As the gangs and drug dealers are being displaced in the urban core they are winding up in the older burbs where the lowest price points exist.

Take a lesson from car dealers,  moderate margins on smart buys done regularly.  

This move would be similar to a drug dealer taking a deduction on his taxes for the meth he bought wholesale from his source.Keep in mind per Beth's advice, about 1099ing them,  the reason for 1099's is for the IRS to have a paper trail to follow the money back to the source to see if there are further taxes due to a miss-classified sub-contractor which is what the boys are. 

Got yourself a real winner, or a drug dealer..

Watch the property count as at ~10, the lenders will consider you a 'dealer' will  only go for a Commercial Loan. 

@Matthew Irish-Jones You are not that many units away from being able to hire someone full time.

http://abcnews.go.com/Business/gold-coin-dealers-decry-tax-law/story?

Doing so can lessen the impact of self-employment tax (i.e. dealer tax) and give you greater control of when and how you pay it. 

Sounds like a dealer activity that would be considered engaging in a trade or business subject to UBTI.  

I always tell them I'm a cash buyer(which I always am when it comes to cars) - I want to talk about trade in, and their price.I also never buy the extended warranty from my local dealer - there are real dealers who do real manufacturer warranties in high volume and get big discounts from the manufacturers due to their high volume.