Got a deal, but there's a tenant. What now?

[Jason McDougall]

First, let me apologize in advance. I tend to get long winded, but I like providing as much detail as possible.

I've found a house that I'll be putting under contract on Friday, the seller and I have verbally agreed to a purchase price. The only hiccup is that there's a non-paying tenant in place. Can somebody provide some guidance on how I should proceed? Specifically, these are my questions:

1. The tenant hasn't paid rent in a while, but the landlord doesn't have the heart to evict the tenant and his family. This is part of the reason why he's selling the house, because he doesn't want the eviction on his conscience. When I market the property for sale I will fully disclose the situation with the tenant, but is it typical for the end buyer to buy the property and then evict the tenant, or will the current owner need to go through the eviction process prior to the sale of the house? It seems like either way would work, but what's more typical? What are your experiences? I also thought about offering the tenant $500 to move out of the house and avoid the eviction on his record.

2. How do I set up a showing of this occupied house? I imagine that the situation with the tenant will worsen when he finds out that the house is being sold. I'm going to disclose to the landlord that I partner with other investors on most of my purchases and that I'll need to walk a few of them through the property. Does the owner tell the tenant that the house is being sold, and that some potential buyers will need to walk through the house? 

Thanks in advance for any help!