Actually that will work just fine for you..I would get the vibration pads and bolt the compressor down to the garage floor so it will not tip over..
Also install a service disconnect in the circuit right by the comprssor so you can easily shut it off if you are not using it or you need to do any service to it..
Pipe the drain to a valve so you can easily drain the tank on a regular basis..
Run overhead lines to your paint area and put a air/water separator and regulator on the wall in a convenient spot..also might be good to have an air outlet and regulator out in the front by the garage door to run a air impact for changing tires or running air wrenches..
Air lines and outlets are kinda like electrical in that you cannot have too many outlets in convenient spots around your shop..