Is there a third-party company that offers Damage Protection coverage for midterm rentals?

Yes, the lease renewal signed by both parties is just enough.

Cash App is acting as an agent transferring between two parties(the banks), as such, is a cash transaction.

this is the risk of having Multiple parties in title.. sure would have been better for the Dad to simply sell it to you and take back a recorded DT or Mort   with you and your partner on the Deed. 

If they use third party companies for these services?

Would you advise a third-party payment processor to be used?

Beach, I would also suggest that you schedule an inspector or some sort of third party.

We manage hundreds of our own doors, no third party. 

Additionaly I think about, knowing my own risk profile is certainly essential, but very difficult to determine aspects of the third parties syndicator/dst risk profile, since part of what is built into those type of investments is the capacity for operators to change course in one way or another (yes, with some exceptions in the docs).

I reached out to section 8 multiple times but they won’t increase the payment without a signed lease from both parties.