If you don't know Oahu, then you might think you should stay in Waikiki. That would be a mistake. The beach there is small, crowded, and not nearly as beautiful as elsewhere on the island, and the streets are teeming with tourists and designer shops you can find anywhere.
Kailua, the town where Kelly's home is, is fantastic. I made sure my wife, child, and I stayed there after having lived on Oahua for 3 months about 7 years ago. It is not at all touristy and it is a 3-6 minute drive to two of the most beautiful beaches on the island: Kailua and Lanikai. (Lanikai is arguably one of the most beautiful beaches in all of Hawaii). Kailua also has lots of hikes, local stores, and a weekly farmers market with lots of delicious food. To make breakfast quickly so we could get to the beach asap (instead of going to a restaurant), we bought groceries at a Whole Foods that was 3 minutes away. Kelly's home is a 5 minute drive to the highway so you can easily explore other parts of the island as well, and if want to go to restaurants in Honolulu, it's just 25-30 minutes away.
Kelly's home is extremely comfortable. It has a large living room with a great couch, a huge kitchen, and nice bedrooms. It was very clean, and Kelly herself is extremely hospitable. She lives next door and is ready to bend over backwards to ensure you have everything you need. That includes beach chairs, beach umbrella, snorkel gear, body boards, and more. She was quick to reply to texts and even quicker to answer a knock at her door, which she welcomes.
As you can see, I think Kelly's house, including the location, is fantastic. We would definitely stay here again.