To sell or rent

[slow2save]

Edit 1: added information to the facts
I am trying to decide whether to sell my current house or try and rent it.  I plan to move between where my girlfriend and I currently work to split the commute (with the way our jobs are currently, changing jobs is not currently an option).
Bought the house 1 year ago this week

Facts:
Market Value: $183 - 190k
Original Purchase price: $141k
Cost: $141k
1650 sqft, 3br, 1.5ba, .5 acre
Loan: traditional
rate: 4.1%
mortgage: $1100 (12 total payments as of this month)
Term: 30 years
Remaining: 29 years
Principal Remaining: ~$134k


Investments into the house: $20k
added .5ba, central air, redid kitchen, interior paint, electrical work
Current house value (not a fact, based on comps): $183 - 190k
Rental value (based on trulia, Zillow, and craigslist comps): $1500

If I were to sell within my expected range, what would my tax exposure look like? Capital gains since its within 2yrs of purchase?

Currently leaning towards selling, however, I could be convinced to rent with a solid argument.  This is the first house I have owned so I am pretty new to this entire process.

[Another Reader]

Selling expenses and your capital improvements probably make the capital gain moot.

[Mother Fussbudget]

Have you used BiggerPocket's "SFH Analysis" spreadsheet or one of the other back-of-the-envelope spreadsheets to do a 'turnkey calculation' on how your house would perform as a rental? 

My back of the envelope numbers show a 9.0 cap rate, and a $398/month cash flow rate.  It's tight, but it could work.