I do this very happily (playing virtual instruments using Master Keyboards and a Breath Controller).
I tested several dedicated live player systems, but when somebody (in a forum of a producer of live playable virtual instruments) recommended Reaper, I knew that I found what I need: perfectly versatile and flexible and astonishing low price.
IMHO a key component that makes Reaper usable for live performance, is SWS "LiveConfigs". You might want to search these forums for messages that contain the word LiveConfigs to collect more information. (BTW.: LiveConfigs is created by a Guitarrist to manage virtual effects in Reaper while live playing. Part of it's functionality indeed is muting/unmuting tracks.)
Please come back with specific question if you have them.
-Michael
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