Based on the aerial shots of the property building 2 ADUs may not be easy because of set back requirements and to be honest I know that you don't need off street parking if close to transportation and it is a garage conversion on a single family home.

If it’s real estate investors, then I feel I owe them honesty, but not necessarily any more than that.  

Appreciate all the responses and advice I read them all with thought and made my decision I’ll evict if the SD isn’t paid by end of the month.To answer some questions I bought the house when I was young (24) It was a fixer upper so I was desperate for tenants and I’ll be honest I didn’t know any betterOne reason why I waited this long was because I’m in NJ we had extremely strict laws during Covid and courts were closed for about 3 years also he pays rent (current market value) every month and doesn’t trash the placeIn a way I’m glad this happened though you can only learn from your mistakes and I’ll DEFINITELY be more strict moving forward Thanks again everyone for helping me make my decision

I don't think this is just about honesty. 

To be honest, I had a rough go of it as well when I was buying rental properties.

The wholesale manual and teaching, to be honest, is quite amazing.

In all honesty, this rental increase in a depressed area makes me wary that future increases will be more unreasonable and more extreme, and I should "get while the gettin's good."

House Hacking in NJ has gotten my wife and I to FI in a relatively short period of time you can house hack anywhere in all honesty. 

If you are offering it as a landlord, it's just semantics - you're charging higher rent and the incentive is that you waive the deposit.

Quote from @Arsen Atanasovski: Hello Sunny,All honesty Bethune is a class D even the outskirts of Bethune are all C/D, Harmony, Fitzgerald, shoolcraft, Hubbell and Schulze.