Yeah thats a good point, seems like to much work to get something efficient going. I can only imagine how many people catch on to this real quick and put you in a hairy situation. Plus i would not want to run the risk of cops being involved , or lawyers for that matter, if they get nervous and think they are being extorted or something.. You may scare suzy - q manager away and off to the piggly wiggly she goesI would stay away from this one. Too many ways to make money without being shady. First off you are taking advantage of business owners by getting a name that is the same as the business with a different domain type..... Then if they say no thanks, you want to sell it to their competition.... And then on top of all of that if you still don't sell it, you want to yank GoDaddy chain and return the name for a refund.
Please, go home. I live in this area and the last thing that I want to do is start pissing off local business owners.