If you're able to preserve the title insurance, it will likely be done with a warranty deed and not a quit claim. 

I like the idea of hard money to preserve the capital and use their money for flips.With cash I have total control but cash outlay until it sells.I will also get the 3 to 4% broker co-op when I buy.If I bought cash I would let the listing broker have it but if I used hard money I would want to offset points I paid out.I do have private lenders but they might want too much control or cut of the deal.Would it be best to use hard money for acquisition and then my capital for repairs??

The carryback allows you to preserve cash for more deals and also leverage yourself into a larger deal than normal.The debt service from the lender is usually 75 basis points higher allowing the carry back from the seller but you can price in that higher debt service with your offer.

In this case I will gently bust out the loose plaster that is definitely a problem, while trying to preserve what I can with the rest (a bit of plaster movement is ok, but not too much).

Let them know that most buyers would be looking to tear it down and build something else on the lot, but you'd like to preserve their home (here comes the but...) but, the only way to make that work financially would be to purchase the home for significantly less than their thinking.

Generally speaking, the strategy for investing in commodities is to preserve wealth.

They do not have to spend another dime on property preservation or holding the defaulted mortgage.

I completely understand the need to preserve rental housing but empty units do no one any good.

The language of the trust deed gives you, the beneficiary, the right "to preserve and protect the property" (to clean it up and secure it). 

And Capital preservation and liquidity should come into mind as well.