The only thing constant in life is change AND ultimately the only thing we control in life is our Response to what happens.  

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?  

Spending a ton on property management doesn't seem like the best move.

You don't have to spend a fortune and buy a house directly on the beach to do well, but your starting price point for a viable option in this market is around $350-$450k for a solid 2-3 bedroom oceanfront condo or around $500k for a 3-4 bedroom house within walking distance of the beach. 

We did not want to spend the time trying to find somewhere new to buy while we were packing and hoping that it would still sell.

Stop hanging out with your deadbeat buddies who spend all day drinking, talking sports, and otherwise wasting away.

I feel like if you dont want to spend too much time figuring out the flow then it's a good alternative.

How many times can you spend $1500 to get an 88% return?

You need to remember that, hopefully, this is a long-term play for you, so work with a trusted STR designer (I have great recommendations), and spend the money upfront so you can be the most successful in your area.

It's updated yearly and is the best $40 you'll spend as a Landlord.