When (insert type of income-producing real estate here) becomes more popular, buyers are willing to pay more, which means cap rates go down.There are three primary forces at play here.  1) falling interest rates make debt cheaper and makes real estate more attractive.  2) rent growth gives buyers hope that the income stream they are purchasing will grow over time.  3) poor performance or perceived risk of other investment vehicles increase the desirability of income real estate, meaning a lower cost of equity capital for real estate buyers.Expanding on point #3, the worse other investment vehicles perform, the less investors demand from their real estate investments.  

Fully occupied producing $1,750 per month.

After summer if you rent it 5-8 days a month until next season you will be lucky.There will be tone of competition after the summer, so I would not rely on it, look at it as bonus if it happens, but make your calculation as if no action happening.

I am a top producing loan officer for a bank which specializes in FHA refinances.

Classes will be held on 9/9, 9/16, 9/23, 9/30 from 6:00 pm -7:00 pm.During these jam-packed small group classes you'll:Get YOUR questions answered with exclusive access to our team in a personalized settingLearn how to define your goals, pick your strategy, and choose your marketAnalyze deals and determine a good deal for YOUDeep dive into investing in the local Sacramento marketLearn what it takes to write WINNING offersUnderstand the escrow process once your offer is acceptedPractice the mindset needed to take ACTION and move ahead to become a master investor

Remember time and expertise are a Realtor's commodity, so loyalty and action are rewarded with more loyalty and more action. 

You may even consider trying to do a 3-4 unit property that may produce some cashflow while you're in it.

So what are your specific, actionable recommendations for a servicemember in Honolulu who has bad credit and no savings and wants to invest there?

I'm ready to start taking action but would like to get in with an Irvine/OC monthly meetup group to bounce ideas off of. 

When applying for a mortgage (making assumptions here), the lender will want 3 months of bank statements, W2s, etc.I agree with others here that house hacking (living in a house you are renovating) is the way to go AND in your situation, buying a duplex or similar income producing property will help if you apply for a mortgage.