RE: what plane/engine combination for small space/budget
You could also think about a 50cc plane the likes of Wild Hare. Their planes are in the 79" range for length (wingspan is immaterial, as the wings are two piece removable). Airframes run $430 to $500, less hardware. A NIB DL-50 will run you ~$390.00 (includes muffler and ignition). hardware is your choice, but go with the best MG servos you can afford. You can get into IMAC with something as simple as Hitec 6xx series servos (non digital) or go all out with digitals.
I have two Wild Hare 50cc birds and they will both fit in our Plymoth Voyager mini-van, with room to spare for other stuff.
I'm not saying that the glow 1.60 size birds are bad, but for just a little more $$$, you can have a 50cc gasser.
My opinion.
Jon