Buying a home that is still occupied

[Watson Smith]

Bought many rentals but never one that was still occupied. I like the house and location. I can't do an inspection so I would be buying it blind. If I could work a deal with the bank for the price I want this was my plan for the occupant:

Inform them about the transfer of ownership.

Then give them the option:

1. Pay rent to me
2. Buy it back from me as I would finance them the loan
3. They would have to leave

I want input from people who have done this before. What was your experience and what did you do?

Thanks!