Rents would be difficult to come by to cover both mortgage and hoa(not even factoring in any other costs), and if we sold for what an identical unit across the hall listed for we might walk away with a small pile of cash to start investing.

Like @Tim Herman said touch base with the HOA to see what the rental caps are or confirm they are even allowed.

Low taxes are offset by the HOA fees and not great returns as rent prices are low as well. 

The HOAs are around $300/month, which really cuts into the profitability it seems.

My hesitation with this option is the HOAs I am seeing and the lack of potential in the property.

It's a townhome and everything structural, including foundation/roof/walls and all common plumbing and electric are covered by the Strata (like an HOA) insurance.

The 50% rule is conservative in high rent markets where there is no HOA or Melo Roos, but it is not super conservative. 

I'll be a first time homebuyer and I've been under contract twice but terminated due to the HOA having a lack of funds.

It can be used for principal pay down, foreclosure avoidance, HOA, flood insurance and utilities.

I believe I've matched up liens and releases or satisfactions except for about 190K in 4 remaining loans from the Small Business Association, but there are two things that make me think it's better than I understand:1) The foreclosure doc asserts that "the line of the plaintiff is superior in dignity to any right, title, interest, or claim of the defendants, (list of defendants including the HOA and the SBA) and all other persons claiming by, through, or under the defendants and the property will be sold free and clear of all claims of the defendants...This asserting that it's superior makes me think that any other lien is inferior?