Home addition (poll)

last month

I am buying this house and it is only 2 bedroom and 936 sq ft so I will need to add an additional bedroom or two. Looking for recommendations on whether to extend the house out on the side (above the garage) to add a bedroom or two small ones and have the area below be a carport ... or should I build a partial second story? What would be more cost effective?

Extend house out above garage
Add a partial second story
Another idea (please comment)

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