Through enough money at it and nothing is impossible. It will not be inexpensive as you not be turning the carport into it, more removing the carport and adding to the house. For a living area the carport structure will be most likely useless.

$$$$ to rebuild it fully. and maybe. Depends on plumbing location and type. Septics have limitations on number of beds/baths.

We have a small flow treatment system, not sure much on the septic, but they did add a bathroom in the basement we never use as the space is mostly unfinished. We would most likely just get rid of that one so i doubt that would be much of an issue. So basically it would be a tear down? The roof area would be unusable?

By the time you add an actual foundation, the usable height of the room goes way down. Possibly to under the code minimum. You would need to change the roof type, and whee it starts out from in connecting with the main roof. Which means redoing the main roof framing, and possibly the roof shingles if you want it all to match. That is in addition to adding a foundation, plumbing, electrical, insulation, windows and doors, permits, inspections, and all the rest of the laundry list of a complete full addition.

Well shoot, guess my second option is using the room off my bedroom, but that room has a big picture window and a sliding door that leads outside to back yard. Would that be more cost effective to renovate or about a horse a peice?

Get an artichetct. Advise here is just a starting point, not gospel. Price wise, it will most likely be above whatever the estimate.

If you don't use that access, then you could certainly frame it out.

Again, get an expert. They will give you even better ideas.