#2
That's a pretty low end guitar for the Alvarez lineup. It's not a solid top, back or sides, which means it will hold it's present tone pretty much forever, but also won't sweeten up as time goes by like solid woods will. If you've got the money for it, move up to the RD20, which at least has a solid top.
Knowing Alvarez though, the guitar in question should play nice and be setup very good out of the box. There are worse choices I guess.