How bad is it? It reportedly was made as a contractual obligation - and it shows.
Should you see it? It has a few moments, but not enough. So... no.
This film got some attention because of a Joe Bob Briggs commentary (and an interview with director Roberta Findlay). Sorority pledges are sent to a spooky former brothel for a hell night initiation scavenger hunt that's been booby-trapped with surprises by a fraternity. It also just happens to have ghost hookers and a transvestite slasher! There's a strangulation by garter, a couple of shootings, a hanging (plus a hanging mannequin), a fall down a stairwell that's particularly fake-looking, a stabbing and a nailing into a coffin - none of which happens in the first 2/3rds of the film, which is filled with bad dialogue ("Eat my shorts, tampon breath!") and slow searching shot by flashlight and with a droning keyboard soundtrack. As usual, Findlay takes some chances, has some interesting shots (here involving mirrors) and avoids some cliches - the girls have personalities (though grating ones) rather than being just victims and there's no tacked-on morality of a "good" girl left for last who manages to escape. The film's duller and stupider than most Findlay films, the acting is atrocious, and there's some plot problems - the ghosts are just a red herring when all is finished.