Rent out for a negative cash flow vs sell house at a gain?

[Minka Sha]

Which option would you pick, and WHY?? Also, if you can think of Option C, you are a rock-star! :)

So, condo is 2 BR, 2 BA in North Pacific Beach area in San Diego, CA. Great location, walkable to the beach. I bought with only 5% down, and my monthly payment (principal, insurance, taxes) $2700/month + HOA is an additional $400

Option A. Keep as a rental, probably rent for $2700-$2800/month, so a negative flow of $400-$500/month

Option B. Sell it now, net gain about $40-$60K after taxes, commissions, listing price, etc