Yeah, okay to go inexpensive, but I would go after a sturdier brand (most stores these days mostly carry Trek, Giant, Raleigh anyway). Basic Treks and some basic Giants are very good. Go for steel, or aluminum if you find something you like, but steel will be much more comfortable riding off-road.
You shouldn't have to pay more than $200-300 all said and done. Switching tires is no problem - ask the store what they might be willing to put on there for you. Anything in between racing slicks and hard, knobby tires will do just fine. It mostly depends on how much road riding you think you'll be doing.
Oh, it's also very, very hard to ride a bike with front suspension on asphalt and at a leisurely pace, so you might want to avoid that.
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