A millennial couple who grew their net worth from less than $100K to over $800K share the 'house-hacking' strategy that made it possible

• A New Hampshire couple who are 28 years old are trying to retire by age 35.
• Aggressive saving and a "house-hacking" strategy have grown their net worth to over $800,000.
• They're pursuing a FIRE lifestyle with the goal of eventually becoming full-time parents.

In 2019, at the age of 23, Lauren Simpson and her husband Ian decided to pursue an ambitious goal: retire by age 35.

Over the last five years, the New Hampshire-based couple, now aged 28, has grown their net worth from less than $100,000 to an estimated $834,000 as of June, according to documents viewed by Business Insider. Through a combination of savings, investments, and passive income via rental properties, they hope to be able to spend up to $150,000 a year in their decades of retirement.

Simpson said the FIRE movement, which she first learned about in 2019, was a key inspiration for her and Ian's retirement goal — FIRE is an acronym for "financial independence, retire early." While some people in the couple's lives are skeptical that their goal is achievable, they remain confident.

"The way we see it, 50-year-olds panic that they have not yet saved enough and that they have only 10 to 15 years before retirement — they aggressively save and end up retiring," Simpson said. "Rather than panicking at 50, we did it at 23."

Many Americans are struggling to save for retirement, but the FIRE movement has offered some people a blueprint for achieving financial security. While the methods and goals of FIRE advocates vary widely, some save most of their income, take on side hustles, or delay costly life milestones like having kids. While the FIRE movement isn't for everyone, experts say some of its general principles — like the benefits of saving and investing at a young age to take advantage of compounded investment returns — are applicable to a wide audience.

Simpson shared her and Ian's top strategies for improving their finances and why one of their ultimate goals is to become "full-time parents."

"House hacking" has helped them grow their wealth

Simpson works in financial services as a marketing director and Ian works in IT as an asset manager — they both make six figures annually. Roughly $350,000 of their net worth is from retirement accounts like a 401(k) or Roth IRA.

The rest is from the equity they've built in four properties they've purchased over the last three years: one primary residence and three rental properties. Their $834,000 net worth includes Zillow estimates of current property values. These properties also provide the couple with rental income that they put toward their savings.

In 2021, the couple, both of whom work remotely, moved from Florida to New Hampshire. Simpson said Florida offered the perk of no state income tax but that it was "way too hot." New Hampshire has no income or sales tax, more desirable weather, and housing that was in their budget.

Given the housing market was so competitive, Simpson said they made an offer sight-unseen — their first time ever visiting New Hampshire was for the home inspection.

In addition to their primary residence, the couple's real estate portfolio consists of two multi-family properties and a single-family property. To afford their three investment properties — each of which is located in New Hampshire — Simpson said she and Ian have used a creative "house hacking" strategy to minimize their down payments.

When someone buys a second home or investment property, mortgage lenders often require a downpayment of at least 10%. But when someone buys an owner-occupied property — one they're moving into — they can sometimes qualify for a down payment of 5% or lower.

To qualify for a lower, owner-occupied down payment, the couple had to live in each property for at least one year. For the last three years, they've moved every 12 months.

"Moving was a necessary evil to get so many properties for so little down," she said.

While this strategy requires taking on a significant debt burden and can come with significant private mortgage insurance costs, Simpson said the rental income from their properties and rising home values have helped make it profitable.

In addition to buying investment properties, Simpson said she and Ian have done whatever they can to grow their savings.

"As we've advanced in our careers and earned raises, our budget has grown, but our savings rate goal — 70% — has stayed the same," Simpson said, referring to the percentage of their income they aim to save annually.

Despite their financial progress, the couple has encountered some challenges along the way. They had their first child last November, something that has put pressure on their savings.

"A NICU bill and other medical expenses dropped our savings rate to 60% in 2023," Simpson said. "So it is a moving target now that we have a baby to take care of, but ultimately our son is who we are doing all of this for."

Retiring early would make it possible to become "full-time parents"

Simpson said one of the biggest reasons she and her husband want to retire early is so they can be "full-time parents."

Growing up, she said her parents dedicated "all of their time" to her and her siblings. But once they became empty nesters, they realized they "didn't have a lot in common" and ended up getting a divorce, she added.

In comparison, Ian's parents spent more time prioritizing their relationship. They didn't "attend every extracurricular activity" or "coach the little league baseball team."

"When my husband and I talked about the merits of both parenting styles, we realized that we wanted to do both," Simpson said. "FIRE gave us the opportunity to do that."

By retiring early, they'd have enough time to dedicate to their children and each other.

"We see money as a means to build connections and foster family," Simpson said. "Money isn't meant to be buried under a mattress or hoarded like acorns."

Are you part of the FIRE movement or living by some of its principles? Reach out to this reporter at jzinkula@businessinsider.com.