San Jose: Sell and Buy another home or build on existing home

[Balaji Chandrasekar]

My current SFR is 3bd/2ba 1100 Sqft on a 6800 Sqft lot in San Jose 95124. It was a rental for last 5 years but I have moved-in almost a year ago. We are finding it too small and could use additional living space (living room / additional bed room). Looking for suggestions:

1. Should we build - have about 300k in saving, No new loan and tax saving?

2. Should we sell and buy a bigger house (~1500 SqFt) in the same neighborhood - May need to take additional loan to buy bigger home

Thank you!

[Adam Mayberry]

Adding on will be best use of the money and keep the tax basis low, let me know if you need design and permit drawings.