This building will be converted to climate control and will yield a higher ROI compared to the shipping containers.'3.

Big trade off and total opposites from climate to housing.  

The political climate isn't very friendly to landlords and STR owners as well.It is a cool looking area really.

What are other investors doing in this interest rate climate for long term holds? 

Given the current political climate, if you close on the deal, do you have sufficient reserves to carry the property if neither tenant pays rent?

Plus I prefer the beach climate to the Irvine climate of Laguna Niguel.For a SFH rental, I'd look at the tenant type each would draw, and the anticipated length of time I believe they would stay, as well as projected appreciation during my anticipated hold.Good Luck!

The city and surrounding areas' robust job market, relatively low cost of living, and pro-business climate make it an attractive destination for in-state an out of state investors.

What do you think the investment climate will be when rates drop back into the 5's or 4's?

I wouldn't say buy low meaning cheap, but under asking, yes... if possible ( which should be available in today's climate).

However Illinois' tax and business climate is also a factor you should consider also but that another discussion altogether.