I know mathematically it seems to make sense, but the banks require a down payment, which is a percentage of the purchase price, not a percentage of the value of the house. 

Just the multiple side of the mathematic, instead of dividing by the fraction. $2300 / .02 = $2300 x 50

Sheets for my CCIM and RESSI (Real Estate Securities and Syndication Institute).He taught us much about mathematical tools for analyses; especially calculating IRR with paper and pencil, and the HP12c was advanced stuff.He was a nice and caring gentleman.

I agree with others that mathematically speaking paying off a mortgage does not make a lot of sense but you allude to the psychological component and that is because after all personal finance is personal therefore sleeping in a paid off property just feels better.

Or alternatively try to come up with a system that compensates the PM better if the profit from the property is higher, I'll need to run some mathematical models to see if that even make sense. 

Lets face it, looking for homes to invest in takes enough time without having, for instance, to figure out mathematically if the deal makes sense with repair costs, holding costs and financing costs. 

From a cash on cash return basis, it is pretty much mathematically equivalent to traditional financing.

Without local market fundamental's, it's mathematical certainty of a depreciation in values.

Mathematically, the Seller will just add the 3% commission back to the sales price.

I can mathematically prove to you cold calling is bad!