That looks like a great 1st commuter. Decent width tires that should roll OK on pavement, V brakes that are simple and powerful, adjustable-height stem for customization, probably a reasonably-comfortable saddle. I can't tell whether those tires are flat or not, if they are you might need new tubes. Depending on whether the rust has frozen the chain stiff, or is just surface, you might be able to get away with just a thorough chain-lubing, or a new chain should be $10-15.
I think that bike is a good value. If it fits you, and it brakes and shifts ok, buy it, and commute with it for a few months while you figure out what you want in a next, more expensive bike.
Or if it works well for you, just ride that one forever.