I made this house in 2011 to show the potential of tiny 1×2 lots! My first house on such small lot, designed for my family of 6 sims. See also Tiny House IV by same concept, but improved with pool and better interior design.
I do not know how to create such small lots, I just downloaded them from ModTheSims2.com.
Lot size: 1×2.
Lot facing: South.
House price: about $100.000.
House size: 6×14.
Floor area: 164 squares.
Expansion needed: none, works with base game only.
PS: I do not know how to create such small lots like 1×2. I downloaded them from ModTheSims.info (Mini residential lots by MaryLou).