It'd suck. The 7 speed gears wouldn't have sufficient range to be able to cope with steep hills when you are loaded. If you are on a budget, find a nice quality 1990s mountain bike with good 36 spoke wheels and no suspension and kit that out instead. It'll come with a 24 gear drive train with both lower and higher gears than the Dolomite.. Change the brake pads to Koolstops. Fit a set of Schwalbe Marathon Mondials. Service the drive train. If there are no front rack mounts use clamp on ones.
If you have a bit more cash get something like a Surly Troll or Ogre, sell the Extraterrestrial tires fitted and fit some Schwalbe Moto-X ones. They are fairly wide and will easily cope with the weight of you, your gear and your bike, and still last a long time.