Using your phone as a hotspot

Is it even possible to set up an iOS phone as an access point if you don't have any cellular data?
(I'm thinking about hooking up a router + the phone as an access point + then another phone...)

That’s what you call a range extender... It should work just fine.
http://profandroid.com/network/wifi/...-repeater.html

If you run into trouble, try doing a quick search... Just look up "android phone as wifi repeater" or "range extender"... You might end up needing to root the device...