The biggest difference to me is that YOU have control of every aspect of an active investment, while somebody else is in “control” of a passive investment.  

They can be used in situations of control or hope.

I would like to be in control of my money, so I have always gone with the highest deductible posable and maximized cashflow.  

You have no control over this.

They also are thinking of getting a different PM to manage it after they can gain back control but would like advice on doing so.

., a keyless entry or a streaming device) can also boost your ROI by enhancing guest experience.

Even the subpar situations we have no control over.

There is a provision in all my contracts that permit me to assign the contract to a newly-formed entity that I control.

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

The answer is that if the lender that's doing the hard money loan is only funding the purchase and not the rehab, they then have less oversight of the project since they're not doing the draws, and thus not seeing the progress of the project and having control of the funds or draws from the rehab to make sure the project is progressing.