
For starters, NO PEE PADS unless you want, eventually, to have to 'untrain' him. Puppies should be discouraged from emptying anywhere other than outside in a contained area. My puppy buyers however, always like that I had our puppies on newspaper up one end of the whelping box as they told me laying newspaper down by the door to the outside, was of help. I'm not too sure about doing that BUT if you have a puppy in the Winter and bad weather, it might help!!
Crate - yes. It helps to have a pup who can be crated, for use in the car and for when you have to do other things and can't supervise 24/7 (who can!). I'd set it up, top and sides covered, in the living area by day, leaving the door open unless you have to leave the room/go out for short periods. And I have mine in my bedroom, alongside the bed to begin with at least. Mine still sleep in their crates, but not alongside my bed now. You may be able to crate your puppy downstairs, but if he's going to be distressed, why do that. His crate should be the one place he regards as safe and where you know he can be left when not supervised, without getting into danger or mischief.
As I remember, bearing in mind our puppies were those we kept from our occasional litter, and were in a puppy pen/or outside in good weather, with our two buy ins after we came to the end of our bloodline, I'd take them out roughly every hour, perhaps more if sleeping, after short periods of playing, IMMEDIATELY on waking from a nap, after each meal (depending on when they last emptied) and so on and I kept a thick towel to hand to soak up mistakes because there will be some, inevitably.
Good luck - new puppies can be fun but can be horribly time-consuming and at times, frustrating.