Converting garage to livable space while keeping it functional as garage

My neighbor just did what you want to do to your garage, and I live in an area where they are very strict about garage conversions. They’ve got a tiny house with a detached single car garage built the 1920s. They have a toddler and needed the space. They put the insulated door on, then dry walled interior. Put small wall AC unit, nice cabinets on back wall, industrial carpet. And the coolest circular skylight that illuminates like you wouldn’t believe. Then French doors on side that faces the house. Ikea furniture. I want to move in!

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