Hang out somewhere posh? (6)
I believe the answer is:
reside
'hang out' is the definition.
(thesaurus)
I don't understand how the rest of the clue works.
Can you help me to learn more?
(Other definitions for reside that I've seen before include "Live (at an address)" , "Hang out with" , "Live in permanently" , "Dwell - settle" , "Make one's home permanently" .)