This New Orleans couple moved to Japan and bought an abandoned home for $7,500 — now it’s a guesthouse that’s made $14K in revenue. Is this a realistic path to a 'self-sufficient existence'?

Since Evan speaks Spanish and Japanese, the couple narrowed their options down to Mexico or Japan, both of which have a lower cost of living than the U.S. Ultimately they chose to take advantage of Japan’s Startup Visa, which gives foreigners up to a year to set up a business that then qualifies them for residential status as “business managers.”

Kickstarting a new life

The Bentons decided to set up a guesthouse and were able to keep costs down on their initial property purchase since Japan has about 9 million akiya, or abandoned homes, which can often be bought for little money. They were able to find two of these around the corner from each other on Ōmishima Island, a location that suits their lifestyle and sees tourist traffic.

“Ōmishima felt like home from the moment we arrived,” wrote Dani. They’ve converted the first property into the Benton Guesthouse, a vacation rental for one to six guests, and are using the second property — an abandoned inn that included two plots of unmaintained land — as their primary residence.

They bought the guesthouse property in the spring of 2023 for $9,292, which included $7,500 for the house plus $1,500 in transaction fees, a $212 one-time real estate acquisition tax and $80 annual property tax. They bought the other house for $18,500.

The guesthouse property was built in 1953 and had been abandoned for 10 years, so it needed considerable renovations. Along with the rental license and amenities, this cost the couple an additional $29,000. The Bentons hired local contractors for some of this but kept their costs down by doing much of the work themselves. Their principal residence sat empty for 40 years, and they are in the process of renovating it as well.

Diversifying their income streams

Since opening to tourists in November 2023, they’ve made $14,000 in revenue from Benton Guesthouse. While they’re only getting started, they’ll likely need to make more than this, since average annual expenses for a two-or-more-person household in Japan was approximately ¥3.5 million, or $23,000 in 2023.

While the couple has focused on the Benton Guesthouse to demonstrate financial stability to immigration authorities, they also grow and sell tomatoes, tomatillos and hot peppers, as well as keep bees to sell honey.

Going forward, they plan to expand their guest capacity, increase the number of honeybee colonies, sell hot sauce and salsa and set up a roadside farmstand to sell vintage items such as furniture and cookware — including many items that belonged to the properties’ previous owners. While it sounds like their experience has been mostly positive, a decision like this shouldn’t be taken lightly.

Should you choose the same path?

The couple made a wise choice by choosing a country where at least one of them spoke the language. While you may be able to get by with English and a few local phrases in tourist areas, navigating real estate purchases, bureaucracy and daily life will require more. Besides, you won’t truly settle in if you don’t speak the language.

They’ve also discovered that “cheap” real estate can come with substantial transaction costs, taxes and renovation expenses and efforts. Plus, if you're a U.S. citizen, you may still have to pay taxes to the IRS (in addition to your new home country), so you’ll need to thoroughly understand how taxation works if you run a business abroad.

You’ll also need to know the ins and outs of your visa. Many countries are now offering digital nomad and retiree visas but, like the Japanese Startup Visa, they often come with conditions and income requirements to be eligible. For example, to get a retiree visa in Costa Rica, you need a “lifetime” monthly pension of at least $1,000 from a “competent authority.” This means your 401(k) won’t count, but Social Security, annuities or retirement funds will.

For some, moving to another country could open up a path to financial freedom and a lifestyle they desire. With some preparation — and a solid understanding of the financial implications and bureaucratic requirements — your move could be (mostly) trouble-free.