Sniffing alcohol is it bad?

Yes. Rubbing alcohol is a poison that should not be inhaled or consumed. It is to be used on the skin to clean a wound. It can cause severe metabolic problems and even death if ingested. Ethyl or drinking alcohol should also not be inhaled. The intoxication that occurs from its inhalation can also be fatal.
Yes. Alcohol, when inhaled, bypasses the stomach (where some is lost in absorbtion) and more importantly bypasses the liver, where it is metabolized, so higher alcohol levels are achieved more quickly, which increases its toxicity, both in terms of the brain (driving, impaired reflexes, behavior problems) and elsewhere - liver, heart, pancreas etc. Talk to your health care provider about problems.