Is this based on a novel? If so, could someone tell me the name? If not, can anyone recommend similar Chinese novels? 

As far as I know it's NOT based on a novel. 

I can recommend you novels for similar shows (some of them must be in wattpad for free):  novel "SCI Mystery Collection", novel "Silent Reading" (默读) by Priest, novel "Xie E Cui Mian Shi" (邪恶催眠师) by Zhou Hao Hui (周浩晖),  novel "Haunted Houses Handbook" (凶宅笔记) by Er Shi San (贰十三).