Hotaling retired from service after the war and returned to Illinois, where he married a 39-year-old widow named Carrie Cass on December 9, 1868. In the fall of 1869, Hotaling was elected postmaster of Rochelle, a position he occupied until 1884. In 1871, Hotaling appointed his wife postmistress pro tempore and ventured to Central America, lured by an opportunity in the railroad business. However, the tropical environment proved too harsh for Hotaling, and he returned to the States after six months. In February 1874, perhaps nostalgic about his earlier experiences in Brazil & California, Hotaling traveled to South America with an interest in gold mining. The climate and complex obstacles involved in the trade took their toll once more, and Hotaling returned home after a mere two months. It would be his last known expedition outside the United States.