Is it worth it to add a 2nd floor?

[Albert Ng]

I'm renovating a house with flat roof. The house is 1240 sf in South San Jose (Valdosta Rd, 95121). We plan to move in & live in a house for about 5, 7 years before getting a bigger place. Due to damage, leak, & the age of the roof, we will have to remove the roof & the ceiling to make repair. . I'm considering if I should add a 2nd floor. Here are a couple of options. Your input & advice are appreciated :-).

Option 1: Add 2nd floor. Due to the side of the house & the lot, we can only add a 367.5 sf, at the cost of about $100K.

Option 2: Change flat roof to slope roof. This will make the roof last longer, plus some arctic space for junk. Cost about 20K.

Option 3: Leave everything as is, and re-roof the flat roof. Cost about 5K to 8K.

We have cash for the project & can handle the monthly payment for the house. If you are us, which option would you pick? and why?

Thank you :-)

[James Cheung]

I would look at 2 numbers:  1)  what is the $/sf selling in your area? 2)  what is the median sales price of a house In your area?  Adding the 360sf at a cost of $100k=> your cost is $300/sf.  I suppose the market price is a lot higher than $300/sf.  And if the additional square footage won't make you the most expensive 10% in the area, I would go forward with the addition.

other than financial perspective, you may need to consider the trouble you have to go through living there while renovating.  Sometimes there are things money can't buy.