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Help me understand cloth....

I am trying to get my head around how cloth works now the new tools are coming. I have never used cloth in ue4, but can make cloth assets in Blender.

I see the majority of tuts are about giving characters nice clothes, but my concept was basically Import flag/banner, make asset with clothtools and walk physics bodies into it, but it seems that:

  1. Importing without armature (staticmesh) gives no clothtools possibilities, making it impossible to turn a literal blender sheet into a cloth sheet
  2. Adding empty bone or Blender weighted bone for skelmesh allows cloth assets to be made but painting seems bugged and physics asset model disappears
  3. The clothplane is onesided, so invisible from the back

Am I just approaching this from the totally wrong angle?
What does UE4 expect in a rational cloth-capable import for the new tools?