This is my second home daycare. I used to have it in the basement, but now it's on the main floor. I now have a townhouse, so the whole main floor (such as it is) is daycare. It's been a big draw for potential clients and all interviewees have commented that they prefer the main floor location. I've found it extremely convenient having the powder room, door to the back yard and the kitchen right there. I've made the daycare 'child enticing' without being covered in Care Bears and Rainbows cutesy stuff, if you know what I mean. It's child oriented, but not in a way that grates on your nerves after hours. I had our basement renovated for our own space. I have to say that I love it....it turned out really, really nice and I forget that it's a basement, so it makes the trade off less painful.