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Oahu bound...where to stay...DOs and DON'Ts

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I'm traveling in May with a group of 9 including adults, teens and tweens. I'm debating between a vacation home close to Sunset beach, but it's not beach front. The other home is in rural area of Hauula and the home is right on the beach. Which would you prefer? Backyard beach but far from everything, or not on the beach and walking distance to all things North Shore. We want to relax and have a great time, but I just don't know what to do.

Also, this being our first time to Oahu, what are the must see and do things that don't cost a lot of money. And are there places/things to avoid?

Thanks for your help!

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