Bootstrapping Business #2. Well, actually bringing in revenue, since I started this a few months ago. Within about $200 of break-even at this point.<p>In summary, buy reliable used cars that are rough around the edges and with low asking prices. Spend leisure time doing necessary repairs to ensure reliability, safety. Spend time doing detailing work, which in the future may include repainting panels, and basic underbody rustproofing. Use as a car for 2 to 3 weeks as a burn-in to ensure I have something that meets my quality standards. Sell for 125-140% of cost. Limit yearly sales to keep under the transaction limits for a non-dealer.<p>-----<p>Pros:<p>* Excluding first car, cost me ~$2500 for good tools and safety/disposal equipment.<p>* Usefully leverages my vast knowledge of the automotive landscape.<p>* Improves my sales and negotiation skills, which will benefit Business #1<p>* Improves car repair skills and detailing skills, which is useful since I'm a hardcore car-nut.<p>* Turns a hobby into something that makes money. I'm having a blast and making money doing it.<p>-----<p>Risks:<p>* Unable to move a car, reducing profit, which means time not well spent.<p>* Poor assessment of a car I purchase for resale. Risk eating all profits or taking a loss.<p>* Losing interest. Though I'd have all the tools I'd ever need for my existing toy.<p>* My spare time I could spend on other things.<p>* Fraud, which I'm taking precautions against. This includes things like payment issues, or buyers not completing title transfer and doing terrible things.<p>-----<p>Where it goes next:<p>* Nothing exciting for a while. Sticking to things like Corollas, Civics, Camrys, Accords, CR-Vs, RAV-4s, F-150s, etc. Known quantities with easy parts availability and consistently strong demand that are easy to refine my process on (assessment/inspection, negotiation/paperwork, repair, pre-sale QA), and learn how to properly do bodywork at an acceptable level in a private garage.<p>* In 2 years the hope is to move into still easy-to-move cars with a higher profit-per-vehicle. Lexus ES, Lexus RX, Acura TL, Acura MDX, Mazda MX-5, etc.<p>* In 4 years the hope is to start going after cars people really desire on the used market. "Affordable dreams." Things like older BMW M cars, AMG Mercedes, Subaru WRX/STis. Late 90s Japanese sport coupes. This has the potential to bring in enough money to cover rent, utilities, health insurance/care, and groceries in full.<p>Business #1 will always bring in 4-5x as much money, but having a hobby pay the bills 5 or 6 years from now? I'm stoked. Since there's no pressure for this to pay the bills, I get to enjoy it too.