well, that would be an excellent way to get into shape.

to the bike, just looked at the specs and was surprised to see that it uses a 7 speed rear casette, just surprised a bit as 8 and 9 speeds tend to be the common stuff now, and 10 and even 11 on higher up bikes. Just for that I would question it being a good buy for the money, as I would think that other bikes (even used) might be more worth your money. My old aluminum hard tail mtn bike that I use for just what you are wanting to do works fine with slick(ish) tires on it and a rack. It is about 13 years old and it has 8 speeds, so you might want to look into something with better components that is used and you would have a better bike for your money.
If your friend is willing, he would be able to suggest/and or look for others for you to think about.