Why BRRRR Strategy Is Becoming the Go-To Approach for Real Estate Professionals—Insights From Investors Who Completed 50+ Deals in 2025

From Quick Flips to Long-Term Wealth Building

Real estate operators across the market are reassessing their investment playbooks. Two Louisville-based investors, Mike Gorius and Kevin Hart, exemplify this broader shift: after executing 54 transactions in 2025, they’ve decided to deprioritize house flipping and concentrate their efforts on BRRRR strategy—a method designed to generate sustainable returns rather than quick profits.

The transition speaks volumes about current market conditions. While Gorius and Hart matched their 2024 deal volume, their revenue picture improved dramatically. “We only closed a few more deals than the previous year, but the average transaction size roughly doubled,” Gorius told media outlets. “The year prior, roughly 52 deals generated approximately $500,000 in revenue. This year’s 54 deals brought in just above $1 million.”

The Flipping Environment Has Shifted

The slowdown in local real estate activity is the primary culprit behind the strategy pivot. Since autumn, the Louisville market has experienced noticeable cooling. Inventory levels spiked from around 2,500 listings to nearly 3,900, fundamentally altering buyer dynamics.

“Properties are now lingering on the market at triple the previous pace—sometimes 30, 60, or more days,” Hart observed. This extended holding period creates a cash flow problem for traditional flippers who depend on rapid turnovers.

The math becomes unfavorable quickly. When properties sit unsold, investors continue paying carrying costs—interest on acquisition loans, property taxes, and maintenance expenses. Hart emphasizes the timing challenge: “If you overpay on entry, you lose the advantage of multiple competing offers. A property can remain listed for weeks, forcing price reductions. Success now requires purchasing at the correct price from day one.”

The BRRRR Advantage in Uncertain Markets

The BRRRR approach—Buy, Rehab, Rent, Refinance, Repeat—operates on completely different principles. Instead of selling quickly, investors renovate the property, lease it to a tenant, then refinance the asset to recover most or all capital initially deployed, while retaining ownership.

This framework provides better protection against market volatility. “With BRRRR, you sidestep the pressure of finding a buyer in a crowded marketplace,” Hart explained. “You complete renovations, secure tenant occupancy, and refinance—all without relying on market conditions to move in your favor.”

Gorius and Hart acknowledge the method carries its own considerations. Rehab expenses can exceed projections, and appraisals might disappoint. However, these risks feel more manageable than betting on a flipped property selling during a buyer’s market.

Building Wealth Through Patience

The BRRRR strategy shifts the timeline from months to years, perhaps decades. Short-term profitability takes a backseat to long-term equity accumulation and cash flow optimization.

Gorius articulated the philosophy: “Real estate rewards patience. If you invest $10,000 from personal reserves to refinance and repay a private lender, you still own the asset. Lease it to tenants—even with a $100 monthly shortfall initially—and eventually rent growth covers that gap. Over time, you transition from losing money monthly to generating consistent positive cash flow.”

This perspective represents a fundamental reorientation. Rather than celebrating quick victories, sophisticated investors are prioritizing stability and compounding growth. Market headwinds that make flipping unattractive become irrelevant when the exit strategy centers on long-term rental income and property appreciation.

For markets experiencing similar transitions, the lesson is clear: adaptability separates resilient portfolios from troubled ones. BRRRR strategy offers that adaptability when traditional flipping models falter.