The state is business friendly, low taxes, cheap land and decent climate.

There are places far more affordable and Landlord-friendly with similar climate and a healthy tourist market. 

The owner doesn’t want to send the tenant a lease termination letter based on liability in the post-covid climate(he discussed with his lawyer and no amount of earnest money will make him comfortable to give the tenant notice).

Political climate is not helping either in many major metros...

Also note that I'm not super familiar with your climate but I live in Des Moines IA. 

We also own in warm climates currently so don't have many of the considerations that we would have up in MI.I've considered looking into properties near Lake Michigan, but have been focusing more on FL and CA as of late.

Yes for sure - can't hurt in this current climate and it'll be there when you need it in 3-5 years.

Since you are a newer investor (I’m assuming since you need your parent’s money), and given the current economic climate, this seems too risky.

I've got great credit but my real estate agent seemed doubtful that anyone would refinance given the current climate.

I can only speak of some of the communities I’ve run across in my lending business such as Carlsbad (beach), Vista (best climate in USA per??)