Do this on a down year where values have dropped for whatever reason (we might be in that environment right now given interest rates).4.

Very peaceful . . .

Today though, we are in a high priced environment with expensive money.  

I don't think it's risky at all in the current environment, but if interest rates tripled or something then banks very well could become interested in calling loans.

It's the closest city outside California and with the 4th lowest property taxes in the Nation, no state income tax, and landlord friendly NV is a great environment for investing.

I did this to get some peace of mind about what direction to take, which actually led to walking away from a development deal.

This becomes especially critical in the current environment where you can earn 5% on your money easily and aren't tying up cash until the project is completed.2.

Not saying all tenants are bad, as most of us just want to make our rent payment on time and live our lives - but don't be surprised if you run into more headaches vs. spending a bit more money up front for peace of mind later on with placing better tenants. 

Cash-flowing SFR's are tough to find in this interest rate environment without value-add rehab work or a large down payment.

As for house-hacking an existing quad, only putting 5% down in this high interest rate environment will almost certainly mean you won't be "living for free" as is the point of house hacking.