SesameMike
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There's one sketch from the mid-70s where Ernie gets ready to go to the laundromat. It's where Ernie fills up the laundry basket with all manner of toys and such so there's no room for the laundry itself. The location is not made clear; Bert does ask if "...there's a basketball court down there?" in response to Ernie taking the b-ball along with everything else.Oh, I was thinking it was an early 1990s episode. So they had a laundry room in the 1970s? Wow.
As for the location of E&B's place, the first few seasons had metal garbage cans just outside their windows, so it makes sense that they are in the lower level of 123. And in one sketch, when Ernie was bundling up and such just to go to Mr. Hooper's store to get a newspaper, Bert said "...you're only going half a block!"