ah man this took me ages, you have to park the car dead right by the bin and rubbish, i found bonnet in worked best

i had to park directly between the cop car and the wall.

I had this issue as well. I found a satchel charge at a later time and placed it just within the back alley doorway. All the while looking a gendarme in the eye as he is yelling "restricted area" or something to that regard. I managed to walk away without any shots fired and detonate just as I was approaching the south safe house. Cleared that objective!

Ok, i tryed it at the first time between the green trash bin and the couple of trash and the second time i droped at the backyard of the building a backpack explosive, its still alive :/

I got it, for me it worked as i droped a backpack explosive at the backyard entrance in the house it self.

where do you go for the mission?

@timebomber it's given by the insurgents. not sure what exactly triggers the mission. I think it's when you get a high enough rep with the insurgents.

It's on the SW island on the southern most dirt road. It's an insurgent held part of the island. Neaby is a market, south of Bala Airfield. same location there is a market there

After a few failed attempts and reloads I parked it right against the front door parallel to the building and got out and walked away real quick before the guard had a chance to warn me then detonated it and watched from the hill and was destroyed

If you dont have any bomb car, plant some charge at the police station, they will do.

I figured the best way is as follows:
-Move the car at the left side of the house, next to the sign with "no weapons" ;-)
-While hugging the wall with the car, drive backwards to front of the house, so the back of the car is almost at the pole. Remember: do NOT drive to fast against the pole because the car will explode. little bump will be okay.
-I figured that some part of the car must be at the front of the building.
-Trigger the bomb from a distance. This way it works 9 out of 10.

If it still doesn't work, finish the building off with explosives as mentioned in other posts.