They are not happy that I do not compensate them for their inconvenience. 

Greetings BP,Curious how others compensate their onsite managers. 

Then the person can pay the fee and move on and you can rent it out the next day and still get some sort of compensation for the trouble.

They'll be compensated fairly over time, they don't need to be incentivized further on every transaction, as that will slow your ability to scale.

However, part of the agreement is that the previous owners get a 6 month lease back (which i was compensated for from wholesaler and previous owner out of escrow).

I want to preface this question by saying that I truly believe that everyone who helps us find and manage deals should always be adequately compensated and if the industry standard is to continue to pay the same 1% when the same banker is used then I will happily pay that.

Your lender and your partner will want to get an honest appraisal if the partner is compensated by total profit.

I am not implying that they do not deserve the compensation. 

Does the flipper not deserve to be compensated for the effort and risk? 

If you are happy with your "Estimate" and still OK with the "High" estimate then its probably a good deal because likely everything won't go to a worst case scenario and also if you apply project management principles you can adjust the time or scope of work to try to compensate for many unexpected things that could come up.