Thank you everyone for your great suggestions! I love the amount of knowledge/experience our community has.
johnnyapollo: I definately like the sound of option 1 and you are right that option 2 sounds easier. I might go for the first one though since it is the face of the house and I would like it to look good.
Bantan: Thank you for the illustration! Your solution also sounds great and I might take that approach. However, I am not sure that there is only one spot where the water settles. When it rains very hard I get water in my garage and I don't think it enters in a specific spot but kinda all over under the doors. So I think I still have to dig a trench all the way from the beggining of the garage to the end.
Another thing I noticed yesterday - on the right side I have my gutter going into a pipe that goes under ground - probably into main city sewer or something like that. I might be able to have my trench drain to connect to the same pipe as well. So now I can just remove the water all together instead of just letting it flow out on the left down to the backyard. I wish I'd have more building experience to do it right the first time.![]()