Exhibit 4.1


 


THIRD AMENDED AND RESTATED DISTRIBUTION
REINVESTMENT PLAN


 


Inland Residential Properties Trust, Inc. (the “Company”),
as a service to its stockholders, hereby offers participation in its third amended and restated distribution reinvestment plan
(the “Plan”). The Plan is designed to provide participants with a simple, convenient and economical way to purchase
shares of the Company’s common stock, including shares of the Company’s Class A common stock (the “Class A Shares”)
and Class T common stock (the “Class T Shares”). Stockholders who choose not to participate in the Plan will receive
distributions, in the form declared and paid by the Company.


Purchases of shares will be made directly from the Company
and shall be made in the same class as the shares on which the participant received the cash distributions that are being reinvested
through the Plan, i.e., distributions paid on Class A Shares will be used to purchase additional Class A Shares and distributions
paid on Class T Shares will be used to purchase additional Class T Shares.


To aid in your understanding of the question-and-answer statements
set forth below, you may find the following basic definitions useful:


“Shares registered in your name” means
shares of the Company’s common stock for which you are the owner of record. If you own shares of the Company’s common
stock but are not the owner of record for those shares, it is likely that the shares you own are registered in the name of another
(e.g., in the name of a bank or trustee holding shares of common stock on your behalf) and are held for you by the registered owner
in an account in your name.


“Shares enrolled in the Plan” means shares
registered in your name that you have chosen to enroll in the Plan. Distributions on all shares enrolled in the Plan are automatically
reinvested in additional shares of the Company’s common stock. You do not have to enroll all of your shares of common stock
in the Plan.




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The following question-and-answer statements define the Company’s
Plan, effective as of September 8, 2015.


Purpose


		1.	What is the purpose of the Plan?



The purpose of the Plan is to provide eligible stockholders
(see Question 5) with a simple and convenient way to invest cash distributions in additional shares of the Company’s common
stock. The Plan is intended to be used by you as a vehicle for long-term investment in the Company’s common stock.


Maximum Ownership of Shares. To maintain the Company’s
qualification as a REIT, no more than 50% of its outstanding shares of common stock may be owned directly or indirectly by five
or fewer individuals at any time during July through December of each year. To ensure that the Company meets this test, its charter
provides that no person may own more than 9.8% in value of its outstanding stock, or 9.8% in value or in number (whichever is more
restrictive) of each class of its shares, without the prior approval of the Company’s board of directors. Therefore, to the
extent that any purchase of shares of common stock under the Plan would cause you to own more than 9.8% in value of the Company’s
outstanding stock, or 9.8% in value or in number (whichever is more restrictive) of each class of its shares, without the prior
approval of the Company’s board of directors, you may not reinvest your distributions to purchase additional shares of common
stock.


Investment Options


		2.	What investment options are available to participants in the Plan?



The Plan provides two options for purchasing additional shares
of common stock:


Full Distribution Reinvestment Option. You may have
cash distributions on all of your shares of common stock automatically reinvested; or


Partial Distribution Reinvestment Option. You may
reinvest cash distributions on a percentage of the shares of common stock you own and continue to receive distributions in the
form declared and paid by the Company on the other shares registered in your name. You can take advantage of this option by enrolling
in the Plan only that percentage of your shares for which you wish to reinvest distributions.


Benefits and Disadvantages


		3.	What are the benefits and disadvantages of the Plan?



Benefits. Before deciding whether to participate,
you should consider the following benefits of the Plan:


		·	You may purchase additional shares of the Company’s common stock by automatically reinvesting
cash distributions on all, or less than all, of the shares registered in your name. You will continue to receive distributions
in the form declared and paid by the Company for those shares of common stock that you choose not to enroll in the Plan.



		·	No commissions, brokerage fees or service charges will be paid by you in connection with purchases
under the Plan resulting in a lower purchase price than you would otherwise pay if you acquired shares in our primary offering.
In addition, no fees will be paid to Inland Real Estate Investment Corporation, Inland Residential Business Manager &
Advisor, Inc., our directors or any of their affiliates in connection with purchases under the Plan.





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		·	Your funds will be fully invested because the Plan permits fractions of shares of common stock
to be purchased for you and registered in your name. Distributions on such fractions, as well as on whole shares, will be reinvested
in additional shares of common stock and registered in your name.



		·	Regular statements from the Administrator reflecting all current activity in your account, including
purchases, sales and latest balance, will simplify your recordkeeping.



Disadvantages. Before deciding whether to participate,
you should consider the following disadvantages of the Plan:


		·	You will be treated for U.S. federal income tax purposes as receiving a distribution equal to
the fair market value of the shares of common stock purchased for you as a result of the reinvestment of cash distributions. This
distribution will be taxable to the extent of the Company’s current and accumulated earnings and profits (and to the extent
the distribution exceeds both the Company’s current and accumulated earnings and profits and the tax basis in your shares
of common stock). Accordingly, you may have a tax liability without a corresponding distribution of cash with which to pay the
liability when it comes due.



		·	You may not know the actual number of shares of common stock purchased for you as a result of
the reinvestment of cash distributions until after the applicable Distribution Payment Date, as defined in Question 16.



		·	You may incur brokerage commissions, fees and income taxes, as described in Question 20.



		·	We may amend, suspend, modify or terminate the Plan at any time, without the prior consent of
participants in the Plan.



Administration


		4.	Who administers the Plan for participants?



DST Systems, Inc. (the “Administrator”) administers
the Plan, keeps records, sends statements of account to each participant, and performs other duties related to the Plan. Shares
purchased under the Plan will be registered in your name.


The Company, in conjunction with the Administrator, may adopt
rules and regulations to facilitate the administration of the Plan. The Company reserves the right to interpret the provisions
of the Plan, and any rules and regulations adopted in accordance therewith, in its sole discretion. The determination of any matter
with respect to the Plan made by the Company in good faith shall be final and conclusive and binding on the Administrator and all
participants in the Plan. The Administrator currently acts as distribution disbursing and transfer agent and registrar for the
Company’s common stock and may have other business relationships with the Company from time to time.


For answers to questions regarding the Plan and to request
Plan forms, please contact the Company at (800) 826-8228.




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Eligibility and Enrollment


		5.	Who is eligible to participate?



If you are a stockholder in the Company and have shares registered
in your name, you are eligible to participate in the Plan. If your shares of common stock are registered in a name other than your
own (e.g., in the name of a bank or trustee holding shares of common stock on your behalf) and you want to participate in the Plan,
you should consult directly with the entity holding your shares to determine if they can enroll in the Plan. You will not be eligible
to participate in the Plan, however, if you reside in a jurisdiction in which it is unlawful, or where it is unduly burdensome,
for the Company or the Administrator to let you participate.


The Company reserves the right to reject the enrollment of
any participant who has abused the Plan through excessive sales, terminations and enrollments, or otherwise (see Questions 1 and
26).


		6.	When may an eligible person join the Plan?



If you are eligible to participate as described in Question
5 and have been furnished a copy of the Company’s prospectus, you may join the Plan at any time. Your enrollment will become
effective as described below in Question 12.


		7.	What happens if a participant’s financial condition changes after enrollment?



You must notify the Administrator in the event that, at any
time during your participation in the Plan, there is any material change in your financial condition, as compared to information
previously provided to your broker or financial advisors, or inaccuracy of any representation under the subscription agreement
for your initial purchase of securities, including specifically with respect to the concentration limits applicable to residents
of certain states. A “material change” also includes any anticipated or actual material decrease in your net worth
or annual gross income, or any other material change in circumstances that may be likely to cause you to fail to meet the minimum
income and net worth standards or the concentration limits set forth in the Company’s prospectus for your initial purchase
of shares or cause your broker or financial advisor to determine that an investment in shares of the Company’s common stock
is no longer suitable and appropriate for you.


		8.	How does an eligible person join the Plan?



You may join the Plan by completing the appropriate section
of the subscription agreement or submitting a distribution election form. In the event you wish to enroll shares of common stock
that are registered in more than one name (i.e., joint tenants, trustees, etc.), all registered stockholders must sign the subscription
agreement.


You should send any original subscription agreement to the
address indicated on your subscription agreement. You should send any distribution election forms to the address set forth on the
form.


		9.	Is partial participation possible under the Plan?



Yes. You may elect to enroll in the Plan all, or less than
all, of the shares registered in your name.




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		10.	For what reinvestment options does the Election Form provide?



By joining the Plan, you authorize the Administrator to invest
in accordance with the Plan all cash distributions paid on your shares then or subsequently enrolled in the Plan. The Plan also
provides for the partial enrollment in the Plan of your shares of common stock. If you do not wish all of the shares of common
stock held in your name to be enrolled in the Plan, you may designate the percentage of shares of common stock you do wish enrolled.


		11.	How may a participant change options under the Plan?



As a participant, you may change your reinvestment options
at any time by requesting a distribution election form and returning it to the Administrator at the address set forth on the form.
Any change in reinvestment option must be received by the Administrator not later than five days prior to the next Distribution
Payment Date in order to make a change with respect to that distribution payment (see also Questions 12, 14 and 16).


		12.	When does enrollment in the Plan become effective?



Your signed subscription agreement will be processed as quickly
as practicable after its receipt by the Administrator. Reinvestment of cash distributions on your shares enrolled in the Plan will
take place as follows:


		·	If your signed subscription agreement is received by the Administrator prior to or on a record
date, reinvestment of distributions on your enrolled shares of common stock will begin with the Distribution Payment Date for that
record date.



For a discussion of record dates and Distribution Payment
Dates, see Questions 14 and 16.


Costs


		13.	Are there any costs to participants in the Plan?



All costs to administer the Plan are paid by the Company,
except that you may incur brokerage commissions, fees and income taxes as a result of your participation in the Plan (see Question
20). Distribution and stockholder servicing fees will not be paid on Class T Shares purchased under the Plan.


Purchases


		14.	When are the record dates and Distribution Payment Dates for the Company’s distributions?



You should not assume that the Company will pay distributions
or pay them in any particular amount or on any particular date. The Company’s board of directors will establish Distribution
Payment Dates and corresponding record dates.


The Company currently has no plans to declare any special
or extraordinary distributions. However, should any such special distribution be declared, the amount due on shares enrolled in
the Plan will be paid to your account under the Plan and invested in accordance with the Plan, subject to your right to withdraw
at any time.


		15.	What is the source of shares purchased under the Plan?



The sole source of shares purchased under the Plan is newly
issued shares of common stock purchased directly from the Company.




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		16.	When will shares be purchased under the Plan?



Cash distributions reinvested under the Plan will be applied
to the purchase of shares of common stock on the dates that cash distributions are paid on the Company’s common stock (each,
a “Distribution Payment Date”). Shares generally will be purchased for you and registered in your name on the Distribution
Payment Date.


		17.	What will be the price of the shares purchased under the Plan?



The price per share for the Class A Shares purchased for
holders of Class A Shares under the Plan on any Distribution Payment Date will be equal to $23.75 per Class A Share until the earlier
of:


		·	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, if there is a change; and



		·	termination of any “reasonable best efforts” public offering of the Company’s
Class A Shares, unless followed by a subsequent “reasonable best efforts” public offering of Class A Shares.



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, if there is a change, and (2) termination of all “reasonable best efforts” public offerings of the Company’s
Class A Shares, the price per Class A Share purchased for you under the Plan on any Distribution Payment Date will be equal to
one of the following: (i) until such time as the Company reports an estimated value of its Class A Shares, 95% of the last price
at which Class A Shares were offered by the Company in a “reasonable best efforts” public offering of its shares; (ii)
once reported, the estimated value of a Class A Share; or (iii) assuming that the Plan has not been terminated or suspended in
connection with a listing, if a listing occurs, the average daily open and close sales price per Class A Share, as reported by
the national securities exchange or inter-dealer quotation system, whichever is applicable, on any Distribution Payment Date.


The price per share for Class T Shares purchased for holders
of Class T Shares under the Plan on any Distribution Payment Date will be equal to $22.81 per Class T Share until the earlier of:


		·	the change of the public offering price in a public “reasonable best efforts” offering
of the Company’s Class T Shares from $23.95 per Class T Share, if there is a change; and



		·	termination of any “reasonable best efforts” public offering of the Company’s
Class T Shares, unless followed by a subsequent “reasonable best efforts” public offering of Class T Shares.



After the earlier of (1) the change of the public offering
price in a public “reasonable best efforts” offering of the Company’s Class T Shares from $23.95 per Class T
Share, if there is a change, and (2) termination of all “reasonable best efforts” public offerings of the Company’s
Class T Shares, the price per Class T Share purchased for you under the Plan on any Distribution Payment Date will be equal to
the “market price” of a Class T Share. For these purposes, “market price” means, prior to a liquidity event,
the last price at which Class T Shares were offered by the Company in a “reasonable best efforts” public offering less
selling commissions and dealer manager fees or, once reported, the estimated value of a Class T Share. Assuming that the Plan has
not been terminated or suspended in connection with a liquidity event, if a liquidity event occurs, or upon another conversion
event described in the Company’s charter, the Class T Shares will convert into Class A Shares, and the price per Class A
Share purchased for you under the Plan will be determined in the manner described above for Plan participants who are holders of
Class A Shares.




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		18.	How many shares will be purchased for participants?



The number of shares of common stock purchased for you depends
on the aggregate amount of your cash distributions and the purchase price per share, determined in accordance with Question 17.
A number of shares of common stock, including fractions computed to three decimal places, equal to the aggregate amount of your
cash distributions on any particular Distribution Payment Date, less taxes on distributions (if applicable, see Question 20 and
Question 21), divided by the applicable purchase price per share, will be purchased for you and registered in your name. The Administrator
and the Company will not accept orders to purchase a specific number of shares or to purchase on days other than the applicable
Distribution Payment Date. The Company will not purchase shares of common stock for you under the Plan to the extent that the purchase
would cause you to own more than 9.8% in value of its outstanding stock, or 9.8% in value or in number (whichever is more restrictive)
of each class of its shares, unless those limitations are waived by the Company’s board of directors.


		19.	Will shares purchased through the Plan earn distributions?



Yes. All shares purchased through the Plan, including fractional
shares, will be entitled to any cash distributions when and as declared by the Company. Only shares of common stock held as of
a record date for a given distribution are entitled to that distribution.


Taxes


		20.	What are the U.S. federal income tax consequences of participation in the Plan?



The Company believes the following to be an accurate summary
of the U.S. federal income tax consequences for Plan participants as of the effective date of this Plan. You are urged to consult
with your own tax advisor to determine the particular tax consequences that may result from your participation in the Plan and
the subsequent disposition by you of shares of common stock purchased pursuant to the Plan.


(1)            
Cash distributions reinvested under the Plan are, in effect, treated for U.S. federal income
tax purposes as having been received in cash on the Distribution Payment Date even though they are used to purchase additional
shares of common stock. You will be treated for U.S. federal income tax purposes as having received, on the Distribution Payment
Date, a distribution equal to the sum of (a) the fair market value of any common stock purchased under the Plan (including common
stock purchased through reinvestment of dividends on shares held in your account), and (b) any cash distributions actually received
by you with respect to your shares of common stock not included in the Plan, and such distribution (provided it is not designated
as a capital gain dividend or qualified dividend income) will constitute a taxable dividend to the extent of the Company’s
current and accumulated earnings and profits (as determined for U.S. federal income tax purposes) allocable to the distribution. 
Distributions in excess of the Company’s current and accumulated earnings and profits first will constitute a tax-deferred
return of capital that reduces the tax basis in your shares, but not below zero, and then capital gain to the extent the excess
distribution exceeds the tax basis in your shares.


(2)            
The tax basis per share of common stock purchased under the Plan is the fair market value
of the share on the Distribution Payment Date on which the share was purchased for you and registered in your name.


(3)            
The holding period for shares of common stock acquired with reinvested distributions generally
will begin on the day following the Distribution Payment Date on which the shares were purchased for you and registered in your
name (see Question 16).




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(4)            
A gain or loss may be recognized upon your disposition of common stock purchased through the
Plan. The amount of gain or loss recognized will be the difference between the cash and fair market value of property received
for the whole or fractional shares of common stock and your tax basis in the whole or fractional shares of common stock. Generally,
any gain or loss recognized on the disposition of common stock acquired under the Plan will be treated for U.S. federal income
tax purposes as a capital gain or loss.


		21.	How are U.S. federal income tax withholding provisions applied to participants in the Plan?



If you fail to furnish a valid taxpayer identification number
to the Administrator and fail to certify that you are not subject to backup withholding, then the Administrator is required by
law under the backup withholding rules to withhold taxes from the amount of distributions and the proceeds from any sale of your
shares. Under certain other circumstances, you also may be subject to backup withholding. The withheld amount will be deducted
from the amount of distributions and the remaining amount of distributions reinvested. In the case of a sale, the withheld amount
will be deducted from the sale proceeds and the remaining amount will be sent to you.


If you are a non-U.S. stockholder you must provide the required
U.S. federal income tax certifications to establish your status as a non-U.S. stockholder in order for backup withholding not to
apply to you. You also must provide the required certifications if you wish to claim the benefit of exemptions from U.S. federal
income tax withholding or reduced withholding rates under a treaty or convention entered into between the United States and your
country of residence. If you are a non-U.S. stockholder participating in the Plan whose dividends are subject to U.S. federal income
tax withholding, the appropriate amount will be withheld and the balance will be applied to purchase shares of common stock, which
will be registered in your name.


Reports to Participants


		22.	What kinds of reports will be sent to participants in the Plan?



On a quarterly basis, a summary statement of your account
will be mailed to you by the Administrator. These statements are your continuing record of current activity including the cost
of your purchases and proceeds from your sales in the Plan. In addition, you will be sent copies of other communications sent to
holders of the Company’s common stock, including the Company’s annual report, the notice of annual meeting, proxy statement,
and the information you will need for reporting your distribution income for U.S. federal income tax purposes. If, after receiving
and reviewing this information, you no longer wish to participate in the Plan, you may withdraw from the Plan in accordance with
the terms set forth in Questions 24 and 25 below.


All notices, statements and reports from the Administrator
and Company to you will be addressed to your latest address of record with the Administrator. Therefore, you must promptly notify
the Administrator of any change of address. To be effective with respect to mailings of distribution checks, address changes must
be received by the Administrator five business days prior to the next Distribution Payment Date.




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Certificates for Shares


		23.	Will certificates be issued for shares purchased?



No. Shares of the Company’s common stock purchased
through the Plan will be issued in book entry form only. This means that we will not issue actual share certificates to you or
any holders of the Company’s common stock. The use of book entry only registration protects you against loss, theft or destruction
of stock certificates and reduces costs. Shares of common stock purchased through the Plan will be registered in your name. The
number of shares of common stock registered in your name will be shown on your statement of your account.


Termination of Participation


		24.	When may a participant terminate participation in the Plan?



You may request termination of your participation in the
Plan at any time. Any distributions earned subsequent to the effective date of your termination will be paid to you in cash unless
you re-enroll in the Plan.


		25.	How does a participant terminate participation in the Plan?



To terminate your participation in the Plan, you must notify
the Administrator that you wish to do so. An election form should be sent to the address set forth on the election form.


		26.	May an individual’s participation be terminated by the Company or the Administrator?



The Company reserves the right to terminate the participation
of any participant who, in the Company’s sole discretion, is abusing the Plan or causing undue expense. The Company also
reserves the right to suspend or terminate the Plan with respect to participants in one or more jurisdictions.


		27.	What happens when a participant’s share repurchase request is dishonored or partially
dishonored by the Company?



If you make a share repurchase request that is dishonored
or partially dishonored by the Company, your participation in the Plan will automatically be terminated as of the date that the
request is dishonored. Any distributions earned subsequent to the effective date of your termination will be paid to you in cash
unless you re-enroll in the Plan.


Sales of Shares


		28.	What happens when a participant sells or transfers all of his or her shares?



If you sell or transfer all the shares registered in your
name, your participation in the Plan will automatically terminate. Any distributions received after your disposition of the shares
(for example, if the shares of common stock are disposed after the record date and before the Distribution Payment Date), will
be paid in cash.


		29.	What happens when a participant sells or transfers some but not all of his or her shares?



If you have elected the “Full Distribution Reinvestment”
option described in Question 2, and you transfer or sell a portion of the shares registered in your name, then the Administrator
will continue to reinvest the distributions on all remaining shares registered in your name.




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If you have elected the “Partial Distribution Reinvestment”
option described at Question 2 by enrolling in the Plan only a percentage of the shares you own, and you transfer or sell a portion
of the shares registered in your name, then the Administrator will continue to reinvest the distributions on the remaining shares
registered in your name up to the number of shares originally enrolled in the Plan. For example, if you requested the Company to
enroll in the Plan 50% of the 100 shares registered in your name, and then you transferred or sold 20 shares, the Company would
continue to reinvest the distributions on 40 shares. If instead, you transferred or sold 80 shares, the Company would continue
to reinvest the distributions on 10 shares.


Other Information


		30.	What are the responsibilities of the Administrator and the Company under the Plan?



Subject to the limitations contained in the Company’s
charter, the Administrator and the Company will not be liable under the Plan for any act done in good faith or for any good faith
omission to act, including, without limitation, any claim of liability arising with respect to the prices or times at which shares
are purchased for you or any change in the market value of the Company’s common stock.


You should not assume that the Company will pay distributions
or pay them in any particular amount or on any particular date.


You should recognize that neither the Administrator nor the
Company can assure you of a profit or protect you against a loss on the shares of common stock purchased by you under the Plan.


		31.	May the Plan be changed or discontinued?



Notwithstanding any other provisions of the Plan, the Company
reserves the right to amend, modify, suspend or terminate the Plan at any time, in whole or in part, or in respect to participants
in one or more jurisdictions, without the prior consent of participants in the Plan. In the event that the Company amends, suspends
or terminates the Plan, however, the Company will mail participants notice of the change at least ten calendar days prior to the
change, and the Company will disclose the change in a report filed with the SEC on either Form 8-K, Form 10-Q or Form 10-K, as
appropriate.


 


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