I like the sound of #2. A garage is a HUGE plus in my mind. In our last apartment we had a garage for the first few months and then gave it up when we bought our house. We still lived in that apartment for two months with no garage and boy, did we miss it! It's sooo wonderful for biking in and out and when working on said bikes...

I also agree that a good microwave is really inexpensive these days, so don't let that color your choice.

Also, while 100 sf could be a big difference, it could also end up feeling like you have more room if the space is well designed (or well designed for your needs). We moved from a 2400 sf 'new' house to a 1700 sf 'old' house and it feels MUCH larger because we have so much storage now that our living area is more liveable. A garage could do that for you, too.