Your location is fine. I think people intuitively think that putting the thermometer port somewhere in the middle of an average vessel fill is going to give you a more accurate reading but you're going to have temperature stratification no matter where you put it. When installing a combo kit, you can't really expect to put it up 4" higher or you lose liquid level range. Of course, down low requires a little more attention to exterior heat protection, but now you have that covered.
That stock looks really thick. I mean, I know you had it and obviously free is the best kind. I'm just saying something in case someone thought they had to use something that thick to make it work. After playing around with different stock, 18g aluminum or 26g stainless would work for your type of DIY.