The 2 story neighbors may or may not have seen it when some skinny dipping occurred. If they did see it, they've not mentioned it. Part of me says let sleeping dogs lie, part of me says get it out in the open to know for sure.
I suppose our relationship is good, he's not shy to ask to borrow stuff, I always oblige if i can. I wouldn't say we're close friends, but we're friendly, if that makes sense. I'm thinking that since nothing changed after the lawnmower blade incident, that it may be less awkward to let sleeping dogs lie.
When we first moved into this house, we didn't have any privacy from the next door neighbors 2 story home. We still spent lots of time naked out back but limited our exposure of ourselves to them to getting in and out of the pool. I laid on a float from time to time but my wife limited her sunbathing to the lounge poolside, out of view of the two windows facing our backyard.
Not having heard any complaints or having any law enforcement visits, we began to expose them to a bit more of our lifestyle with doing various projects. Before the backyard was put in; pool/spa, hardscape, landscape, patio, outside kitchen and patio cover, I still ventured out back with my orange spray paint to outline our plan in the dirt. I know the previous owners knew about us because the window shutters would close every so often after I was back there.
The previous owners never complained and the man/husband would look over the fence and talk to me occasionally. He'd always end our conversations with "continue enjoying you day!" The current owners moved in after our privacy screening ( trees) had already matured. We don't have complete privacy but it's enough. They have to do some bobbing and weaving and stretching to see us but we're not doing anymore privacy landscaping. They've lived there for several years now and haven't complained so I suspect we're good. According to law enforcement, unless we're doing something lewd, they are not going to come out and tell us to get dressed in our own backyard.