Whether the index is upper or lower is a separate question from how many indexes there are (i.e., the rank of the tensor). As DrGreg says, you can have "vectors" (objects with one index) with either an upper or a lower index, and you can have tensors (objects with two--or more--indexes) with two upper indexes, two lower indexes, or one upper and one lower index.
If you know the metric tensor, you can use it to raise or lower indexes, so in many applications in physics the indexes are simply placed wherever is most convenient. The key thing is to make sure that free indexes on both sides of an equation match, and that contractions are done using one upper and one lower index.
Strictly speaking, however, upper and lower indexes mean different things. For example, a vector (one upper index) is a set of 4 numbers (in 4-d spacetime) that change in a particular way when you change coordinates. A "covector" (one lower index) is a linear map from vectors to numbers, i.e., it is an object which, when given a vector, gives back a number (a scalar). The standard notation for this is a contraction: the number ##s## obtained when you take a vector ##V^a## and apply to it a covector (linear map) ##C_a## is ##s = V^a C_a = V^0 C_0 + V^1 C_1 + V^2 C_2 + V^3 C_3##.