My first go round with daycare it was main floor. My hubby hated having toys everywhere, etc. We didn't have the option of where as we didn't have a basement.

This time around I have it in the basement (well, our house is a split, so the lower level). I love it so much better. The daycare is the daycare. I still make full use of our home but the majority of daycare 'stuff' is down in the designated area. We eat in our upstairs living room and have naps up there, do crafts at the upstairs table, get to the outside through our back door, etc etc, but the majority of play and toys are in the lower level. I have done it for 2 years this way and my husband has never complained once.

I have had parents tell me that they like that I have a designated area for daycare that is separate from the rest of the house. So I guess it just depends on how you play that up and present it to parents.