I hope this message finds you well. I’m weighing two options for our housing situation and would greatly appreciate your advice, given the complexities involved.

1. Renovate and Buy Another Property

• Invest to renovate our current home adding a bedroom to the house given our family outgrew the house. Our house is already paid off.

• Purchase another property in San Diego with a conventional loan.

• Likely, the new property wouldn’t be cashflow positive due to the market conditions.

2. Upgrade to a Bigger Property and Sell

• Sell our current home and move into a larger house to better meet our family’s needs.

• Use some equity from the sale to make this transition smoother.

I’m torn between maintaining our current home as an asset and buying  a new smaller house to use as a rental after we move back in versus simplifying and focusing on a single upgraded property 

Considering factors like market trends, potential equity growth, and quality of life, which path do you think would be most beneficial?

Thanks so much for your time and guidance!