These types of homes will usually be financed with a non-owner occupant loan with 20% down, or on a Zero Down program like my company offers to qualified investors.

If I purchase a property using hard money then sell it using a wrap around mortgage, would the hard money lender require me to have insurance on the property or would my buyer's policy be sufficient?

While I do think there is plenty of blame to go around, and there are many homeowners, investors, or speculators that jumped into the bubble with eyes wide open, I mostly put the blame on the securitization process and on government policies that encouraged home ownership.Our educational system provides only the most rudimentary financial education.

I have enough skin in the game that I know I will lose my money if I don't follow through on our agreement = I am motivated.As a lendor - "CYA" would be my policy.

Many times it is not the agents decision but a company policy.

Question is, will a bank lend to my zero asset entity based on the facts of a real estate deal alone?

. -- some commenters are correct in pointing out that you had $305 in the deal and cashed out $308 from the refi, so you actually have no cash left in the deal, giving you an unlimited return (cannot divide by zero) =) Even better!

There are numerous insurance companies that offer these types of policies.

Because my current apt (soon to be listed) is a rental property I have to buy a single family, condo or a duplex for rental purposes to qualify for the 1031 exchange (to pay little to zero taxes on profit). 

@Cathy A White prior damage would be excluded on any policy.