Then the banks multiply this air by doing so many electronic transactions that don't even have real cash behind them.  

Repeat that and multiply the losses over a career in real estate investing.

Generally the multiplier should be 2 to 3 times, depending on the industry, so I am thinking 300k to 450k. 560k seems high ...

The beauty of real estate is leverage and the money multiplier, not only in terms of debt but also in equity.

If your anywhere near the coast and/ or in a good neighborhood, multiply that. 

During Cheap Money Policy Era (2008-2020):Actual Inflation: 2.8-3.0%.Starting cap rate during 2009 era in many city is 8-10%.Appreciation Algo: 2x $inflation + city multiplier (for low cap city) ; by average the appreciation rate is 6.8-7% per year  Now if use exponential per year for appreciation from 2008-2020, the average IRR is between 9-11%.I've checked maaannnnyyyy syndicator track record, and the average of their Exit IRR is 15%, which is pretty good I think.

What you failed to mention is that is based on the entire 100k property, but we only put down 1/5 for the cash invested, so the return she be multiplied by 5 to be entirely fair which equals 7.95%Lastly, IMHO, I also stand by my thought process and startegy that residential investments, on an individual basis, offer more net worth building and tax deductions over time than cash flow, However, I also believe cash flow is very important.

I did have approx. 20 properties and felt very confident with multiplying money when I cashed out my 401K. 

@Jonathan Reed Keep in mind that while there are only so many houses on the market at any given moment but the low average days on market multiplies that to reach a much higher number of homes sold per year.

Multiply everything by 3 for the 60 lawns when we build out to capacity and there is a potential of $25,500 per year profits.