Your mortgage company dictates your insurance requirements.  

We are currently using Excel for the most part for tracking the rentals, and using a third party account servicing company for tracking most of the seller financed loans (Weststar). 

100% have your tenant go through their renter's insurance as well as I would make sure the insurance company is notified that the repairs are already underway, they have received a rent discount, and you covered a placement for a hotel. 

I am getting started in the midterm rental scene and wanted to gauge experience where anyone has started in setting up midterm rentals.

Like any other property, set the bar for expectations and rules and it should perform well.

I have communicated this finding to the company via an email and will follow up with a call, my question is what more can I do in this situation?

So if I set up an S Corp and sell the property to the S Corp, that would be considered a sale (even if owners of the S Corp is the same)?

I haven't worked with any of the two companies but that's because I've always had from developer financing and partners so I never needed it.

Any honest, intelligent person can see that there would be benefits to having a set up like that.

Otherwise you show the lease to your title company and have them credit you the stated deposit at closing.