Has someone started like ME claims cashing out his 401K?

One particular point can not be over emphasized; even if someone has and is willing to invest the capital in attempting to build or scale their business or investments, they still May fail if they do not possess or can not evaluate those who CLAIM to possess the necessary expertise required for scaling. 

So, this whole "you must live in the property for 1 year" claim that we see online seems to be completely baseless.

This is what I am encountering, in the current Mortgage Industry.If you think you will go FHA, Conventional, FHA 203k, etc. and then Quit Claim the property, to a Corporate Entity, or a Land Trust you run the risk of the lender discovering a Title Transfer occurred and activating the "Acceleration Clause" or "Due on Sale Clause" that requires the loan to be paid in full, within 'x' number of days.

There's a four a few blocks from my house with a handwritten "For Sale" sign, asking $200k, claiming $3150 per month rent.

Chat with them, and ask them where they find their guest (Airbnb, Furnished Finders, Insurance claims, etc).

Instead, try reaching out to regional insurance adjusters or property claims departments directly.

It protects property owners from potential claims or liens that could be placed on their property if the contractor fails to pay subcontractors, laborers, or suppliers.

Even if I have a claim every 10 years I will have saved $80k over that time period compared to the people who pay for better insurance.

That month he claimed to make a gross profit of $292,590.