With the birth of their second daughter, the owners of this Denver ranch house had to face the fact they were losing ground in the space race. Having already turned their garage into a bedroom for their first child, they had run out of rooms to convert to other uses. But they still needed more space. Their goals: a bedroom and bath for each of their children, as well as an eat-in kitchen. Working with a real estate broker, the couple weighed moving versus staying put and adding on. The location of their home was the determining factor. They live in a central Denver neighborhood that's convenient to work and to the kids' schools. Buying a larger house would have meant moving farther out of town and having to cope with the city's daunting traffic. Remodeling their postwar ranch house was the smart investment.