When I run the modeler in qgis 2.14 I get no results from the select by location algorithm. I tried outputting my buffer polygon and using the select by location plugin and it worked fine. I have the same setting in both but for some reason the modeler doesn't do anything.
Select by location generates a selection on the input layer, and not a processible output layer. You may either...
Extract by locationinstead or
Save selected featureswith your
Select by locationresult as input (screenshot).
cp. QGIS modeler: select by attribute wrong results, same issue with
select by attribute