Otaru is a small port city on Japan’s northern island of Hokkaido, just 30 minutes by train from Sapporo.
It might quietly be one of the best food cities in Japan and that’s saying a lot. I’ve talked to so many travelers who’ve said the best meal they had in Japan wasn’t in Tokyo or Osaka… it was here, in Otaru.
The city’s appeal is only growing. The Shinkansen (bullet train) is currently being extended here, meaning you’ll soon be able to ride straight from Tokyo to Otaru in comfort.
And if that wasn’t enough, the three snowiest ski resorts in the world sit just outside the town.
So yes, there’s a lot going on here. We love Otaru for ourselves, but it’s also a fantastic investment opportunity.
The Property
We’ll break down one specific home currently for sale in Otaru’s Ryokan zone meaning it can legally be licensed for Airbnb or short-term rentals.
- List Price: $45,000 USD
- 5 Bedrooms 1 bath + Covered Garage (which is huge for attracting skiers)
- 20-minute walk to the future Shinkansen station and downtown dining district
Now let’s look at the numbers.
Closing Cost Breakdown
Total: ≈ $9,000 USD
All-in Purchase Cost: $54,000 USD
Renovation Costs Breakdown
I haven’t been inside this specific property yet, but based on our experience, I estimate the following upgrades to bring it to top Airbnb standard:
Total Renovation: ≈ ¥10.7M / $70,000 USD
Total Investment
Purchase + Closing + Renovation = ~$124,000 USD
Now let’s talk about what that investment can generate.
Airbnb Income Potential
- Average Nightly Rate: $195
- Peaks at $250 in winter
- Around $150 in fall/spring
- Average Occupancy: 50% (178 nights/year)
That’s $34,710 gross annual income.
Our clients typically net around 54% of gross after all expenses, including:
- Snow removal (~¥300,000 / $2,000 per year)
- Utilities (~¥300-400K / $2,500 per year)
- Management fee (28%)
That comes out to roughly $18,000 net profit per year, or a 14% cap rate.
The Bottom Line
Even with conservative assumptions, overestimating costs and underestimating returns, Otaru’s numbers look outstanding.
Some of our higher-end Airbnbs in the area pull $350+ per night in winter, and properties with unique features (like private saunas) often achieve higher occupancy.
For us, Otaru is the sweet spot in Japan:
- Affordable entry price
- World-class snow and food
- Strong tourism demand year-round
Whether you want a personal ski retreat or a profitable Airbnb, Otaru offers both.
Start investing or better yet, buy this house.
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Our team
Meet the founders.
Derek has been working in the Airbnb space for the past 10+ years and recently purchased a home in Japan. He is excited to bring this investment opportunity to others in the States & abroad.
Nick has a passion for adventure and has always dreamed of owning a property in Japan. His dreams finally came true when Derek brought him in on a deal of a lifetime in Hokkaido, Japan - one of Nick's favorite places on Earth.