We’re proud to share that John Medina, founder of John Medina Buys Houses, was featured in The Wall Street Journal in a story about one of California’s most talked-about housing markets. The article, “Joshua Tree Was California’s Hottest Housing Market. What Happened?” (published April 3, 2024), looked at how the desert communities around Joshua Tree National Park boomed during the pandemic and then cooled as interest rates rose and the short-term rental market became saturated. The WSJ spoke with John as a Los Angeles-based investor who lived through that shift firsthand. We wanted to use the feature as a chance to share the full story behind it, including the parts that didn’t go to plan.
Why Joshua Tree Looked Like a Smart Bet
In early 2022, the numbers on paper were compelling. A management company estimated that a short-term rental in the Joshua Tree area could generate roughly $60,000 in annual gross earnings. With the national park drawing record visitors and demand for desert getaways climbing, the area looked like a strong opportunity. John purchased two properties: a 1,675-square-foot home in Yucca Valley for $290,000, and a roughly 1,000-square-foot home in the more rural community of Landers for $150,000. The plan was to renovate both and run them as short-term rentals.
When the Market Shifted
Renovations took about a year. By the time the homes were ready, the short-term rental landscape had changed dramatically. Supply had surged across the region while demand softened, and the easy returns that looked achievable in early 2022 were no longer realistic. The Yucca Valley property, located near Copper Mountain College and a park entrance, was well-suited to a long-term tenant. John secured a one-year lease beginning in the fall of 2023 and is now breaking even on it. The Landers property was a harder case. Its rural location made it a poor fit for long-term renters, so rather than keep absorbing losses, John made the decision to sell. The home sold in late 2023 for $250,000. After accounting for the purchase and renovation costs, the deal resulted in a loss of about $100,000.
The Lesson: Know When to Cut Your Losses
As John told the WSJ, he has flipped more than 100 homes over his career and had never lost money on a deal before this one. That track record is exactly why this experience is worth talking about openly. Real estate investing isn’t about winning every single deal. It’s about reading the market honestly, adjusting when conditions change, and having the discipline to cut a loss before it grows into a bigger one. Holding the Landers property indefinitely, hoping the market would return to its 2021 peak, would have been the more expensive mistake. The same calculus applies to anyone weighing whether to hold or sell an underperforming rental property rather than keep pouring money into it. This is the same mindset we bring to working with homeowners. We’ve seen what happens in both directions of a market cycle, and that experience helps us give sellers a realistic, no-pressure picture of their options.
Thinking About Selling Your House?
If you own a property anywhere in California and want a straightforward, honest conversation about selling, whether it’s a primary home, an inherited property, or an investment that isn’t working out the way you hoped, we’d be glad to help. Reach out to John Medina Buys Houses for a no-obligation cash offer and a candid assessment of your situation. You can read the full Wall Street Journal article here.
