We are cash flowing quite nicely and I have far less stress.

Right now I am trying to stress to everyone that they need to be able to afford a property based on the long term rental potential even if the plan is to use it as a STR.

I paid over asking as well, but if the numbers work, they work so I wouldn't stress to much.

That must be an incredibly stressful situation to deal with as a landlord.

Dealing with a tenant who isn't paying rent can be stressful, but it's a challenge many landlords face. 

I stressed "typically" because in the legal world the answer is always: "it depends". 

The only folks that would encourage this strategy would be a lender with something to sell or someone that is not an operator that had to scrap and stress his/her way to success like most of us.

You’re literally neighbors, which might lead to tenants knocking on your door for minor issues.Tenant Risk: If you have a problem tenant, dealing with them can be more immediate and stressful since they live next door.

If you do not have any savings to support yourself, it will be difficult and stressful.

House hacking is a great start, but it is important to keep in mind potential downsides like privacy issues and the stress of managing tenants.