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Sounds reasonable, the only part is you have to find the right junk at the right price. If you can't move the crap that you've bought, you take a 100% loss on those items and then you've got to sell several items just to make up for that. So I think with a careful eye and on a large enough scale, there's no reason to think this is not possible. It's somewhat similar to being a professional e-bayer I would guess, just...not online.
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But with ebay you've got an international audience and shipping costs are covered.
I guess he makes his money on volume.
http://www.youtube.com/watch?v=m8nU-q5YPRQ