Heaven as an idea make little sense once you start asking yourself questions about it, and even less sense once you start to look at clues from the bible. To me it seems that most people that believe in a heaven have a very vague explanation of what it is suppose to be like. So I will try as best as I can, to at least base it on the bible using verses to support what im saying. And obviously my own personal thoughts about it as well.
So questions or thoughts:
Your first question:
"If there is one ... where is it located?"
The bible doesn't say explicitly where it is, but there are some clues to what heaven refers to and where one would expect it to be.
But the short version is that it is out "there" above us, in the skies or above. Remember that they viewed Earth much like flat earthers do today, so obviously there is something above, below and to the left and right of us. But at least the ancient Jews had an excuse for their ignorance, flat earthers not so much.
So what clues are there in the bible?
Genesis 22:17
17 I will certainly bless you and make your descendants as numerous as the stars in heaven and as the sand on the seashore. Your descendants will take possession of the gates of their enemies.
Here it refers to "stars in heaven" and the only place there would have been stars would have been above them when looking into the sky.
Genesis 28:12
12 when he had a dream! He saw a raised highway that had been built with its ending point on earth and its beginning point in heaven. God's angels were ascending and descending on it.
Genesis 49:25
25 by your father's God, who will continually help you, by the Almighty, who will keep on blessing you with blessings from heaven above, with blessings from the deepest ocean, with blessing from the breast and womb.
Again everything seems to point in the direction that heaven is a "real" place and that it is above Earth.
Deuteronomy 4:36
36 You have been made to hear his voice from heaven so you may be instructed. And he showed you his great fire here on earth, and you heard his voice from the middle of that fire.
Judges 5:20
20 The stars fought from heaven; they fought against Sisera from their orbits.
So again there is a reference that the stars is in or at least very near to heaven.
1 Kings 8:27
27 and yet, will God truly reside on earth? Look! Neither the sky nor the highest heaven can contain you! How much less this Temple that I have built!
Here a distinction is made between sky and highest heaven, which could suggest that heaven or at least the highest heaven is not in the skies but above. (Not sure if there is different layers of heaven.)
Also you have verses talking about the sky as being the gate or a way into heaven, if im not mistaken.
So, at least my best guess based on the bible, is that the ancient Jews saw "space" and the stars as where heaven were located. And most likely all of it were heaven. I don't think they thought of it as being another "dimension" or outside or beyond humans as some might suggest today, now that we have a better understanding of the Universe, but a physical place where God and the angels were.
Second question: "It's better than hell ... I guess right?"
According to the bible, heaven is great
However Im not sure most people think of heaven based on what is actually said in the bible, but rather create their own view of it. Maybe because its slightly disappointing in comparison to what they would like it to be, but that is just a complete guess. But none the less, I think it causes a lot of problems, once you start asking questions or just think about it for a few minutes.
1. What do people look like?
My impression is that most think of it as being like they are today, in other words heaven is a personal thing that fits ones own self interest. So people think of family members and love ones as they remember them at the current moment in time, but with little regards to whether those people themselves would like to look like that. For instance ones grandma, probably doesn't prefer to look as you remember them. Which obviously causes some issues in making things fit.
Others, if im not mistaken see people more like spirits entities, souls or something. Which again makes little sense as it doesn't really seem to fit well with the promise of a new Earth as described in the bible.
2. What exactly will there be in heaven? Building? Cars? Entertainment? etc.
Again this seems to follow a personal view, which makes little sense, since we all die at different times, so is heaven or the new Earth filled with what we have to day or do we live like they did for 2000 years ago? Or maybe none, which makes you wonder what on Earth people will spend their time on. As we are talking about an eternity here. So I doubt, most people have really thought about this.
3. The issue of no evil?
This causes a lot of issues as I see it, first of all, if there are no "bad" things in heaven, obviously no one will be able to remember anything from their current life, even people in history which have done bad things, like Hitler for instance, would have to be removed from ones memory, which will cause a chain reaction of memories that need to be removed to avoid people ending up as complete vegetables, with holes in their memories. This obviously then leads to the question, that if we cant remember anything from our current life, then first of all what is the point? and secondly will we even be able to remember those we love, for instance my grand father was in the Danish resistances during WW2, But since war must be considered a bad thing and will eventually lead to Hitler, how exactly is that going to fly?
And the questions goes on, which at least to me, in the end make the whole idea of Heaven a complete joke as nothing fits together with such concept. God or no God and how he wants to solve that, it raises so many questions that people can't answer if they start to think about it, and at the same time have to actually make sure that its consistence with what the bible actually say, rather than just making up stuff.