My method is mathematically intense. 

But here is my gripe with seasoned RE folks on this message board - as a former mathematics teacher and now VOIP engineer, I can relate to how intimidating a new career or learning new info can be.  

CAPEX: If you use a very sharp pencil, have an engineering background, and a crystal ball mind, you might be able to arrive a mathematical formula to calculate CapEx reserves.

it works out mathematically that with the right combination of checks you can always get within $1k of the bid.

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

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.