The 120 is a great portrait lens. You can go relatively close to your subject without using extension rings. It is also of excellent quality. $800 is a good price for a CFE - beware of scams, here the CF versions of the 120 go for 600-700 €. To me it seems almost too good to be true but the market price might be different on this side of the Atlantic.
If you are interested i have a 120 CF for sale, but I recommend you the CFE you mentioned, as it is not much more expensive than my asking price.
There is no difference between CFE and CFi apart from the electronics. The CF, CFi and CFE have the same optiics.
Alternatives are:
150 CF, the typical Hassy portrait lens, goes for a couple hundred $,
180, an excellent lens (I use mine all the time for landscape and general photography),
110 f/2 - said to be „the ultimate portrait lens“, but requires a 200-series which you have. (I have a 500). Can fetch prices way above 1000.
Strobes can be used with all, at least in manual mode. the 150 and 180 require an extension ring for portraits. Not sure about the 110.
Hope this helps!
Etienne