This seems to be a very difficult concept to comprehend.Property Managers are not an off-the-rack commodity that perform equally. 

And how the system would create negative outcomes for those who did negotiate lower fees.

How much negative cash flow are you?

That could be seen as a positive or negative.   

I keep coming up with negative cash flow on many of the investments I am interested in.

His negative reaction and aversion to wanting a neutral third party to play referee was a tip off to me to do more research and after paying $25USD for an online background check on the seller I discovered he had multiple judgements against him for business fraud even though the title to the property was clear.My personal lessons from my scammer were1.

So, if you were just starting out and trying to build your net worth, I would say you are crazy to buy anything with negative cashflow. 

-Often a persons last years are in assisted living, a nursing home, or with their children, so I could take possession of the home (and generate profit from it) sooner than the persons death.Potential risk that I can think of:-Higher out-of-pocket costs/negative initial cash flow with delayed financial reward. 

Problem is that European countries like Portugal and Spain are following (or preceding) the negative STR regulations that you find in more and more places in North America.

However, depending on your goals, the concept may be a boon for you.