If you plan to have rental property as part of your strategy, you should keep this one. For several reasons. First, you have already paid the big costs of purchase and loan origination. Second a sub 3% interest rate fixed for 30 years means that you will be paying no interest over that time as the value of the house and the rent will increase about the same pace as the loan interest rate. An $800 payment will likely be laughable 30 yrs from now. Third, the costs of this rental are confined. A row house is relatively low risk as the costs of maintenance are unlikely to have many surprises. Fourth, when the PMI drops off the mortgage in March, you will have a decreased payment about 2/3 the cost of the HOA fee. That seems to tip the value of keeping it to your favor. Fifth, you are highly leveraged at a low cost, which gives you a darn good return already, when you add the bottom line value of depreciation, this is going to become an ever-increasing value to you.
For me, this is a keeper. I would still be paying that $800 payment in 2042 when it is a lower cost than the typical 2014 electric bill will be. And by 2042, the rent will be more than double what it is now.
My friend bought a house for $32,000 in 1969 when he was 27 yrs old. The mortgage was about $260 per month and was finally paid off in 1999 when we was 57 yrs old. The home was worth $186,000 in 1999 and rented for $2000 per month. At the end, my friend was paying his mortgage quarterly. He still owns that house today (75 yrs old) and it is worth $410,000 and rents for $3,100 per month. It yields the same amount as his social security check.
I say keep the long view, keep the property, and buy 5 more like it.
Landslave :-)