Any thoughts of increase visibility for a rental property in Virginia?

The point of making money is to increase the quality of your life.

If we can increase our buyer demographics we'll likely see time on market drop by 80-90%.  

Although still rare, some of these duplexes are now coming with impact windows, which further lowers your insurance and increases storm protection, so this may be something else to look into.

Rent appreciation also tends to be higher and cash flow tends to be much better over time as rents increase more steeply, but it may take several years to spin off positive cash flow as opposed to right away.

Additionally, the property is strategically positioned within a larger development vision, which includes building 12 patio homes and two duplexes on adjacent land, further increasing the long-term value and income potential of the investment.

As you increase in size and wealth, this becomes more valuable.

If values of real properties continue their long term increases, then owning more property even if it means having paid higher prices will turn out to be a winning strategy, provided the buyer is able to maintain ownership through periods of possible negative cash flow and or refinancing necessity. 

Is it worth keeping the house and increasing the rent to $1750 or should I sell in the market that we are in?

See if they might be willing to increase their offer slightly or cover some closing costs.