I think you can learn from this experience and reduce the likelyhood of it occurring again.  

What advice do you have for securing one's rehab project in Baltimore city (i.e reducing or preventing the incidence of theft or break-ins)?

With buying a house you are out mortgage, taxes and insurance.. only benefiting from principalWith an investment even at a 10% return will reduce your monthly rent significantly and should be out of pocket much less than monthly home ownership expenses..Mortgage you are committed long term not renting..I laid this down for my friend yesterday..

Your window of time for making money in STR is going to be reduced depending on where you invest.

Or should I ReDuce the Rental fee Eliminate the PM?

If you are confident in your numbers and know the range of return on investment, your risk will be reduced.

I've heard others playing it safe and reducing that schedule to 6 months.

Many of our buyers happily take the win of reduced interest rates and down-payment requirements from house hacking and add it to a value play by having an opportunity to kick-start appreciation.

I've had about 6 inspections from various professionals done; the only one I'm waiting on still is the Independent Appraiser's report, but he's indicated to me that not only is the property a 2 BR, 1 BA, but also that he's planning on reducing the square footage GLA of the house by 30% due to non-permitted addition in back.

Other ideas that you've probably already implemented are; reduce water usage (shower heads, toilets, convert to xeriscaping) and charge for pets.