Learn Hardcore Russian: Парк находится недалеко от моего дома. - The Park is located not far from my house.

Находиться means “to be located / to be situated.”
In this sentence, Парк находится недалеко от моего дома literally means “The park is located not far from my house.”

In everyday speech, you can say Парк недалеко от моего дома without находится. It will still sound natural and is quite common.
Adding находится makes the sentence a bit more complete and neutral/formal, especially in writing or careful speech.
Without находится, the structure is like: “The park – (it is) not far from my house,” with the verb “is” understood, which is normal in Russian.

So both are correct; with or without находится is fine, but with the verb it sounds more like full, standard Russian.

Is недалеко one word or two? Why not не далеко?

In this sentence, недалеко is written as one word and means “not far” / “quite close.”

недалеко (one word) is a fixed adverb meaning “not far” in a neutral way.
не далеко (two words) is used when you want to emphasize the negation, usually in contrast:
- Парк не далеко, а очень близко. – “The park is not far, but very close.”

Here there is no contrast being made, so the normal spelling is недалеко as one word.