10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2017

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM TO

COMMISSION FILE NUMBER: 000-55765

Inland Residential Properties Trust, Inc.

(Exact name of registrant as specified in its charter)

Maryland	80-0966998
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
2901 Butterfield Road, Oak Brook, Illinois	60523
(Address of principal executive offices)	(Zip Code)

630-218-8000

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to the filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☒
Emerging growth company    ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

As of August 1, 2017, there were 1,378,383 shares of the registrant’s Class A common stock, 391,506 shares of Class T common stock and 85,377 shares of Class T-3 common stock outstanding.

INLAND RESIDENTIAL PROPERTIES TRUST, INC.

TABLE OF CONTENTS

		Page
Part I - Financial Information
Item 1.	Financial Statements
	Consolidated Balance Sheets as of June 30, 2017 (unaudited) and December 31, 2016	3
	Consolidated Statements of Operations for the three and six months ended June 30, 2017 and 2016 (unaudited)	4
	Consolidated Statement of Equity for the six months ended June 30, 2017 (unaudited)	5
	Consolidated Statements of Cash Flows for the six months ended June 30, 2017 and 2016 (unaudited)	6
	Notes to Consolidated Financial Statements (unaudited)	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	25
Item 4.	Controls and Procedures	25
Part II - Other Information
Item 1.	Legal Proceedings	26
Item 1A.	Risk Factors	26
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	26
Item 3.	Defaults Upon Senior Securities	28
Item 4.	Mine Safety Disclosures	28
Item 5.	Other Information	28
Item 6.	Exhibits	28
Signatures		29

2

INLAND RESIDENTIAL PROPERTIES TRUST, INC.

CONSOLIDATED BALANCE SHEETS

	June 30, 2017 (unaudited)			December 31, 2016
ASSETS
Assets:
Real estate:
Land	$	7,794,219		$	6,301,838
Building and other improvements		59,885,396			38,889,177
Total real estate		67,679,615			45,191,015
Less: accumulated depreciation		(2,682,959	)		(1,822,971	)
Net real estate		64,996,656			43,368,044
Cash and cash equivalents		17,168,529			9,038,642
Accounts and rents receivable		26,628			17,961
Acquired in place lease intangibles, net		532,994			—
Other assets		289,259			458,316
Total assets	$	83,014,066		$	52,882,963
LIABILITIES AND EQUITY
Liabilities:
Mortgages and note payable, net	$	50,395,683		$	27,447,459
Accounts payable and accrued expenses		427,425			232,736
Distributions payable		176,259			137,207
Due to related parties		6,116,366			5,684,753
Other liabilities		233,532			67,287
Total liabilities		57,349,265			33,569,442
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $.001 par value, 50,000,000 shares authorized, none outstanding		—			—
Class A common stock, $.001 par value, 320,000,000 shares authorized, 1,354,006 shares and 1,098,858 shares issued and outstanding as of June 30, 2017 and December 31, 2016, respectively		1,354			1,099
Class T common stock, $.001 par value, 40,000,000 shares authorized, 388,824 shares and 284,283 shares issued and outstanding as of June 30, 2017 and December 31, 2016, respectively		388			284
Class T-3 common stock, $.001 par value, 40,000,000 shares authorized, 79,362 shares and none issued and outstanding as of June 30, 2017 and December 31, 2016, respectively		79			—
Additional paid in capital (net of offering costs of $10,046,720 and $8,268,768 as of June 30, 2017 and December 31, 2016, respectively)		34,456,882			25,539,970
Distributions and accumulated losses		(8,793,902	)		(6,227,832	)
Total stockholders’ equity		25,664,801			19,313,521
Total liabilities and stockholders’ equity	$	83,014,066		$	52,882,963

See accompanying notes to consolidated financial statements.

3

INLAND RESIDENTIAL PROPERTIES TRUST, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Income:
Rental income	$	1,294,942		$	917,059		$	2,198,454		$	1,760,295
Other property income		128,262			88,713			244,505			176,724
Total income		1,423,204			1,005,772			2,442,959			1,937,019
Expenses:
Property operating expenses		432,756			313,838			696,666			601,571
Real estate tax expense		164,056			87,528			253,999			174,553
General and administrative expenses		390,663			320,173			694,517			600,684
Business management fee		91,763			68,594			160,455			137,185
Acquisition related costs		30,266			—			71,479			—
Depreciation and amortization		609,311			450,466			978,707			1,072,825
Total expenses		1,718,815			1,240,599			2,855,823			2,586,818
Operating loss		(295,611	)		(234,827	)		(412,864	)		(649,799	)
Interest expense		(423,299	)		(372,037	)		(675,550	)		(799,064	)
Interest and other income		14,116			—			24,514			—
Net loss	$	(704,794	)	$	(606,864	)	$	(1,063,900	)	$	(1,448,863	)
Net loss per common share, basic and diluted	$	(0.42	)	$	(0.88	)	$	(0.67	)	$	(2.61	)
Weighted average number of common shares outstanding, basic    and diluted		1,696,801			687,355			1,595,207			556,070

See accompanying notes to consolidated financial statements.

4

INLAND RESIDENTIAL PROPERTIES TRUST, INC.

CONSOLIDATED STATEMENT OF EQUITY

(unaudited)

	Common Stock												Additional			Distributions and
	Class A				Class T				Class T-3				Paid-In			Accumulated
	Shares		Amount		Shares		Amount		Shares		Amount		Capital			Losses			Total
Balance at December 31, 2016		1,098,858	$	1,099		284,283	$	284		—	$	—	$	25,539,970		$	(6,227,832	)	$	19,313,521
Proceeds from the offering		221,971		222		95,366		95		78,786		79		9,632,172			—			9,632,568
Offering costs		—		—		—		—		—		—		(1,777,952	)		—			(1,777,952	)
Discount on shares to related parties		—		—		—		—		—		—		24,530			—			24,530
Issuance of shares from distribution reinvestment plan		15,874		16		4,349		4		126		—		479,059			—			479,079
Distributions declared		—		—		—		—		—		—		—			(948,184	)		(948,184	)
Stock dividends issued		17,120		17		4,826		5		450		—		553,964			(553,986	)		—
Net loss		—		—		—		—		—		—		—			(1,063,900	)		(1,063,900	)
Equity based compensation		183		—		—		—		—		—		5,139			—			5,139
Balance at June 30, 2017		1,354,006	$	1,354		388,824	$	388		79,362	$	79	$	34,456,882		$	(8,793,902	)	$	25,664,801

See accompanying notes to consolidated financial statements.

5

INLAND RESIDENTIAL PROPERTIES TRUST, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

	Six Months Ended June 30,
	2017			2016
Cash flows from operating activities:
Net loss	$	(1,063,900	)	$	(1,448,863	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		978,707			1,072,825
Amortization of debt issuance costs		5,950			68,465
Amortization of equity based compensation		5,139			6,076
Discount on shares issued to related parties		24,530			14,542
Changes in assets and liabilities:
Accounts payable and accrued expenses		238,845			(75,732	)
Accounts and rents receivable		(28,076	)		11,326
Due to related parties		219,235			193,098
Other liabilities		133,126			(21,122	)
Other assets		(8,551	)		279,964
Net cash flows provided by operating activities		505,005			100,579
Cash flows from investing activities:
Purchase of real estate		(22,936,173	)		—
Capital expenditures		(20,166	)		(4,300	)
Net cash flows used in investing activities		(22,956,339	)		(4,300	)
Cash flows from financing activities:
Payment of mortgage		—			(15,363,817	)
Proceeds from mortgages and note payable		23,000,000			—
Proceeds from offering		9,632,568			12,881,557
Payment of debt issuance costs		(57,726	)		(329	)
Distributions paid		(430,053	)		(171,301	)
Payment of offering costs		(1,563,568	)		(1,705,396	)
Net cash flows provided by (used in) financing activities		30,581,221			(4,359,286	)
Net increase (decrease) in cash and cash equivalents	$	8,129,887		$	(4,263,007	)
Cash and cash equivalents, at beginning of the period		9,038,642			5,281,172
Cash and cash equivalents, at end of period	$	17,168,529		$	1,018,165

See accompanying notes to consolidated financial statements.

6

INLAND RESIDENTIAL PROPERTIES TRUST, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)

(unaudited)

	Six Months Ended June 30,
	2017			2016
Supplemental disclosure of cash flow information:
In conjunction with the purchase of real estate, the Company acquired assets    and assumed liabilities as follows:
Land	$	1,492,382		$	—
Building and other improvements		20,643,086			—
Furniture, fixtures and equipment		339,645			—
Acquired in place lease intangibles		645,035			—
Assumed assets and liabilities, net		(183,975	)		—
Purchase of real estate	$	22,936,173		$	—
Supplemental schedule of non-cash investing and financing activities:
Cash paid for interest	$	675,606		$	737,305
Distributions payable	$	176,259		$	77,632
Accrued offering costs payable	$	756,106		$	532,231
Stock dividends issued	$	553,986		$	63,970
Common stock issued through distribution reinvestment plan	$	479,079		$	117,326

See accompanying notes to consolidated financial statements.

7

INLAND RESIDENTIAL PROPERTIES TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2017

(unaudited)

The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. Readers of this Quarterly Report should refer to the audited consolidated financial statements of Inland Residential Properties Trust, Inc. (which may be referred to herein as the “Company,” “we,” “us,” or “our”) for the year ended December 31, 2016, which are included in the Company’s 2016 Annual Report as certain footnote disclosures contained in such audited consolidated financial statements have been omitted from this Quarterly Report.

NOTE 1 - ORGANIZATION

The Company was formed on December 19, 2013 to primarily acquire and manage a portfolio of multi-family properties located primarily in the top 100 United States metropolitan statistical areas, which generally contain populations greater than 500,000 people. The Company entered into a business management agreement (as amended, the “Business Management Agreement”) with Inland Residential Business Manager & Advisor, Inc. (the “Business Manager”), an indirect wholly owned subsidiary of Inland Real Estate Investment Corporation (the “Sponsor”), to be the Business Manager to the Company. Substantially all of the Company’s business is conducted through Inland Residential Operating Partnership, L.P. (the “operating partnership”), of which the Company is the sole general partner. The Company elected to be taxed as a real estate investment trust for U.S. federal income tax purposes (“REIT”) under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended, beginning with the tax year ended December 31, 2015.

At June 30, 2017, the Company owned real estate consisting of two multi-family communities totaling 291 units.  The properties consist of 300,174 square feet of residential and 10,609 square feet of retail gross leasable area. During the six months ended June 30, 2017, the properties’ weighted average daily occupancy for residential was 95.5% and at June 30, 2017, 284 units, or 97.6% of the total residential units were leased.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Disclosures discussing all significant accounting policies are set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, as filed with the Securities and Exchange Commission on March 17, 2017, under the heading “Note 2 - Summary of Significant Accounting Policies.” There has been no change to the Company’s significant accounting policies during the six months ended June 30, 2017.

General

The accompanying consolidated financial statements have been prepared in accordance with U.S. GAAP and require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. In the opinion of management, all adjustments necessary for a fair statement, in all material respects, of the financial position and results of operations for the periods are presented. Actual results could differ from those estimates. The results of operations for the interim periods are not necessarily indicative of the results for the entire year.

Recent Accounting Pronouncements

In November 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash.The new update will require that amounts described as restricted cash and restricted cash equivalents be included in beginning and ending-of-period reconciliation of cash shown on the statement of cash flows. The amendment is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company does not believe that ASU No. 2016-18 will have a material impact on its consolidated financial statements and related disclosures.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. The new standard requires lessors to account for

8

INLAND RESIDENTIAL PROPERTIES TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. ASU No. 2016-02 supersedes the previous leases standard, Leases (Topic 840). The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently documenting the accounting implications, principles for recognition and measurement and presentation and disclosure requirements.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective, although it will not affect the accounting for rental related revenues. The new standard is effective for the Company on January 1, 2018. Early adoption is permitted but not prior to the original effective date of January 1, 2017. The standard permits the use of either the retrospective or cumulative effect transition method. The Company has completed a preliminary review of this standard to identify and document specific areas that will be affected by its adoption. Once ASU No. 2016-02 becomes effective, the new revenue standard will apply to certain executory costs and other non-lease components even though the revenue for such activities are not separately stipulated in the tenant’s lease. Revenue from these items are recognized on a straight-line basis under current lease guidance and subsequently, will be recognized as the related services are delivered. The Company intends to implement the standard retrospectively with the cumulative effect (if any) recognized in retained earnings at the date of initial application.

NOTE 3 – EQUITY

The Company is authorized to sell up to $1,000,000,000 of shares of common stock consisting of Class A common stock, $.001 par value per share (“Class A Shares”), at a price of $25.00 per share, Class T common stock, $.001 par value per share (“Class T Shares”), at a price of $23.95 per share, and Class T-3 common stock, $.001 par value per share (“Class T-3 Shares” and, together with the Class A Shares and the Class T Shares, the “Shares”), at a price of $24.14 per share, in any combination, in an initial “reasonable best efforts” offering (the “Offering”). The Company is also authorized to issue up to $190,000,000 of Class A, Class T and Class T-3 Shares at a per share price of $23.75, $22.81 and $22.81, respectively, pursuant to the Company’s distribution reinvestment plan (as amended, the “DRP”).  The Company commenced its Offering of Class A Shares and Class T Shares on February 17, 2015 and, effective February 2, 2017, the Company reallocated certain of the remaining shares offered in the Offering to offer Class T-3 Shares.  

Excluding DRP proceeds, the Company generated gross proceeds of $5,446,659, $2,284,009 and $1,901,900 from sales of its Class A Shares, Class T Shares and Class T-3 Shares, respectively, during the six months ended June 30, 2017. As of June 30, 2017, the Company had 1,354,006, 388,824 and 79,362 Class A Shares, Class T Shares and Class T-3 Shares outstanding, respectively.

For the six months ended June 30, 2017, the Company declared cash distributions of $948,184, paid total distributions of $909,132 and issued stock dividends of 22,396 shares to stockholders.

9

INLAND RESIDENTIAL PROPERTIES TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

The Company provides the following programs to facilitate additional investment in the Company’s shares and to provide limited liquidity for stockholders.

Distribution Reinvestment Plan

The Company provides stockholders with the option to purchase additional shares from the Company by automatically reinvesting cash distributions through the DRP, subject to certain share ownership restrictions. For participants in the DRP, cash distributions paid on Class A Shares, Class T Shares and Class T-3 Shares, as applicable, are used to purchase Class A Shares, Class T Shares and Class T-3 Shares, respectively. Such purchases under the DRP are not subject to selling commissions, dealer manager fees, distribution and stockholder servicing fees or reimbursement of issuer costs in connection with shares of common stock issued through the DRP and are made initially at a price of $23.75, $22.81 and $22.81 per Class A Share, Class T Share and Class T-3
Share, respectively. The price is subject to change after the earlier of (1) the change of the public offering price in a public “reasonable best efforts” offering of the Company’s Class A Shares from $25.00 per Class A Share, Class T Shares from $23.95 per Class T Share or Class T-3 Shares from $24.14 per Class T-3 Share, as applicable, if there is a change, and (2) termination of all “reasonable best efforts” public offerings of the Company’s Class A Shares, Class T Shares or Class T-3 Shares, as applicable.

Distributions reinvested through the DRP were $479,079 and $117,326 for the six months ended June 30, 2017 and 2016, respectively.

Share Repurchase Program

Under the share repurchase program (as amended, the “SRP”), the Company is authorized, in its discretion, to purchase shares from stockholders who purchased their shares from the Company or received their shares through a non-cash transfer and who have held their shares for at least one year, if requested. Subject to funds being available, the Company limits the number of shares repurchased during any calendar year to no more than 5% of the number of shares of common stock outstanding on December 31st of the previous calendar year. Funding for the SRP is limited to the proceeds that the Company receives from the DRP during the same period. In the case of repurchases made upon the death of a stockholder or qualifying disability, as defined in the SRP, neither the one year holding period, the limit regarding funds available from the DRP nor the 5% limit applies. The SRP will immediately terminate if the Company’s shares become listed for trading on a national securities exchange. In addition, the Company’s board of directors, in its sole direction, may, at any time, amend, suspend or terminate the SRP.

There were no repurchases through the SRP for the six months ended June 30, 2017.

NOTE 4 – ACQUISITIONS

During the six months ended June 30, 2017, the property below was acquired through IRESI Vernon Hills Commons, L.L.C., the Company’s indirect wholly-owned subsidiary (the “Commons Subsidiary”), and financed by entering into, through the Commons Subsidiary, a seven-year mortgage loan for $13,800,000 and an eight-month mezzanine loan for $9,200,000 (the “Mezzanine Loan”).

2017 Acquisitions

Date Acquired	Property Name	Location	Total Number of Residential Units	Square Footage (a)		Purchase Price (b)
2nd Quarter
5/3/2017	Commons at Town Center	Vernon Hills, IL	85		105,442	$	23,000,000

(a) Does not include five units comprising 10,609 square feet of extended first floor retail space.

(b) Total purchase price of property.

The acquisition of the Commons at Town Center was accounted for as an asset acquisition. For the six months ended June 30, 2017, the Company incurred $230,000 of total acquisition costs and fees, $158,521 of which were capitalized as the acquisition of net real

10

INLAND RESIDENTIAL PROPERTIES TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

estate in the accompanying consolidated balance sheets and $71,479 of such costs are included in acquisition related costs in the accompanying consolidated statements of operations.  

For the property acquired during the six months ended June 30, 2017, the Company recorded revenue of $415,948 and property net income of $179,907.

The following table presents certain additional information regarding the Company’s acquisition during the six months ended June 30, 2017. The amounts recognized for major assets acquired as of the acquisition date are as follows:

	2017
Land	$	1,492,382
Building and other improvements		20,643,086
Furniture, fixtures and equipment		339,645
Acquired in place lease intangibles		645,035
Assumed assets and liabilities, net		(183,975	)
Total	$	22,936,173

NOTE 5 – ACQUIRED INTANGIBLE ASSETS

The following table summarizes the Company’s identified intangible assets and liabilities as of June 30, 2017 and December 31, 2016:

	June 30, 2017			December 31, 2016
Intangible assets:
Acquired in place lease value	$	645,035		$	—
Accumulated amortization		(112,041	)		—
Acquired lease intangibles, net	$	532,994		$	—

As of June 30, 2017, the weighted average amortization period for acquired in place lease intangibles is 1.9 years.

The portion of the purchase price allocated to acquired in place lease value is amortized on a straight-line basis over the acquired leases’ weighted average remaining term.

Amortization pertaining to acquired in place lease value is summarized below:

	Three Months Ended June 30,				Six Months Ended June 30,
Amortization recorded as amortization expense:	2017		2016		2017		2016
Acquired in place lease value	$	112,041	$	—	$	112,041	$	—

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INLAND RESIDENTIAL PROPERTIES TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Estimated amortization of the respective intangible lease assets and liabilities as of June 30, 2017 for each of the five succeeding years and thereafter is as follows:  

	Acquired In-Place Leases
2017 (remainder of year)	$	288,836
2018		88,331
2019		85,035
2020		48,976
2021		21,816
Thereafter		—
Total	$	532,994

NOTE 6 – MORTGAGES AND NOTE PAYABLE, NET

As of June 30, 2017 and December 31, 2016, the Company had the following mortgages and note payable:

	June 30, 2017						December 31, 2016
Type of Debt	Principal Amount			Weighted Average           Interest Rate			Principal Amount			Weighted Average                       Interest Rate
Mortgages	$	41,250,000			3.66	%	$	27,450,000			3.64	%
Note payable		9,200,000			5.40	%		—			—
Total debt before debt issuance costs	$	50,450,000			3.97	%	$	27,450,000			3.64	%
Unamortized debt issuance costs		(54,317	)					(2,541	)
Total debt	$	50,395,683					$	27,447,459

The Company estimates the fair value of its total debt by discounting the future cash flows of each instrument at rates currently offered for similar debt instruments of comparable maturities by the Company’s lenders using Level 3 inputs.  The carrying value of the Company’s debt excluding unamortized debt issuance costs was $50,450,000 and $27,450,000 as of June 30, 2017 and December 31, 2016, respectively, and its estimated fair value was $49,123,831 and $26,957,385 as of June 30, 2017 and December 31, 2016, respectively.

Mortgages

The mortgage loans require compliance with certain covenants such as debt service ratios, investment restrictions and distribution limitations.  As of June 30, 2017, the Company is in compliance with all financial covenants related to its mortgage loans.

Note Payable

The Mezzanine Loan has customary affirmative, negative and financial covenants, agreements, representations, warranties and borrowing conditions including various customary events of default. The Sponsor has agreed to guarantee the obligations or liabilities of the Commons Subsidiary to lender under the Mezzanine Loan. The Company has not paid, and will not pay, any fees or other consideration to the Sponsor for this guarantee. As of June 30, 2017, the Company is in compliance with all financial covenants related to the Mezzanine Loan.

As of June 30, 2017, scheduled principal payments and maturities on the Company’s mortgages and note payable were as follows:

12

INLAND RESIDENTIAL PROPERTIES TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

	June 30, 2017
Scheduled Principal Payments and Maturities by Year:	Scheduled Principal Payments		Maturities of Mortgages		Maturity of Note Payable		Total
2017 (remainder of the year)	$	—	$	—	$	—	$	—
2018		—		—		9,200,000		9,200,000
2019		—		—		—		—
2020		—		—		—		—
2021		124,063		—		—		124,063
Thereafter		853,206		40,272,731		—		41,125,937
Total	$	977,269	$	40,272,731	$	9,200,000	$	50,450,000

NOTE 7 – DISTRIBUTIONS

The Company currently pays distributions based on daily record dates, payable in arrears the following month, equal to a daily amount of $0.003424658 per Class A Share, $0.002768493 per Class T Share and $0.003306849 per Class T-3 Share, based upon a 365-day year. The Company issued 22,396 in stock dividends during the six months ended June 30, 2017. The table below presents the distributions paid and declared for the three and six months ended June 30, 2017 and 2016.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Distributions paid	$	488,222	$	100,997	$	909,132	$	171,301
Distributions declared	$	506,971	$	211,247	$	948,184	$	342,522

NOTE 8 – EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per share (“EPS”) are computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period (the “common shares”). Diluted EPS is computed by dividing net income (loss) by the common shares plus common share equivalents. The Company excludes antidilutive restricted shares from the calculation of weighted-average shares for diluted EPS.  As a result of a net loss for the three and six months ended June 30, 2017, 811 and 761 shares, respectively, were excluded from the computation of diluted EPS, because they would have been antidilutive. As a result of a net loss for the three and six months ended June 30, 2016, 518 and 234 shares, respectively were excluded from the computation of diluted EPS, because they would have been antidilutive.

NOTE 9 – EQUITY-BASED COMPENSATION

In accordance with the Company’s Employee and Director Incentive Restricted Share Plan (the “RSP”), restricted shares are issued to non-employee directors as compensation.

13

INLAND RESIDENTIAL PROPERTIES TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Under the RSP, restricted shares generally vest over a one to three year vesting period from the date of the grant based on the specific terms of the grant.  The grant-date value of the restricted shares is amortized over the vesting period representing the requisite service period. At vesting, any restrictions on the shares lapse. The number of shares that may be issued under the RSP is limited to 5% of outstanding shares. Compensation expense associated with the director restricted shares is included in general and administrative expenses in the accompanying consolidated financial statements. Compensation expense under the RSP was $2,778 and $5,139 for the three and six months ended June 30, 2017, respectively. Compensation under the RSP was $3,316 and $6,076 for the three and six months ended June 30, 2016, respectively. As of June 30, 2017, the Company had $20,116 of unrecognized compensation cost related to the unvested restricted share awards. The weighted average remaining period that compensation expense related to unvested restricted shares will be recognized is 1.76 years. A summary of the status of the restricted shares is presented below:

	Shares			Weighted Average Grant Date Fair Value			Aggregate Intrinsic Value
Outstanding at December 31, 2016		804		$	18,334		$	18,334
Granted		658			15,000			15,000
Vested		(183	)		(4,167	)		(4,167	)
Forfeited		—			—			—
Outstanding at June 30, 2017		1,279		$	29,167		$	29,167

NOTE 10 – SEGMENT REPORTING

The Company has one reportable segment, multi-family real estate, as defined by U.S. GAAP for the three and six months ended June 30, 2017 and 2016.

NOTE 11 – TRANSACTIONS WITH RELATED PARTIES

The following table summarizes the Company’s related party transactions for the three and six months ended June 30, 2017 and 2016.

		Three Months Ended June 30,				Six Months Ended June 30,				Amount Unpaid as of
		2017		2016		2017		2016		June 30, 2017		December 31, 2016
General and administrative reimbursements	(a)	$	119,724	$	166,333	$	210,031	$	257,796	$	92,735	$	80,386
Affiliate share purchase discounts	(b)		974		12		24,530		14,542		—		—
Total general and administrative costs		$	120,698	$	166,345	$	234,561	$	272,338	$	92,735	$	80,386
Acquisition related costs	(c)	$	123,418	$	—	$	158,276	$	—	$	720,988	$	686,250
Offering costs	(d)	$	712,154	$	724,809	$	1,110,183	$	1,274,616	$	1,689,124	$	1,476,746
Business management fee	(e)	$	91,763	$	68,594	$	160,455	$	137,185	$	526,450	$	365,995
Mortgage financing fee	(f)	$	—	$	—	$	—	$	—	$	114,375	$	114,375
Sponsor non-interest bearing advances	(g)	$	—	$	—	$	—	$	—	$	2,950,000	$	2,950,000
Property management fee		$	61,409	$	39,597	$	100,554	$	76,728	$	—	$	—
Property operating expenses			129,715		96,284		223,135		168,990		22,694		11,001
Total property operating expenses	(h)	$	191,124	$	135,881	$	323,689	$	245,718	$	22,694	$	11,001

(a) The Business Manager and its affiliates are entitled to reimbursement for certain general and administrative expenses incurred relating to the Company’s administration. Such costs are included in general and administrative expenses in the accompanying consolidated statements of operations. Unpaid amounts are included in due to related parties in the accompanying consolidated balance sheets.

14

INLAND RESIDENTIAL PROPERTIES TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

(b) The Company established a discount stock purchase policy for affiliates and affiliates of the Business Manager that enable them to purchase shares of common stock at $22.81 per share. The Company sold 11,201 and 6,635 shares to affiliates during the six months ended June 30, 2017 and 2016, respectively.

(c) Prior to August 8, 2016 under the Business Management Agreement, the Company was required to pay the Business Manager or its affiliates an acquisition fee equal to 1.5% of the “contract purchase price,” as defined in that agreement, of each property and real estate-related asset acquired.   The Business Management Agreement was amended to, among other things, delete the obligation to pay acquisition fees, real estate sales commissions and mortgage financing fees payable to the Business Manager by the Company with respect to transactions occurring on or after August 8, 2016. The Business Manager and its affiliates continue to be reimbursed for acquisition related costs of the Business Manager and its affiliates relating to the Company’s acquisition of properties and real estate assets, regardless of whether the Company acquires the properties or real estate assets, subject to the limits provided in the amended agreement.  Of the $158,276 related party acquisition costs and fees, $120,040 were capitalized and classified in other assets in the accompanying consolidated balance sheets and $38,236 of such costs are included in acquisition related costs in the accompanying consolidated statements of operations.  Acquisition fees earned prior to August 8, 2016, which have been previously accrued for and are owed to the Business Manager, are expected to be paid in the future and are included in due to related parties in the accompanying consolidated balance sheets.  

(d) The Company reimburses the Sponsor and its affiliates for costs and other expenses of the Offering.  Offering costs are offset against the stockholders’ equity accounts. Unpaid amounts are included in due to related parties in the accompanying consolidated balance sheets. An affiliate of the Business Manager also receives selling commissions equal to 6.0% of the sale price for each Class A Share sold,  2.0% of the sale price for each Class T Share sold and 3.0% of the sale price for each Class T-3 Share sold and a dealer manager fee equal to 2.75% of the sale price for each Class A and Class T Share sold and 2.5% of the sale price for each Class T-3 Share sold, the majority of which is re-allowed (paid) to third party soliciting dealers. The Company does not pay selling commissions or the dealer manager fee in connection with shares issued through the DRP and pays no or reduced selling commissions and dealer manager fees in connection with certain special sales. Unpaid amounts are included in due to related parties in the accompanying consolidated balance sheets. The Company pays a distribution and stockholder servicing fee equal to 1.0% per annum of the purchase price per share (or, once reported, the amount of the Company’s estimated value per share) for each Class T Share and Class T-3 Share sold in the Offering. The fee is not paid at the time of purchase. The Company accounts for the total fee as a charge to equity at the time each Class T Share or Class T-3 Share is sold in the Offering and records a corresponding payable in due to related parties. The distribution and stockholder servicing fee is payable monthly in arrears as it becomes contractually due. At June 30, 2017 and December 31, 2016, the unpaid fee equal to $475,643 and $335,327, respectively, was recorded in due to related parties in the accompanying consolidated balance sheets.

(e) The Company pays the Business Manager an annual business management fee equal to 0.6% of its “average invested assets,” payable quarterly in an amount equal to 0.15% of the Company’s average invested assets as of the last day of the immediately preceding quarter. “Average invested assets” means, for any period, the average of the aggregate book value of the Company’s assets, including all intangibles and goodwill, invested, directly or indirectly, in equity interests in, and loans secured by, properties, as well as amounts invested in securities or consolidated and unconsolidated joint ventures or other partnerships, before reserves for amortization and depreciation or bad debts, impairments or other similar non-cash reserves, computed by taking the average of these values at the end of each month during the relevant calendar quarter. Unpaid amounts are included in due to related parties in the accompanying consolidated balance sheets.

(f) Prior to August 8, 2016 under the Business Management Agreement, the Company was required to pay the Business Manager or its affiliates a mortgage financing fee equal to 0.25% of the amount available or borrowed under the financing or the assumed debt if the Business Manager or its affiliates provided services in connection with the origination or refinancing of any debt that the Company obtained and used to finance properties or other assets, or that was assumed, directly or indirectly, in connection with the acquisition of properties or other assets. Pursuant to the amended Business Management Agreement,mortgage financing fees were eliminated with respect to transactions occurring on or after August 8, 2016. Mortgage financing fees earned prior to August 8, 2016, which have been previously accrued for and are owed to the Business Manager, are expected to be paid in the future and are included in due to related parties in the accompanying consolidated balance sheets.

(g) This amount represents non-interest bearing advances made by the Sponsor which the Company intends to repay. Unpaid amounts are included in due to related parties in the accompanying consolidated balance sheets.   

15

INLAND RESIDENTIAL PROPERTIES TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

(h) The Company pays Inland Residential Real Estate Services, LLC (the “Real Estate Manager”) a monthly property management fee of up to 4% of the gross income from any property managed directly by the Real Estate Manager or its affiliates. The Real Estate Manager may reduce, in its sole discretion, the amount of the management fee payable in connection with a particular property, subject to these limits. The Company also reimburses the Real Estate Manager and its affiliates for property-level expenses that they pay or incur on the Company’s behalf, including the salaries, bonuses, benefits and severance payments for persons performing services, including without limitation acquisition due diligence services, for the Real Estate Manager and its affiliates (excluding the executive officers of the Real Estate Manager and the Company’s executive officers).

NOTE 12 – OPERATING LEASES

The Company’s residential lease terms are generally for twelve months or less.  The retail lease terms range from 1 to 4 years. Minimum lease payments to be received under retail operating leases as of June 30, 2017 for the years indicated, assuming no expiring leases are renewed, are as follows:

	Minimum Lease Payments
2017 (remainder of year)	$	135,425
2018		257,350
2019		254,650
2020		172,750
2021		78,120
Thereafter		—
Total	$	898,295

NOTE 13 – SUBSEQUENT EVENTS

Cash distributions

The Company’s board of directors declared cash distributions payable to stockholders of record of Class A, Class T and Class T-3 Shares each day beginning on the close of business July 1, 2017 through the close of business December 31, 2017.  Through that date distributions were declared in a daily amount equal to $0.003424658 per Class A Share, $0.002768493 per Class T Share and $0.003306849 per Class T-3 Share, based on a 365-day period. Distributions were paid monthly in arrears as follows.

Distribution Month	Month Distribution Paid	Gross Amount of Distribution Paid		Distribution Reinvested through DRP		Shares Issued		Net Cash Distribution
June 2017	July 2017	$	176,258	$	94,758		4,031	$	81,500
July 2017	August 2017	$	186,955	$	100,971		4,295	$	85,984

 Acquisitions

The Company purchased the following property from an unaffiliated third party subsequent to June 30, 2017:

Date Acquired	Property Name	Location	Square Footage		Number of Units		Purchase Price
7/27/2017	Verandas at Mitylene	Montgomery, Alabama		376,968		332	$	36,550,000

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INLAND RESIDENTIAL PROPERTIES TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Financing

Date	Property	Interest Rate (stated)		Principal Amount		Maturity Date
7/27/2017	Verandas at Mitylene		3.88%	$	21,930,000	8/1/2027

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Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations

Certain statements in this Quarterly Report on Form 10-Q constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Words such as “may,” “could,” “should,” “expect,” “intend,” “plan,” “goal,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “variables,” “potential,” “continue,” “expand,” “maintain,” “create,” “strategies,” “likely,” “will,” “would” and variations of these terms and similar expressions, or the negative of these terms or similar expressions, are intended to identify forward-looking statements.

These forward-looking statements are not historical facts but reflect the intent, belief or current expectations of the management of Inland Residential Properties Trust, Inc. (which we refer to herein as the “Company,” “we,” “our” or “us”) based on their knowledge and understanding of the business and industry, the economy and other future conditions. These statements are not guarantees of future performance, and we caution stockholders not to place undue reliance on forward-looking statements. Actual results may differ materially from those expressed or forecasted in the forward-looking statements due to a variety of risks, uncertainties and other factors, including but not limited to the factors listed and described under “Risk Factors” in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2016, as filed with the Securities and Exchange Commission on March 17, 2017, and factors described below:

• There is no established public trading market for our shares, and our stockholders may not be able to sell their shares under our share repurchase program (as amended, the “SRP”) and, if our stockholders are able to sell their shares under the SRP, they may not be able to recover the amount of their investment in our shares;

• Our board does not have any current plans to list our shares or pursue any other liquidity event, and we cannot guarantee that a liquidity event will occur;

• To date, we have not generated sufficient cash flow from operations to pay distributions, and, therefore, we have paid, and may continue to pay, distributions from the net proceeds of our “reasonable best efforts” offering (the “Offering”) and distribution reinvestment plan (as amended, the “DRP”), which reduces the amount of cash we ultimately have to invest in assets, negatively impacting the value of our stockholders’ investment and is dilutive to our stockholders;

• If we fail to raise sufficient funds through our Offering, then we will be unable to build a large diversified portfolio of properties and the poor performance of a single investment could materially adversely affect our overall investment performance;

• We have incurred net losses on a U.S. GAAP basis for the three and six months ended June 30, 2017 and 2016 and for the year ended December 31, 2016;

• Our charter generally limits the total amount we may borrow to 300% of our net assets, equivalent to 75% of the costs of our assets;

• The interest of later investors in our common stock will be diluted as a result of our payment of stock dividends that have been declared and will be further diluted if we make additional stock dividends;

• We may not be able to raise capital sufficient to achieve our investment objectives;

• The prior performance of programs sponsored by Inland Real Estate Investment Corporation (our “Sponsor”) should not be used to predict our future results;

• Market disruptions may adversely impact many aspects of our operating results and operating condition;

• The number and value of real estate assets we acquire will depend, in part, on the net proceeds raised in our Offering;

• We do not have employees and will rely on Inland Residential Business Manager & Advisor, Inc. or our “Business Manager” and Inland Residential Real Estate Services, LLC or our “Real Estate Manager” to manage our business and assets;

• Persons performing services for our Business Manager and our Real Estate Manager are employed by our Sponsor or its affiliates and face competing demands for their time and service;

• We do not have arm’s-length agreements with our Business Manager, Real Estate Manager or other affiliates of our Sponsor;

• Our Sponsor may face a conflict of interest in allocating personnel and resources between its affiliates, our Business Manager and our Real Estate Manager;

• We may suffer from delays in selecting, acquiring and developing suitable assets;

• We rely on entities affiliated with our Sponsor to identify real estate assets;

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• We pay fees, which may be significant, to our Business Manager, Real Estate Manager and other affiliates of our Sponsor;

• We have not identified all of the specific real estate assets that we will acquire with the net proceeds raised in our Offering, thus it is a “blind pool” offering;

• Any properties that we acquire and own may compete with the properties owned by other programs sponsored by our Sponsor or Inland Private Capital Corporation for, among other things, tenants;

• There are limits on the ownership and transferability of our shares; and

• If we fail to continue to qualify as a REIT, our operations and distributions to stockholders will be adversely affected.

Forward-looking statements in this Quarterly Report on Form 10-Q reflect our management’s view only as of the date of this Quarterly Report, and may ultimately prove to be incorrect or false. We undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results except as required by applicable law. We intend for these forward-looking statements to be covered by the applicable safe harbor provisions created by Section 27A of the Securities Act and Section 21E of the Exchange Act.

The following discussion and analysis relates to the three and six months ended June 30, 2017 and 2016, respectively and as of June 30, 2017 and December 31, 2016, respectively. You should read the following discussion and analysis along with our consolidated financial statements and the related notes included in this report.

Overview

We are an externally managed Maryland corporation formed in December 2013 to primarily acquire and manage a portfolio of multi-family properties located primarily in the top 100 United States metropolitan statistical areas, which generally contain populations greater than 500,000 people. We expect that our real estate portfolio will consist primarily of “stabilized” Class A and Class B multi-family properties. We are managed by our Business Manager. Substantially all of our business is conducted through Inland Residential Operating Partnership, L.P. (the “operating partnership”), of which we are the sole general partner.  We elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code, beginning with our taxable year ended December 31, 2015.

We are authorized to sell up to $1,000,000,000 of shares of common stock which consist of Class A Shares, at a price of $25.00 per share, Class T Shares, at a price of $23.95 per share, and Class T-3 Shares, at a price of $24.14 per share, in any combination, on a “reasonable best efforts” basis. We are also authorized to issue up to $190,000,000 of Class A, Class T and Class T-3 Shares at a per share price of $23.75, $22.81 and $22.81, respectively, pursuant to our DRP. We commenced our Offering of Class A Shares and Class T Shares on February 17, 2015 and, effective February 2, 2017, we reallocated certain of the remaining shares being offered in our Offering to offer Class T-3 Shares.

Company Highlights – Three Months Ended June 30, 2017

Acquisitions

During the three months ended June 30, 2017, we acquired, from an unaffiliated third party, a fee simple interest in a 105,442 square foot, 85-unit apartment community with a 10,609 square foot extended first floor retail space known as Commons at Town Center, located in Vernon Hills, Illinois.  The purchase price of the property was $23,000,000.

Financings

The acquisition was financed by obtaining a fixed rate mortgage loan and a short term mezzanine loan in an aggregate principal amount equal to $23,000,000.

Capital

Excluding DRP proceeds, we generated gross proceeds of approximately $2.4 million, $1.1 million and $1.8 million from sales of our Class A Shares, Class T Shares and Class T-3 Shares, respectively, during the three months ended June 30, 2017.

Select Property Information

As of June 30, 2017, we owned two communities located in two states consisting of 291 residential units.  In addition, we own ground level retail space totaling 10,609 square feet at one property.  We own and lease retail space at our properties when we believe the

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retail space will increase the attractiveness of our communities and add convenience to our residents. The table below presents information for each of our communities as of June 30, 2017.

Community	Location	Total Number of Residential Units		Average Rental Rate per Residential Unit (a)		2017 Residential Average Occupancy	Leased Residential Units	Purchase Price		Debt Balance		Interest Rate (b)
The Retreat at Market Square	Frederick, MD		206	$	1,542	95.7%	201	$	45,727,557	$	27,450,000		3.64	%
Commons at Town Center	Vernon Hills, IL		85	$	1,921	95.1%	83	$	23,000,000	$	23,000,000		4.37	%

(a) Average rental rate per residential unit is for the last month of the period presented.

(b) Weighted average interest rate as of June 30, 2017.

Our communities include garden-style apartments generally defined as properties with multiple one to three story buildings in landscaped settings and mid-rise apartments situated in more urban settings.  The following table sets forth a summary of our communities by building type as of June 30, 2017.

Type	Residential Units
Garden-style	206
Mid-rise	85

Liquidity and Capital Resources

General

Our primary uses and sources of cash are as follows:

Uses		Sources
Short-term liquidity and capital needs such as:		•	Cash receipts from our tenants
•	Interest on our mortgage loans	•	Proceeds from the Offering including the DRP
•	Interest and principal payments on our mezzanine loan	•	Proceeds from new mortgage loans
•	Property operating expenses
•	General and administrative expenses
•	Distributions to stockholders
•	Non-transaction based fees payable to our Business Manager and Real Estate Manager
•	Payment of offering costs
Long-term liquidity and capital needs such as:
•	Acquisition of real estate investments
•	Interest & principal payments on our mortgage loans
•	Payment of offering costs
•	Capital expenditures

Cash Flow Analysis

	Six Months Ended June 30,						Change
	2017			2016			2017 vs. 2016
Net cash flows provided by operating activities	$	505,005		$	100,579		$	404,426
Net cash flows used in investing activities	$	(22,956,339	)	$	(4,300	)	$	(22,952,039	)
Net cash flows provided by (used in) financing activities	$	30,581,221		$	(4,359,286	)	$	34,940,507

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Operating activities

Cash provided by operating activities increased $0.4 million for the six months ended June 30, 2017 compared to the six months ended June 30, 2016 primarily due to payments made in 2016 related to our 2015 acquisition, cash generated from property operations from our recent acquisition and timing of payments.

Investing activities

	Six Months Ended June 30,						Change
	2017			2016			2017 vs. 2016
Purchase of real estate	$	(22,936,173	)	$	—		$	(22,936,173	)
Capital expenditures		(20,166	)		(4,300	)		(15,866	)
Net cash flows used in investing activities	$	(22,956,339	)	$	(4,300	)	$	(22,952,039	)

We used more cash in our investing activities for the six months ended June 30, 2017 compared to the six months ended June 30, 2016 primarily due to the acquisition of Commons at Town Center in 2017.

Financing activities

	Six Months Ended June 30,						Change
	2017			2016			2017 vs. 2016
Proceeds from offering net of offering costs	$	8,069,000		$	11,176,161		$	(3,107,161	)
Distributions paid		(430,053	)		(171,301	)		(258,752	)
Total changes related to debt		22,942,274			(15,364,146	)		38,306,420
Net cash provided by (used in) financing activities	$	30,581,221		$	(4,359,286	)	$	34,940,507

Cash provided by financing activities increased $34.9 million for the six months ended June 30, 2017 compared to the six months ended June 30, 2016. During the six months ended June 30, 2017 and 2016, we generated proceeds from the sale of our shares, net of offering costs paid, of approximately $8.1 million and $11.2 million, respectively. During the six months ended June 30, 2017, we obtained a mortgage loan and a mezzanine loan in an aggregate amount of $23.0 million to finance our acquisition.  During the six months ended June 30, 2016, we paid $15.4 million toward our mortgage loan. During the six months ended June 30, 2017 and 2016, we paid approximately $0.4 million and $0.2 million, respectively, in distributions.  

Distributions

A summary of the cash distributions declared and paid, and cash flows provided by operations for the six months ended June 30, 2017 and 2016 is as follows:

	Six Months Ended June 30,
	2017		2016
Total cash distributions declared	$	948,184	$	342,522
Distributions declared per Class A Share  (1)	$	0.62	$	0.62
Distributions declared per Class T Share  (1)	$	0.50	$	0.50
Distributions declared per Class T-3 Share (1)	$	0.60	$	—
Total cash distributions paid (2)	$	909,132	$	288,627
Cash distributions paid		430,053		171,301
Distributions reinvested via DRP		479,079		117,326
Cash flow provided by operations	$	505,005	$	100,579
Net offering proceeds (3)	$	8,069,000	$	11,176,161

(1) Per share amounts are based on weighted average number of Class A Shares, Class T Shares or Class T-3 shares outstanding, as applicable. For the six months ended June 30, 2017 and 2016, the distributions declared per Class T Share are less than the distributions declared per Class A Share by an amount equal to the distribution and stockholder servicing fee paid per Class T Share of $0.12. For the six months ended June 30, 2017, the distributions declared per Class T-3 Share are less than the

21

distributions declared per Class A Share by an amount equal to $0.02. The remaining distribution and stockholder servicing fee per Class T-3 Share of approximately $0.10 will impact the estimated value per share of the Class T-3 Shares.

(2) Approximately 44.5% and 65.2% of cash distributions paid for the six months ended June 30, 2017 and 2016, respectively, were paid from the net proceeds of our Offering.

(3) The Offering commenced on February 17, 2015.

Results of operations

The following discussion is based on our consolidated financial statements for the three and six months ended June 30, 2017 and 2016. This section describes and compares our results of operations for the three and six months ended June 30, 2017 and 2016. We generate almost all of our net operating income from property operations. In order to evaluate our overall portfolio, management analyzes the net operating income of our property that we have owned and operated for both periods presented, in their entirety, referred to herein as “same store” properties. By evaluating the property net operating income of our “same store” properties, management is able to monitor the operations of our existing properties for comparable periods to measure the performance of our current portfolio and determine the effects of our new acquisitions on net income.

Comparison of the three months ended June 30, 2017 and 2016

A total of one multi-family property was acquired on or before April 1, 2016 and represents our “same store” property during the three months ended June 30, 2017 and 2016.  “Non-same store,” as reflected in the table below, consists of properties acquired after April 1, 2016. For the three months ended June 30, 2017 and 2016, one property constituted a non-same store property. The following table presents the property net operating income broken out between same store and non-same store, prior to amortization of intangibles, interest, and depreciation and amortization for the three months ended June 30, 2017 and 2016, along with a reconciliation to net loss, calculated in accordance with U.S. GAAP.

	Total									Same Store							Non-Same Store
	Three Months Ended June 30,									Three Months Ended June 30,							Three Months Ended June 30,
	2017			2016			Change			2017		2016		Change			2017		2016		Change
Rental income	$	1,294,942		$	917,059		$	377,883		$	927,332	$	917,059	$	10,273		$	367,610	$	—	$	367,610
Other property income		128,262			88,713			39,549			79,923		88,713		(8,790	)		48,339		—	$	48,339
Total income	$	1,423,204		$	1,005,772		$	417,432		$	1,007,255	$	1,005,772	$	1,483		$	415,949	$	—	$	415,949
Property operating expenses	$	432,756		$	313,838		$	118,918		$	322,629	$	313,838	$	8,791		$	110,127		—	$	110,127
Real estate tax expense		164,056			87,528			76,528			87,596		87,528		68			76,460		—		76,460
Total property operating expenses	$	596,812		$	401,366		$	195,446		$	410,225	$	401,366	$	8,859		$	186,587	$	—	$	186,587
Property net operating income	$	826,392		$	604,406		$	221,986		$	597,030	$	604,406	$	(7,376	)	$	229,362	$	—	$	229,362
General and administrative expenses	$	(390,663	)	$	(320,173	)	$	(70,490	)
Acquisition related costs		(30,266	)		—			(30,266	)
Business management fee		(91,763	)		(68,594	)		(23,169	)
Depreciation and amortization		(609,311	)		(450,466	)		(158,845	)
Interest expense		(423,299	)		(372,037	)		(51,262	)
Interest and other income		14,116			—			14,116
Net loss	$	(704,794	)	$	(606,864	)	$	(97,930	)

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Net loss. Net loss was $704,794 and $606,864 for the three months ended June 30, 2017 and 2016, respectively.

Total property net operating income.  On a “same store” basis, comparing the results of operations of our investment property owned during the three months ended June 30, 2017 with the results of the same investment property owned during the three months ended June 30, 2016 property net operating income decreased $7,376.  The decrease is primarily due to increased property operating expenses as a result of a common area painting project offset by increased property income due to increased occupancy.

“Non-same store” total property net operating income increased $229,362 during 2017 as compared to 2016. The increase is a result of acquiring an additional property after April 1, 2016. On a “non-same store” basis, total property income increased $415,949 and total property operating expenses increased $186,587 during the three months ended June 30, 2017 as compared to 2016 as a result of this acquisition.

General and Administrative expenses.  General and administrative expenses increased $70,490 in 2017 compared to 2016.  This increase is primarily due to growth in our portfolio.

Acquisition related costs.  Acquisition related expenses increased $30,266 in 2017 compared to 2016. The increase is attributed to our acquisition related activity.

Business management fee. Business management fees increased $23,169 in 2017 compared to 2016. The increase is due to the acquisition of one property which increased assets under management.

Depreciation and Amortization.  Depreciation and amortization increased $158,845 in 2017, as compared to 2016. The increase is primarily due to one acquisition in 2017.

Interest Expense.  Interest expense increased $51,262 in 2017 compared to 2016. The increase is primarily due to additional financing after April 1, 2016.

Interest and other income.  Interest and other income increased $14,116.  The increase is primarily due to higher interest earned as a result of higher cash balances in 2017 compared to 2016.

Comparison of the six months ended June 30, 2017 and 2016

A total of one multi-family property was acquired on or before January 1, 2016 and represents our “same store” property during the six months ended June 30, 2017 and 2016.  “Non-same store,” as reflected in the table below, consists of properties acquired after January 1, 2016. For the six months ended June 30, 2017 and 2016, one property constituted a non-same store property. The following table presents the property net operating income broken out between same store and non-same store, prior to amortization of intangibles, interest, and depreciation and amortization for the six months ended June 30, 2017 and 2016, along with a reconciliation to net loss, calculated in accordance with U.S. GAAP.

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	Total									Same Store							Non-Same Store
	Six Months Ended June 30,									Six Months Ended June 30,							Six Months Ended June 30,
	2017			2016			Change			2017		2016		Change			2017		2016		Change
Rental income	$	2,198,454		$	1,760,295		$	438,159		$	1,830,845	$	1,760,295	$	70,550		$	367,609	$	—	$	367,609
Other property income		244,505			176,724			67,781			196,166		176,724		19,442			48,339		—		48,339
Total income	$	2,442,959		$	1,937,019		$	505,940		$	2,027,011	$	1,937,019	$	89,992		$	415,948	$	—	$	415,948
Property operating expenses	$	696,666		$	601,571		$	95,095		$	586,539	$	601,571	$	(15,032	)	$	110,127		—	$	110,127
Real estate tax expense		253,999			174,553			79,446			177,539		174,553		2,986			76,460		—		76,460
Total property operating expenses	$	950,665		$	776,124		$	174,541		$	764,078	$	776,124	$	(12,046	)	$	186,587	$	—	$	186,587
Property net operating income	$	1,492,294		$	1,160,895		$	331,399		$	1,262,933	$	1,160,895	$	102,038		$	229,361	$	—	$	229,361
General and administrative expenses	$	(694,517	)	$	(600,684	)	$	(93,833	)
Acquisition related costs		(71,479	)		—			(71,479	)
Business management fee		(160,455	)		(137,185	)		(23,270	)
Depreciation and amortization		(978,707	)		(1,072,825	)		94,118
Interest expense		(675,550	)		(799,064	)		123,514
Interest and other income		24,514			—			24,514
Net loss	$	(1,063,900	)	$	(1,448,863	)	$	384,963

Net loss.  Net loss was $1,063,900 and $1,448,863 for the six months ended June 30, 2017 and June 30, 2016, respectively.

Total property net operating income.  On a “same store” basis, comparing the results of operations of our investment property owned during the full six months ended June 30, 2017, with the results of the same investment properties owned during the full six months ended June 30, 2016, property net operating income increased $102,038. The increase is due to increased property income due to increased occupancy and markets rents, offset by decreased property operating expenses due primarily to a decrease in snow removal expense.

“Non-same store” total property net operating income increased $229,361 during 2017 as compared to 2016. The increase is a result of acquiring an additional property after January 1, 2016.

General and administrative expenses. General and administrative expenses increased $93,833 in 2017 compared to 2016. The increase is primarily due to the growth in our portfolio.

Acquisition related costs. Acquisition related expenses increased $71,479 in 2017 compared to 2016. The increase is attributed to our acquisition related activity.

Business management fee. Business management fees increased $23,270 in 2017 compared to 2016. The increase is due to the acquisition of one property which increased assets under management.

Depreciation and amortization.  Depreciation and amortization decreased $94,118 in 2017, as compared to 2016. This decrease is due primarily to The Retreat at Market Square’s acquired in place lease intangible becoming fully amortized in April 2016.

Interest Expense.  Interest expense decreased $123,514 in 2017 compared to 2016. The decrease is due to pay down of debt, partially offset by recent financings.

Interest and other income.  Interest and other income increased $24,514.  The increase is primarily due to higher interest earned as a result of higher cash balances in 2017 compared to 2016.

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Critical Accounting Policies

Disclosures discussing all significant accounting policies are set forth in our Annual Report on Form 10-K for the year ended December 31, 2016, as filed with the Securities and Exchange Commission on March 17, 2017, under the heading “Critical Accounting Policies”. There have been no changes to our critical accounting policies during the three months ended June 30, 2017.

Off-Balance Sheet Arrangements

We currently have no off-balance sheet arrangements that are reasonably likely to have a material current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

Subsequent Events

For information related to subsequent events, reference is made to Note 13 – “Subsequent Events” which is included in our June 30, 2017 Notes to Consolidated Financial Statements in Item 1.

Item 3.  Quantitative and Qualitative Disclosures About Market Risk

We are exposed to interest rate changes primarily as a result of long-term debt used to purchase properties or other real estate assets, maintain liquidity and fund capital expenditures or operations. We seek to limit the impact of interest rate changes on earnings and cash flows and to lower our overall borrowing costs. As of June 30, 2017, we had outstanding debt of approximately $50.5 million, excluding unamortized debt issuance costs. The weighted average interest rate was 3.97%. With regard to fixed rate financing, interest rate fluctuations generally affect the fair value, but not our earnings or cash flows. Therefore, interest rate risk does not have a significant impact on our fixed rate debt obligations until their maturity or earlier prepayment.

With regard to any variable rate financing, our Business Manager will assess our interest rate cash flow risk by continually identifying and monitoring changes in interest rate exposures that may adversely impact expected future cash flows and by evaluating hedging opportunities. Our Business Manager will maintain risk management control systems to monitor interest rate cash flow risk attributable to both of our outstanding or forecasted debt obligations as well as our potential offsetting hedge positions. While this hedging strategy will be designed to minimize the impact on our net income and funds from operations from changes in interest rates, the overall returns on stockholder investments may be reduced. Presently, we do not have any variable rate debt. 

We may use derivative financial instruments to hedge exposures to changes in interest rates on loans secured by our assets. Derivative instruments may include interest rate swap contracts, interest rate cap or floor contracts, futures or forward contracts, options or repurchase agreements. Our actual hedging decisions will be determined in light of the facts and circumstances existing at the time of the hedge and may differ from our currently anticipated hedging strategy. If we use derivative financial instruments to hedge against interest rate fluctuations, we will be exposed to both credit risk and market risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. If the fair value of a derivative contract is positive, the counterparty will owe us, which creates credit risk for us because the counterparty may not perform. Market risk is the adverse effect on the value of a financial instrument that results from a change in interest rates. We will seek to manage the market risk associated with interest-rate contracts by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken. There is no assurance we will be successful. Presently, we do not have any derivative financial instruments.

Item 4.  Controls and Procedures

Controls and Procedures

Our management has evaluated, with the participation of our principal executive and principal financial officers, the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report. Based on that evaluation, the principal executive and principal financial officers have concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report.

Changes in Internal Control over Financial Reporting

There were no changes to our internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) or Rule 15d-15(f)) during the three months ended June 30, 2017 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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Part II - Other Information

Item 1.  Legal Proceedings

We are not a party to, and our properties are not subject to, any material pending legal proceedings.

Item 1A.  Risk Factors

The following risk factors supplement the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2016.

We have incurred a net loss on a U.S. GAAP basis for the six months ended June 30, 2017.

We incurred a net loss on a U.S. GAAP basis for the three and six months ended June 30, 2017 of approximately $0.7 million and $1.1 million, respectively. Our loss can be attributed, in part, to property operating, interest, general and administrative expenses and depreciation and amortization. We may incur net losses in the future, which could have a material adverse impact on our financial condition, operations, cash flow, and our ability to service our indebtedness and pay distributions to our stockholders. We are subject to all of the business risks and uncertainties associated with any business, including the risk that the value of a stockholder’s investment could decline substantially. We were formed in December 2013 and, as of June 30, 2017, acquired two multi-family communities. We cannot assure our stockholders that, in the future, we will be profitable or that we will realize growth in the value of our assets.

To date, we have not generated sufficient cash flow from operations to pay distributions, and, therefore, we have paid, and may continue to pay, distributions from the net proceeds of our Offering and DRP, which reduces the amount of cash we ultimately have to invest in assets, negatively impacting the value of our stockholders’ investment, and is dilutive to our stockholders.

We have not yet generated sufficient cash flow from operations to fund distribution payments and may not do so unless our asset base grows significantly. Our organizational documents permit us to pay distributions from sources other than cash flow from operations. Specifically, some or all of our distributions may be paid from retained cash flow, from borrowings and from cash flow from investing activities, including the net proceeds from the sale of our assets, or from the net proceeds of our Offering and DRP. Accordingly, until such time as we are generating cash flow from operations sufficient to cover distributions we have paid and will likely continue to pay distributions from the net proceeds of our Offering and DRP or other sources. We have not established any limit on the extent to which we may use alternate sources, including borrowings or proceeds of the Offering and DRP, to pay distributions. There is no assurance we will generate sufficient cash flow from operations to cover distributions. We began declaring distributions to stockholders of record during November 2015. Of the cash distributions paid to stockholders through June 30, 2017, 68% ($1.2 million) have been paid from the net proceeds of our Offering and DRP. To the extent we pay cash distributions, or a portion thereof, from sources other than cash flow from operations, we will have less capital available to invest in properties and other real estate-related assets, the book value per share may decline, and there will be no assurance that we will be able to sustain distributions at that level.

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds

On February 17, 2015, our Registration Statement on Form S-11 (File No. 333-199129), covering a public offering of up to $1,190,000,000 of shares of Class A and Class T common stock was declared effective under the Securities Act, and on February 2, 2017, Post-Effective Amendment No. 9 to our Registration Statement on Form S-11 (File No. 333-199129), reallocating certain of the remaining shares being offered to offer Class T-3 Shares as a new class of common stock pursuant to the Offering and the DRP, was declared effective under the Securities Act. The Offering commenced on February 17, 2015 and is ongoing.

We are offering up to $1,000,000,000 of Class A Shares, Class T Shares and Class T-3 Shares, in any combination. We are also offering up to $190,000,000 of Class A, Class T and Class T-3 Shares in the DRP. We reserve the right to reallocate the shares between our reasonable best efforts Offering and the DRP, and among share classes.

From the effective date of the Offering through June 30, 2017, we had sold the following securities in the Offering and the DRP for the following aggregate offering proceeds:

• 1,289,196 Class A Shares, 375,556 Class T Shares and 78,786 Class T-3 Shares, equal to $42,565,495 in aggregate gross offering proceeds, in the reasonable best efforts Offering.

• 32,305 Class A Shares, 6,528 Class T Shares and 126 Class T-3 Shares, equal to $919,000 in aggregate gross offering proceeds, pursuant to the DRP.

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From the effective date of the Offering through June 30, 2017, we have paid the following costs in connection with the issuance and distribution of the registered securities:

Type of Costs	Amount
Offering costs paid to related parties (1)	$	3,619,613
Offering costs paid to non-related parties		3,154,914
Total offering costs paid	$	6,774,527

(1) “Offering costs to related parties” include selling commissions, dealer manager fees and due diligence expense reimbursements paid to Inland Securities Corporation, which re-allowed all or a portion of these amounts to soliciting dealers that are not related to Inland Securities Corporation.

From the effective date of the Offering through June 30, 2017, the net offering proceeds to us from the Offering and the DRP, after deducting the total expenses incurred described above, were approximately $36,709,000. As of June 30, 2017, we used $18,300,000 of these net proceeds to repay a portion of our debt which was originally incurred in connection with the purchase of real estate, approximately $919,000 in related costs associated with our purchase of real estate, of which approximately $63,000 was paid to related parties and approximately $1,234,000 to pay distributions. The remaining proceeds were held as cash at June 30, 2017.

Recent Sales of Unregistered Equity Securities

On June 20, 2017, we issued 658 restricted Class A Shares to our independent directors pursuant to our Employee and Director Incentive Restricted Share Plan, which become vested in equal installments of 33-1/3% on each of the first three anniversaries of June 20, 2017, subject to certain exceptions. No sales commissions or other consideration was paid in connection with such issuances, which were made without registration under the Securities Act in reliance upon the exemption from registration set forth in Section 4(a)(2) of the Securities Act as transactions not involving any public offering.

Share Repurchase Program

The SRP is designed to provide eligible stockholders with limited, interim liquidity by enabling them to sell shares back to us. The terms under which we may repurchase shares may differ between repurchases upon the death or “qualifying disability” of a stockholder or “Exceptional Repurchases” and all other repurchases or “Ordinary Repurchases.” The repurchase price for Ordinary Repurchases is equal to $21.60 per share, $21.61 per share and $21.61 per share for Class A Shares, Class T Shares and Class T-3 Shares, respectively, until the initial valuation date, and thereafter the repurchase price is equal to 96.0% of the most recent applicable estimated value per share reported by us.

In the case of Ordinary Repurchases, we may repurchase shares beneficially owned by a stockholder continuously for at least one year and who purchased their shares from us or received their shares through a non-cash transfer, if requested, if we choose to repurchase them. However, in the event a stockholder is having all of his or her shares repurchased, our board may waive the one-year holding requirement for shares purchased under our DRP. We may make Ordinary Repurchases only if we have sufficient funds available to complete the repurchase. In any given calendar month, we are authorized to use only the proceeds from our DRP during that month to make Ordinary Repurchases; provided that, if we have excess funds during any particular month, we may, but are not obligated to, carry those excess funds to the subsequent calendar month for the purpose of making Ordinary Repurchases. Subject to funds being available, in the case of Ordinary Repurchases, we limit the number of shares repurchased during any calendar year to no more than 5% of the number of Class A Shares, Class T Shares and Class T-3 Shares outstanding on December 31st of the previous calendar year. In the event that we determine not to repurchase all of the shares presented during any month, including as a result of having insufficient funds or satisfying the 5% limit, to the extent we decide to repurchase shares, shares will be repurchased on a pro rata basis up to the limits described above. Any stockholder whose Ordinary Repurchase request has been partially accepted in a particular calendar month will have the remainder of his or her request included with all new repurchase requests we have received in the immediately following calendar month, unless he or she chooses to withdraw that request.

In the case of Exceptional Repurchases, we may repurchase shares at a repurchase price equal to $22.50 per share, $22.51 per share and $22.51 per share for Class A Shares, Class T Shares and Class T-3 Shares, respectively, until the initial valuation date, and thereafter the repurchase price is equal to 100.0% of the most recent applicable estimated value per share reported by us. Exceptional Repurchases are not subject to a one-year holding period, or the 5% repurchase limit discussed above, and may be repurchased with funds from any source.

The SRP will immediately terminate if our shares become listed for trading on a national securities exchange. In addition, our board of directors, in its sole discretion, may, at any time, amend, suspend or terminate the SRP.

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During the period covered by this quarterly report, we did not repurchase any of our securities.

Item 3.  Defaults Upon Senior Securities

None.

Item 4.  Mine Safety Disclosures

Not Applicable.

Item 5.  Other Information

Not Applicable.

Item 6.  Exhibits

The representations, warranties and covenants made by us in any agreement filed as an exhibit to this Form 10-Q are made solely for the benefit of the parties to the agreement, including, in some cases, for the purpose of allocating risk among the parties to the agreement, and should not be deemed to be representations, warranties or covenants to, or with, you. Moreover, these representations, warranties and covenants should not be relied upon as accurately describing or reflecting the current state of our affairs.

The exhibits filed in response to Item 601 of Regulation S-K are listed on the Exhibit Index attached hereto and are incorporated herein by reference.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

INLAND RESIDENTIAL PROPERTIES TRUST, INC.
	/s/ Mitchell A. Sabshon
By:	Mitchell A. Sabshon
	President and Chief Executive Officer
Date:	August 8, 2017
	/s/ Catherine L. Lynch
By:	Catherine L. Lynch
	Chief Financial Officer (Co-Principal Financial Officer)
Date:	August 8, 2017
	/s/ David Z. Lichterman
By:	David Z. Lichterman
	Vice President, Treasurer and Chief Accounting Officer (Co-Principal Financial Officer and Principal Accounting Officer)
Date:	August 8, 2017

29

Exhibit Index

Exhibit No.	Description
10.1	Agreement of Sale and Purchase, dated February 9, 2017, by and between Inland Real Estate Acquisitions, Inc. and VHTC Lot 10 LLC (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K as filed by the Registrant with the Securities and Exchange Commission on May 4, 2017 (file number 000-55765))
10.2	First Amendment to Agreement of Sale and Purchase, dated April 17, 2017, by and between Inland Real Estate Acquisitions, Inc. and VHTC Lot 10 LLC (incorporated by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K as filed by the Registrant with the Securities and Exchange Commission on May 4, 2017 (file number 000-55765))
10.3	Assignment and Assumption of Purchase and Sale Contract, dated May 3, 2017, by and between Inland Real Estate Acquisitions, Inc. and IRESI Vernon Hills Commons, L.L.C. (incorporated by reference to Exhibit 10.3 to the Registrant’s Current Report on Form 8-K as filed by the Registrant with the Securities and Exchange Commission on May 4, 2017 (file number 000-55765))
10.4	Assignment and Assumption of Leases, dated May 3, 2017, by and between IRESI Vernon Hills Commons, L.L.C. and VHTC Lot 10 LLC (incorporated by reference to Exhibit 10.4 to the Registrant’s Current Report on Form 8-K as filed by the Registrant with the Securities and Exchange Commission on May 4, 2017 (file number 000-55765))
10.5	Loan Agreement, dated May 3, 2017, by and between IRESI Vernon Hills Commons, L.L.C. and Parkway Bank and Trust Company (incorporated by reference to Exhibit 10.5 to the Registrant’s Current Report on Form 8-K as filed by the Registrant with the Securities and Exchange Commission on May 4, 2017 (file number 000-55765))
10.6	Secured Promissory Note, dated May 3, 2017, by IRESI Vernon Hills Commons, L.L.C. for the benefit of Parkway Bank and Trust Company (incorporated by reference to Exhibit 10.6 to the Registrant’s Current Report on Form 8-K as filed by the Registrant with the Securities and Exchange Commission on May 4, 2017 (file number 000-55765))
10.7	Mortgage, Security Agreement, Assignment of Rents and Fixture Filing, dated May 3, 2017, by IRESI Vernon Hills Commons, L.L.C. to Parkway Bank and Trust Company (incorporated by reference to Exhibit 10.7 to the Registrant’s Current Report on Form 8-K as filed by the Registrant with the Securities and Exchange Commission on May 4, 2017 (file number 000-55765))
10.8	Assignment of Leases and Rents, dated May 3, 2017, by IRESI Vernon Hills Commons, L.L.C. to Parkway Bank and Trust Company (incorporated by reference to Exhibit 10.8 to the Registrant’s Current Report on Form 8-K as filed by the Registrant with the Securities and Exchange Commission on May 4, 2017 (file number 000-55765))
10.9	Security Agreement, dated May 3, 2017, by and between IRESI Vernon Hills Commons, L.L.C. and Parkway Bank and Trust Company (incorporated by reference to Exhibit 10.9 to the Registrant’s Current Report on Form 8-K as filed by the Registrant with the Securities and Exchange Commission on May 4, 2017 (file number 000-55765))
10.10	Guaranty, dated May 3, 2017, by Inland Residential Properties Trust, Inc. in favor of Parkway Bank and Trust Company (incorporated by reference to Exhibit 10.10 to the Registrant’s Current Report on Form 8-K as filed by the Registrant with the Securities and Exchange Commission on May 4, 2017 (file number 000-55765))
10.11	Environmental Indemnity Agreement, dated May 3, 2017, made by IRESI Vernon Hills Commons, L.L.C. and Inland Residential Properties Trust, Inc. in favor of Parkway Bank and Trust Company (incorporated by reference to Exhibit 10.11 to the Registrant’s Current Report on Form 8-K as filed by the Registrant with the Securities and Exchange Commission on May 4, 2017 (file number 000-55765))
10.12	Mezzanine Pledge and Security Agreement, dated May 3, 2017, by and between Inland Residential Operating Partnership, L.P. and Parkway Bank and Trust Company (incorporated by reference to Exhibit 10.12 to the Registrant’s Current Report on Form 8-K as filed by the Registrant with the Securities and Exchange Commission on May 4, 2017 (file number 000-55765))

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Exhibit No.	Description
10.13	Mezzanine Guaranty Agreement, dated May 3, 2017, by Inland Real Estate Investment Corporation for the benefit of Parkway Bank and Trust Company (incorporated by reference to Exhibit 10.13 to the Registrant’s Current Report on Form 8-K as filed by the Registrant with the Securities and Exchange Commission on May 4, 2017 (file number 000-55765))
10.14	Mezzanine Promissory Note, dated May 3, 2017, by IRESI Vernon Hills Commons, L.L.C. for the benefit of Parkway Bank and Trust Company (incorporated by reference to Exhibit 10.14 to the Registrant’s Current Report on Form 8-K as filed by the Registrant with the Securities and Exchange Commission on May 4, 2017 (file number 000-55765))
31.1	Certification by Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
31.2	Certification by Co-Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
31.3	Certification by Co-Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
32.1	Certification by Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*
32.2	Certification by Co-Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*
32.3	Certification by Co-Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*
101	The following financial information from our Quarterly Report on Form 10-Q for the period ended June 30, 2017, filed with the Securities and Exchange Commission on August 8, 2017 is formatted in Extensible Business Reporting Language (“XBRL”): (i) Consolidated Balance Sheets; (ii) Consolidated Statements of Operations; (iii) Consolidated Statement of  Equity; (iv) Consolidated Statements of Cash Flows; and (v) Notes to Consolidated Financial Statements (tagged as blocks of text)

* Filed as part of this Quarterly Report on Form 10-Q.

31

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Mitchell A. Sabshon certify that:

1. I have reviewed this quarterly report on Form 10-Q of Inland Residential Properties Trust, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

	/s/ Mitchell A. Sabshon
Name:	Mitchell A. Sabshon
Title:	President and Chief Executive Officer (Principal Executive Officer)
Date:	August 8, 2017

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Catherine L. Lynch, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Inland Residential Properties Trust, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

	/s/ Catherine L. Lynch
Name:	Catherine L. Lynch
Title:	Chief Financial Officer
	(Co-Principal Financial Officer)
Date:	August 8, 2017

EX-31.3

Exhibit 31.3

CERTIFICATION

I, David Z. Lichterman, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Inland Residential Properties Trust, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

	/s/ David Z. Lichterman
Name:	David Z. Lichterman
Title:	Vice President, Treasurer and Chief Accounting Officer (Co-Principal Financial Officer and Principal Accounting Officer)
Date:	August 8, 2017

EX-32.1

Exhibit 32.1

Certification Pursuant to

18 U.S.C. Section 1350, as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q of Inland Residential Properties Trust, Inc. (the “Company”) for the fiscal quarter ended June 30, 2017, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Mitchell A. Sabshon, President and Chief Executive Officer of the Company, certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of his knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:  August 8, 2017	By:	/s/ Mitchell A. Sabshon
	Name:	Mitchell A. Sabshon
	Title:	President and Chief Executive Officer (Principal Executive Officer)

This certification accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended. A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

Certification Pursuant to

18 U.S.C. Section 1350, as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q of Inland Residential Properties Trust, Inc. (the “Company”) for the fiscal quarter ended June 30, 2017, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Catherine L. Lynch, Chief Financial Officer of the Company, certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of her knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:  August 8, 2017	By:	/s/ Catherine L. Lynch
	Name:	Catherine L. Lynch
		Chief Financial Officer
	Title:	(Co-Principal Financial Officer)

This certification accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended. A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.3

Exhibit 32.3

Certification Pursuant to

18 U.S.C. Section 1350, as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q of Inland Residential Properties Trust, Inc. (the “Company”) for the fiscal quarter ended June 30, 2017, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), David Z. Lichterman, Vice President, Treasurer and Chief Accounting Officer of the Company, certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of his knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company

Date:  August 8, 2017	By:	/s/ David Z. Lichterman
	Name:	David Z. Lichterman
	Title:	Vice President, Treasurer and Chief Accounting Officer (Co-Principal Financial Officer and Principal Accounting Officer)

This certification accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended. A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 01, 2017
Document And Entity Information [Line Items]
Entity Registrant Name	Inland Residential Properties Trust, Inc.
Entity Central Index Key	0001595627
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2017
Class A Common Stock [Member]
Document And Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		1,378,383
Class T Common Stock [Member]
Document And Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		391,506
Class T-3 Common Stock [Member]
Document And Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		85,377

XML

CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Real estate:
Land	$ 7,794,219	$ 6,301,838
Building and other improvements	59,885,396	38,889,177
Total real estate	67,679,615	45,191,015
Less: accumulated depreciation	(2,682,959)	(1,822,971)
Net real estate	64,996,656	43,368,044
Cash and cash equivalents	17,168,529	9,038,642
Accounts and rents receivable	26,628	17,961
Acquired in place lease intangibles, net	532,994
Other assets	289,259	458,316
Total assets	83,014,066	52,882,963
Liabilities:
Mortgages and note payable, net	50,395,683	27,447,459
Accounts payable and accrued expenses	427,425	232,736
Distributions payable	176,259	137,207
Due to related parties	6,116,366	5,684,753
Other liabilities	233,532	67,287
Total liabilities	57,349,265	33,569,442
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $.001 par value, 50,000,000 shares authorized, none outstanding
Additional paid in capital (net of offering costs of $10,046,720 and $8,268,768 as of June 30, 2017 and December 31, 2016, respectively)	34,456,882	25,539,970
Distributions and accumulated losses	(8,793,902)	(6,227,832)
Total stockholders’ equity	25,664,801	19,313,521
Total liabilities and stockholders’ equity	83,014,066	52,882,963
Class A Common Stock [Member]
Stockholders’ equity:
Common stock	1,354	1,099
Class T Common Stock [Member]
Stockholders’ equity:
Common stock	388	$ 284
Class T-3 Common Stock [Member]
Stockholders’ equity:
Common stock	$ 79

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CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Offering costs included as reduction to additional paid in capital	$ 10,046,720	$ 8,268,768
Class A Common Stock [Member]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	320,000,000	320,000,000
Common stock, shares issued	1,354,006	1,098,858
Common stock, shares outstanding	1,354,006	1,098,858
Class T Common Stock [Member]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares issued	388,824	284,283
Common stock, shares outstanding	388,824	284,283
Class T-3 Common Stock [Member]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares issued	79,362	0
Common stock, shares outstanding	79,362	0

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CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income:
Rental income	$ 1,294,942	$ 917,059	$ 2,198,454	$ 1,760,295
Other property income	128,262	88,713	244,505	176,724
Total income	1,423,204	1,005,772	2,442,959	1,937,019
Expenses:
Property operating expenses	432,756	313,838	696,666	601,571
Real estate tax expense	164,056	87,528	253,999	174,553
General and administrative expenses	390,663	320,173	694,517	600,684
Business management fee	91,763	68,594	160,455	137,185
Acquisition related costs	30,266		71,479
Depreciation and amortization	609,311	450,466	978,707	1,072,825
Total expenses	1,718,815	1,240,599	2,855,823	2,586,818
Operating loss	(295,611)	(234,827)	(412,864)	(649,799)
Interest expense	(423,299)	(372,037)	(675,550)	(799,064)
Interest and other income	14,116		24,514
Net loss	$ (704,794)	$ (606,864)	$ (1,063,900)	$ (1,448,863)
Net loss per common share, basic and diluted	$ (0.42)	$ (0.88)	$ (0.67)	$ (2.61)
Weighted average number of common shares outstanding, basic and diluted	1,696,801	687,355	1,595,207	556,070

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CONSOLIDATED STATEMENT OF EQUITY - 6 months ended Jun. 30, 2017 - USD ($)	Total	Common Stock [Member] Class A Common Stock [Member]	Common Stock [Member] Class T Common Stock [Member]	Common Stock [Member] Class T-3 Common Stock [Member]	Additional Paid In Capital [Member]	Distributions and Accumulated Losses [Member]
Balance at Dec. 31, 2016	$ 19,313,521	$ 1,099	$ 284		$ 25,539,970	$ (6,227,832)
Balance, shares at Dec. 31, 2016		1,098,858	284,283
Proceeds from the offering	9,632,568	$ 222	$ 95	$ 79	9,632,172
Proceeds from the offering, shares		221,971	95,366	78,786
Offering costs	(1,777,952)				(1,777,952)
Discount on shares to related parties	24,530				24,530
Issuance of shares from distribution reinvestment plan	479,079	$ 16	$ 4		479,059
Issuance of shares from distribution reinvestment plan, shares		15,874	4,349	126
Distributions declared	$ (948,184)					(948,184)
Stock dividends issued		$ 17	$ 5		553,964	(553,986)
Stock dividends issued, shares	22,396	17,120	4,826	450
Net loss	$ (1,063,900)					(1,063,900)
Equity based compensation	5,139				5,139
Equity based compensation, shares		183
Balance at Jun. 30, 2017	$ 25,664,801	$ 1,354	$ 388	$ 79	$ 34,456,882	$ (8,793,902)
Balance, shares at Jun. 30, 2017		1,354,006	388,824	79,362

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net loss	$ (1,063,900)	$ (1,448,863)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	978,707	1,072,825
Amortization of debt issuance costs	5,950	68,465
Amortization of equity based compensation	5,139	6,076
Discount on shares issued to related parties	24,530	14,542
Changes in assets and liabilities:
Accounts payable and accrued expenses	238,845	(75,732)
Accounts and rents receivable	(28,076)	11,326
Due to related parties	219,235	193,098
Other liabilities	133,126	(21,122)
Other assets	(8,551)	279,964
Net cash flows provided by operating activities	505,005	100,579
Cash flows from investing activities:
Purchase of real estate	(22,936,173)
Capital expenditures	(20,166)	(4,300)
Net cash flows used in investing activities	(22,956,339)	(4,300)
Cash flows from financing activities:
Payment of mortgage		(15,363,817)
Proceeds from mortgages and note payable	23,000,000
Proceeds from offering	9,632,568	12,881,557
Payment of debt issuance costs	(57,726)	(329)
Distributions paid	(430,053)	(171,301)
Payment of offering costs	(1,563,568)	(1,705,396)
Net cash flows provided by (used in) financing activities	30,581,221	(4,359,286)
Net increase (decrease) in cash and cash equivalents	8,129,887	(4,263,007)
Cash and cash equivalents, at beginning of the period	9,038,642	5,281,172
Cash and cash equivalents, at end of period	17,168,529	1,018,165
Supplemental disclosure of cash flow information:
Land	1,492,382
Building and other improvements	20,643,086
Furniture, fixtures and equipment	339,645
Acquired in place lease intangibles	645,035
Assumed assets and liabilities, net	(183,975)
Purchase of real estate	22,936,173
Supplemental schedule of non-cash investing and financing activities:
Cash paid for interest	675,606	737,305
Distributions payable	176,259	77,632
Accrued offering costs payable	756,106	532,231
Stock dividends issued	553,986	63,970
Common stock issued through distribution reinvestment plan	$ 479,079	$ 117,326

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ORGANIZATION

6 Months Ended

Jun. 30, 2017

Organization Consolidation And Presentation Of Financial Statements [Abstract]

ORGANIZATION

NOTE 1 - ORGANIZATION

The Company was formed on December 19, 2013 to primarily acquire and manage a portfolio of multi-family properties located primarily in the top 100 United States metropolitan statistical areas, which generally contain populations greater than 500,000 people. The Company entered into a business management agreement (as amended, the “Business Management Agreement”) with Inland Residential Business Manager & Advisor, Inc. (the “Business Manager”), an indirect wholly owned subsidiary of Inland Real Estate Investment Corporation (the “Sponsor”), to be the Business Manager to the Company. Substantially all of the Company’s business is conducted through Inland Residential Operating Partnership, L.P. (the “operating partnership”), of which the Company is the sole general partner. The Company elected to be taxed as a real estate investment trust for U.S. federal income tax purposes (“REIT”) under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended, beginning with the tax year ended December 31, 2015.

At June 30, 2017, the Company owned real estate consisting of two multi-family communities totaling 291 units.  The properties consist of 300,174 square feet of residential and 10,609 square feet of retail gross leasable area. During the six months ended June 30, 2017, the properties’ weighted average daily occupancy for residential was 95.5% and at June 30, 2017, 284 units, or 97.6% of the total residential units were leased.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2017

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Disclosures discussing all significant accounting policies are set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, as filed with the Securities and Exchange Commission on March 17, 2017, under the heading “Note 2 - Summary of Significant Accounting Policies.” There has been no change to the Company’s significant accounting policies during the six months ended June 30, 2017.

General

The accompanying consolidated financial statements have been prepared in accordance with U.S. GAAP and require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. In the opinion of management, all adjustments necessary for a fair statement, in all material respects, of the financial position and results of operations for the periods are presented. Actual results could differ from those estimates. The results of operations for the interim periods are not necessarily indicative of the results for the entire year.

Recent Accounting Pronouncements

In November 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash.The new update will require that amounts described as restricted cash and restricted cash equivalents be included in beginning and ending-of-period reconciliation of cash shown on the statement of cash flows. The amendment is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company does not believe that ASU No. 2016-18 will have a material impact on its consolidated financial statements and related disclosures.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. ASU No. 2016-02 supersedes the previous leases standard, Leases (Topic 840). The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently documenting the accounting implications, principles for recognition and measurement and presentation and disclosure requirements.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective, although it will not affect the accounting for rental related revenues. The new standard is effective for the Company on January 1, 2018. Early adoption is permitted but not prior to the original effective date of January 1, 2017. The standard permits the use of either the retrospective or cumulative effect transition method. The Company has completed a preliminary review of this standard to identify and document specific areas that will be affected by its adoption. Once ASU No. 2016-02 becomes effective, the new revenue standard will apply to certain executory costs and other non-lease components even though the revenue for such activities are not separately stipulated in the tenant’s lease. Revenue from these items are recognized on a straight-line basis under current lease guidance and subsequently, will be recognized as the related services are delivered. The Company intends to implement the standard retrospectively with the cumulative effect (if any) recognized in retained earnings at the date of initial application.

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EQUITY

6 Months Ended

Jun. 30, 2017

Equity [Abstract]

EQUITY

NOTE 3 – EQUITY

The Company is authorized to sell up to $1,000,000,000 of shares of common stock consisting of Class A common stock, $.001 par value per share (“Class A Shares”), at a price of $25.00 per share, Class T common stock, $.001 par value per share (“Class T Shares”), at a price of $23.95 per share, and Class T-3 common stock, $.001 par value per share (“Class T-3 Shares” and, together with the Class A Shares and the Class T Shares, the “Shares”), at a price of $24.14 per share, in any combination, in an initial “reasonable best efforts” offering (the “Offering”). The Company is also authorized to issue up to $190,000,000 of Class A, Class T and Class T-3 Shares at a per share price of $23.75, $22.81 and $22.81, respectively, pursuant to the Company’s distribution reinvestment plan (as amended, the “DRP”).  The Company commenced its Offering of Class A Shares and Class T Shares on February 17, 2015 and, effective February 2, 2017, the Company reallocated certain of the remaining shares offered in the Offering to offer Class T-3 Shares.  

Excluding DRP proceeds, the Company generated gross proceeds of $5,446,659, $2,284,009 and $1,901,900 from sales of its Class A Shares, Class T Shares and Class T-3 Shares, respectively, during the six months ended June 30, 2017. As of June 30, 2017, the Company had 1,354,006, 388,824 and 79,362 Class A Shares, Class T Shares and Class T-3 Shares outstanding, respectively.

For the six months ended June 30, 2017, the Company declared cash distributions of $948,184, paid total distributions of $909,132 and issued stock dividends of 22,396 shares to stockholders.

The Company provides the following programs to facilitate additional investment in the Company’s shares and to provide limited liquidity for stockholders.

Distribution Reinvestment Plan

The Company provides stockholders with the option to purchase additional shares from the Company by automatically reinvesting cash distributions through the DRP, subject to certain share ownership restrictions. For participants in the DRP, cash distributions paid on Class A Shares, Class T Shares and Class T-3 Shares, as applicable, are used to purchase Class A Shares, Class T Shares and Class T-3 Shares, respectively. Such purchases under the DRP are not subject to selling commissions, dealer manager fees, distribution and stockholder servicing fees or reimbursement of issuer costs in connection with shares of common stock issued through the DRP and are made initially at a price of $23.75, $22.81 and $22.81 per Class A Share, Class T Share and Class T-3
Share, respectively. The price is subject to change after the earlier of (1) the change of the public offering price in a public “reasonable best efforts” offering of the Company’s Class A Shares from $25.00 per Class A Share, Class T Shares from $23.95 per Class T Share or Class T-3 Shares from $24.14 per Class T-3 Share, as applicable, if there is a change, and (2) termination of all “reasonable best efforts” public offerings of the Company’s Class A Shares, Class T Shares or Class T-3 Shares, as applicable.

Distributions reinvested through the DRP were $479,079 and $117,326 for the six months ended June 30, 2017 and 2016, respectively.

Share Repurchase Program

Under the share repurchase program (as amended, the “SRP”), the Company is authorized, in its discretion, to purchase shares from stockholders who purchased their shares from the Company or received their shares through a non-cash transfer and who have held their shares for at least one year, if requested. Subject to funds being available, the Company limits the number of shares repurchased during any calendar year to no more than 5% of the number of shares of common stock outstanding on December 31st of the previous calendar year. Funding for the SRP is limited to the proceeds that the Company receives from the DRP during the same period. In the case of repurchases made upon the death of a stockholder or qualifying disability, as defined in the SRP, neither the one year holding period, the limit regarding funds available from the DRP nor the 5% limit applies. The SRP will immediately terminate if the Company’s shares become listed for trading on a national securities exchange. In addition, the Company’s board of directors, in its sole direction, may, at any time, amend, suspend or terminate the SRP.

There were no repurchases through the SRP for the six months ended June 30, 2017.

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ACQUISITIONS

6 Months Ended

Jun. 30, 2017

Business Combinations [Abstract]

ACQUISITIONS

NOTE 4 – ACQUISITIONS

During the six months ended June 30, 2017, the property below was acquired through IRESI Vernon Hills Commons, L.L.C., the Company’s indirect wholly-owned subsidiary (the “Commons Subsidiary”), and financed by entering into, through the Commons Subsidiary, a seven-year mortgage loan for $13,800,000 and an eight-month mezzanine loan for $9,200,000 (the “Mezzanine Loan”).

2017 Acquisitions

Date Acquired	Property Name	Location	Total Number of Residential Units	Square Footage (a)		Purchase Price (b)
2nd Quarter
5/3/2017	Commons at Town Center	Vernon Hills, IL	85		105,442	$	23,000,000

(a) Does not include five units comprising 10,609 square feet of extended first floor retail space.

(b) Total purchase price of property.

The acquisition of the Commons at Town Center was accounted for as an asset acquisition. For the six months ended June 30, 2017, the Company incurred $230,000 of total acquisition costs and fees, $158,521 of which were capitalized as the acquisition of net real estate in the accompanying consolidated balance sheets and $71,479 of such costs are included in acquisition related costs in the accompanying consolidated statements of operations.  

For the property acquired during the six months ended June 30, 2017, the Company recorded revenue of $415,948 and property net income of $179,907.

The following table presents certain additional information regarding the Company’s acquisition during the six months ended June 30, 2017. The amounts recognized for major assets acquired as of the acquisition date are as follows:

	2017
Land	$	1,492,382
Building and other improvements		20,643,086
Furniture, fixtures and equipment		339,645
Acquired in place lease intangibles		645,035
Assumed assets and liabilities, net		(183,975	)
Total	$	22,936,173

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ACQUIRED INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2017

Goodwill And Intangible Assets Disclosure [Abstract]

ACQUIRED INTANGIBLE ASSETS

NOTE 5 – ACQUIRED INTANGIBLE ASSETS

The following table summarizes the Company’s identified intangible assets and liabilities as of June 30, 2017 and December 31, 2016:

	June 30, 2017			December 31, 2016
Intangible assets:
Acquired in place lease value	$	645,035		$	—
Accumulated amortization		(112,041	)		—
Acquired lease intangibles, net	$	532,994		$	—

As of June 30, 2017, the weighted average amortization period for acquired in place lease intangibles is 1.9 years.

The portion of the purchase price allocated to acquired in place lease value is amortized on a straight-line basis over the acquired leases’ weighted average remaining term.

Amortization pertaining to acquired in place lease value is summarized below:

	Three Months Ended June 30,				Six Months Ended June 30,
Amortization recorded as amortization expense:	2017		2016		2017		2016
Acquired in place lease value	$	112,041	$	—	$	112,041	$	—

Estimated amortization of the respective intangible lease assets and liabilities as of June 30, 2017 for each of the five succeeding years and thereafter is as follows:  

	Acquired In-Place Leases
2017 (remainder of year)	$	288,836
2018		88,331
2019		85,035
2020		48,976
2021		21,816
Thereafter		—
Total	$	532,994

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MORTGAGES AND NOTE PAYABLE, NET

6 Months Ended

Jun. 30, 2017

Debt Disclosure [Abstract]

MORTGAGES AND NOTE PAYABLE, NET

NOTE 6 – MORTGAGES AND NOTE PAYABLE, NET

As of June 30, 2017 and December 31, 2016, the Company had the following mortgages and note payable:

	June 30, 2017						December 31, 2016
Type of Debt	Principal Amount			Weighted Average           Interest Rate			Principal Amount			Weighted Average                       Interest Rate
Mortgages	$	41,250,000			3.66	%	$	27,450,000			3.64	%
Note payable		9,200,000			5.40	%		—			—
Total debt before debt issuance costs	$	50,450,000			3.97	%	$	27,450,000			3.64	%
Unamortized debt issuance costs		(54,317	)					(2,541	)
Total debt	$	50,395,683					$	27,447,459

The Company estimates the fair value of its total debt by discounting the future cash flows of each instrument at rates currently offered for similar debt instruments of comparable maturities by the Company’s lenders using Level 3 inputs.  The carrying value of the Company’s debt excluding unamortized debt issuance costs was $50,450,000 and $27,450,000 as of June 30, 2017 and December 31, 2016, respectively, and its estimated fair value was $49,123,831 and $26,957,385 as of June 30, 2017 and December 31, 2016, respectively.

Mortgages

The mortgage loans require compliance with certain covenants such as debt service ratios, investment restrictions and distribution limitations.  As of June 30, 2017, the Company is in compliance with all financial covenants related to its mortgage loans.

Note Payable

The Mezzanine Loan has customary affirmative, negative and financial covenants, agreements, representations, warranties and borrowing conditions including various customary events of default. The Sponsor has agreed to guarantee the obligations or liabilities of the Commons Subsidiary to lender under the Mezzanine Loan. The Company has not paid, and will not pay, any fees or other consideration to the Sponsor for this guarantee. As of June 30, 2017, the Company is in compliance with all financial covenants related to the Mezzanine Loan.

As of June 30, 2017, scheduled principal payments and maturities on the Company’s mortgages and note payable were as follows:

	June 30, 2017
Scheduled Principal Payments and Maturities by Year:	Scheduled Principal Payments		Maturities of Mortgages		Maturity of Note Payable		Total
2017 (remainder of the year)	$	—	$	—	$	—	$	—
2018		—		—		9,200,000		9,200,000
2019		—		—		—		—
2020		—		—		—		—
2021		124,063		—		—		124,063
Thereafter		853,206		40,272,731		—		41,125,937
Total	$	977,269	$	40,272,731	$	9,200,000	$	50,450,000

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DISTRIBUTIONS

6 Months Ended

Jun. 30, 2017

Distributions [Abstract]

DISTRIBUTIONS

NOTE 7 – DISTRIBUTIONS

The Company currently pays distributions based on daily record dates, payable in arrears the following month, equal to a daily amount of $0.003424658 per Class A Share, $0.002768493 per Class T Share and $0.003306849 per Class T-3 Share, based upon a 365-day year. The Company issued 22,396 in stock dividends during the six months ended June 30, 2017. The table below presents the distributions paid and declared for the three and six months ended June 30, 2017 and 2016.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Distributions paid	$	488,222	$	100,997	$	909,132	$	171,301
Distributions declared	$	506,971	$	211,247	$	948,184	$	342,522

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EARNINGS (LOSS) PER SHARE

6 Months Ended

Jun. 30, 2017

Earnings Per Share [Abstract]

EARNINGS (LOSS) PER SHARE

NOTE 8 – EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per share (“EPS”) are computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period (the “common shares”). Diluted EPS is computed by dividing net income (loss) by the common shares plus common share equivalents. The Company excludes antidilutive restricted shares from the calculation of weighted-average shares for diluted EPS.  As a result of a net loss for the three and six months ended June 30, 2017, 811 and 761 shares, respectively, were excluded from the computation of diluted EPS, because they would have been antidilutive. As a result of a net loss for the three and six months ended June 30, 2016, 518 and 234 shares, respectively were excluded from the computation of diluted EPS, because they would have been antidilutive.

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EQUITY-BASED COMPENSATION

6 Months Ended

Jun. 30, 2017

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

EQUITY-BASED COMPENSATION

NOTE 9 – EQUITY-BASED COMPENSATION

In accordance with the Company’s Employee and Director Incentive Restricted Share Plan (the “RSP”), restricted shares are issued to non-employee directors as compensation.

Under the RSP, restricted shares generally vest over a one to three year vesting period from the date of the grant based on the specific terms of the grant.  The grant-date value of the restricted shares is amortized over the vesting period representing the requisite service period. At vesting, any restrictions on the shares lapse. The number of shares that may be issued under the RSP is limited to 5% of outstanding shares. Compensation expense associated with the director restricted shares is included in general and administrative expenses in the accompanying consolidated financial statements. Compensation expense under the RSP was $2,778 and $5,139 for the three and six months ended June 30, 2017, respectively. Compensation under the RSP was $3,316 and $6,076 for the three and six months ended June 30, 2016, respectively. As of June 30, 2017, the Company had $20,116 of unrecognized compensation cost related to the unvested restricted share awards. The weighted average remaining period that compensation expense related to unvested restricted shares will be recognized is 1.76 years. A summary of the status of the restricted shares is presented below:

	Shares			Weighted Average Grant Date Fair Value			Aggregate Intrinsic Value
Outstanding at December 31, 2016		804		$	18,334		$	18,334
Granted		658			15,000			15,000
Vested		(183	)		(4,167	)		(4,167	)
Forfeited		—			—			—
Outstanding at June 30, 2017		1,279		$	29,167		$	29,167

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SEGMENT REPORTING

6 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

SEGMENT REPORTING

NOTE 10 – SEGMENT REPORTING

The Company has one reportable segment, multi-family real estate, as defined by U.S. GAAP for the three and six months ended June 30, 2017 and 2016.

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TRANSACTIONS WITH RELATED PARTIES

6 Months Ended

Jun. 30, 2017

Related Party Transactions [Abstract]

TRANSACTIONS WITH RELATED PARTIES

NOTE 11 – TRANSACTIONS WITH RELATED PARTIES

The following table summarizes the Company’s related party transactions for the three and six months ended June 30, 2017 and 2016.

		Three Months Ended June 30,				Six Months Ended June 30,				Amount Unpaid as of
		2017		2016		2017		2016		June 30, 2017		December 31, 2016
General and administrative reimbursements	(a)	$	119,724	$	166,333	$	210,031	$	257,796	$	92,735	$	80,386
Affiliate share purchase discounts	(b)		974		12		24,530		14,542		—		—
Total general and administrative costs		$	120,698	$	166,345	$	234,561	$	272,338	$	92,735	$	80,386
Acquisition related costs	(c)	$	123,418	$	—	$	158,276	$	—	$	720,988	$	686,250
Offering costs	(d)	$	712,154	$	724,809	$	1,110,183	$	1,274,616	$	1,689,124	$	1,476,746
Business management fee	(e)	$	91,763	$	68,594	$	160,455	$	137,185	$	526,450	$	365,995
Mortgage financing fee	(f)	$	—	$	—	$	—	$	—	$	114,375	$	114,375
Sponsor non-interest bearing advances	(g)	$	—	$	—	$	—	$	—	$	2,950,000	$	2,950,000
Property management fee		$	61,409	$	39,597	$	100,554	$	76,728	$	—	$	—
Property operating expenses			129,715		96,284		223,135		168,990		22,694		11,001
Total property operating expenses	(h)	$	191,124	$	135,881	$	323,689	$	245,718	$	22,694	$	11,001

(a) The Business Manager and its affiliates are entitled to reimbursement for certain general and administrative expenses incurred relating to the Company’s administration. Such costs are included in general and administrative expenses in the accompanying consolidated statements of operations. Unpaid amounts are included in due to related parties in the accompanying consolidated balance sheets.

(b) The Company established a discount stock purchase policy for affiliates and affiliates of the Business Manager that enable them to purchase shares of common stock at $22.81 per share. The Company sold 11,201 and 6,635 shares to affiliates during the six months ended June 30, 2017 and 2016, respectively.

(c) Prior to August 8, 2016 under the Business Management Agreement, the Company was required to pay the Business Manager or its affiliates an acquisition fee equal to 1.5% of the “contract purchase price,” as defined in that agreement, of each property and real estate-related asset acquired.   The Business Management Agreement was amended to, among other things, delete the obligation to pay acquisition fees, real estate sales commissions and mortgage financing fees payable to the Business Manager by the Company with respect to transactions occurring on or after August 8, 2016. The Business Manager and its affiliates continue to be reimbursed for acquisition related costs of the Business Manager and its affiliates relating to the Company’s acquisition of properties and real estate assets, regardless of whether the Company acquires the properties or real estate assets, subject to the limits provided in the amended agreement.  Of the $158,276 related party acquisition costs and fees, $120,040 were capitalized and classified in other assets in the accompanying consolidated balance sheets and $38,236 of such costs are included in acquisition related costs in the accompanying consolidated statements of operations.  Acquisition fees earned prior to August 8, 2016, which have been previously accrued for and are owed to the Business Manager, are expected to be paid in the future and are included in due to related parties in the accompanying consolidated balance sheets.  

(d) The Company reimburses the Sponsor and its affiliates for costs and other expenses of the Offering.  Offering costs are offset against the stockholders’ equity accounts. Unpaid amounts are included in due to related parties in the accompanying consolidated balance sheets. An affiliate of the Business Manager also receives selling commissions equal to 6.0% of the sale price for each Class A Share sold,  2.0% of the sale price for each Class T Share sold and 3.0% of the sale price for each Class T-3 Share sold and a dealer manager fee equal to 2.75% of the sale price for each Class A and Class T Share sold and 2.5% of the sale price for each Class T-3 Share sold, the majority of which is re-allowed (paid) to third party soliciting dealers. The Company does not pay selling commissions or the dealer manager fee in connection with shares issued through the DRP and pays no or reduced selling commissions and dealer manager fees in connection with certain special sales. Unpaid amounts are included in due to related parties in the accompanying consolidated balance sheets. The Company pays a distribution and stockholder servicing fee equal to 1.0% per annum of the purchase price per share (or, once reported, the amount of the Company’s estimated value per share) for each Class T Share and Class T-3 Share sold in the Offering. The fee is not paid at the time of purchase. The Company accounts for the total fee as a charge to equity at the time each Class T Share or Class T-3 Share is sold in the Offering and records a corresponding payable in due to related parties. The distribution and stockholder servicing fee is payable monthly in arrears as it becomes contractually due. At June 30, 2017 and December 31, 2016, the unpaid fee equal to $475,643 and $335,327, respectively, was recorded in due to related parties in the accompanying consolidated balance sheets.

(e) The Company pays the Business Manager an annual business management fee equal to 0.6% of its “average invested assets,” payable quarterly in an amount equal to 0.15% of the Company’s average invested assets as of the last day of the immediately preceding quarter. “Average invested assets” means, for any period, the average of the aggregate book value of the Company’s assets, including all intangibles and goodwill, invested, directly or indirectly, in equity interests in, and loans secured by, properties, as well as amounts invested in securities or consolidated and unconsolidated joint ventures or other partnerships, before reserves for amortization and depreciation or bad debts, impairments or other similar non-cash reserves, computed by taking the average of these values at the end of each month during the relevant calendar quarter. Unpaid amounts are included in due to related parties in the accompanying consolidated balance sheets.

(f) Prior to August 8, 2016 under the Business Management Agreement, the Company was required to pay the Business Manager or its affiliates a mortgage financing fee equal to 0.25% of the amount available or borrowed under the financing or the assumed debt if the Business Manager or its affiliates provided services in connection with the origination or refinancing of any debt that the Company obtained and used to finance properties or other assets, or that was assumed, directly or indirectly, in connection with the acquisition of properties or other assets. Pursuant to the amended Business Management Agreement,mortgage financing fees were eliminated with respect to transactions occurring on or after August 8, 2016. Mortgage financing fees earned prior to August 8, 2016, which have been previously accrued for and are owed to the Business Manager, are expected to be paid in the future and are included in due to related parties in the accompanying consolidated balance sheets.

(g) This amount represents non-interest bearing advances made by the Sponsor which the Company intends to repay. Unpaid amounts are included in due to related parties in the accompanying consolidated balance sheets.   

(h) The Company pays Inland Residential Real Estate Services, LLC (the “Real Estate Manager”) a monthly property management fee of up to 4% of the gross income from any property managed directly by the Real Estate Manager or its affiliates. The Real Estate Manager may reduce, in its sole discretion, the amount of the management fee payable in connection with a particular property, subject to these limits. The Company also reimburses the Real Estate Manager and its affiliates for property-level expenses that they pay or incur on the Company’s behalf, including the salaries, bonuses, benefits and severance payments for persons performing services, including without limitation acquisition due diligence services, for the Real Estate Manager and its affiliates (excluding the executive officers of the Real Estate Manager and the Company’s executive officers).

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OPERATING LEASES

6 Months Ended

Jun. 30, 2017

Leases Operating [Abstract]

OPERATING LEASES

NOTE 12 – OPERATING LEASES

The Company’s residential lease terms are generally for twelve months or less.  The retail lease terms range from 1 to 4 years. Minimum lease payments to be received under retail operating leases as of June 30, 2017 for the years indicated, assuming no expiring leases are renewed, are as follows:

	Minimum Lease Payments
2017 (remainder of year)	$	135,425
2018		257,350
2019		254,650
2020		172,750
2021		78,120
Thereafter		—
Total	$	898,295

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SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2017

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE 13 – SUBSEQUENT EVENTS

Cash distributions

The Company’s board of directors declared cash distributions payable to stockholders of record of Class A, Class T and Class T-3 Shares each day beginning on the close of business July 1, 2017 through the close of business December 31, 2017.  Through that date distributions were declared in a daily amount equal to $0.003424658 per Class A Share, $0.002768493 per Class T Share and $0.003306849 per Class T-3 Share, based on a 365-day period. Distributions were paid monthly in arrears as follows.

Distribution Month	Month Distribution Paid	Gross Amount of Distribution Paid		Distribution Reinvested through DRP		Shares Issued		Net Cash Distribution
June 2017	July 2017	$	176,258	$	94,758		4,031	$	81,500
July 2017	August 2017	$	186,955	$	100,971		4,295	$	85,984

 Acquisitions

The Company purchased the following property from an unaffiliated third party subsequent to June 30, 2017:

Date Acquired	Property Name	Location	Square Footage		Number of Units		Purchase Price
7/27/2017	Verandas at Mitylene	Montgomery, Alabama		376,968		332	$	36,550,000

Financing

Date	Property	Interest Rate (stated)		Principal Amount		Maturity Date
7/27/2017	Verandas at Mitylene		3.88%	$	21,930,000	8/1/2027

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2017

Accounting Policies [Abstract]

General

General

The accompanying consolidated financial statements have been prepared in accordance with U.S. GAAP and require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. In the opinion of management, all adjustments necessary for a fair statement, in all material respects, of the financial position and results of operations for the periods are presented. Actual results could differ from those estimates. The results of operations for the interim periods are not necessarily indicative of the results for the entire year.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In November 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash.The new update will require that amounts described as restricted cash and restricted cash equivalents be included in beginning and ending-of-period reconciliation of cash shown on the statement of cash flows. The amendment is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company does not believe that ASU No. 2016-18 will have a material impact on its consolidated financial statements and related disclosures.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. ASU No. 2016-02 supersedes the previous leases standard, Leases (Topic 840). The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently documenting the accounting implications, principles for recognition and measurement and presentation and disclosure requirements.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective, although it will not affect the accounting for rental related revenues. The new standard is effective for the Company on January 1, 2018. Early adoption is permitted but not prior to the original effective date of January 1, 2017. The standard permits the use of either the retrospective or cumulative effect transition method. The Company has completed a preliminary review of this standard to identify and document specific areas that will be affected by its adoption. Once ASU No. 2016-02 becomes effective, the new revenue standard will apply to certain executory costs and other non-lease components even though the revenue for such activities are not separately stipulated in the tenant’s lease. Revenue from these items are recognized on a straight-line basis under current lease guidance and subsequently, will be recognized as the related services are delivered. The Company intends to implement the standard retrospectively with the cumulative effect (if any) recognized in retained earnings at the date of initial application.

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ACQUISITIONS (Tables)

6 Months Ended

Jun. 30, 2017

Business Combinations [Abstract]

Schedule of Acquisitions

2017 Acquisitions

Date Acquired	Property Name	Location	Total Number of Residential Units	Square Footage (a)		Purchase Price (b)
2nd Quarter
5/3/2017	Commons at Town Center	Vernon Hills, IL	85		105,442	$	23,000,000

(a) Does not include five units comprising 10,609 square feet of extended first floor retail space.

(b) Total purchase price of property.

Schedule of Major Assets Acquired and Liabilities Assumed

The following table presents certain additional information regarding the Company’s acquisition during the six months ended June 30, 2017. The amounts recognized for major assets acquired as of the acquisition date are as follows:

	2017
Land	$	1,492,382
Building and other improvements		20,643,086
Furniture, fixtures and equipment		339,645
Acquired in place lease intangibles		645,035
Assumed assets and liabilities, net		(183,975	)
Total	$	22,936,173

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ACQUIRED INTANGIBLE ASSETS (Tables)

6 Months Ended

Jun. 30, 2017

Goodwill And Intangible Assets Disclosure [Abstract]

Summary of Company's Identified Intangible Assets and Liabilities

The following table summarizes the Company’s identified intangible assets and liabilities as of June 30, 2017 and December 31, 2016:

	June 30, 2017			December 31, 2016
Intangible assets:
Acquired in place lease value	$	645,035		$	—
Accumulated amortization		(112,041	)		—
Acquired lease intangibles, net	$	532,994		$	—

Amortization Pertaining to Acquired in Place Lease Value

Amortization pertaining to acquired in place lease value is summarized below:

	Three Months Ended June 30,				Six Months Ended June 30,
Amortization recorded as amortization expense:	2017		2016		2017		2016
Acquired in place lease value	$	112,041	$	—	$	112,041	$	—

Estimated Amortization of the Respective Intangible Lease Assets and Liabilities

Estimated amortization of the respective intangible lease assets and liabilities as of June 30, 2017 for each of the five succeeding years and thereafter is as follows:  

	Acquired In-Place Leases
2017 (remainder of year)	$	288,836
2018		88,331
2019		85,035
2020		48,976
2021		21,816
Thereafter		—
Total	$	532,994

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MORTGAGES AND NOTE PAYABLE, NET (Tables)

6 Months Ended

Jun. 30, 2017

Debt Disclosure [Abstract]

Schedule of Mortgages and Note Payable

As of June 30, 2017 and December 31, 2016, the Company had the following mortgages and note payable:

	June 30, 2017						December 31, 2016
Type of Debt	Principal Amount			Weighted Average           Interest Rate			Principal Amount			Weighted Average                       Interest Rate
Mortgages	$	41,250,000			3.66	%	$	27,450,000			3.64	%
Note payable		9,200,000			5.40	%		—			—
Total debt before debt issuance costs	$	50,450,000			3.97	%	$	27,450,000			3.64	%
Unamortized debt issuance costs		(54,317	)					(2,541	)
Total debt	$	50,395,683					$	27,447,459

Scheduled Principal Payments and Maturities on Mortgages and Note Payable

As of June 30, 2017, scheduled principal payments and maturities on the Company’s mortgages and note payable were as follows:

	June 30, 2017
Scheduled Principal Payments and Maturities by Year:	Scheduled Principal Payments		Maturities of Mortgages		Maturity of Note Payable		Total
2017 (remainder of the year)	$	—	$	—	$	—	$	—
2018		—		—		9,200,000		9,200,000
2019		—		—		—		—
2020		—		—		—		—
2021		124,063		—		—		124,063
Thereafter		853,206		40,272,731		—		41,125,937
Total	$	977,269	$	40,272,731	$	9,200,000	$	50,450,000

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DISTRIBUTIONS (Tables)

6 Months Ended

Jun. 30, 2017

Distributions [Abstract]

Schedule of Dividends Distributions

The table below presents the distributions paid and declared for the three and six months ended June 30, 2017 and 2016.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Distributions paid	$	488,222	$	100,997	$	909,132	$	171,301
Distributions declared	$	506,971	$	211,247	$	948,184	$	342,522

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EQUITY-BASED COMPENSATION (Tables)

6 Months Ended

Jun. 30, 2017

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of the Restricted Shares

A summary of the status of the restricted shares is presented below:

	Shares			Weighted Average Grant Date Fair Value			Aggregate Intrinsic Value
Outstanding at December 31, 2016		804		$	18,334		$	18,334
Granted		658			15,000			15,000
Vested		(183	)		(4,167	)		(4,167	)
Forfeited		—			—			—
Outstanding at June 30, 2017		1,279		$	29,167		$	29,167

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TRANSACTIONS WITH RELATED PARTIES (Tables)

6 Months Ended

Jun. 30, 2017

Related Party Transactions [Abstract]

Schedule of Transactions with Related Parties

The following table summarizes the Company’s related party transactions for the three and six months ended June 30, 2017 and 2016.

		Three Months Ended June 30,				Six Months Ended June 30,				Amount Unpaid as of
		2017		2016		2017		2016		June 30, 2017		December 31, 2016
General and administrative reimbursements	(a)	$	119,724	$	166,333	$	210,031	$	257,796	$	92,735	$	80,386
Affiliate share purchase discounts	(b)		974		12		24,530		14,542		—		—
Total general and administrative costs		$	120,698	$	166,345	$	234,561	$	272,338	$	92,735	$	80,386
Acquisition related costs	(c)	$	123,418	$	—	$	158,276	$	—	$	720,988	$	686,250
Offering costs	(d)	$	712,154	$	724,809	$	1,110,183	$	1,274,616	$	1,689,124	$	1,476,746
Business management fee	(e)	$	91,763	$	68,594	$	160,455	$	137,185	$	526,450	$	365,995
Mortgage financing fee	(f)	$	—	$	—	$	—	$	—	$	114,375	$	114,375
Sponsor non-interest bearing advances	(g)	$	—	$	—	$	—	$	—	$	2,950,000	$	2,950,000
Property management fee		$	61,409	$	39,597	$	100,554	$	76,728	$	—	$	—
Property operating expenses			129,715		96,284		223,135		168,990		22,694		11,001
Total property operating expenses	(h)	$	191,124	$	135,881	$	323,689	$	245,718	$	22,694	$	11,001

(a) The Business Manager and its affiliates are entitled to reimbursement for certain general and administrative expenses incurred relating to the Company’s administration. Such costs are included in general and administrative expenses in the accompanying consolidated statements of operations. Unpaid amounts are included in due to related parties in the accompanying consolidated balance sheets.

(b) The Company established a discount stock purchase policy for affiliates and affiliates of the Business Manager that enable them to purchase shares of common stock at $22.81 per share. The Company sold 11,201 and 6,635 shares to affiliates during the six months ended June 30, 2017 and 2016, respectively.

(c) Prior to August 8, 2016 under the Business Management Agreement, the Company was required to pay the Business Manager or its affiliates an acquisition fee equal to 1.5% of the “contract purchase price,” as defined in that agreement, of each property and real estate-related asset acquired.   The Business Management Agreement was amended to, among other things, delete the obligation to pay acquisition fees, real estate sales commissions and mortgage financing fees payable to the Business Manager by the Company with respect to transactions occurring on or after August 8, 2016. The Business Manager and its affiliates continue to be reimbursed for acquisition related costs of the Business Manager and its affiliates relating to the Company’s acquisition of properties and real estate assets, regardless of whether the Company acquires the properties or real estate assets, subject to the limits provided in the amended agreement.  Of the $158,276 related party acquisition costs and fees, $120,040 were capitalized and classified in other assets in the accompanying consolidated balance sheets and $38,236 of such costs are included in acquisition related costs in the accompanying consolidated statements of operations.  Acquisition fees earned prior to August 8, 2016, which have been previously accrued for and are owed to the Business Manager, are expected to be paid in the future and are included in due to related parties in the accompanying consolidated balance sheets.  

(d) The Company reimburses the Sponsor and its affiliates for costs and other expenses of the Offering.  Offering costs are offset against the stockholders’ equity accounts. Unpaid amounts are included in due to related parties in the accompanying consolidated balance sheets. An affiliate of the Business Manager also receives selling commissions equal to 6.0% of the sale price for each Class A Share sold,  2.0% of the sale price for each Class T Share sold and 3.0% of the sale price for each Class T-3 Share sold and a dealer manager fee equal to 2.75% of the sale price for each Class A and Class T Share sold and 2.5% of the sale price for each Class T-3 Share sold, the majority of which is re-allowed (paid) to third party soliciting dealers. The Company does not pay selling commissions or the dealer manager fee in connection with shares issued through the DRP and pays no or reduced selling commissions and dealer manager fees in connection with certain special sales. Unpaid amounts are included in due to related parties in the accompanying consolidated balance sheets. The Company pays a distribution and stockholder servicing fee equal to 1.0% per annum of the purchase price per share (or, once reported, the amount of the Company’s estimated value per share) for each Class T Share and Class T-3 Share sold in the Offering. The fee is not paid at the time of purchase. The Company accounts for the total fee as a charge to equity at the time each Class T Share or Class T-3 Share is sold in the Offering and records a corresponding payable in due to related parties. The distribution and stockholder servicing fee is payable monthly in arrears as it becomes contractually due. At June 30, 2017 and December 31, 2016, the unpaid fee equal to $475,643 and $335,327, respectively, was recorded in due to related parties in the accompanying consolidated balance sheets.

(e) The Company pays the Business Manager an annual business management fee equal to 0.6% of its “average invested assets,” payable quarterly in an amount equal to 0.15% of the Company’s average invested assets as of the last day of the immediately preceding quarter. “Average invested assets” means, for any period, the average of the aggregate book value of the Company’s assets, including all intangibles and goodwill, invested, directly or indirectly, in equity interests in, and loans secured by, properties, as well as amounts invested in securities or consolidated and unconsolidated joint ventures or other partnerships, before reserves for amortization and depreciation or bad debts, impairments or other similar non-cash reserves, computed by taking the average of these values at the end of each month during the relevant calendar quarter. Unpaid amounts are included in due to related parties in the accompanying consolidated balance sheets.

(f) Prior to August 8, 2016 under the Business Management Agreement, the Company was required to pay the Business Manager or its affiliates a mortgage financing fee equal to 0.25% of the amount available or borrowed under the financing or the assumed debt if the Business Manager or its affiliates provided services in connection with the origination or refinancing of any debt that the Company obtained and used to finance properties or other assets, or that was assumed, directly or indirectly, in connection with the acquisition of properties or other assets. Pursuant to the amended Business Management Agreement,mortgage financing fees were eliminated with respect to transactions occurring on or after August 8, 2016. Mortgage financing fees earned prior to August 8, 2016, which have been previously accrued for and are owed to the Business Manager, are expected to be paid in the future and are included in due to related parties in the accompanying consolidated balance sheets.

(g) This amount represents non-interest bearing advances made by the Sponsor which the Company intends to repay. Unpaid amounts are included in due to related parties in the accompanying consolidated balance sheets.   

(h) The Company pays Inland Residential Real Estate Services, LLC (the “Real Estate Manager”) a monthly property management fee of up to 4% of the gross income from any property managed directly by the Real Estate Manager or its affiliates. The Real Estate Manager may reduce, in its sole discretion, the amount of the management fee payable in connection with a particular property, subject to these limits. The Company also reimburses the Real Estate Manager and its affiliates for property-level expenses that they pay or incur on the Company’s behalf, including the salaries, bonuses, benefits and severance payments for persons performing services, including without limitation acquisition due diligence services, for the Real Estate Manager and its affiliates (excluding the executive officers of the Real Estate Manager and the Company’s executive officers).

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OPERATING LEASES (Tables)

6 Months Ended

Jun. 30, 2017

Leases Operating [Abstract]

Schedule of Minimum Lease Payments to be Received Under Operating Leases

The retail lease terms range from 1 to 4 years. Minimum lease payments to be received under retail operating leases as of June 30, 2017 for the years indicated, assuming no expiring leases are renewed, are as follows:

	Minimum Lease Payments
2017 (remainder of year)	$	135,425
2018		257,350
2019		254,650
2020		172,750
2021		78,120
Thereafter		—
Total	$	898,295

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SUBSEQUENT EVENTS (Tables)

6 Months Ended

Jun. 30, 2017

Schedule of Dividends Distributions

The table below presents the distributions paid and declared for the three and six months ended June 30, 2017 and 2016.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Distributions paid	$	488,222	$	100,997	$	909,132	$	171,301
Distributions declared	$	506,971	$	211,247	$	948,184	$	342,522

Schedule of Acquisitions

2017 Acquisitions

Date Acquired	Property Name	Location	Total Number of Residential Units	Square Footage (a)		Purchase Price (b)
2nd Quarter
5/3/2017	Commons at Town Center	Vernon Hills, IL	85		105,442	$	23,000,000

(a) Does not include five units comprising 10,609 square feet of extended first floor retail space.

(b) Total purchase price of property.

Schedule of Mortgages and Note Payable

As of June 30, 2017 and December 31, 2016, the Company had the following mortgages and note payable:

	June 30, 2017						December 31, 2016
Type of Debt	Principal Amount			Weighted Average           Interest Rate			Principal Amount			Weighted Average                       Interest Rate
Mortgages	$	41,250,000			3.66	%	$	27,450,000			3.64	%
Note payable		9,200,000			5.40	%		—			—
Total debt before debt issuance costs	$	50,450,000			3.97	%	$	27,450,000			3.64	%
Unamortized debt issuance costs		(54,317	)					(2,541	)
Total debt	$	50,395,683					$	27,447,459

Unaffiliated Third Party [Member]

Schedule of Acquisitions

The Company purchased the following property from an unaffiliated third party subsequent to June 30, 2017:

Date Acquired	Property Name	Location	Square Footage		Number of Units		Purchase Price
7/27/2017	Verandas at Mitylene	Montgomery, Alabama		376,968		332	$	36,550,000

Schedule of Mortgages and Note Payable

Date	Property	Interest Rate (stated)		Principal Amount		Maturity Date
7/27/2017	Verandas at Mitylene		3.88%	$	21,930,000	8/1/2027

Cash Distributions [Member]

Schedule of Dividends Distributions

Distribution Month	Month Distribution Paid	Gross Amount of Distribution Paid		Distribution Reinvested through DRP		Shares Issued		Net Cash Distribution
June 2017	July 2017	$	176,258	$	94,758		4,031	$	81,500
July 2017	August 2017	$	186,955	$	100,971		4,295	$	85,984

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ORGANIZATION (Narrative) (Details)	6 Months Ended
	Jun. 30, 2017 ft² Property Unit
Real Estate Properties [Line Items]
Number of retail properties owned | Property	2
Property acquisition, total number of units acquired | Unit	291
Residential property's weighted average occupancy rate	95.50%
Number of units leased | Unit	284
Real estate property, total residential units leased percentage	97.60%
Residential [Member]
Real Estate Properties [Line Items]
Square footage of real estate properties owned | ft²	300,174
Retail Gross Leasable [Member]
Real Estate Properties [Line Items]
Square footage of real estate properties owned | ft²	10,609

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EQUITY (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Feb. 02, 2017	Dec. 31, 2016	Feb. 17, 2015
Class Of Stock [Line Items]
Total value of common stock company is authorized to sell through initial 'reasonable best efforts' offering							$ 1,000,000,000
Cash distribution, declared			$ 948,184
Total cash distribution, paid	$ 488,222	$ 100,997	$ 909,132	$ 171,301
Stock dividends issued, shares			22,396
Distribution reinvested through distribution reinvestment plan			$ 479,079
Stock repurchase program, amount			$ 0
Maximum [Member]
Class Of Stock [Line Items]
Limit on number of shares that can be repurchased each calendar year expressed as a percentage of common stock outstanding on December 31st of the previous calendar year			5.00%
Distribution Reinvestment Plan [Member]
Class Of Stock [Line Items]
Distribution reinvested through distribution reinvestment plan			$ 479,079	$ 117,326
Class A Common Stock [Member]
Class Of Stock [Line Items]
Common stock, par value	$ 0.001		$ 0.001			$ 0.001
Gross proceeds from sale of shares			$ 5,446,659
Common stock, shares outstanding	1,354,006		1,354,006			1,098,858
Class A Common Stock [Member] | Reasonable Best Efforts Offering [Member]
Class Of Stock [Line Items]
Common stock, par value	$ 0.001		$ 0.001
Initial price of each common share authorized pursuant to distribution reinvestment plan							$ 25.00
Class A Common Stock [Member] | Distribution Reinvestment Plan [Member]
Class Of Stock [Line Items]
Initial price of each common share authorized pursuant to distribution reinvestment plan	23.75		23.75
Class T Common Stock [Member]
Class Of Stock [Line Items]
Common stock, par value	$ 0.001		$ 0.001			$ 0.001
Gross proceeds from sale of shares			$ 2,284,009
Common stock, shares outstanding	388,824		388,824			284,283
Class T Common Stock [Member] | Reasonable Best Efforts Offering [Member]
Class Of Stock [Line Items]
Common stock, par value	$ 0.001		$ 0.001
Initial price of each common share authorized pursuant to distribution reinvestment plan							$ 23.95
Class T Common Stock [Member] | Distribution Reinvestment Plan [Member]
Class Of Stock [Line Items]
Initial price of each common share authorized pursuant to distribution reinvestment plan	22.81		22.81
Class T-3 Common Stock [Member]
Class Of Stock [Line Items]
Common stock, par value	$ 0.001		$ 0.001			$ 0.001
Gross proceeds from sale of shares			$ 1,901,900
Common stock, shares outstanding	79,362		79,362			0
Class T-3 Common Stock [Member] | Reasonable Best Efforts Offering [Member]
Class Of Stock [Line Items]
Common stock, par value	$ 0.001		$ 0.001
Initial price of each common share authorized pursuant to distribution reinvestment plan					$ 24.14
Class T-3 Common Stock [Member] | Distribution Reinvestment Plan [Member]
Class Of Stock [Line Items]
Initial price of each common share authorized pursuant to distribution reinvestment plan	$ 22.81		$ 22.81
Class A, Class T and Class T-3 Common Stock [Member]
Class Of Stock [Line Items]
Total value of common stock company is authorized to sell through initial 'reasonable best efforts' offering	$ 190,000,000		$ 190,000,000

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ACQUISITIONS (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Business Acquisition [Line Items]
Proceeds from mortgage and mezzanine loan			$ 23,000,000
Acquisition related costs	$ 30,266		71,479
Revenue	1,423,204	$ 1,005,772	2,442,959	$ 1,937,019
Commons at Town Centre [Member]
Business Acquisition [Line Items]
Total acquisition costs and fees	230,000		230,000
Capitalized acquisition related costs and fees	$ 158,521		158,521
Acquisition related costs			71,479
Revenue			415,948
Net income from property acquired			179,907
Commons at Town Centre [Member] | Seven-Year Mortgage Loan [Member]
Business Acquisition [Line Items]
Proceeds from mortgage and mezzanine loan			$ 13,800,000
Term of loan			7 years
Commons at Town Centre [Member] | Eight-Month Mezzanine Loan [Member]
Business Acquisition [Line Items]
Proceeds from mortgage and mezzanine loan			$ 9,200,000
Term of loan			8 months

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ACQUISITIONS (Schedule of Acquisitions) (Details) - Commons at Town Centre [Member]	May 03, 2017 USD ($) ft² Unit
Business Acquisition [Line Items]
Property acquisition, date acquired	May 03, 2017
Property acquisition, location	Vernon Hills, IL
Property acquisition, total number of residential units acquired | Unit	85
Property acquisition, square footage | ft²	105,442	[1]
Property acquisition, purchase price | $	$ 23,000,000	[2]

[1] Does not include five units comprising 10,609 square feet of extended first floor retail space.

[2] Total purchase price of property.

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ACQUISITIONS (Schedule of Acquisitions) (Parenthetical) (Details) - Commons at Town Centre [Member]	May 03, 2017 ft² Unit
Business Acquisition [Line Items]
Property acquisition, total number of residential units acquired | Unit	85
Property acquisition, square footage | ft²	105,442	[1]
Extended First Floor Retail Space [Member]
Business Acquisition [Line Items]
Property acquisition, total number of residential units acquired | Unit	5
Property acquisition, square footage | ft²	10,609

[1] Does not include five units comprising 10,609 square feet of extended first floor retail space.

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ACQUISITIONS (Schedule of Major Assets Acquired and Liabilities Assumed) (Details) - Commons at Town Centre [Member]	May 03, 2017 USD ($)
Business Acquisition [Line Items]
Property acquisition, land	$ 1,492,382
Property acquisition, building and other improvements	20,643,086
Property acquisition, furniture, fixtures and equipment	339,645
Property acquisition, acquired in place lease intangibles	645,035
Property acquisition, assumed assets and liabilities, net	(183,975)
Property acquisition, total	$ 22,936,173

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ACQUIRED INTANGIBLE ASSETS (Summary of Company's Identified Intangible Assets and Liabilities) (Details)	Jun. 30, 2017 USD ($)
Intangible assets:
Acquired in place lease value	$ 645,035
Accumulated amortization	(112,041)
Acquired lease intangibles, net	$ 532,994

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ACQUIRED INTANGIBLE ASSETS (Narrative) (Details)	6 Months Ended
	Jun. 30, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Weighted average amortization period for acquired in place lease intangibles	1 year 10 months 24 days
Intangible assets, amortization method	The portion of the purchase price allocated to acquired in place lease value is amortized on a straight-line basis over the acquired leases’ weighted average remaining term.

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ACQUIRED INTANGIBLE ASSETS (Amortization Pertaining to Acquired in Place Lease Value) (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017
Amortization recorded as amortization expense:
Acquired in place lease value	$ 112,041	$ 112,041

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ACQUIRED INTANGIBLE ASSETS (Estimated Amortization of the Respective Intangible Lease Assets and Liabilities) (Details)	Jun. 30, 2017 USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
Acquired In-Place Leases, 2017 (remainder of year)	$ 288,836
Acquired In-Place Leases, 2018	88,331
Acquired In-Place Leases, 2019	85,035
Acquired In-Place Leases, 2020	48,976
Acquired In-Place Leases, 2021	21,816
Acquired lease intangibles, net	$ 532,994

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MORTGAGES AND NOTE PAYABLE, NET (Schedule of Mortgages and Note Payable) (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Total debt before debt issuance costs	$ 50,450,000	$ 27,450,000
Unamortized debt issuance costs	(54,317)	(2,541)
Total debt	$ 50,395,683	$ 27,447,459
Weighted Average Interest Rate	3.97%	3.64%
Mortgages [Member]
Debt Instrument [Line Items]
Total debt before debt issuance costs	$ 41,250,000	$ 27,450,000
Weighted Average Interest Rate	3.66%	3.64%
Note Payable [Member]
Debt Instrument [Line Items]
Total debt before debt issuance costs	$ 9,200,000
Weighted Average Interest Rate	5.40%

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MORTGAGES AND NOTE PAYABLE, NET (Narrative) (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Carrying value of debt excluding unamortized debt issuance costs	$ 50,450,000	$ 27,450,000
Debt instrument, estimated fair value	49,123,831	$ 26,957,385
Note Payable [Member]
Debt Instrument [Line Items]
Carrying value of debt excluding unamortized debt issuance costs	9,200,000
Debt instrument, fees or other consideration	$ 0

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MORTGAGES AND NOTE PAYABLE, NET (Scheduled Principal Payments and Maturities on Mortgages and Note Payable) (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
2018	$ 9,200,000
2021	124,063
Thereafter	41,125,937
Total	50,450,000	$ 27,450,000
Scheduled Principal Payments [Member]
Debt Instrument [Line Items]
2021	124,063
Thereafter	853,206
Total	977,269
Maturities of Mortgages [Member]
Debt Instrument [Line Items]
Thereafter	40,272,731
Total	40,272,731
Note Payable [Member]
Debt Instrument [Line Items]
2018	9,200,000
Total	$ 9,200,000

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DISTRIBUTIONS (Narrative) (Details)	6 Months Ended
	Jun. 30, 2017 $ / shares shares
Distributions [Line Items]
Stock dividends issued, shares | shares	22,396
Class A Common Stock [Member]
Distributions [Line Items]
Amount per share of distributions	$ 0.003424658
Class T Common Stock [Member]
Distributions [Line Items]
Amount per share of distributions	0.002768493
Class T-3 Common Stock [Member]
Distributions [Line Items]
Amount per share of distributions	$ 0.003306849

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DISTRIBUTIONS (Schedule of Dividends Distributions) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Distributions [Abstract]
Distributions paid	$ 488,222	$ 100,997	$ 909,132	$ 171,301
Distributions declared	$ 506,971	$ 211,247	$ 948,184	$ 342,522

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EARNINGS (LOSS) PER SHARE - (Narrative) (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Share [Abstract]
Antidilutive shares excluded from computation of diluted EPS	811	518	761	234

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EQUITY-BASED COMPENSATION (Narrative) (Details) - Restricted Stock [Member] - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation cost related to the unvested restricted share awards	$ 20,116		$ 20,116
Weighted average remaining contractual term related to unvested restricted shares			1 year 9 months 4 days
Employee and Director Incentive Restricted Share Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of outstanding shares that may be issued under RSP			5.00%
Share-based compensation expense	$ 2,778	$ 3,316	$ 5,139	$ 6,076
Employee and Director Incentive Restricted Share Plan [Member] | Minimum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period			1 year
Employee and Director Incentive Restricted Share Plan [Member] | Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period			3 years

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EQUITY-BASED COMPENSATION (Summary of the Restricted Shares) (Details) - Restricted Stock [Member]	6 Months Ended
	Jun. 30, 2017 USD ($) $ / shares shares
Shares
Outstanding, Shares | shares	804
Granted, Shares | shares	658
Vested, Shares | shares	(183)
Outstanding, Shares | shares	1,279
Weighted Average Grant Date Fair Value
Outstanding, Weighted Average Grant Date Fair Value | $ / shares	$ 18,334
Granted, Weighted Average Grant Date Fair Value | $ / shares	15,000
Vested, Weighted Average Grant Date Fair Value | $ / shares	(4,167)
Outstanding, Weighted Average Grant Date Fair Value | $ / shares	$ 29,167
Aggregate Intrinsic Value
Outstanding, Aggregate Intrinsic Value | $	$ 18,334
Granted, Aggregate Intrinsic Value | $	15,000
Vested, Aggregate Intrinsic Value | $	(4,167)
Outstanding, Aggregate Intrinsic Value | $	$ 29,167

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SEGMENT REPORTING (Narrative) (Details) - Segment	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Segment Reporting [Abstract]
Number of reportable segments	1	1	1	1

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TRANSACTIONS WITH RELATED PARTIES (Schedule of Transactions with Related Parties) (Details) - USD ($)		3 Months Ended		6 Months Ended
		Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Related Party Transaction [Line Items]
Due to related parties		$ 6,116,366		$ 6,116,366		$ 5,684,753
Acquisition Related Costs [Member]
Related Party Transaction [Line Items]
Expenses with related parties	[1]	123,418		158,276
Due to related parties	[1]	720,988		720,988		686,250
General and Administrative Reimbursements [Member]
Related Party Transaction [Line Items]
Due to related parties	[2]	92,735		92,735		80,386
Offering Costs [Member]
Related Party Transaction [Line Items]
Expenses with related parties	[3]	712,154	$ 724,809	1,110,183	$ 1,274,616
Due to related parties	[3]	1,689,124		1,689,124		1,476,746
Business Management Fee [Member]
Related Party Transaction [Line Items]
Expenses with related parties	[4]	91,763	68,594	160,455	137,185
Due to related parties	[4]	526,450		526,450		365,995
Mortgage Financing Fee [Member]
Related Party Transaction [Line Items]
Due to related parties	[5]	114,375		114,375		114,375
Sponsor Non-interest Bearing Advances [Member]
Related Party Transaction [Line Items]
Due to related parties	[6]	2,950,000		2,950,000		2,950,000
Property Operating Expenses [Member]
Related Party Transaction [Line Items]
Due to related parties		22,694		22,694		11,001
Total General And Administrative Costs [Member]
Related Party Transaction [Line Items]
Due to related parties		92,735		92,735		80,386
Real Estate Manager Or Affiliates [Member]
Related Party Transaction [Line Items]
Due to related parties	[7]	22,694		22,694		$ 11,001
Total General and Administrative Costs [Member]
Related Party Transaction [Line Items]
General and administrative expenses		120,698	166,345	234,561	272,338
Total General and Administrative Costs [Member] | General and Administrative Reimbursements [Member]
Related Party Transaction [Line Items]
General and administrative expenses	[2]	119,724	166,333	210,031	257,796
Total General and Administrative Costs [Member] | Affiliate Share Purchase Discounts [Member]
Related Party Transaction [Line Items]
General and administrative expenses	[8]	974	12	24,530	14,542
Total Property Operating Expenses [Member]
Related Party Transaction [Line Items]
Operating property expenses	[7]	191,124	135,881	323,689	245,718
Total Property Operating Expenses [Member] | Property Management Fee [Member]
Related Party Transaction [Line Items]
Operating property expenses		61,409	39,597	100,554	76,728
Total Property Operating Expenses [Member] | Property Operating Expenses [Member]
Related Party Transaction [Line Items]
Operating property expenses		$ 129,715	$ 96,284	$ 223,135	$ 168,990

[1] Prior to August 8, 2016 under the Business Management Agreement, the Company was required to pay the Business Manager or its affiliates an acquisition fee equal to 1.5% of the “contract purchase price,” as defined in that agreement, of each property and real estate-related asset acquired.   The Business Management Agreement was amended to, among other things, delete the obligation to pay acquisition fees, real estate sales commissions and mortgage financing fees payable to the Business Manager by the Company with respect to transactions occurring on or after August 8, 2016. The Business Manager and its affiliates continue to be reimbursed for acquisition related costs of the Business Manager and its affiliates relating to the Company’s acquisition of properties and real estate assets, regardless of whether the Company acquires the properties or real estate assets, subject to the limits provided in the amended agreement.  Of the $158,276 related party acquisition costs and fees, $120,040 were capitalized and classified in other assets in the accompanying consolidated balance sheets and $38,236 of such costs are included in acquisition related costs in the accompanying consolidated statements of operations.  Acquisition fees earned prior to August 8, 2016, which have been previously accrued for and are owed to the Business Manager, are expected to be paid in the future and are included in due to related parties in the accompanying consolidated balance sheets.

[2] The Business Manager and its affiliates are entitled to reimbursement for certain general and administrative expenses incurred relating to the Company’s administration. Such costs are included in general and administrative expenses in the accompanying consolidated statements of operations. Unpaid amounts are included in due to related parties in the accompanying consolidated balance sheets.

[3] The Company reimburses the Sponsor and its affiliates for costs and other expenses of the Offering. Offering costs are offset against the stockholders’ equity accounts. Unpaid amounts are included in due to related parties in the accompanying consolidated balance sheets. An affiliate of the Business Manager also receives selling commissions equal to 6.0% of the sale price for each Class A Share sold, 2.0% of the sale price for each Class T Share sold and 3.0% of the sale price for each Class T-3 Share sold and a dealer manager fee equal to 2.75% of the sale price for each Class A and Class T Share sold and 2.5% of the sale price for each Class T-3 Share sold, the majority of which is re-allowed (paid) to third party soliciting dealers. The Company does not pay selling commissions or the dealer manager fee in connection with shares issued through the DRP and pays no or reduced selling commissions and dealer manager fees in connection with certain special sales. Unpaid amounts are included in due to related parties in the accompanying consolidated balance sheets. The Company pays a distribution and stockholder servicing fee equal to 1.0% per annum of the purchase price per share (or, once reported, the amount of the Company’s estimated value per share) for each Class T Share and Class T-3 Share sold in the Offering. The fee is not paid at the time of purchase. The Company accounts for the total fee as a charge to equity at the time each Class T Share or Class T-3 Share is sold in the Offering and records a corresponding payable in due to related parties. The distribution and stockholder servicing fee is payable monthly in arrears as it becomes contractually due. At June 30, 2017 and December 31, 2016, the unpaid fee equal to $475,643 and $335,327, respectively, was recorded in due to related parties in the accompanying consolidated balance sheets.

[4] The Company pays the Business Manager an annual business management fee equal to 0.6% of its “average invested assets,” payable quarterly in an amount equal to 0.15% of the Company’s average invested assets as of the last day of the immediately preceding quarter. “Average invested assets” means, for any period, the average of the aggregate book value of the Company’s assets, including all intangibles and goodwill, invested, directly or indirectly, in equity interests in, and loans secured by, properties, as well as amounts invested in securities or consolidated and unconsolidated joint ventures or other partnerships, before reserves for amortization and depreciation or bad debts, impairments or other similar non-cash reserves, computed by taking the average of these values at the end of each month during the relevant calendar quarter. Unpaid amounts are included in due to related parties in the accompanying consolidated balance sheets.

[5] Prior to August 8, 2016 under the Business Management Agreement, the Company was required to pay the Business Manager or its affiliates a mortgage financing fee equal to 0.25% of the amount available or borrowed under the financing or the assumed debt if the Business Manager or its affiliates provided services in connection with the origination or refinancing of any debt that the Company obtained and used to finance properties or other assets, or that was assumed, directly or indirectly, in connection with the acquisition of properties or other assets. Pursuant to the amended Business Management Agreement, mortgage financing fees were eliminated with respect to transactions occurring on or after August 8, 2016. Mortgage financing fees earned prior to August 8, 2016, which have been previously accrued for and are owed to the Business Manager, are expected to be paid in the future and are included in due to related parties in the accompanying consolidated balance sheets.

[6] This amount represents non-interest bearing advances made by the Sponsor which the Company intends to repay. Unpaid amounts are included in due to related parties in the accompanying consolidated balance sheets.

[7] The Company pays Inland Residential Real Estate Services, LLC (the “Real Estate Manager”) a monthly property management fee of up to 4% of the gross income from any property managed directly by the Real Estate Manager or its affiliates. The Real Estate Manager may reduce, in its sole discretion, the amount of the management fee payable in connection with a particular property, subject to these limits. The Company also reimburses the Real Estate Manager and its affiliates for property-level expenses that they pay or incur on the Company’s behalf, including the salaries, bonuses, benefits and severance payments for persons performing services, including without limitation acquisition due diligence services, for the Real Estate Manager and its affiliates (excluding the executive officers of the Real Estate Manager and the Company’s executive officers).

[8] The Company established a discount stock purchase policy for affiliates and affiliates of the Business Manager that enable them to purchase shares of common stock at $22.81 per share. The Company sold 11,201 and 6,635 shares to affiliates during the six months ended June 30, 2017 and 2016, respectively.

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TRANSACTIONS WITH RELATED PARTIES (Narrative) (Details) - USD ($)		3 Months Ended	6 Months Ended
	Aug. 07, 2016	Jun. 30, 2017	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Related Party Transaction [Line Items]
Acquisition related costs		$ 30,266	$ 71,479
Class T Common Stock and Class T-3 Common Stock [Member]
Related Party Transaction [Line Items]
Percentage of distribution and stockholder servicing fee			1.00%
Class T Common Stock [Member]
Related Party Transaction [Line Items]
Unpaid fee under distribution and servicing		475,643	$ 475,643		$ 335,327
Business Manager [Member]
Related Party Transaction [Line Items]
Common stock shares sold to affiliates during period			11,201	6,635
Price per share of common stock sold to affiliates during period			$ 22.81
Fee required to pay the Business Manager or its affiliates expressed as a percentage of the 'contract purchase price' as defined, of each property and real estate-related asset acquired	1.50%
Related party acquisition costs and fees			$ 158,276
Capitalized related party acquisition costs and fees		$ 120,040	120,040
Acquisition related costs			$ 38,236
Selling commission paid to affiliate of the Business Manager expressed as a percentage of the sales price for each Class A Share sold			6.00%
Selling commission paid to affiliate of the Business Manager expressed as a percentage of the sales price for each Class T Share sold			2.00%
Selling commission paid to affiliate of the Business Manager expressed as a percentage of the sales price for each Class T-3 Share sold			3.00%
Dealer manager fee paid to affiliate of the Business Manager expressed as a percentage of the sales price for each Class A and Class T share sold			2.75%
Dealer manager fee paid to affiliate of the Business Manager expressed as a percentage of the sales price for each Class T-3 share sold			2.50%
Annual business management fee paid to the Business Manager expressed as a percentage of the Company’s “average invested assets”			0.60%
Fee paid to Business Manager or its affiliates expressed as a percentage of the 'average invested assets' as defined			0.15%
Mortgage financing fee required to pay Business Manager or its affiliates expressed as a percentage of the amount available or borrowed under financing or assumed debt	0.25%
Real Estate Manager Or Affiliates [Member] | Maximum [Member]
Related Party Transaction [Line Items]
Property management fee percentage			4.00%

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OPERATING LEASES - (Narrative) (Details)	6 Months Ended
	Jun. 30, 2017
Minimum [Member] | Retail Lease Terms [Member]
Operating Leased Assets [Line Items]
Lease term	1 year
Maximum [Member] | Residential Lease Terms [Member]
Operating Leased Assets [Line Items]
Lease term	12 months
Maximum [Member] | Retail Lease Terms [Member]
Operating Leased Assets [Line Items]
Lease term	4 years

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OPERATING LEASES - (Schedule of Minimum Lease Payments to be Received Under Operating Leases) - (Details)	Jun. 30, 2017 USD ($)
Leases Operating [Abstract]
2017 (remainder of year)	$ 135,425
2018	257,350
2019	254,650
2020	172,750
2021	78,120
Total	$ 898,295

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SUBSEQUENT EVENTS (Narrative) (Details)	6 Months Ended
	Jun. 30, 2017 $ / shares
Class A Common Stock [Member]
Subsequent Event [Line Items]
Amount per share of distributions	$ 0.003424658
Class T Common Stock [Member]
Subsequent Event [Line Items]
Amount per share of distributions	0.002768493
Class T-3 Common Stock [Member]
Subsequent Event [Line Items]
Amount per share of distributions	0.003306849
Cash Distributions [Member] | Class A Common Stock [Member]
Subsequent Event [Line Items]
Amount per share of distributions	0.003424658
Cash Distributions [Member] | Class T Common Stock [Member]
Subsequent Event [Line Items]
Amount per share of distributions	0.002768493
Cash Distributions [Member] | Class T-3 Common Stock [Member]
Subsequent Event [Line Items]
Amount per share of distributions	$ 0.003306849
Cash Distributions [Member] | Minimum [Member] | Class A Common Stock [Member]
Subsequent Event [Line Items]
Dividends payable, record date	Jul. 01, 2017
Cash Distributions [Member] | Minimum [Member] | Class T Common Stock [Member]
Subsequent Event [Line Items]
Dividends payable, record date	Jul. 01, 2017
Cash Distributions [Member] | Minimum [Member] | Class T-3 Common Stock [Member]
Subsequent Event [Line Items]
Dividends payable, record date	Jul. 01, 2017
Cash Distributions [Member] | Maximum [Member] | Class A Common Stock [Member]
Subsequent Event [Line Items]
Dividends payable, record date	Dec. 31, 2017
Cash Distributions [Member] | Maximum [Member] | Class T Common Stock [Member]
Subsequent Event [Line Items]
Dividends payable, record date	Dec. 31, 2017
Cash Distributions [Member] | Maximum [Member] | Class T-3 Common Stock [Member]
Subsequent Event [Line Items]
Dividends payable, record date	Dec. 31, 2017

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SUBSEQUENT EVENTS (Schedule of Dividends Distributions) (Details) - USD ($)	1 Months Ended		6 Months Ended
	Aug. 31, 2017	Jul. 31, 2017	Jun. 30, 2017
Subsequent Event [Line Items]
Distribution reinvested through distribution reinvestment plan			$ 479,079
Distributions Paid Month One [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Distribution reinvested through distribution reinvestment plan		$ 94,758
Shares Issued		4,031
Net Cash Distribution		$ 81,500
Distributions Paid Month Two [Member] | Scenario Forecast [Member]
Subsequent Event [Line Items]
Distribution reinvested through distribution reinvestment plan	$ 100,971
Shares Issued	4,295
Net Cash Distribution	$ 85,984
Cash Distributions [Member] | Distributions Paid Month One [Member]
Subsequent Event [Line Items]
Distribution Month			2017-06
Month Distribution Paid			2017-07
Cash Distributions [Member] | Distributions Paid Month One [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Gross Amount of Distribution Paid		$ 176,258
Cash Distributions [Member] | Distributions Paid Month Two [Member]
Subsequent Event [Line Items]
Distribution Month			2017-07
Month Distribution Paid			2017-08
Cash Distributions [Member] | Distributions Paid Month Two [Member] | Scenario Forecast [Member]
Subsequent Event [Line Items]
Gross Amount of Distribution Paid	$ 186,955

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SUBSEQUENT EVENTS (Schedule of Acquisitions) (Details) - Verandas at Mitylene [Member] - Subsequent Event [Member]	Jul. 27, 2017 USD ($) ft² Unit
Subsequent Event [Line Items]
Property acquisition, date acquired	Jul. 27, 2017
Property acquisition, location	Montgomery, Alabama
Property acquisition, square footage | ft²	376,968
Property acquisition, number of units acquired | Unit	332
Property acquisition, purchase price | $	$ 36,550,000

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SUBSEQUENT EVENTS (Schedule of Financing) (Details) - Verandas at Mitylene [Member] - Subsequent Event [Member]	Jul. 27, 2017 USD ($)
Subsequent Event [Line Items]
Date	Jul. 27, 2017
Interest Rate (stated)	3.88%
Principal Amount	$ 21,930,000
Maturity Date	Aug. 01, 2027