The only way to do drop down/roll up screens is if they are tab-tensioned.
But, the best screens are fixed frame, not tab-tensioned, and they take about one minute to pull on/off the wall. If you can figure out a way to mount it in front of the closet door (bump the screen out), then you can save hundreds of dollars, and get a better screen.
Personally, I would recommend the very good Sony projector, which is on sale right now for $1,999. It's significantly better than the W1070 and will make setup far easier due to significant lens shift, and it has a much improved image with a much quieter design.
It can hit a 110" diagonal from between 10'11" and 17'4" (lens to screen).
You could go a bit smaller, based upon you seating distance. 92" or so diagonal would be typical. But, I would stick with about a 110" screen, most people get very used to most sizes.
Your eyes should be about 1/3 to 1/2 way up from the bottom of the screen. If you want people behind the main viewers to see the screen, raise it up a bit more, but be very cautious on raising screens up.
At the end of the day, in a nice setup like your basement, setting up the Sony, then projecting onto a wall until you decide upon final screen size makes a lot of sense. While 130" was mentioned before, with a sub 10' eyes to screen viewing distance, you really will be 'large' at 110".
Not sure if you carefully mapped your lights or not onto dimmers, especially recessed lighting near the screen vs. near the seating position, etc. Just be very aware of how lighting impacts on screen viewing, and how important dark paint is in the theater space.