The problem is that it is on a steep grade and comes with a fault line.

and others talk about on BP: striving to upscale work/materials/finishes so that if rented, then sold, it will appraise as a well-done flip/remodel, not just a builder grade cheap material hack job. 

The convenience store includes (2), two-sided fueling stations dispensing three grades of gas.

(this obviously depends on things like the location, the grade of the neighborhood, the grade of the property, etc.). 

The price of a property includes, above grade, below grade, garages, outbuildings, land, site improvements, everything.

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.