With my wife and I's first just starting to take his first steps, the size of our house was shrinking rapidly. I'm a film / television editor and cut features and commercials from home about half the time (the other time I'm on site in post houses or production companies) so I naturally had one larger room in our house dedicated to an edit bay to have clients over. That needed to go, and we needed the room for a playroom not to mention having a screaming toddler in the house while trying to screen cuts wasn't going over too well with my clients even if they tried to pretend it was fine.
So we turned to our creepy garage that was infested with black widows, spilled chemicals and had holes and torn drywall throughout. When we bought the house a few years ago as a short sale which had been vacant for about 6 months, there were even homeless squatters camped out on the big shelf in the garage with an old mattress. Needless to say, the garage always was a bit unsettling to enter. With ample street parking, the only thing we would lose in this conversion was covered parking for our cars which didn't bother us in temperate socal weather so we went ahead with the conversion plunge.
In the end we not only gained a great professional space that I can host clients in without having them enter the house (other than for bathroom trips), 400sq feet of extra living space and hopefully extra room that buyers in the future will see as an added value to the property rather than just converting it right back to a garage... but we tried to leave that option open and make it an easy switch back if we need to in 5 - 7 years when we sell. Overall, we're quite happy with how it all turned out. To check out more pics (they limit us to 4 here) check out the full album under my profile!