Digital Social Hour — Preston Landis: He Bought 40 Houses at Once… Without Even Seeing Them | DSH #1629

Date: November 19, 2025
Host: Sean Kelly
Guest: Preston Landis (PJL Invests)
Episode Theme: Scaling a Section 8 Real Estate Portfolio Rapidly, Leveraging OPM, and Managing 100+ Properties Remotely

Episode Overview

This episode explores how Preston Landis went from zero to over 100 Section 8 rental units—often buying sight unseen and closing on a 40-house deal at once. Preston breaks down the realities of Section 8 real estate investing, the role of mentorship, how he scaled using other people’s money (OPM), the critical factors of property management, and major lessons learned, emphasizing transparency and actionable advice for would-be investors.

Key Discussion Points & Insights

1. Why Section 8? Security and Consistency

• Stable Payment Stream: Despite economic uncertainty and even during government shutdowns, Section 8 payments have kept coming.

  “My payments are still arriving...the government shut down, housing subsidies are not affected.” — Preston (01:55)

• Massive Demand and Longevity: Section 8 serves millions and has survived decades of political changes.

  “I don't see any president or anyone ever making 7 or 8 million people homeless.” — Preston (03:23)

2. Preston’s Real Estate Origin Story & Early Struggles

• Started with Online Mentorship: Paid for Tom Cruz’s online real estate course (~$7,000).
• Early Setbacks:
  • First property’s roof collapsed within weeks, costing $15K in repairs (07:11–07:28).
  • Used up most of his liquidity and considered leaving the industry after initial failures.
• Key Turnaround: A seller-financed deal in Georgia—3% financing when rates were much higher—restored his confidence (09:06).

3. Scaling Up: From Four to 100 Properties

• Raising Capital through Hustle: After running out of money at house 4, Preston used earnest money and relentless networking (copy-pasting “buy boxes” to 200–300 wholesalers).
• OPM and Portfolio Deals:

  “I put the property under contract and not, not having a damn clue how I was going to close on it.” (12:19)

• Buying in Bulk: Eventually bought a 40-house portfolio at once, dealing with 11 vacancies (“a complete nightmare...but also a blessing” — 15:07–15:21).
• Remote Management: Owns 62 units in Alabama—never visited in person; relies entirely on property management teams.

4. Management: The Make-or-Break Factor

• Check Local Authority Response Times: Some housing authorities move quickly (like Montgomery, AL), others can be slow—direct impact on scalability and cash flow.
• Vet Your Property Management Firm:

  “I recommend learning the business before handing the business off.” (21:07)

• Watch for Fees and Bad Actors: Always get references, scrutinize contracts, and beware “setup,” “admin,” and “junk” fees.

Notable Incident:

• House Fire from Tenant Activity: One property burned down due to a meth-related fire, but insurance payout exceeded repair costs—a key lesson in adequate coverage and crisis management (17:41–18:34).

5. Section 8 Myths, Mechanics, and Tenant Realities

• Myth-Busting: Section 8 Tenants
  • Most tenants stay 6–8 years, far longer than traditional renters.
  • Tenant portions of rent can be as low as $0–$500/month, based on income, not state (15:53).
  • Rarely are properties trashed; regular inspections keep standards high.
• Inspections—A Blessing, Not a Curse:

  “It’s once a year...one day out of 365...if you pass, you get another 12 months of guaranteed rental income.” (31:54–32:13)

6. Financials and Scaling Numbers

• Cash Flow Goals:
  • Target: $600 net profit per house per month (35:41).
  • Keep a 10% repair reserve.
  • Lower property management fees (6% instead of 10%) when scaling up.
• Return Targets: Ideally, 30–45% cash-on-cash ROI.

  “If you invested $10,000, you would get anywhere between $3,500 to $4,500 back that year.” (33:08–33:17)

• Growth Ambitions: 250 houses by end of 2026 (34:14).

Example Calculation:

• Buy 2 houses/year = $1,200/mo cash flow = $14,400/year, even starting with ~$15–20k down (42:00–42:30).

7. Financing Tactics

• Seller Financing: Main strategy; approachable with as little as $2,500–$7,500 down per house (43:20, 46:29).
• Using Private Money: Willing to pay extremely high rates (up to 30%) in earlier deals to avoid losing earnest money and secure portfolio deals (39:00–39:08).
• Transitioning to Bank Loans: Once established, moving toward regional banks for refinancing and further expansion (41:17).

8. Lessons, Mindset, and Advice

• Jump In and Learn on the Fly:

  “Just jumping in the pool whether you know how to swim or not. It’s how you learn.” — Preston (38:01)

• Cut Out Negativity: Remove people, habits, or processes that don’t build you up (38:09).
• Finding Deals is Easier Than Managing Them: Management, not finding deals, is now the major challenge (25:41).
• Use OPM (“Other People’s Money”): “If you have the good deal, you can access the capital. There’s so much money out there.” (40:55)

Notable Quotes & Memorable Moments

• On Section 8's Security:

  "I have not heard of in my network of people, anyone not being paid at all." — Preston (02:39)

• Early Adversity:

  "The back half of the roof collapsed. So obviously, Section 8 orders an immediate move out..." — Preston (07:28)

• On Scaling Fast:

  "The last portfolio I closed was 40 houses, which was for about a month a complete nightmare because there was 11 vacancies." — Preston (15:07)

• Role of Good Management:

  "Learn the business before handing the business off. Right...if you blindly do it, it's like going to a bar, drinking 15 beers and trying to throw a dart and hit the bullseye." — Preston (21:51, 23:44)

• On Paying High Interest to Grow:

  "I paid 30% on that loan. I bought $100,000 and I paid a flat 30% rate. Paid him back in eight months." — Preston (39:00)

• Jumping In:

  "Just get going. Learn, educate yourself and get going." — Preston (38:40)

• On Section 8 Tenant Stability:

  “The average tent stays anywhere from six to eight years...They keep the place clean.” — Preston (29:01)

• Entry Capital Needed:

  “You could put $6,000 down plus closing costs. You're probably in it for $7,200 to $7,500. And that's a real deal...” — Preston (46:29)

• On OPM:

  “Use other people's money. OPM. It's the key. It really is.” — Preston (40:32)

Timestamps for Important Segments

• 01:55: Section 8 payments unaffected by shutdowns
• 07:11: First house disaster story (roof collapse)
• 09:06: Turning point—successful seller-financed deal
• 15:07: The 40-house portfolio deal (“nightmare and blessing”)
• 17:41: Fire destroys property — story about insurance
• 21:07: Advice on learning management before delegating
• 25:41: Management is harder than finding deals
• 31:54: Section 8 inspections and why they're a “blessing”
• 33:08: Explaining cash-on-cash returns
• 35:41: Targeting $600 profit per house per month
• 38:01: “Jumping in the pool” philosophy
• 39:00: Paying 30% interest to avoid losing a big deal
• 40:32: Using OPM—Other People’s Money
• 42:00: Simple math for scaling at 2 houses/year
• 46:29: Entry capital needed for Section 8
• 51:22: Three-year journey from first deal to 100+ houses

Additional Insights

Platform/Markets:

• Operates primarily in Alabama and Georgia; was once spread across 7 cities, now advocates focusing on 1-2 for management efficiencies.
• Never visited most properties bought; proof-of-concept for remote investing.

Mentorship & Giving Back:

• Openly credits Tom Cruz as mentor but differentiates his own one-on-one approach, only accepting 10 mentees at a time to ensure quality.
• Welcomes DMs for anyone interested in learning Section 8 investing.

Final Thoughts

Preston Landis delivers a candid, step-by-step look at the realities behind massive, rapid real estate scaling—demystifying both the unique strengths and the risks of Section 8 investing. He’s a compelling case for hustle, calculated risk, and the power of relationships over geography. This episode is packed with actionable insights for aspiring investors and realistic warnings about what to expect on the journey.

Connect with Preston:
Instagram, TikTok, and YouTube: @PJLinvests

Recommended If:
You want the real scoop on rental real estate, Section 8 investing, or turning adversity into rapid wealth—even if you have almost nothing to start.