I am considering buying a starter home for my family (around $300k), living in it for a year, and then renting it out while buying a larger home for our family, like a 5-bedroom in the high $400k to low $500k range.

Sometimes the service line can be inadequate Amanda a larger line bored in.

Larger apartment buildings tend to be more varied. 

For example, some neighborhoods have much larger percentage of owners than investors, in which case SFH may be more desirable.

You could just focus on maintenance, but that is only one of many tasks that a short term rental must manage.

You may want to see if you can start putting away more money so you can have a larger down-payment. 

If you have a larger portfolio to deploy, they are not going to be close enough to fulfill your needs, and you will have to find other options.

I can't speak to the return thresholds for development but it's safe to assume it's higher given the larger risk profile.That being said, it doesn't hurt to give it a try as you never know where those new relationships will take you.

(There is also a fourth sub-tier of A+++ properties which includes your awesome lakefront homes and 7+ bedrooms at 700k - 1 Million. ) In the Poconos market, we have been seeing homes that are smaller or larger be the better performers. 

It's now time for us to buy a larger family home, but I don't want to sell my 1st home b/c I'm going to rent it out as well.