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Al, it's ok to make the notch higher than the foundation. There's no rule that says you can only make one cut and that your notch/ drop cut has to be the lowest cut. It's quite simple to flush off the stump after the tree is down (without hitting the foundation). ;)

With that small of a landing zone under the tree, I'm thinking it would be faster and easier to climb instead of using a mini lift. You'd lose too much working area under the tree. Either crane it out where a couple guys can have some room to disect the pieces and chip it up or else put 3-4...