The answer in practice may be somewhere in between (?). 

Many lenders want to see insurance in place as part of their "underwriting"Are all hard money lenders participating in this chicken vs egg challenge or are there some that use common sense and have adjusted their practices to accommodate the various laws throughout the nation?

On a practical basis I don't see why someone would do the split and sell.

Like many (most) businesses it requires an investment of capital; money expenditure for ongoing marketing; management of operating, marketing and professional personnel; keeping accounting records and filing tax returns; established sales practices; constant monitoring of goals, budgets, and productivity; establishment and implementation of operational systems; and providing customer service.  

This is a very common practice and it would be much more rare for an insurance company to not inspect a property after signing a contract.

Written by attorney investors, it's full of practical advice about the management of investment property, has sample forms that can be edited, and - most importantly - tells you what your primary state laws are and where you can read them.

I learned a ton of information in my four years at the Colorado State University school of Veterinary Medicine, but it pales to the practical and applicable information I gained with boots on the ground working with older and more experienced veterinarians on a daily basis. 

I see replys immediately and up to a day or more later.Given the delayed replies and practicality with any automated tool I don't see a practical solution OTHER then using their smart phone app. 

Some practices they promote are suitable for you, and some are not. 

I've been "analyzing" some properties on Zillow for practice and to see if this would even be feasible for me to accomplish, I haven't found any properties under 4 beds that would cash flow, however there are properties that have more rooms within my pre-approval price range that look a lot better on paper.