Do I renovate and refinance into a conventional loan? 

If you are using a conventional loan on the second home purchase they will consider the mortgage on the FHA loan, so you will run into issues qualifying with your DTI, unless you have enough income to support both mortgages.

I'm looking for ready to assemble (RTA) that do not have any particle board or OSB.Found RTACabinets.com which seems interesting but I'd like to look at some in person if possible, maybe even LA County.Current quote from HD (Home Depot) for their ready made in inventory cabinets is $2600, those are particle board low grade cabinets.I'm going to bet Kevin Fox replies in this thread.

Are you renting to section 8 tenants or conventional ?  

Your family might benefit from buying a 2-4 unit property with 5% down using a conventional loan.

Seems that inventory is very low, property prices and interest rates are very high.  

Yes, prices are coming down here as inventory slowly trickles back up to to pre-COVID levels.

So when you buy a property do you use a conventional loan or something else?

Unfortunately, that won't matter as  Fannie Mae and Freddie Mac, the Government-Sponsored Enterprises (GSE’s) that set the guidelines for conventional loans, which most lenders follow for other types of loans, too, require that a condo building’s master hurricane insurance policy provide 100% coverage of the replacement value for the building. 

I don't think I qualify for any conventional or FHA loans as I don't have long enough income history.