Our main plan is to get a bigger house in near future (4-5 years) and keep this house as a rental property. 

Investigate the reasons behind vacancies before proceeding.Unreliable Cash Flow: Inconsistent or declining cash flow projections may suggest unrealistic expectations or hidden expenses.

This is true with how you structure your deal: pref, carry, fees and waterfall, projected return thresholds, hold periods, etc.Reputable sources: there are many mastermind groups out there.  

I would probably keep the other house regardless of what I do because of the low interest rate.I am now wondering if I should hire a Qualified Intermediary (my realtor calls this an "Accomodater") so I have the option to buy a one level rental, stay where I am at, and if in the future I am unable to live in the two level home I am currently living in (our second home that is my primary residence), convert the rental to a primary residence.

I have pulled a few permits here and have done some larger projects.

Quote from @Brad Helmink: Oh, also, I used the BP projected rent calculators on a few new properties they've sent me, and their estimate was quite a bit higher so be careful there.

Glad to hear that most of the people here are also concerned.I haven't been asked for any fees or wires yet, just the application (which I haven't filled out). there is no 6 to 7% interest loans  the only exception is a local community bank where you would have substantial deposit relationship a local project etc..

Other overpriced to get a higher margin depending on the area that the project is, the people that are dealing with, etc. 

Possible i'll do a HELOC in the near future.  

Look up Micron Technologies, it’s a huge $100 billion project.