Many successful active investors transition to passive investing as a way to diversify into new asset classes or markets and to earn back some of their time and still benefit from the positives of real estate investing.To answer your question - I would allocate a portion of the $200,000 to MF as I believe this is a good time to invest in an asset class that has recently struggled. 

I am new to RE investing and I am learning right now before I make my first moves.  Many of the BP podcasts are from a pretty young perspective, both in terms of flexibility and maybe even priorities.  I would love to...

James Dainard is spilling all his secrets in his first book, taking all the experiences he's learned from in his 3,500+ flips and sharing it with you! 
Have you been interesting in trying a flip but don't feel like y...

But what if you could do, as I have, multiple deals under 5 k and earn back that 5 k and 10K more each deal...and exponentially higher on each deal that is higher priced than that?

Syndicators make an acquisition fee just for buying the thing, management fees, a disposition fee for selling the thing, and have the opportunity to earn carried interests in the form of 20% of the profits.

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

Renting it out would let you keep the asset, earn some extra cash, and possibly benefit from tax deductions like depreciation.

Worst case deposit money at each bank and earn.  

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.

It's crazy to me that someone would buy a property halfway across the country from a man who appears to have lied and contradicted himself over his entire real estate sales career.