I  I have 150k in equity in the house and im only looking for $50K, but I keep getting turned down. 

I bought mine in 2012 the same way (though FHA loan because I had already used my VA loan twice) and now have $70k in equity and been cash flowing the entire time. 

Would I need to come up with $1.2m in Equity for the difference in this case?

I would be shocked if this seller is doing nothing more than playing with you.. someone who owns a 1.1 million dollar ocean front and have 800k in equity Is hardly a distressed seller.they will just list it and sell it.. not sure what your trying to do here but.. that's my guess.. just a seller who is playing you.

You can change this to a 30 year mortgage for better cash flow in the short term, you can just sit on it and take the cash flow when you pay off the mortgage in 15 years, or you can flip it and invest the cash in a property with a higher return.You are walking into $50,000 in equity, so you need to figure out what you want from that equity.

At the meetup there was a speaker who was talking about his success to financial independent and when he went through his list of rentals he bought over the years it left me with a lot of questions. 1: Most of his rentals he bought in B+ to A area's in the 300-450k range in Florida.2: His numbers just didnt make sense, one deal he posted it showed literally like a +$5/month cashflow only....So afterwards i started to talk to him more and he mentioned that he is not the type that invest in cashflow, he is a equity investor... intrigued me so i asked more questions and basically he went on to explain to me that he buys properties that need a little bit of work, but have built in equity in the deal, but he has 4 main rules he goes by... 1: If the Roof is greater than 10 years, he always puts a reduction in his offer for a replacement roof.2: If the A/C is older than 5 years, he always puts a reduction in his offer for a replacement a/c.3: If the house is older than 30yrs old, he always puts 10-15k reduction in his offer for a water line replacement.4: He refuses to buy houses with pools....Anyways after a bit of talking he explained to me that he buys larger 300-450k houses, because most investors are educated to not buy them, so there is a lot of room to wiggle on the deals due to lack of competition on offers and most people in that price range are easily able to be purchased with a few % out of the deal to skip agent commisions..Example he gave me, he recently bought a 455k deal for 405k, but the ARV 535k, because he talked them down in needing a new roof, and a/c and offered to pay cash instead of going through an agent if he would drop 4% off the price for that... 

I had no problem paying the bank listed price especially when it resulted in me getting $26,000 in equity from day 1.Could I have gotten it for a lower price?

We currently own 3 properties (6 units total; one is our primary residence with a studio out back). Property details listed below. According to the property appraiser's site, this is where we stand with each one. Look...

I'm just trying to determine if I have a rental property I should hold on to, or if I should I sell it and make the $20k in equity while I can and invest that money somewhere else.

You'll need approx 1.5 to 2m in equity invested in income property to safely return ~12% (15k) monthly.Until you have enough education keep that cash in the bank.