Step 1: Leave Ocllo Step 2: walk a screen or two in most directions Step 3: Place small house Where are you looking?
Depends on what you are looking for. The world map is a good place to look for areas. http://www.uorenaissance.com/map/index.php
First house is a grand step in UO, Grats. If one of these other fine folks haven't already helped you find a nice spot, pm me on here or on Irc and we can get you moving in.
Grats. Make SURE you read the housing guides here on the compendium about house security if you arnt 100% aware of how it works. Welcome to UOR and grats on the new home http://uorforum.com/threads/renaissance-guide-to-home-ownership.6057/