Novice investor, Advice needed on whether to sell?

Hi team,

May last year I purchased my first property – a 2 bedroom unit in a strata complex of 36 units in the suburb of Armadale in WA.

Purchase price $227,500
FHOG $14,000

I have since moved out of the complex and rented it out at $265pw.

The unit has achieved next to zero capital growth over the last year unfortunately.

My goal is to buy property to renovate or subdivide and make quick capital, but with this unit, my borrowing capacity is restricted, as is my ability to raise a decent deposit.

If i put it on the market now, i can expect to get $235k for it. agents fees are $6300 all inc. I currently owe $197k on the property.

I can reasonably expect to clear around $20,000 on the sale.

The $2000 a month i put into the property can go into savings, and a year from now( assuming my circumstances dont change at all) I will be able to support a subdivision or renovation project.

Ive heard and read various reports about a second dip in the US and Aussi markets, and the Morgan Stanley report about Aussi Property being 40% overvalued.

Is it worth me holding on to this property, or to cut my losses and wok towards saving for a deposit?

Any advice is greatly appreciated.