I got lucky and was able to refinance in 2020 with a conventional loan and completely remove any mortgage insurance because prices had risen and my appraisal was very high.

Otherwise, it seems like a loop hole to avoid licensure, insurance, cap gains, etc...which feels deceptive.Am I wrong here?

What types of strategies are you considering? 

It covered every strategy known to investors from nuts to soup at least the theory. 

I can think of mortgage, taxes, insurance, STR insurance, water/sewer, electricity, trash, internet/cable, cleaning (can pass through), supplies, and software.

But keep getting push back from Lender, and insurance (mainly lender).

When you refinance and then rent it out, you will have hard expenses such as insurance and possibly some utilities.

This means it should cover all your expenses including mortgage, taxes, insurance, maintenance, and setting aside a portion for reserves to cover vacancies, capex, etc.If you can put down 10% and cover everything, go for it.

Initially wanted to hold forever but with insurance costs rising/property taxes going up/threats of Hurricanes destroying home, considering cashing out.  

So if you can find a parcel that doesn't seem to have multiple fatal flaws, or at least you think you can add value to fixing/figuring out their constraints, then I would do that and then just flip on the MLS, especially if you are able to let it "season" a bit, which the title companies in California require anyway...they won't insure a flip of a tax parcel until some time has passed.