I cannot see my coop from my house - it is behind the garage. I find that a plus!I
If you make a very secure coop, you should not find the need to be able to see it. I would question putting the hens close to your neighbors unless you are certain that you have local permission to have chickens. The noise from the hens could be a problem, depending on your neighbors - believe me, those hens can get fairly noisy!! On the positive side, the area under the tree seems to be built up, so if you put in a sand based flooring, there should be enough run off from rain and gravity to wash the sand. Enough sand and the poop will dry fairly quickly, enabling you to scoop the poop with a kitty litter scoop. (I keep wanting to say Pooper Scooper here!)
Are you planning on letting them free range at all?? In that case, I would say the tree spot seems good.
As for the side of the house - it seems large enough to me for 3 - 4 hens. Instead of making a coop and having to walk alongside of it, you might want to make one similar to mine. While my coop is an A-frame, you could build a 1/2 of an A frame against the house, tall enough for you to enter and care for the hens! Just make it about 6 ft. high and go from the fence to the house, with a door in the front for you to enter. Actually, that would make the chickens less obtrusive, and would not create a nuisance to your neighbors.
I am attaching a copy of my coop and hope you can visualize it as a lean-to in your long narrow area. That way you will have more ground space for the chickens and you can enter it - and it will be nearly invisible!!
Good luck to you and your ladies!! I am enjoying mine so much more than I ever anticipated!! Pat Corona