This is not my opinion, this is the Michigan standard for appraisals.Secondly, finished area below grade generally DOES add value to a property. 

I hear when building on downslope grade, it's much easier than upslope but I'm not sure.

And over and over every time people said I was nuts, I was over-building, doing it too nice, why so much tile, why wainscoting, why craftsman style vs cheap off the shelf builder grade.

As with most things in REI, it all depends on a myriad of other factors--things like the grade of the property, the grade of the neighborhood, the investment strategy, the investor's net worth and experience level, the investor's goals, the difficulty or ease of managing the property, vacancy projections, etc., etc., etc.   ...depending on these types of factors, a 7-10% COC might be a grand slam success, or a train wreck.A 7-10% COC (after PM fees and all other expenses) on an A grade truly turn-key property in an appreciating area with a huge tenant pool might be enticing (and probably doesn't exist in today's market).

AirDNA reports this City as an A grade area.

I'm almost an AVL native (in '91 grew up here 7th grade - high school and parents stayed) and after bouncing around a bit via college and my marketing career, I landed back home in 2014.

With long-term rentals, we often install commercial-grade nylon carpets in the bedrooms.

Not sure about the 8 year old, but that's at least the eighth grade level ;)  

High end apartments are similarly affected as people are doubling up, or going with middle grade apartments rather than nice ones.

Our triplex is a single story, slab on grade building, so it is likely to be fine in a moderate quake.