Perhaps a dumb question but how can you make money flipping cars monthly if you're paying TTL? Not to mention the hit on income tax.
Short answer is 'skirt the rules,' I guess. Its been my Dad's hobby for 50 years, and its all done privately.
Monthly might be overstating it. Probably one every 6-8 weeks, sometimes longer when the market dries up (decent cheap cars are getting harder to find for various reasons). Between the two of us, it averages out to 3 or 4 sales each a year. If we like something we buy, we'll put tags on it and use it as a commuter car for a while so that will bring the number down too.
Basically we find cheap, small cars. Almost always have less than $4500 in it. Don't fool with salvage vehicles, rebuilding wrecks, or anything like that. Look for vehicles that make good first cars, commuters, Dave cars, whatever you want to call them.
Example: A guy at work had a 99 Accord with 137k miles on it. It was in decent shape and he already had the timing belt done at 100k. Only issue was his daughter had owned it and it was FILTHY. Just absolutely nasty. He was asking 3800, but we got him down to 3000 cash. So we paid sales tax when we transfered the title (roughly 300 bucks) and spend a Saturday morning pulling the seats and detailing the inside. Wash it, wax it, wait for the title to come back, then set it on the highway with $4700 on it. Guy bought it for 4200 to use commute to ORNL. Probably cleared 800 when all was said and done.
Essentially, we're making the money people leave on the table when they don't want to fool with moving their own cars. He's done it long enough friends/family call him when they're looking for a car, or looking to sell one. Lately, we haven't had to fool with sitting anything by the road, someones usually called dibs before we get to.
Yeah. Don't hold me to it but I think you can sell 5 cars a year in TN before you need a license.
I believe that's correct.