Bet the flop. There's are potential flushdraws, straightdraws and such on board. You don't want to be giving those a freecard.
I think you can't raise the river since it does look like a T or at least two pair.
Also the preflop reraise is the minimum? I'd raise a bit more than a minimum... if he folds, then be it, they really really rarely do - especially at those limits.
On turn, the pot is around $3, you can probably bet more than $1, he checked for the second time, which wouldn't be the case if he really had a hand (at least usually it's not *long drawn-out sigh*).
Summary:
1. Raise more preflop
2. Bet flop
3. Raise more on turn |