would this townhome make a decent rental?

[AspiringMustachian]

I have a 3 BR townhome I bought last summer that I am living in right now. It's valued at about 194k, I owe 190k on it right now. It's only 8 years old.

Taxes are about 1k per year.

HOA fees are 114/month.

I could probably rent it for 1350 a month.

I know right now it wouldn't make sense as a rental as it costs too much (I have an FHA loan with PMI at about 1200/month); but I am wondering if it would make sense later, after I've paid it down to 80% original LTV and refinanced. I think I can get my mortgage payment down to 800/month by doing that. I've read about the 50% rule but that seems rather impossible in my area and from what I've seen on biggerpockets, etc most investors in my area have to settle for much less than that.

The property is in a good neighborhood with lots of young families with 2-3 kids. I didn't buy it as a rental but eventually I do plan to get a single family house (maybe in 5 years or so) and I was thinking of not selling it when I leave.

[arebelspy]

Not particularly, but if you're okay with a low return thinking long term, it's not as terrible as some people post.

It doesn't meet the 1% rule, and has an HOA on top of that.  That's a pass for me personally.

I'd probably eventually sell when you can without losing money - the amount of work for doing (maybe) slightly better than break even.

Taking the returns of your area when you don't have to invest in your area (or RE at all, in fact) is a poor excuse to own a poor investment.