I include another month of holding costs in my projections to accommodate extra time needed to close on the pre-sale.  

100% agreed with @John CasmonWith all the details that @Ryan Redenius put in, we got other experienced investors giving their opinions.  

Always remember to do the math analysis and try to look at your prospective properties before you make an offer or at least try to add a clause in the sales contract that would give you the time (about 15 days) to make a detailed inspection and possibly back out of the deal without a penalty that will not hurt you too much.I am 59 years old and I found BP about a year ago and I am still trying to decide what to do.  

Please PM me so I can get a few more details on your project. 

Make sure you have a VERY VERY DETAILED scope of work "SOW".

I was trying to be conservative because I'm nervous about not being able to find a tenant and having to cover extra costs because I assumed incorrectly that I could get more for the rent.I was planning on occupying the upper, yes and it is already vacant.

They give you a detailed list of everything you need to fix then you get to work.  

Always do the math analysis and try to look at your prospective properties before you make an offer or at least have a clause that will protect you for some time (usually about 15 days) to make a detailed inspection and possibly back out of the deal without a penalty that will hurt you too much.Right after you close on an improved property get an insurance policy that will protect you if there is a loss.  

I'm sure there are small details I'm missing but is the overall concept right?

Basically, you take on a massive amount of extra risk, courtesy of the Ontario Govt.I would consider it to be a red flag if they suggested that the checks will come straight to you.