I have an Ingersoll 3HP 60 gallon that works well for me. (SLS-3?) Found it on sale for 30% off, free shipping.
Unless you do a lot of spraying, I would not go too large on the air compressor, and put some of the budget toward replacing your air grinders with corded electric grinders. A few corded electric grinders will do a lot of grinding. I have both air grinders and corded, and if I were doing over again, I would not buy the air grinders; they use a lot of air and aren't that powerful compared to what is available these days in corded models.
One thing that will help the tank and your tools is to buy a compressor with, or add, an intercooler and automatic float drain. It should remove 90-95% of the water before the air ever gets to your tank or lines. I no longer get visible water spray out of the bottom air tank drain when I open the drain. YMMV: a larger, longer brass or copper drain will allow the water to drain out the tank as it accumulates, lowering the potential for rust and pinholes.
For most uses, it is not ideal to run the compressor to a higher pressure and then use a regulator to bring it down to your operating pressure as it wastes energy. E.g. stop compressing at 120psi, rather than 175psi.
All the best,
Peter