You are saying you have a budget of less than $250 to buy a bike for touring. I am sure you will get lots of helpful suggestions involving bikes that cost $500, $1,000, or $1,500, because not many folks are touring on a $250 bike.

Your idea may not be impossible. I have a Trek mountain bike with geometry similar to the 820 that I use with a rear rack and saddlebags. It is very stable with loaded bags, even on bad roads. The 820 has inexpensive wheels, but if they are carefully trued by a first rate tech, they should be adequate for average loads, and typical roads.

Yes, the 820 is at least five pounds heavier than a $2,000 Cannondale touring bike. That means that if you weigh 200 pounds, and carry 40 pounds of racks and gear, you will be pedaling a total load of about 275 pounds up the hill, instead of "just" 270 pounds. There ARE people who could feel the difference.

Would a $250 bike be "equal" to a $2,000 touring bike? Of course not. Could it do the job? Well, I was reading a book by a fella who toured with his wife and kids on Schwinn Suburban five speed bikes, riding from New York City to New Mexico...if Suburbans can do that, certainly a Trek mountain bike can do it.