In fact, Li Ba's residence is within the Kunwu Sect!
This was no longer a secret, because of Li Ba's sister, he almost turned against the Li Family. It was only because the Sect Master personally mediated that Li Ba finally reconciled with the Li Family and didn't completely sever ties.
However, this was just on the surface. To say that he held no grudges against the Li Family would be a lie!
The Sect was naturally aware of this, which is why they arranged for him and his sister to be within the Kunwu Sect.
This act demonstrates the Sect's regard for him, and now that he has obtained the candidacy for Sect Master, he is at least a Deputy Sect Master, having significantly risen in status.
His residence is in the back mountain, where generally only the Elders' Cave Mansions are located. Of course, the entire back mountain stretches wide and is a vast mountain range; how many Elders truly reside within is a mystery!
