Should I rent out or sell

[Vasug Real]

I got a SFR property that has mortgage that I'm paying about $1500 / month. Property price according to zillow 260k, mortgage left to be paid- $140k.
Rent for this previously was $1500. Now trying to rent it out for more and its been in the market since a month.
Its a very older property -1921 built. It's in a very nice school district. 

I also chose a property manager and they listed for a steep rent, it didn't rent out since a month. What are the next steps or advise would you provide?

Now would you advise me to rent it out or sell it off?
Sell it off - because I'm worried if I will ever be able to sell this property considering the market would be down for coming years.

In this neighborhood, all the old houses are being demolished and being built new by companies. Should I follow the trend and probably build a duplex? (I already confirmed the zoning with the city)
I live on my W2, no sustainable income from this property yet. This was my primary residence for 4 years before I moved out to a new house. Now I am in dilemma as to how to best use this property.