IKEA Beddinge Lovas + 2" memory foam topper slid underneath the futon cover works great as a place to sleep or as a sofa. Slightly easier to acquire and build yourself, than perhaps waiting for someone to deliver/move it all over the place.
Both Futon, cover and queen sized memory topper together are probably around $550. (Topper I grabbed on Amazon). Worked great as a bed and a sofa.
The modular sofas at IKEA are around $1000-1200. Other than keeping an eye out on Kijiji, I don't know what to suggest for a sectional.
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