For investors looking to purchase properties here in SD at the moment, 20-25% down will most often leave you with negative monthly cash flow. 

And given #3 above, it leaves about 20% of rent for all other expenses like property tax, insurance and other PM expenses like leasing fee, eviction fee and other minor expenses like for e.g landscaping, pest control etc.

They wouldn't have any skin in the game and could just walk away and leave you high and dry if things go wrong with the property.

If your property manager is not listed as an additional insured, they may not be covered under your policy in the event of an incident on your property, leaving both of you potentially exposed to liability.It can save you money.If your property manager is not added to your insurance policy as an additional insured, they may be forced to purchase their insurance policy to protect themselves.

I think it's ridiculous to pay a tenant to leave, but it makes sense in places like California.

I am about to leave for the Army for the airborne and my wife is about to get her real estate license. 

I plan to leave them enough that they can afford to buy a house or start a nest egg, but I am not leaving large sums to them.

If there is a tenant in the property expect that they will likely leave within 6-12 months after you purchase so you can expect to do a rent turn and budget for that.

Are you in an area where land is very valuable leaving you with less to depreciate?

As soon as the year membership is up, I'm leaving.