I have one useful warning, re soundproofing small rooms at home: the more you soundproof it, the less air exchange there is, so in a small room you can end up overheating in it very quickly. At my 2nd shop, I had a single shotgun in NOLA with a nice big closet. I like to think long term when moving into a new place, and this place was perfect for "business in front, party in the back" set-up -- 4 rooms in a line with kitchen and bathroom in the middle. In the back, there was a big closet, that I lined (top, walls, bottom) with the pink insulation sheets (they come in 4 x 8 panels, in the US, and are basically some kind of petrol foam about 1 inch thick). Then I put carpet over the floor -- single shotguns are up on brick or concrete piers, to lift them off the ground, and sound could have travelled out through the floor.
Result: big win, soundwise, but you could only play in there a short time before overheating.
I ended up having conversations with all the neighbors, over time, to give them my number and asking them to call me any time the sound was unwelcome.
Turned out, pretty much everybody told me over time that they enjoyed the sound, whether me or others (I didn't sound good, then, IMO, and some visitors didn't either). That is with a full time shop in the front two rooms, no second thoughts about playing so long as between 9am-9pm. Nobody ever called about the sound any time playing was happening. That was NOLA, but the result was in the same in NYC, everywhere.
I've played at home everywhere I've lived for the past 20 years. Every neighbor has said the sound is welcome, to them, and I think it's mainly because they know they are considered, and taken into account. To this day I'm not a good player, and God knows I've had some bad sounding playtesting happening in my shops over the years, so it isn't that.