Select by Location with negative 1000m buffer, switch selection, select by location "Within" again from reversed selection set
Step 1:
- Selection method: Select Features From (default)
- Target Layer: Houses
- Source Layer: Big Polygon
- Spatial Selection Method: Target layers(s) features intersect the Source layer feature (default)
- Apply a search distance = -1000m
Step 2:
Once you obtain the selection set (only features inside the "big polygon" and that are located 1000m from the boundary will be now selected): SWITCH SELECTION
There are a few ways to switch (reverse) selection; for example, right click on the layer in the TOC --> Selection --> Switch Selection
Step 3:
Use Select by location on the reversed selection set:
- Selection method: Select from currently selected features in
- Target Layer: Houses
- Source Layer: Big Polygon
- Spatial Selection Method: Target layers(s) features are completely within the Source layer feature
- NO Buffer is applied in this search
The resulting selection set will contain all features that are completely within the "Big Polygon" and whose boundary is less then 1000m from its boundary.