I plan and install systems for these types of applications regularly. For your DVR placement, look for a closet where it could be installed, as long as it is ventilated. Having it in a closet, out of normal view makes it more difficult for intruders to find. It sounds like you have a 2-story property by your description. If so, I would try to place the DVR on the floor closer to where the cameras will be. And if that can be inside a closet, you have less concern for exposed wiring. The only potential difficulty is power to the DVR (and a power supply for the cameras). This can be easily resolved by having a power cable routed into the closet. Now the only thing left is the network cable, to the DVR. Cat5e cables can be purchased "ready-made" in lengths from 4 feet to over 100 feet long, or can be custom made to a specific length. And even if your router is on a different floor, it will be easier to run one thin wire from one floor to another than it would to install MANY wires in order to put your DVR near your router. As long as you stay within 125 feet maximum length for your DVR-to-Router network cable, you should have no trouble. Hope this helps. But if you would like more advice, just send back a little more info; how many cameras, if cameras are on first, second, or both levels, etc.