In Tennessee to get your bike titled you need the mso and original bill of sale to show taxes have been paid. If taxes have not been paid, you will have to pay them. As far as inspection goes if your county does not make you go through one, then you might get by without one. In Tennessee all you have to do is sign a piece of paper saying it's street legal. From there they leave up to the cops to determine if it legal, if you ever get caught.
Insurance on supermoto is quite cheap. I checked into it and got quotes around $40-$50 a month.
If I were you I would look for a bike that has been titled to save you any hassel.
You can always buy a bike and then buy a $100 junker with a title and use it's tag.