He still have a mortgage of 800k, and his equity is 400k.

There is about $60,000 of equity (not a ton) but I have an opportunity and other funds are tied up.

I assume since most people don't have any money the "sale" is for the equity strategy. 

Usually, the markets with the best cash flow have a smaller potential equity gain

Your cash on cash returns are low, but you are looking for equity build.

The property is being bought at a discount and has equity built in already... no need for funding to do renovations.. is there any other forms of financing that is available for a quick clean flip like this? 

Unless you can purchase the first home as primary and show you will be buying the next FHA home closer to work, or out of state.There is also something called a "Gift of Equity" where you do not have to assume the loan you can use gifted equity for a down payment and closing costs.

STR success is understanding the nuances of the market, price drivers, and positioning in order to stay in demand.

I would like to find a private lender that ma take rental price into situation but we do have access to $150000 from home equity.

Down fall is now all of the equity i have is split into the (2) properties and would make buying another property in the future a little more difficult.