It looks pretty decent as a rental. Even if you strip out the HOA dues, you're earning ~$1,100/mo on a $130,000 property. Not a slam dunk, but definitely not crazy, especially for new construction in a low vacancy area.
Any chance you're able to re-fi the mortgage?
What's the worst case scenario regarding faulty material/litigation issue?
You're fairly levered, so a prolonged vacancy will leave a mark.
In short, if you're on firm financial footing, and can ride out some bumps in the road, I'd keep the property. If not, I'd sell it.