Define location with an ANDROID_SDK_ROOT environment variable or by setting the sdk.dir path in your project's local properties code example

Example 1: add android sdk root to path

export ANDROID_HOME=~/Library/Android/sdk
export ANDROID_SDK_ROOT=~/Library/Android/sdk
export ANDROID_AVD_HOME=~/.android/avd

Example 2: sdk location not found. define location with an android_sdk_root environment variable

I know this answer is late, but I hope it helps others.

The answer is simple. You have to just copy your local.properties file to the folder where project is stored and it will work like charm. But remember, it must be placed in the root folder where the project is stored.