Police say a 20-year-old former resident of the home in the 700 block of 20th Avenue, there as a guest, was arguing with a current resident about possession of an XBox. The former resident then threw the console through a window and into the front yard.
Another resident of the house returned home around 10:30, saw the altercation, and then joined the fight.
The former resident left, but police say just after midnight, he returned and set fire to the back porch of the house. The four people in the home at the time were able to escape without injury.
Police say the suspect then called the house just after 12:30 from a downtown payphone and taunted them and make additional threats.
Officers went to the suspect's current home and waited for him to return, where they arrested him on investigation of arson.
Fire investigators say the house was severely damaged in the fire and is a total loss.