Over time, it's a multiplier factor vs all-cash, depending on how much time. 

It is the amount a business charges above their direct cost.If your contractor has a 1.50 markup (which is reasonable for a remodeling contractor), that means that if the estimated cost for a job is $10,000, they'll multiply the $10,000 x 1.50 and arrive at a $15,000 sales price.Now many people who know little about business and even less about the costs of running a business will say, "Oh, look at that crook.

It's an alternative to a bank, where you NEED to take out policy loans to buy income producing assets and repeat, it's not a one and done but a multiplier effect that's going to make it excel.For those curious about numbers since it hasn't really been mentioned here.

If you have a minumum multiplier to qualify people on income, e.g., income must be 3X rent, how do you make the calculation for a tenant using a section 8 voucher?

MF hedges against market shifts and cap ex. also doors are a multiplier X so if i have 100 units under 1 roof and 1 of my tenants moves out and trashes the place well thats only 1% of my expense.. as opposed to 1 SFR which would be 100% of my expense.. the only aspect I could potentially agree with is the liquidity.. but lets start off with IF you are investing in holding real estate then you SHOULD be holding LONG TERM. so liquidity is only a tertiary calculation.

That if I can pass on a sizeable net worth that he will be able to multiply it.

I would still go in with as little cash as possible so I can purchase another property and multiply my returns with the same cash. 

Explain how cash on cash return (COCR) is calculated.What is the equity multiplier for this investment?

My 2 cents, maximizing your multiplier is not going to be the best long term strategy. 

Multiply that by 3 years and you saved over $12,000 on taxes.