What do you think happened to Baelfire? Is he in the town somewhere?

I think he's in a different city or town, since when he came through the portal, Storybrooke didn't exist yet. I'm guessing the magic returning will allow people to leave Storybrooke now, so hopefully Rumpel will be able to search farther afield now. Bae would have had to assume a mundane world name when he came through; 'Bailey' sounds close; he ought to start there.

This is my theory:
Baelfire must actually be about the age of his father by now, because if Rumpelstiltskin was already the "Dark One" when Prince James and Charming were born, and Bae was 12 when his father turned into the "Dark One" and when he dissappeared he was but slightly older...
Doesn't answer where he is... but I do wonder if he possibly is Henrys Dad, because if he was married at the time he met Emma, he must have been older than her, right?

^I'm really convinced that Baelfire is Henry's father but I think that if like you said, Baelfire is much older than Emma, it kinda messes with my theory :/
But I think is certainly in our world :)