UPDATE: In a pivotal shift for real estate, investors Mike Gorius and Kevin Hart are moving away from house flipping and embracing the BRRRR method in response to a cooling market in Louisville. The duo, who completed 54 deals in 2025 and grossed just over $1 million, are adapting their strategy to prioritize long-term stability.
The transition from flipping homes isn’t a retreat; it’s a proactive move in an environment where quick sales are becoming increasingly rare. “We probably only did a couple more deals than in 2024, but our deal size almost doubled,” Gorius told Business Insider. With the market dynamics shifting, they are recalibrating their focus to the BRRRR strategy, which involves buying, rehabbing, renting, refinancing, and repeating.
Since last September, the Louisville housing market has seen a dramatic increase in inventory, rising from 2,500 homes to nearly 3,900. Days on the market have tripled, now exceeding a month, making it essential for investors to secure favorable purchase prices. “If you overpay for a property, it may sit on the market for a month because you overpriced it, and then the price just continues to drop,” Hart warned.
As the market cools, Gorius and Hart are emphasizing the BRRRR method for 2026. This approach allows them to renovate a property, rent it out, and refinance to recover capital while maintaining ownership. “You’re taking out the risk of the market,” Hart explained, noting that unlike flipping, they can immediately start generating rental income post-rehab.
However, they acknowledge risks associated with the BRRRR strategy, including the potential for unforeseen rehab costs. “From the get-go, you still have the risk of rehab and the risk of running correct costs to make sure that you can actually get a good appraisal,” Hart stated. Yet, the predictability of this strategy provides a sense of security amidst market uncertainties.
Gorius emphasized the importance of patience in real estate investment: “The truth is, in real estate, time does heal all.” Even if they initially incur losses, the long-term prospects of holding an asset can outweigh short-term challenges. “You can put tenants in there, and maybe you lose $100 a month at first… but over time, rent will go up and eventually, you’ll get that $10,000 back.”
As Gorius and Hart prepare for a new year, their strategic pivot underscores a broader trend among investors facing a shifting real estate landscape. The focus on BRRRR not only signifies a change in tactics but also reflects an evolving understanding of market dynamics and the importance of long-term planning.
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