Simple Way To Cover Ugly Bathroom Tile?

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Q: I'm about to buy my first house, an 1875 rowhome. The last owner updated the bathrooms and kitchen prior to selling, and the results are functional and decent, but not attractive. The first floor powder room in particular has been covered from the floors halfway up the wall with cheap ugly tile (Why? There is no shower in there). I'd love to have suggestions for ways to remedy this low-budget tile horror. Do I have to rip the tiles out and put in new drywall or is there a simpler way?

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