We have a two story house and only about 4-5 feet of a front yard. Is this too close to work?

The white laser christmas light projector will work even in this small space, but keep in mind that it will only shine on a small part of the walls. In this case, you could get more units and set them in a line to cover the full range of the house.

Another possible solution might be installing the laser unit in a tree or on top of your house and pointing it downward to the yard. If you decide to use such a solution always think safety first and use appropriate solutions to hold the unit in place.