Yes, if you're a handyperson. In addition to skill, hard Work, entrepreneurial spirit, and no little amount of luck, fixer-uppers also usually require extra cash (or access to additional financing). If you're adventuresome, they can allow you to make a purchase in a neighborhood you would otherwise not be able to afford. And you may just be able to resell for a hefty profit. Only remember, the place will be run down when you buy it, and it will be entirely up to you to fix it up.
There are many reasons for buying a fixer-upper on Oahu, and all of them come down to reduced price. These homes run the gamut from being cosmetically challenged (needing mostly paint and cleaning) to having catastrophic problems (falling down a hillside, underwater, no roof, and so on). What they have in common is that because of their problem (mild to severe), the sellers have reduced the price (a little to a lot). The opportunity is to go in and, using "sweat equity," clean up, fix up and then either live in the property or sell it for a profit.
The real danger with a fixer-upper is that you'll get in over your head. Often tasks that new would-be fixer-upper people think they can do by themselves, such as plumbing, gas line repair, electrical connections, plastering, and so on, turn out to be far more complicated and difficult than they anticipated. They may need to call in professional help not only to do the original job, but to undo the botched work they originally did. The cost can be very high and can turn a real bargain into a very real nightmare. (If you want a clear example of what can go very, very wrong in such a case, rent the movies Pacific Heights and The Money Pit out of your neighborhood video rental store. I recommend every potential fixer-upper see these!)
Additionally, many of those new to real estate fail to realize that it's difficult to get financing once you've begun remodeling. Either you must have enough cash on hand to see the work through, or you must have made arrangements beforehand, usually at the time of the purchase.
The real trick to successfully doing fixer-uppers is to first know your own skills and limitations and second use a very sharp pencil when calculating how much to pay. This usually involves doing some backward calculations. To arrive at the correct purchase price, begin by estimating the ultimate price you will be able to resell the property for, then subtract all of the costs of refurbishing plus costs of purchase and sale. That's how much you should pay. You may find that you need to pay a lot less than you think in order to make a profit, or even come out even.