When I was a kid, a guy built a Christen Eagle in 1 car garage bay a couple of doors over. Plenty of people do projects like this in 2 car garages. It's possible to do it in just about any space, I'd guess.

Everyone's going to have their own ideals for setting up a workshop. If I were you, I'd start with a basic floor planning tool, and draw out where you want workbenches to be, where the band saw is going to be, where the drill press is going, where you're storing your parts, etc. You want about 6-8' of empty space around most of the work areasto move comfortably without being crowded.

Look through the build logs of people with projects like what you want to do and see how they have things set up in their photos. That will give you a ton of ideas.