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I have seen in Jamaica, Corolla 4WD sedans(88-91) and if my memory serves me right, Tercel 4WD sedans to match the wagons that were sold here. They also had supercharged Corollas, and turbo Tercels. Some sedans even come with rear glass wipers.
These cars were known as "Deportees" as they were used Japan market vehicles that are expoprted to countries that have less strict inspection stsndards, The standards in Japan are so high, those cars would be difficult to resell there, even though they are in very good condition. For "Third World Countries" this is a cheap but high quality alternative to new cars.
If my recolection about the Tercels is correct then I would guess that a 4WD sedan should be possible with some time and patience.
But would it not be a lot easier to just find a 4WD wagon (cheap) instead of trying to build a 4WD sedan. Sounds like a fun project though.
Good luck. Let us know if you make it happen.
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'88 Corolla, AE92 SR-5, 7A-FE swap/GT-S suspension
'87 Corolla, AE82 FX-16, 4A-GZE swap (autocrosser)
'03 Tundra 4X4 Access Cab, (FX tow vehicle/Home Depot runner)

Modification: Changing something to what you thought it should have been from the start!
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