From my experience it could be right next to the house. I have my homemade unit about 60 feet from the house, but there isn't a bad odor. I keep it there because I enjoy working in the shade of the 90 year old pecan tree it's under.
I would say put it as close as you're comfortable keeping garbage cans.
All BSF colonies should be maintained under 100 degrees if possible. I doubt that they would totally crash at 101 degrees, but there could be some instability. It's important to keep BSF units in total shade.
Low humidity is a potential issue, but food scraps should supply enough moisture. If the colony appeared to be very dry you could simply add a little water. Most people who compost kitchen scraps get excess moisture in their units.
