Should I stay within my Budget or pay more for potential earnings?

Reduce Vacancy and Bad Debt.

I noticed I had vacancy in the column twice, so I reduced both to total 8% like you suggested.

This tells me two things: Obtaining a variance will be more difficult because there are already policy considerations in place intended to reduce density & (2) There is clearly an over supply of rental units in this area otherwise the overlay would not exist. 

These strategies reduce living expenses, offer easier financing options, and are ideal for college towns, urban centers, or large employers.

This significantly lowers the cost per door and improves your return on investment.Scalability: A three-story walk-up design allows you to maximize your build cost and land use, just like most professional apartment developers do.Control with New Construction: Starting with a new build ensures fewer risks, as you’ll have control over the property’s condition and avoid surprises from existing structures.Pro Tip: If you do go with an existing property, make sure to thoroughly vet the deal to avoid hidden costs and issues.For first-time investors, multifamily new construction is often the best way to scale quickly, reduce costs per unit, and build a sustainable rental portfolio.

Because I would rather earn less and be more hands off Baltimore city has A class areas and F class areas and everything in between.

Reduce Vacancy and Bad Debt.

There are many other angles also you can take to both increase profit, reduce risk, etc.

Worst case deposit money at each bank and earn.