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Modulars are tough when you're talking about an add-a-level- if the existing house isn't perfectly square (and they rarely are) nothing lines up correctly and you end up with a mess on your hands. You've also got to consider routing of the existing plumbing vents, etc., up through the new space, which isn't as easy to do with a modular. A good stick-framing crew could take the roof off that house, frame the second story, and have you dried in and weathertight in about 3 days, so that's not really a concern.
I don't think you'd see a savings in cost going with a modular either- at 1400 sf you're talking about 2 boxes, so the costs of the crane alone are going to be high relative to the square footage, and the engineering/fiddling to get everything to work with what's below will offset the potential savings vs field-built.
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