer" level for more money.You are also right that walling of the upstairs and the downstairs can be tricky, but some front entrances are set up in a way where the stairs to go downstairs are right there when you walk in the front door, so you put up some walls that you will take down when you go to resell it as a single family home and create a little foyer and then you have separate entrances.

Two significant revenue procedures created a structure that allowed groups of investors to go into a property specifically structured by a sponsor as totally passive tenants in common ownership. 

Regardless of what you decide, any way to create a little extra income can go a long way. 

This way you have immediately created separation and should something terrible occur and you be found liable / negligent, your primary residence and bank account are more so protected.If you purchase the property in your name, it’s a personal asset.

My situation is obviously unique but if there is a way to do it ill try!

You're here to make money, not give charity and create a head-ache.

Is this form something you've created yourself?

Most people will define a good market as one with a strong job market(i.e big name employers that employ white collar jobs, as these create the most secondary employment), a growing population 10% or greater, low crime, economic engines, etc.