I already do 'toy recycling' with DD1 so she has a few staples (her toy kitchen, blocks, train set) then the rest gets put on a rotation so a bunch is packed away then brought back out every so often (keeps things fresh, stops the clutter and her being overwhelmed by lots of choice so she can focus on things a little more). As time goes on, certain things don't make it back out (as she gets older and loses interest). Those things will then come back into rotation based on DD2s needs. DD1 doesn't really have any huge attachment to any of her toys, she already gives DD2 things and trys to involve her. She only got her own room when we moved here so she is used to play things being in a common area.