EXHIBIT (a)(3)



                          BERKSHIRE INCOME REALTY, INC.
                          One Beacon Street, Suite 1500
                           Boston, Massachusetts 02108


                                                January 10, 2003

Dear Krupp Mortgage Fund Investor:

We are writing to tell you about an opportunity to invest in Berkshire Income
Realty, Inc., a newly formed company that is controlled by Douglas Krupp,
Chairman and Chief Executive Officer of The Berkshire Group, and George Krupp,
Vice Chairman of The Berkshire Group.

We are offering you the opportunity to exchange the interests in your Krupp
mortgage fund for our shares of 9% Series A Cumulative Redeemable Preferred
Stock, which are expected to be listed on the American Stock Exchange under the
symbol "BIR." The terms of this exchange offer are described in the enclosed
Prospectus.

As anticipated, your Krupp mortgage fund has experienced significant payoffs of
its mortgage loan investments. Your mortgage fund is not permitted to reinvest
the funds it receives from repayments of its mortgage loan assets, but instead
must distribute the net cash proceeds attributable to these repayments to the
fund investors. This has resulted in ever-decreasing levels of regular
distributions to the fund investors. Berkshire Income Realty expects to be able
to offer you predictable and level dividends on its 9% Series A Cumulative
Redeemable Preferred Stock.

We are a newly formed company whose objective is to acquire, own, and operate
multi-family residential properties. We intend to operate our business to
qualify as a real estate investment trust (a "REIT"). By making this offer, we
are seeking to provide you with an opportunity to exchange all or part of the
interests in your mortgage fund for a preferred security in a newly organized
REIT. This preferred security will be issued by us, a company having
substantially different assets, objectives, and ownership structure from your
mortgage fund. The dividend, liquidation rights and trading liquidity will also
be substantially different from those of the interests in your mortgage fund.
You will not be required to pay any commissions or transfer fees in connection
with the exchange of your mortgage fund investment for our Series A Preferred
Stock. If you choose not to participate, you will remain a unitholder in your
mortgage fund.

Enclosed you will find a brochure highlighting the terms of this offer, the
Prospectus, a Letter of Transmittal, instructions for accepting the offer, and
tax guidelines relating to the Substitute Form W-9. Please read the enclosed
material carefully. To accept this exchange offer, the Letter of Transmittal
must be completed, signed, dated, and returned to us in the enclosed prepaid
self-addressed envelope.

Should you have any questions, please contact us at 1-866-33-KRUPP and we will
be happy to assist you.

Very truly yours,

BERKSHIRE INCOME REALTY, INC.