Chances are they still wont allow it but it's worth the shot. 

(However not recording a deed can create further issues so its worth talking to a local attorney.) 

Negotiate deed in lieu which may require cash payment to lender to make up some negative equity. 

Any mistake can create a domino effect and impact both investments.If your current investment is performing well, save up that money and use it to build a pile of cash for a new investment.

Might be worth looking into.

You'll want to understand what kind or notices and documents you need to get executed to either up their rent or turn the unit.Solid long term tenants are worth their weight in gold in my book so if theres a way to up the rent and keep them happy I's say thats the best route personally.

I'm looking to purchase my first official investment property, but I'm running into steep competition against cash buyers. 

If you plan on paying cash for a house hack then it's just a matter of much cash fo you have to purchase and do you have at least 6 months of reserves available to maintain the home when you're not brining in incomeThose are my thoughts

But with all the covid19 no eviction garbage, I’m thinking this might be worth looking into.

I recommend the Midwest for its affordability and strong cash flow potential.