Strategic Development Opportunity in Sardis South

The property at 6442 Evans Road is a 4-bedroom, 2-bathroom single-family home located in the desirable Sardis South neighbourhood. Built in 1955, the home sits on a lot that is currently positioned within the City of Chilliwack's 'Urban Growth Boundary'. This designation is the primary investment driver, as the city's Small Scale Housing policy potentially allows for the development of up to 4 residential units on the site, making it a prime candidate for long-term land assembly or densification. Suite/zoning status to be independently verified with the municipality. Based on a 20% down payment of $149,800 at a 5.5% interest rate over a 25-year amortization, the monthly mortgage payment is approximately $3,665. With estimated market rents of $2,600/mo for the existing structure, the property will require additional capital or development to achieve positive cash flow. Annual property taxes are estimated at $8,988 based on 1.2% of the purchase price. Chilliwack has seen a 42% appreciation over the last 5 years, with a modest 1% increase in the last year, suggesting a cooling market that may offer better entry points for value-add investors. The investment thesis here is not based on immediate cash flow, but rather on the 'land banking' potential provided by the city's densification policies. By holding the property while navigating the development application process, an investor could significantly increase the asset's value through rezoning. Risks include the uncertainty of municipal approval timelines, the cost of construction for additional units, and the potential for interest rate volatility affecting holding costs. Investors should conduct thorough due diligence regarding the specific requirements for the Small Scale Housing designation before proceeding.