It's not an amazing frame but it look like it has horizontal drops(hard to tell check them before you buy) and so will work. I have no clue what prices are like in HI but $200 would be absurd for that on the mainland.
Does the frame fit you?
Dropouts are key. Heres pics from sheldonbrown.com:
The first rule of flats is You don't talk about flats!
i would put the last "good" dropout in the bad dropout section, because stamped dropouts are indictive of shoddy craftsmanship
Stamped dropouts aren't always bad. They are a sign of a low end frame, but if you're looking for cheap, they will work. Judging by the stem shifters and horizontal brake levers, I would guess the bike is kinda low end. But if it fits you and is cheap, it might not be too bad. It will probably be pretty heavy.