|"Are you a wizard or not?"
The title of this article is conjectural. Although it is based on canonical information, the actual name is a conjecture and may be supplanted at any time by additional information released from canonical sources. If this occurs, please move this page to the appropriate title.
Lupin was, at the time, living a lonely, itinerant existence, taking jobs far below his level of ability, always leaving before his pattern of growing sick every month at the full moon was noticed by anyone. Because of this, he had a very low income, as the friends who supported him are gone, and he refused to spoil his father's peaceful existence by moving back in with him, hence living in such poverty.
Albus Dumbledore tracked Lupin to this cottage in the summer of 1993, and offered him the post of Defence Against the Dark Arts teacher at Hogwarts School of Witchcraft and Wizardry. Lupin only accepted Dumbledore's proposal when he explained there would be a limitless supply of Wolfsbane Potion, courtesy of Severus Snape, the Potions Master.
After he departed from Hogwarts after his condition were revealed, he presumably returned to his cottage and continued to stay there until he rejoined the Order of the Phoenix, in which he would either participate in various missions or stay at 12 Grimmauld Place.