Studio Space With SO Much Potential!

We just bought our *first* house last week and we love it. Right outside of downtown Ann Arbor, close to the river, beautiful woods and scenery. The previous owner turned their garage into an artist's studio with separate doors, new windows and shelving.

We can't decide on what to do with it... a cozy cottage? a separate apartment for extra income? an outdoor dining room?? But I can't bear the thought of turning it back into a garage!