I plan on putting my daycare space in the basement when we are financially able to finish our basement. So for now, my daycare space is actually upstairs in my loft and it's great...just wish it were a bit bigger. It's bright and open and very child friendly. I thought it might deter some parents because it was upstairs, but I had a total of 6 interviews, and 5 signed on right away! I think parents go with their gut when they come for an interview. If they feel that you are a caring, nurturing, daycare provider that has a safe, child friendly environment, they'll be happy to sign on with you, whether the space is upstairs, main floor, or in the basement.