Detective Jeff Lape told the Rotorua Daily Post on Saturday morning police and fire services were working together to find the cause and establish if the fire was suspicious or not.
"The other house was evacuated as a precaution because the power has been cut off and there was still heat [from the blaze] until late [on Friday night].
"Because they are close together it could have some damage but I can't confirm that yet."
Fire investigators and police could be seen in the house on Saturday morning. Photo / Ben Fraser
One resident believed the occupants had been living in the house for not much longer than a week.