That gives them the ability to maintain control over the entire real estate investing process, from acquisition to renovation and then resale or lease and manage the properties in house.

I would think their loan documents give them the right to control the property after the original owner dies - regardless of who is living there (although I have no direct knowledge of the laws where you live).There are details we don't know here... like if you want the house for sentimental reasons, or because you see the value between what it's worth on the market today and what the reverse mortgage company wants for it?  

Not sure how you believe they could control their cash flow. 

For certain areas annual pest control may be needed for colder areas maybe you run the risk of freezing pipes.

FDCPA controls debt collection and makes sure that buyers  of defaulted debt don't threaten borrowers with violence , phone calls in the middle of the night and non-existent jail sentences for failure to repay.

when your in a fund U have an interest in a fund that then has interest in RE and you are once removed from an control.

Less waste, more controlled environment, less surprises. 

It’s a balancing act of controlling costs while also controlling risk of personal injury to your tenants and property visitors as well as maintaining goodwill with all involved at the properties. 

For example, if local regulations require energy-efficient upgrades, prioritize these changes to avoid fines and demonstrate your commitment to sustainable practices.Case Study: In 2020, many cities introduced rent control measures.

So you have little control of performance, no mercy from your tenant pool, and a lot of risk in neighborhood.