After I separate from AD, will my AF Reserve drills be held in my local area? If not, can I get a waiver to stay in the local area?

Is the Unit you are joining in the local area? During your two weeks it is possible to be sent out of the local area from where your unit is located. You will need to have a family care plan in place while in the reserves just as you are required to have while on Active Duty. Military service is not done at the discretion of your convivence or schedule. Sometimes you may be sent away for training or deployments. It's part of the job and should be expected.

The Reserve unit will be wherever you affiliate with a reserve unit. If they don't have your job you will have to pick a new one that your new unit does have. The Reserves is not AD, you don't pick a job and then move to it, you move to an area then pick a job in the unit close to you

Possible maybe, but very doubtful. What is your job? Is it available locally? Most important, what do you do with the sick family members should you be selected for deployment? BOTTOM LINE: I would think of another way to earn extra money and forget about the reserves.