UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549

                                   FORM 10-K

[X] Annual Report Pursuant to Section 13 or 15(d) of the Securities
    Exchange Act of 1934

                  For The Fiscal Year Ended December 31, 1999

                                      or

[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities
    Exchange Act of 1934

                           Commission File #0-17593

                      Inland Monthly Income Fund II, L.P.
            (Exact name of registrant as specified in its charter)

       Delaware                                       36-3587209
(State of organization)                (I.R.S. Employer Identification Number)

2901 Butterfield Road, Oak Brook, Illinois    60523
 (Address of principal executive office)     (Zip Code)

Registrant's telephone number, including area code:  630-218-8000

          Securities registered pursuant to Section 12(b) of the Act:

Title of each class:          Name of each exchange on which registered:
       None                                      None

       Securities registered pursuant to Section 12(g) of the Act:
                           LIMITED PARTNERSHIP UNITS
                               (Title of class)

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 such
filing requirements for the past 90 days.  Yes X  No

Indicate by check mark if disclosure  of delinquent filers pursuant to Item 405
of Regulation S-K is not contained  herein,  and  will not be contained, to the
best of registrant's knowledge,  in  definitive proxy or information statements
incorporated by reference in Part  III  of  this  Form 10-K or any amendment to
this Form 10-K. [X]

State the aggregate market value of  the  voting stock held by nonaffiliates of
the registrant. Not applicable.

The Prospectus of the  Registrant  dated  August  4,  1988, as supplemented and
filed pursuant to Rule 424(b) and  424(c)  under  the Securities Act of 1933 is
incorporated by reference in Parts I, II  and III of this Annual Report on Form
10-K.


                                      -1-



                      INLAND MONTHLY INCOME FUND II, L.P.
                            (a limited partnership)

                               TABLE OF CONTENTS


                                    Part I                                 Page
                                    ------                                 ----
Item  1.   Business......................................................   3

Item  2.   Properties....................................................   4

Item  3.   Legal Proceedings.............................................   7

Item  4.   Submission of Matters to a Vote of Security Holders...........   7


                                    Part II
                                    -------
Item  5.   Market for the Partnership's Limited Partnership
            Units and Related Security Holder Matters....................   7

Item  6.   Selected Financial Data.......................................   8

Item  7.   Management's Discussion and Analysis of Financial
            Condition and Results of Operations..........................   9

Item 7(a). Quantitative and Qualitative Disclosures about Market Risk....  11

Item  8.   Financial Statements and Supplementary Data...................  12

Item  9.   Changes in and Disagreements with Independent Auditors on
            Accounting and Financial Disclosure..........................  30


                                   Part III
                                   --------
Item 10.   Directors and Executive Officers of the Registrant............  30

Item 11.   Executive Compensation........................................  35

Item 12.   Security Ownership of Certain Beneficial Owners and
            Management...................................................  36

Item 13.   Certain Relationships and Related Transactions................  36


                                    Part IV
                                    -------
Item 14.   Exhibits, Financial Statement Schedules, and
            Reports on Form 8-K..........................................  37

  SIGNATURES.............................................................  38




                                      -2-



                                    PART I

Item 1. Business

The Registrant, Inland Monthly  Income  Fund  II, L.P. (the "Partnership"), was
formed on June  20,  1988  pursuant  to  the  Delaware  Revised Uniform Limited
Partnership Act, to  invest  in  improved  residential,  retail, industrial and
other income producing properties. On August 4, 1988, the Partnership commenced
an Offering of 50,000 Limited Partnership  Units  (subject to an increase of up
to 30,000 additional Units) pursuant to a Registration under the Securities Act
of 1933. The  Offering  terminated  on  August  4,  1990,  with  total sales of
50,647.14 Units at  $500  per  Unit,  resulting  in  gross offering proceeds of
$25,323,569, not including the General  Partner's  contribution of $500. All of
the holders of these Units were admitted to the Partnership. Inland Real Estate
Investment Corporation is the  General  Partner.  The Partnership acquired five
properties utilizing $21,224,542 of  capital  proceeds collected. On January 8,
1991, the Partnership  sold  one  of  its  properties,  The  Wholesale Club. On
November 30, 1999, the  Partnership  sold  another of its properties, Eurofresh
Plaza. The Limited  Partners  of  the  Partnership  share  in  their portion of
benefits of ownership of the  Partnership's real property investments according
to the number  of  Units  held.  The  Partnership  repurchased 551.64 Units for
$260,285 from various  Limited  Partners  through  the Unit Repurchase Program.
There are no funds remaining for the repurchase of Units through this program.

The Partnership is engaged  in  the  business  of  real estate investment which
management considers  to  be  a  single  operating  segment.  A presentation of
information about operating segments would  not be material to an understanding
of the Partnership's business taken as a whole.

The  Partnership  acquired  fee  ownership   of  the  following  real  property
investments:

     Property and Location            Square Feet          Date of Purchase
-------------------------------   -------------------  -----------------------
Scandinavian Health Spa                  26,040               10/19/88
Health & Racquet Club
Broadview Heights, Ohio

Wholesale Club                          103,000               12/06/88
Commercial Warehouse                                    (sold 01/08/91)
Fort Wayne, Indiana

Colonial Manor                          107,867               06/07/89
Living Center
LaGrange, Illinois

K mart                                   84,146               12/29/89
Retail Store
Chandler, Arizona

Eurofresh Plaza                          52,475               12/31/90
Shopping Center                                         (sold 11/30/99)
Palatine, Illinois

Reference is made to Note 4  of  the  Notes  to Financial Statements (Item 8 of
this Annual  Report)  for  additional  descriptions  of  the Partnership's real
property investments.


                                      -3-



The Partnership's real  property  investments  are  subject to competition from
similar  types  of  properties  in  the  vicinity  in  which  each  is located.
Approximate occupancy levels for  the  properties  are  set forth on a year-end
basis in the table in  Item  2  below  to  which  reference is hereby made. The
Partnership's real property investments  are  located  in Arizona, Illinois and
Ohio.  The Partnership  has  no  real  property investments located outside the
United States.  The  Partnership  does  not  segregate  revenues  or  assets by
geographic region,  and  such  a  presentation  would  not  be  material  to an
understanding of the Partnership's business taken as a whole.

The Partnership currently has significant  net operating leases with Elite Care
Corporation ("Elite"), K mart  Corporation  ("K  mart") and Scandinavian Health
Spa, Inc. ("SHS"). Revenues from the Elite lease for the Colonial Manor Nursing
Home, the K  mart  lease  for  the  K  mart  store  and  the  SHS lease for the
Scandinavian  Health   Spa   represents   approximately   44%,   24%  and  18%,
respectively, of the Partnership's operating income for the year ended December
31, 1999, 42%, 22% and 17%, respectively, of the Partnership's operating income
for the year ended  December  31,  1998,  and  approximately  40%, 21% and 17%,
respectively, of the Partnership's operating income for the year ended December
31, 1997.

The Partnership has utilized its offering  proceeds to acquire properties.  The
leases at certain of  the  Partnership's  properties entitle the Partnership to
participate in gross  receipts  of  lessees  above  fixed  minimum amounts. The
Partnership's receipt of such amounts  will  depend  in  part on the ability of
those  lessees  to  compete   with   similar  businesses  in  their  respective
vicinities.

The Partnership also competes with  many  other entities engaged in real estate
investment activities in the  disposition  of  property.  The ability to locate
purchasers for the properties will  depend  primarily  on the operations of the
properties and the desirability of the locations of the operating properties.

The Partnership had no employees during 1999.

The terms of transactions between the Partnership and Affiliates of the General
Partner of the Partnership are set  forth  in  Item  11 below and Note 3 of the
Notes to Financial Statements (Item 8 of this Annual Report) to which reference
is hereby made for a description of such terms and transactions.


Item 2.  Properties

The Partnership owns directly the properties referred to in Item 1 above and in
Note 4 of the Notes to Financial  Statements  (Item 8 of this Annual Report) to
which reference is hereby made for a description of said properties.











                                      -4-



The following is a list  of  approximate occupancy levels for the Partnership's
investment properties as of  the  end  of  each  of  the  last five years.  N/A
indicates the property was not owned by the Partnership at the end of the year.

  Properties                   1999      1998      1997      1996      1995
  ----------                   ----      ----      ----      ----      ----
Scandinavian Health Spa        100%      100%      100%      100%      100%
  Health & Racquet Club
  Broadview Heights, Ohio

Colonial Manor                 100%      100%      100%      100%      100%
  Living Center
  LaGrange, Illinois

K mart                         100%      100%      100%      100%      100%
  Retail Store
  Chandler, Arizona

Eurofresh Plaza                N/A        85%       95%       95%       89%*
  Shopping Center
  Palatine, Illinois

* Certified Grocers Midwest, Inc.  vacated  Water  Tower Market Plaza in August
  1995. Certified occupied 29,317  square  feet,  or  approximately 56%, of the
  shopping center. This occupancy  reflected  the  payment of guaranteed rental
  income  received  under  the  original  lease.  (See  Liquidity  and  Capital
  Resources.)


The following is a list of  average  effective annual rents per square foot for
the Partnership's investment properties for each  of  the last five years.  N/A
indicates the property was not owned by the Partnership at the end of the year.

  Properties                   1999      1998      1997      1996      1995
  ----------                   ----      ----      ----      ----      ----
Scandinavian Health Spa      $ 13.79     13.79     13.79     13.79     13.79
  Health & Racquet Club
  Broadview Heights, Ohio

Colonial Manor                  8.00      8.00      8.00      8.00      8.00
  Living Center
  LaGrange, Illinois

K mart                          5.37      5.37      5.37      5.37      5.37
  Retail Store
  Chandler, Arizona

Eurofresh Plaza                 N/A       3.96      4.64      4.66      4.18
  Shopping Center
  Palatine, Illinois







                                      -5-



<TABLE>
The following tables set forth certain information  with  respect  to  the  amount  and expiration of leases for the Partnership's
investment properties:
<CAPTION>
                                       Square
                                        Feet                           Renewal           Current        Rent Per
     Lessee                            Leased      Lease Ends          Options         Annual Rent     Square Foot
     ------                           --------   --------------       ---------        ------------   -------------
<S>                                   <C>        <C>                 <C>               <C>              <C>
Scandinavian Health Spa,                26,040      12/2004           2/5 years         $359,094         $13.79
    Inc.

Elite Care Corporation                 107,867       1/2006 (2)       1/5 years          927,348           8.60

K Mart Corporation                      84,146       7/2013           4/5 years          452,000           5.37



                      Approx.        Annual               Annual Base  % of Total   % of Annual
         Number   Gross Leasable      Base      Total      Rent Per       GLA        Base Rent
  Year     of     Area ("GLA") of   Rent of    Annual    Sq. Ft Under  Represented  Represented
Ending   Leases   Expiring Leases   Expiring    Base       Expiring    By Expiring  By Expiring
Dec 31, Expiring   (square feet)     Leases     Rent(1)    Leases        Leases       Leases
------- -------- ----------------- ---------- ---------- ------------ ------------ ------------
<S>        <C>        <C>            <C>      <C>          <C>         <C>          <C>
 2000       -            -              -      1,758,041       -            -            -

 2001       -            -              -      1,781,233       -            -            -

 2002       -            -              -      1,804,751       -            -            -

 2003       -            -              -      1,828,270       -            -            -

 2004       1          26,040        359,094   1,857,788     13.79        11.94        19.33

 2005       -            -              -      1,516,213       -            -            -

 2006       1         107,867      1,066,164   1,518,164      9.88        49.47        70.23

 2007       -            -              -        452,000       -            -            -

 2008       -            -              -        452,000       -            -            -

 2009       -            -              -        452,000       -            -            -


(1) No assumptions have been made regarding the releasing  of  expired leases.  It is the opinion of
    the General Partner that the space will be released at market prices.

(2) As of January 28, 2000, the lessee exercised its  right to extend the lease term for a period of
    five years through February 1, 2006.


</TABLE>


                                                -6-


                                      -6-



Item 3. Legal Proceedings

The Partnership is not subject to any material pending legal proceedings.


Item 4. Submission of Matters to a Vote of Security Holders

There were no matters submitted to a vote of security holders during 1999.



                                    PART II


Item 5. Market for the Partnership's Limited Partnership Units and Related
        Security Holder Matters

As of December 31, 1999, there were  2,027 holders of Units of the Partnership.
There is no public  market  for  Units  nor  is  it anticipated that any public
market for Units  will  develop.  Reference  is  made  to  Item  6  below for a
discussion of cash distributions made to the Limited Partners.

Although the Partnership had established  a  Unit Repurchase Program, there are
no funds remaining for the repurchase of Units through this program.

































                                      -7-



Item 6.  Selected Financial Data


                      INLAND MONTHLY INCOME FUND II, L.P.
                            (a limited partnership)

       For the years ended December 31, 1999, 1998, 1997, 1996 and 1995

                 (not covered by Independent Auditors' Report)


                            1999       1998       1997       1996       1995
                            ----       ----       ----       ----       ----
Total assets........... $15,529,722 15,621,400 15,973,079 16,313,004 16,720,422
                        =========== ========== ========== ========== ==========

Total income........... $ 1,982,302  2,071,413  2,148,859  2,108,760  2,072,835
                        =========== ========== ========== ========== ==========

Net income from
  operations........... $ 1,144,583  1,258,738  1,277,365  1,269,375  1,250,956

Gain on sale of
  investment property..     582,147       -          -          -          -
                        ----------- ---------- ---------- ---------- ----------
Net income............. $ 1,726,730  1,258,738  1,277,365  1,269,375  1,250,956
                        =========== ========== ========== ========== ==========

Net income (loss) per
  the one General
  Partner Unit......... $        16     (4,297)    (4,316)    (4,316)    (4,316)
                        =========== ========== ========== ========== ==========

Net income allocated per
  Limited Partnership
  Unit (b)............. $     34.47      25.21      25.58      25.43      25.06
                        =========== ========== ========== ========== ==========

Distributions to
  Limited Partners..... $ 1,653,427  1,653,426  1,653,426  1,703,419  1,703,356
                        =========== ========== ========== ========== ==========

Distributions per
  Limited Partnership
  Unit (b)............. $     33.01      33.01      33.01      34.00      34.00
                        =========== ========== ========== ========== ==========


(a) The above selected financial data  should  be  read in conjunction with the
    financial statements and related  notes  appearing elsewhere in this Annual
    Report.

(b) The net income per Unit and  distribution  per  Unit data is based upon the
    weighted average number of Units outstanding of 50,095.50.



                                      -8-



Item 7.  Management's  Discussion  and  Analysis  of  Financial  Condition  and
         Results of Operations

Certain statements in this  "Management's  Discussion and Analysis of Financial
Condition and Results of  Operations"  and  elsewhere  in this annual report on
Form 10-K constitute  "forward-looking  statements"  within  the meaning of the
Federal Private Securities  Litigation  Reform  Act  of  1995.   These forward-
looking statements involve  known  and  unknown  risks, uncertainties and other
factors which  may  cause  the  Partnership's  actual  results, performance, or
achievements to be materially  different  from any future results, performance,
or achievements  expressed  or  implied  by  these  forward-looking statements.
These factors include, among  other  things,  competition for tenants; federal,
state, or local  regulations;  adverse  changes  in  general  economic or local
conditions; uninsured losses; and  potential  conflicts of interest between the
Partnership and its Affiliates, including the General Partner.

Liquidity and Capital Resources

On August 4, 1988, the Partnership  commenced an Offering of 50,000 (subject to
increase to  80,000)  Limited  Partnership  Units  pursuant  to  a Registration
Statement  on  Form  S-11  under  the  Securities  Act  of  1933.  The Offering
terminated on August 4, 1990, with  total  sales of 50,647.14 Units at $500 per
Unit, resulting in gross  offering  proceeds  of $25,323,569, not including the
General Partner's contribution of $500. All  of the holders of these Units have
been admitted to  the  Partnership.  The  Partnership  acquired five properties
utilizing $21,224,542 of capital  proceeds  collected.  On January 8, 1991, the
Partnership sold one of  its  properties,  The  Wholesale Club. On November 30,
1999, the Partnership sold another of  its  properties, Eurofresh Plaza.  As of
December  31,  1999,  cumulative  distributions  to  Limited  Partners  totaled
$22,943,169, of which  $4,395,565  represents  proceeds  from  the  sale of The
Wholesale Club and  $18,547,604  represents  distributable  cash  flow from the
properties. The Partnership repurchased 551.64  Units for $260,285 from various
Limited Partners  through  the  Unit  Repurchase  Program.  There  are no funds
remaining for the repurchase of Units through this program.

As of December 31,  1999,  the  Partnership  had  cash  and cash equivalents of
$3,665,630 which includes approximately $458,900 held in an unrestricted escrow
account for the payment of real  estate taxes for Colonial Manor Living Center.
The Partnership intends to use  such  remaining funds for distributions and for
working capital requirements.

The properties owned by the Partnership  are  generating cash flow in excess of
the 8% annualized  distributions  to  the  Limited  Partners (paid monthly), in
addition to covering  all  the  operating  expenses  of  the Partnership. As of
December  31,  1999,  the  Partnership  has  made  cumulative  distributions of
$253,868 in addition to the 8%  annualized  return to the Limited Partners from
excess cash flow. To  the  extent  that  the  cash  flow from the properties is
insufficient to meet  the  Partnership's  needs,  the  Partnership  may rely on
advances from Affiliates of the General Partner, other short-term financing, or
may sell one or more of the properties.







                                      -9-



Results of Operations

At December 31, 1999, the  Partnership  owns three operating properties. Two of
the Partnership's  three  operating  properties,  Scandinavian  Health  Spa and
Colonial Manor Living Center, are  leased  on  a "triple-net" basis which means
that all expenses of the property  are  passed through to the tenant. The lease
of the other  property  owned  by  the  Partnership,  K  mart provides that the
Partnership be responsible for maintenance of the structure and the parking lot
and the  tenant  is  required  to  reimburse  the  Partnership  for portions of
insurance, real estate taxes and  common area maintenance. The Partnership sold
one of its properties, The Wholesale Club, on January 8, 1991.  The Partnership
sold another of its properties, Eurofresh Plaza, on November 30, 1999.

Rental income decreased for the  year  ended  December 31, 1999, as compared to
the years ended December 31, 1998 and  1997,  due to a decrease in occupancy at
Eurofresh Plaza, as well  as  for  the  year  ended  December 31, 1999, only 11
months of Eurofresh  Plaza  rental  income  was  received  due  to  the sale of
Eurofresh Plaza on November 30, 1999.

Interest income increased for the  years  ended  December 31, 1999 and 1998, as
compared to the year ended December  31,  1997,  due to an increase in interest
rates.

Other income increased for the year ended December 31, 1999, as compared to the
year ended December 31, 1998, due to an increase in percentage rents from the
K Mart store. Other income was higher  for the year ended December 31, 1997, as
compared to the year ended December  31, 1998, due to the Partnership receiving
miscellaneous receipts relating to Colonial Manor Living Center.

Professional services to Affiliates decreased  for  the year ended December 31,
1999, as compared to the year  ended  December  31,  1998, due to a decrease in
accounting  services  which  was  partially  offset  by  an  increase  in legal
services.  Professional services  to  Affiliates  increased  for the year ended
December 31,  1998  as  compared  to  1997  due  to  an  increase in accounting
services.  Professional services to non-affiliates increased for the year ended
December 31, 1999, as compared to  the  years ended December 31, 1998 and 1997,
due to increases in legal services and accounting fees.

General and administrative expenses to  Affiliates increased for the year ended
December 31, 1999, as compared to  the  years ended December 31, 1998 and 1997,
due to increases in investor  services  and  data processing expenses.  General
and administrative expenses to  non-affiliates  was  higher  for the year ended
December 31, 1999, as compared to  the  years ended December 31, 1998 and 1997,
due to an increase in state tax expenses.













                                     -10-



Property operating expenses to non-affiliates  for  the year ended December 31,
1999 remained comparable to the year ended December 31, 1998, due to offsetting
fluctuations in expenses.  An increase in snow removal costs was offset by only
11 months of operations for Eurofresh  Plaza  versus 12 months of operations in
1998. Property operating  expenses  to  non-affiliates  decreased  for the year
ended December 31, 1998, as compared  to  the year ended December 31, 1997, due
to a decrease in operating expenses  at Eurofresh Plaza.  Such expenses include
repairs and  maintenance,  painting,  supplies  and  real  estate  taxes.  This
decrease was partially offset  by  an  increase  in common area maintenance and
marketing.


Year 2000 Issues

As part of it's year 2000  readiness plan, the Partnership had identified three
areas for compliance efforts: business  computer systems, tenants and suppliers
and non-information technology systems.    The  Partnership has not experienced
any problems relating to year 2000 issues  in  any of these areas.  Total costs
associated with year 2000 readiness were not material.


Inflation

In  general,  rental  income  and  operating  expenses  for  those  Partnership
properties  operated  under  triple-net  leases,  Scandinavian  Health  Spa and
Colonial Manor Living Center, are not  likely to be directly affected by future
inflation, since rents are fixed under the leases and property expenses are the
responsibility  of  tenants.  The  capital  appreciation  of  triple-net-leased
properties is likely to  be  influenced  by  interest rate fluctuations. To the
extent that inflation  affects  interest  rates,  future  inflation may have an
effect on the capital appreciation of triple-net-leased properties.

The K mart property is subject  to  a  net lease containing a rental escalation
clause  which  takes  effect  when  specified  sales  volumes  is  achieved. If
inflation, over time, increases the prices  of  goods  sold by K Mart, this may
result in increased rental income for the Partnership.


Item 7(a). Quantitative and Qualitative Disclosures About Market Risk

Not Applicable.
















                                     -11-



Item 8.  Financial Statements and Supplementary Data



                      INLAND MONTHLY INCOME FUND II, L.P.
                            (a limited partnership)




                                     Index
                                     -----                                Page
                                                                          ----
Independent Auditors' Report.............................................  13

Financial Statements:

  Balance Sheets, December 31, 1999 and 1998.............................  14

  Statements of Operations, for the years ended
    December 31, 1999, 1998 and 1997.....................................  16

  Statements of Partners' Capital, for the years ended
    December 31, 1999, 1998 and 1997.....................................  18

  Statements of Cash Flows, for the years ended
    December 31, 1999, 1998 and 1997.....................................  19

  Notes to Financial Statements..........................................  21

Real Estate and Accumulated Depreciation (Schedule III)..................  29


Schedules not filed:

All schedules other than those indicated in  the index have been omitted as the
required information is inapplicable  or  the  information  is presented in the
financial statements or related notes.



















                                     -12-







INDEPENDENT AUDITORS' REPORT


To the Partners of
Inland Monthly Income Fund II, L.P.

We have audited the accompanying  balance  sheets of Inland Monthly Income Fund
II, L.P. (a limited partnership)  as  of  December  31,  1999 and 1998, and the
related statements of operations, partners' capital, and cash flows for each of
the three years  in  the  period  ended  December  31,  1999.   Our audits also
included the financial statement schedule  listed  in  the Index at Item 14(c).
These  financial  statements   and   financial   statement   schedule  are  the
responsibility of  the  Partnership's  management.    Our  responsibility is to
express an  opinion  on  these  financial  statements  and  financial statement
schedule based on our audits.

We  conducted  our  audits  in  accordance  with  generally  accepted  auditing
standards.  Those standards  require  that  we  plan  and  perform the audit to
obtain reasonable assurance about whether  the financial statements are free of
material misstatement.  An audit includes  examining, on a test basis, evidence
supporting the amounts and disclosures  in  the financial statements.  An audit
also  includes  assessing  the   accounting  principles  used  and  significant
estimates made by  management,  as  well  as  evaluating  the overall financial
statement presentation.  We believe that  our audits provide a reasonable basis
for our opinion.

In our opinion,  such  financial  statements  present  fairly,  in all material
respects, the financial position of Inland Monthly  Income Fund II, L.P.  as of
December 31, 1999 and 1998,  and  the  results  of  its operations and its cash
flows for each of the three  years  in  the  period ended December 31, 1999, in
conformity  with  generally  accepted  accounting  principles.    Also,  in our
opinion, the financial statement schedule referred to above, when considered in
relation to the basic financial statements taken as a whole, presents fairly in
all material respects the information set forth therein.



DELOITTE & TOUCHE LLP



Chicago, Illinois
January 28, 2000
(February 10, 2000 as to Note 7)









                                     -13-



                      INLAND MONTHLY INCOME FUND II, L.P.
                            (a limited partnership)

                                Balance Sheets

                          December 31, 1999 and 1998




                                    Assets
                                    ------

                                                       1999          1998
Current assets:                                        ----          ----
  Cash and cash equivalents (Note 1).............. $ 3,665,630     1,161,470
  Accounts and rents receivable...................      10,406       162,558
  Other assets....................................         167         1,875
                                                   ------------  ------------
Total current assets..............................   3,676,203     1,325,903
                                                   ------------  ------------
Investment properties (including acquisition
  fees paid to Affiliates of $1,250,037 and
  $1,430,682 at December 31, 1999 and 1998,
  respectively) (Notes 1, 3 and 4):
  Land............................................   3,187,438     3,998,149
  Buildings and improvements......................  12,423,443    13,957,812
                                                   ------------  ------------
                                                    15,610,881    17,955,961
    Less accumulated depreciation.................   4,046,018     4,047,610
                                                   ------------  ------------
Net investment properties.........................  11,564,863    13,908,351
                                                   ------------  ------------
Other assets:
  Deferred leasing fees to Affiliates (net of
    accumulated amortization of $161,097 and
    $143,005 at December 31, 1999 and 1998,
    respectively) (Notes 1 and 3).................      66,635        84,727
  Deferred rent receivable (Notes 1 and 6)........     222,021       302,419
                                                   ------------  ------------
Total other assets................................     288,656       387,146
                                                   ------------  ------------
Total assets...................................... $15,529,722    15,621,400
                                                   ============  ============












                See accompanying notes to financial statements.


                                     -14-



                      INLAND MONTHLY INCOME FUND II, L.P.
                            (a limited partnership)

                                Balance Sheets
                                  (continued)

                          December 31, 1999 and 1998



                       Liabilities and Partners' Capital
                       ---------------------------------
                                                       1999          1998
                                                       ----          ----
Current liabilities:
  Accounts payable................................ $    22,749         3,007
  Accrued real estate taxes.......................        -          185,785
  Distributions payable (Note 8)..................     140,427       140,427
  Due to Affiliates (Note 3)......................         878           472
  Deposits held for others........................     458,859       458,203
                                                   ------------  ------------
Total current liabilities.........................     622,913       787,894

Commission payable to Affiliate (Note 3)..........     132,000       132,000
                                                   ------------  ------------
Total liabilities.................................     754,913       919,894
                                                   ------------  ------------
Partners' capital (Notes 1, 2 and 3):
  General Partner:
    Capital contribution..........................         500           500
    Cumulative net income.........................      59,993        59,977
                                                   ------------  ------------
                                                        60,493        60,477
  Limited Partners:                                ------------  ------------
    Units of $500. Authorized 80,000 Units,
      50,095.50 Units outstanding (net of offering
      costs of $3,148,734, of which $653,165
      was paid to Affiliates).....................  21,916,510    21,916,510
    Cumulative net income.........................  15,740,975    14,014,261
    Cumulative distributions...................... (22,943,169)  (21,289,742)
                                                   ------------  ------------
                                                    14,714,316    14,641,029
                                                   ------------  ------------
Total Partners' capital...........................  14,774,809    14,701,506
                                                   ------------  ------------
Total liabilities and Partners' capital........... $15,529,722    15,621,400
                                                   ============  ============







                See accompanying notes to financial statements.


                                     -15-



                      INLAND MONTHLY INCOME FUND II, L.P.
                            (a limited partnership)

                           Statements of Operations

             For the years ended December 31, 1999, 1998 and 1997

                                         1999          1998          1997
Income:                                  ----          ----          ----
  Rental income (Notes 1, 4 and 6).. $ 1,790,247     1,897,476     1,917,095
  Additional rental income..........     122,453       113,886       165,331
  Interest income...................      40,945        40,280        36,424
  Other income......................      28,657        19,771        30,009
                                     ------------  ------------  ------------
                                       1,982,302     2,071,413     2,148,859
Expenses:                            ------------  ------------  ------------
  Professional services to
    Affiliates......................       8,128        12,485        11,850
  Professional services to
    non-affiliates..................      38,275        27,258        27,230
  General and administrative
    expenses to Affiliates..........      31,984        23,447        25,632
  General and administrative
    expenses to non-affiliates......      20,484        12,591        15,115
  Property operating expenses
    to Affiliates...................      33,762        32,041        33,150
  Property operating expenses
    to non-affiliates...............     257,490       257,015       308,838
  Depreciation......................     429,504       429,745       431,587
  Amortization......................      18,092        18,093        18,092
                                     ------------  ------------  ------------
                                         837,719       812,675       871,494
                                     ------------  ------------  ------------
Net income from operations.......... $ 1,144,583     1,258,738     1,277,365
Gain on sale of investment
  property (Note 5).................     582,147          -             -
                                     ------------  ------------  ------------
Net income.......................... $ 1,726,730     1,258,738     1,277,365
                                     ============  ============  ============

Net income (loss) allocated to (Note 2):
  General Partner................... $        16        (4,297)       (4,316)
  Limited Partners..................   1,726,714     1,263,035     1,281,681
                                     ------------  ------------  ------------
Net income.......................... $ 1,726,730     1,258,738     1,277,365
                                     ============  ============  ============









                See accompanying notes to financial statements.


                                     -16-



                      INLAND MONTHLY INCOME FUND II, L.P.
                            (a limited partnership)

                           Statements of Operations

             For the years ended December 31, 1999, 1998 and 1997


Net income (loss) allocated to the
  one General Partner Unit:
Net loss from operations............ $    (4,295)       (4,297)       (4,316)
Gain on sale of investment property.       4,311          -             -
                                     ------------  ------------  ------------
                                     $        16        (4,297)       (4,316)
                                     ============  ============  ============
Net income per Unit allocated to
  Limited Partners per weighted
  average Limited Partnership
  Units of 50,095.50:
Net income from operations.......... $     22.93         25.21         25.58
Gain on sale of investment property.       11.54           -             -
                                     ------------  ------------  ------------
                                     $     34.47         25.21         25.58
                                     ============  ============  ============































                See accompanying notes to financial statements.


                                     -17-



                      INLAND MONTHLY INCOME FUND II, L.P.
                            (a limited partnership)

                        Statements of Partners' Capital

             For the years ended December 31, 1999, 1998 and 1997



                                        General       Limited
                                        Partner       Partners       Total
                                      -----------   -----------   -----------
Balance January 1, 1997............. $    69,090    15,403,165    15,472,255

Net income (loss)...................      (4,316)    1,281,681     1,277,365
Distributions ($33.01 per weighted
  average of Limited Partnership
  Units of 50,095.50)...............        -       (1,653,426)   (1,653,426)
                                     ------------  ------------  ------------
Balance December 31, 1997...........      64,774    15,031,420    15,096,194

Net income (loss)...................      (4,297)    1,263,035     1,258,738
Distributions ($33.01 per weighted
  average of Limited Partnership
  Units of 50,095.50)...............        -       (1,653,426)   (1,653,426)
                                     ------------  ------------  ------------
Balance December 31, 1998...........      60,477    14,641,029    14,701,506

Net income (loss)...................          16     1,726,714     1,726,730
Distributions ($33.01 per weighted
  average of Limited Partnership
  Units of 50,095.50)...............        -       (1,653,427)   (1,653,427)
                                     ------------  ------------  ------------
Balance December 31, 1999........... $    60,493    14,714,316    14,774,809
                                     ============  ============  ============




















                See accompanying notes to financial statements.


                                     -18-



                      INLAND MONTHLY INCOME FUND II, L.P.
                            (a limited partnership)

                           Statements of Cash Flows

             For the years ended December 31, 1999, 1998 and 1997



                                         1999          1998          1997
Cash flows from operating activities:    ----          ----          ----
  Net income........................ $ 1,726,730     1,258,738     1,277,365
  Adjustments to reconcile net
      income to net cash provided by
      operating activities:
    Depreciation....................     429,504       429,745       431,587
    Amortization....................      18,092        18,093        18,092
    Gain on sale of investment
      property......................    (582,147)         -             -
    Changes in assets and liabilities:
      Accounts and rents receivable.     152,152         8,246       (31,357)
      Other assets..................       1,708           186        (1,568)
      Deferred rent receivable......      80,398        48,552        31,663
      Accounts payable..............      19,742           299       (11,414)
      Accrued real estate taxes.....    (185,785)       (2,944)        4,764
      Due to Affiliates.............         406        (1,176)       (1,277)
      Other current liabilities.....        -          (26,925)         -
Net cash provided by operating       ------------  ------------  ------------
  activities........................   1,660,800     1,732,814     1,717,855
                                     ------------  ------------  ------------
Cash flows from investing activities:
  Capital expenditures..............     (43,559)     (143,627)         -
  Proceeds from sale of investment
  property..........................   2,539,690          -             -
Net cash provided by (used in)       ------------  ------------  ------------
  investing activities..............   2,496,131      (143,627)         -
                                     ------------  ------------  ------------
Cash flows from financing activities:
  Deposits held for others..........         656        73,755        43,681
  Cash distributions ...............  (1,653,427)   (1,653,426)   (1,653,044)
Net cash used in financing           ------------  ------------  ------------
    activities......................  (1,652,771)   (1,579,671)   (1,609,363)
                                     ------------  ------------  ------------
Net increase in cash and
    cash equivalents................   2,504,160         9,516       108,492
Cash and cash equivalents at
  beginning of year.................   1,161,470     1,151,954     1,043,462
Cash and cash equivalents at end     ------------  ------------  ------------
  of year........................... $ 3,665,630     1,161,470     1,151,954
                                     ============  ============  ============





                See accompanying notes to financial statements.


                                     -19-



                      INLAND MONTHLY INCOME FUND II, L.P.
                            (a limited partnership)

                           Statements of Cash Flows
                                  (continued)

             For the years ended December 31, 1999, 1998 and 1997


Supplemental disclosure of non-cash investing activities:

                                         1999          1998          1997
                                         ----          ----          ----
Sale of investment property:
  Reduction of investment in
    property........................ $ 2,388,639          -             -
  Reduction of accumulated
    depreciation related to
    investment property sold........    (431,096)         -             -
  Gain on sale......................     582,147          -             -
    Proceeds from sale of investment ------------  ------------  ------------
      property...................... $ 2,539,690          -             -
                                     ============  ============  ============

































                See accompanying notes to financial statements.


                                     -20-



                      INLAND MONTHLY INCOME FUND II, L.P.
                            (a limited partnership)

                         Notes to Financial Statements

             For the years ended December 31, 1998, 1997 and 1996


(1) Organization and Basis of Accounting

The Registrant, Inland Monthly  Income  Fund  II, L.P. (the "Partnership"), was
formed on June  20,  1988  pursuant  to  the  Delaware  Revised Uniform Limited
Partnership Act, to  invest  in  improved  residential,  retail, industrial and
other income producing properties. On August 4, 1988, the Partnership commenced
an Offering of 50,000 (subject to increase to 80,000) Limited Partnership Units
pursuant to a  Registration  under  the  Securities  Act  of 1933. The Offering
terminated on August 4, 1990, with  total  sales of 50,647.14 Units at $500 per
Unit, resulting in gross  offering  proceeds  of $25,323,569, not including the
General Partner's contribution for $500. All of the holders of these Units have
been admitted to the Partnership.  Inland Real Estate Investment Corporation is
the General Partner.  The  Limited  Partners  of  the  Partnership share in the
benefits  of  ownership  of  the  Partnership's  real  property  investments in
proportion to the  number  of  Units  held.  The Partnership repurchased 551.64
Units for $260,285 from  various  Limited  Partners through the Unit Repurchase
Program. There are no funds remaining  for the repurchase of Units through this
program.

The preparation of financial  statements  in conformity with generally accepted
accounting principles requires  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 financial statements and
the reported amounts  of  revenues  and  expenses  during the reporting period.
Actual results could differ from those estimates.

Offering costs have been offset against the Limited Partners' capital accounts.

Statement  of  Financial  Accounting  Standards  No.  121  "Accounting  for the
Impairment of Long-Lived Assets and  for  Long-Lived  Assets to be Disposed of"
("SFAS 121") requires  the  Partnership  to  record  an  impairment loss on its
property to be held for investment  whenever its carrying value cannot be fully
recovered  through  estimated  undiscounted   future   cash  flows  from  their
operations and sale.  The amount of  the impairment loss to be recognized would
be the difference  between  the  property's  carrying  value and the property's
estimated fair value.  As of  December  31,  1999 and 1998, the Partnership has
not recognized any such impairment.

Depreciation expense is computed using  the straight-line method. Buildings and
improvements are based upon estimated  useful  lives  of  30 to 40 years, while
furniture and fixtures are based upon estimated  useful lives of 5 to 12 years.
Repair  and  maintenance  expenses  are  charged  to  operations  as  incurred.
Significant improvements are capitalized  and  depreciated over their estimated
useful lives.





                                     -21-



                      INLAND MONTHLY INCOME FUND II, L.P.
                            (a limited partnership)

                         Notes to Financial Statements
                                  (continued)


Deferred leasing fees are amortized on  a  straight-line basis over the term of
the related lease.

Rental income is recognized  on  a  straight-line  basis  over the term of each
lease. The difference between rental  income  earned on the straight-line basis
and the cash rent due under the  provisions of the lease agreements is recorded
as deferred rent receivable.

The Partnership  considers  all  highly  liquid  investments  purchased  with a
maturity of three months or  less  to  be  cash  equivalents and are carried at
cost, which approximates market.  For  the  years  ended  December 31, 1999 and
1998, included in  cash  and  cash  equivalents  is  approximately $458,900 and
$446,800, respectively, held in an  unrestricted escrow account for the payment
of real estate taxes for Colonial Manor Living Center.

No provision for Federal income taxes  has  been made as the liability for such
taxes is that of the Partners rather than the Partnership.

The Partnership records are maintained  on  the  accrual basis of accounting in
accordance with generally accepted  accounting principles ("GAAP"). The Federal
income tax return has been prepared  from such records after making appropriate
adjustments, if any,  to  reflect  the  Partnership's  accounts as adjusted for
Federal income tax reporting purposes. Such adjustments are not recorded in the
records of the Partnership.  The  net  effect  of  these items is summarized as
follows:
                                       1999                      1998
                             ------------------------  -----------------------
                                              Tax                      Tax
                                GAAP         Basis        GAAP        Basis
                                Basis     (unaudited)     Basis    (unaudited)
                             ------------ ------------ ----------- -----------
Total assets................ $15,529,722   18,678,455   15,621,400  18,770,133

Partners' capital:
  General Partner...........      60,493        7,709       60,477       7,700
  Limited Partners..........  14,714,316   17,915,833   14,641,029  17,842,538

Net income (loss):
  General Partner...........          16            8       (4,297)     (4,297)
  Limited Partners..........   1,726,714    1,786,557    1,263,035   1,263,035

Net income per Limited
  Partnership Unit..........       34.47        35.66        25.21       25.21

The net income per Unit is based  upon  the weighted average number of Units of
50,095.50.




                                     -22-



                      INLAND MONTHLY INCOME FUND II, L.P.
                            (a limited partnership)

                         Notes to Financial Statements
                                  (continued)

Statement of Financial Accounting  Standards  No.  128 "Earnings per Share" was
adopted by the Partnership for the  year  ended  December 31, 1997 and has been
applied to all prior  earnings  periods  presented in the financial statements.
The Partnership has no dilutive securities.

A presentation of information about operating segments as required in Statement
of Financial Accounting Standards  No.  131  "Disclosures  About Segments of an
Enterprise and Related Information" would  not  be material to an understanding
of the Partnership's business taken as a whole as the Partnership is engaged in
the business of  real  estate  investment  which  management  considers to be a
single operating segment.


(2) Partnership Agreement

The Partnership Agreement  defines  the  allocation  of distributable available
cash and  profits  and  losses.  Limited  Partners  will  receive  100% of cash
available  for  distribution  until  the   Limited  Partners  have  received  a
Cumulative Preferred Return  of  8%  per  annum  through  August  4, 1993 and a
Preferential Return of 10%  per  annum  for  the  period  after August 4, 1993.
Thereafter, the General  Partner  shall  be  allocated  an  amount equal to any
Supplemental Capital Contributions outstanding at  the time of the distribution
and then 95%  of  cash  available  for  distribution  will  be allocated to the
Limited Partners and 5%  will  be  allocated  to  the General Partner. Net Sale
Proceeds will be distributed to  the  Limited Partners until they have received
an amount equal  to  their  Invested  Capital  and  any  deficiency  in the 10%
Preferential Return.  Thereafter,  any  remaining  Net  Sale  Proceeds  will be
distributed 85%  to  the  Limited  Partners  and  15%  to  the General Partner.
Distributions of Net Sale Proceeds  to  the Limited Partners represent a return
of Invested Capital.

Pursuant to the terms of the Partnership Agreement, the profits and losses from
operations are allocated as follows:

(a) Depreciation shall be allocated 99% to  the taxable Limited Partners and 1%
    to the General Partner.

(b) To the extent the minimum  distribution  of  8% per annum through August 4,
    1993  to  the   Limited   Partners   is   funded  by  Supplemental  Capital
    Contributions, the distribution shall  be  treated as a guaranteed payment,
    and the resulting deduction shall be allocated to the General Partner.

(c) The remaining net profits shall  be  allocated 100% to the Limited Partners
    until the Limited  Partners  have  been  allocated  an  amount equal to the
    distribution required to provide them  a  Cumulative Preferred Return of 8%
    per annum through August 4, 1993 and a Preferential Return of 10% per annum
    for the period after August 4, 1993.

(d) The remainder, if any, shall be  allocated  95% to the Limited Partners and
    5% to the General Partner



                                     -23-



                      INLAND MONTHLY INCOME FUND II, L.P.
                            (a limited partnership)

                         Notes to Financial Statements
                                  (continued)

Pursuant to the terms of the Partnership Agreement, the net gain from a Capital
Transaction is allocated as follows:

(a) Depreciation deductions previously taken by the Partnership with respect to
    the property sold shall  be  allocated  to  the  Partners in the amounts in
    which the previous deductions were allocated.

(b) Remaining gain shall be allocated to  all Partners in the aggregate of, and
    in proportion to, the negative balances in their capital accounts.

(c) Such gain shall  then  be  allocated  to  the  Limited Partners until every
    Limited Partner's capital account equals their Invested Capital.

(d) The balance, if any, shall be allocated as follows:

    (i)  To the General  Partner  in  the  amount  of  any supplemental Capital
         Contributions, plus 15% of Net Sales Proceeds remaining after previous
         allocations.
    (ii) To the Limited Partners,  provided,  however, that the General Partner
         has been allocated at least 1% of such gain.

The General Partner was required to make Supplemental Capital Contributions, if
necessary, in sufficient amounts to allow the Partnership to make distributions
to the Limited Partners to  provide  a  non-compounded return on their invested
capital equal to 8%  per  annum  through  August  4,  1993.  The amount of such
Supplemental Capital Contributions was $30,155.  The  entire amount was paid to
the Partnership in April of 1990.  The  General Partner was repaid on August 4,
1993, after the Limited Partners  received  a Cumulative Preferred Return of 8%
per annum through August 4, 1993.

(3) Transactions with Affiliates

The General  Partner  and  its  Affiliates  are  entitled  to reimbursement for
salaries and expenses of employees  of  the  General Partner and its Affiliates
relating to the administration of  the  Partnership. Such costs are included in
professional services to Affiliates and  general and administrative expenses to
Affiliates, of which $878 and $472 was unpaid as of December 31, 1999 and 1998,
respectively.

An Affiliate of the General Partner earned Property Management Fees of $33,762,
$32,041, and $33,150 for  the  years  ended  December  31, 1999, 1998 and 1997,
respectively, in connection  with  managing  the Partnership's properties. Such
fees are included in property  operating  expenses  to Affiliates, all of which
have been paid as of December 31, 1999.

In connection with the  sale  of  The  Wholesale  Club  on January 8, 1991, the
Partnership recorded $132,000 of  sales  commission  payable to an Affiliate of
the General  Partner.  Such  commission  has  been  deferred  until the Limited
Partners receive their  Original  Capital  plus  a  return  as specified in the
Partnership Agreement.


                                     -24-



                      INLAND MONTHLY INCOME FUND II, L.P.
                            (a limited partnership)

                         Notes to Financial Statements
                                  (continued)


(4) Investment Properties

Colonial Manor Living Center, LaGrange, Illinois
------------------------------------------------
On June 7, 1989, the Partnership took title to this property which an Affiliate
of  the  General  Partner  purchased  on  behalf  of  the  Partnership  from an
unaffiliated third party for  $6,787,232.  The  property  consists of a 107,867
square-foot living center located in LaGrange, Illinois. The total cost of this
property to the Partnership was  $7,521,881, which includes acquisition fees of
$601,675 and acquisition costs of $132,974. The center is currently 100% leased
to Elite Care Corporation. The lease  is a triple-net lease and expires January
2001. The tenant has the right to  extend the lease for an additional two five-
year terms. See Note 7 for a discussion of the extension of the lease term. The
rent per annum is $927,348 and adjusts annually.  In 1992, the current operator
of this facility negotiated with a  new  operator to sublease the facility. The
General Partner approved the  transaction  with  no  significant changes to the
terms of the lease.

Scandinavian Health Spa, Inc., Broadview Heights, Ohio
------------------------------------------------------
On October 19, 1988,  the  Partnership  took  title  to  this property which an
Affiliate of the General Partner purchased on behalf of the Partnership from an
unaffiliated third party for $2,760,000. The  property consists of a 26,040 net
rentable square-foot, two-story masonry  building  including a pool, whirlpool,
two saunas, suspended running track,  two racquet ball courts, extensive locker
room areas, a nursery  and  offices.  The  total  cost  of this property to the
Partnership was $3,016,527,  which  includes  acquisition  fees of $241,500 and
acquisition costs of $15,027. The lease expires in December 2004 and the tenant
has the option to extend  the  lease  for two additional five-year periods. The
tenant has leased 100%  of  the  rentable  space  on  a  triple-net basis for a
current monthly amount of $29,925.

K mart Retail Store, Chandler, Arizona
--------------------------------------
On December 29, 1989,  the  Partnership  took  title  to this property which an
Affiliate of the General Partner purchased on behalf of the Partnership from an
unaffiliated third party for  $4,568,000.  The  property  consists of an 84,146
square-foot retail building. The total cost of this property to the Partnership
was  $5,072,473,  which  includes  acquisition  fees  of  $406,862  and related
acquisition costs of $97,611. The tenant  has  a lease for 100% of the rentable
space on a net basis and is  responsible  for payment of the real estate taxes,
insurance  and  all  utilities.   The   Partnership  will  be  responsible  for
maintenance of the structure and  the  parking  lot.  The lease requires a base
rent of $452,000 per annum and  additional  rent  equal to 1% of gross sales in
excess of $14,000,000. The lease expires  in  July  2013 and the tenant has the
option to extend the lease for four additional five-year periods.




                                     -25-



                      INLAND MONTHLY INCOME FUND II, L.P.
                            (a limited partnership)

                         Notes to Financial Statements
                                  (continued)


Eurofresh Plaza, Palatine, Illinois
-----------------------------------
On December 31, 1990,  the  Partnership  took  title  to  this property from an
unaffiliated  third  party  for  $2,000,000.  The  property  consisted  of  two
buildings aggregating 52,475 square feet. One of the buildings was a food store
and the other was a  multi-tenant  building containing twelve commercial units.
The total initial cost  of  this  property  to  the Partnership was $2,186,383,
which included acquisition fees  of  $180,645  and related acquisition costs of
$5,738. On November 30, 1999, the Partnership sold Eurofresh Plaza.  See Note 5
for a discussion of the terms of the sale of the property.

Cost and accumulated depreciation of  the  above  properties as of December 31,
are summarized as follows:
                                                1999          1998
    Health and Racquet Club:                ------------   -----------
         Cost.............................. $ 3,016,527      3,016,527
         Less accumulated depreciation.....     812,211        740,015
                                            ------------   ------------
                                              2,204,316      2,276,512
    Retail Store:                           ------------   ------------
         Cost..............................   5,072,473      5,072,473
         Less accumulated depreciation.....   1,059,434        954,366
                                            ------------   ------------
                                              4,013,039      4,118,107
    Living Center:                          ------------   ------------
         Cost..............................   7,521,881      7,521,881
         Less accumulated depreciation.....   2,174,373      1,968,920
                                            ------------   ------------
                                              5,347,508      5,552,961
    Shopping Center:                        ------------   ------------
         Cost..............................        -         2,345,080
         Less accumulated depreciation.....        -           384,309
                                            ------------   ------------
                                                   -         1,960,771
                                            ------------   ------------
    Total.................................. $11,564,863     13,908,351
                                            ============   ============


(5) Sale of Eurofresh Plaza

On November 30, 1999,  the  Partnership  sold  its shopping center in Palatine,
Illinois, Eurofresh Plaza, to an unaffiliated  third party for $2,400,000.  The
property was purchased  by  the  Partnership  in  December 1990 for $2,186,383,
which includes acquisition fees  of  $180,645  and related acquisition costs of
$5,738.  The gain on  sale  recorded  by  the Partnership for this property was
$582,147.



                                     -26-



                      INLAND MONTHLY INCOME FUND II, L.P.
                            (a limited partnership)

                         Notes to Financial Statements
                                  (continued)


(6) Operating Leases

Certain tenant leases contain provisions  providing for stepped rent increases.
Generally accepted accounting principles require that rental income be recorded
for the period of  occupancy  using  the  straight-line basis. The accompanying
financial statements include  decreases  of  $80,398,  $48,552,  and $31,663 in
1999, 1998 and 1997, respectively, of rental income for the period of occupancy
for which stepped rent  increases  apply  and  $222,021 and $302,419 in related
deferred rent receivable as of December  31, 1999 and 1998, respectively. These
amounts will be collected over  the  terms  of  the related leases as scheduled
rent payments are made.  Deferred  rent  receivable  of  $3,719 was written off
against rental income for the year ended  December 31, 1997, due to two tenants
vacating at Eurofresh Market Plaza.

Minimum lease payments to be received  in  the future from operating leases are
as follows:

    2000..........................................      $ 1,758,041
    2001..........................................        1,781,233
    2002..........................................        1,804,752
    2003..........................................        1,828,270
    2004..........................................        1,851,789
    Thereafter....................................        4,995,060
                                                        ------------
    Total.........................................      $14,019,145
                                                        ============

The above figures include the extension of the lease term of the Colonial Manor
Living Center with Elite Care Corporation.  See Note 7 for further discussion.

The Partnership currently has significant  net operating leases with Elite Care
Corporation ("Elite"), K mart  Corporation  ("K  mart") and Scandinavian Health
Spa, Inc. ("SHS"). Revenues from the Elite lease for the Colonial Manor Nursing
Home, the K  mart  lease  for  the  K  mart  store  and  the  SHS lease for the
Scandinavian  Health   Spa   represents   approximately   44%,   24%  and  18%,
respectively, of the Partnership's income for the year ended December 31, 1999,
approximately 42%, 22% and 17%,  respectively,  of the Partnership's income for
the  year  ended  December  31,  1998  and  approximately  40%,  21%  and  17%,
respectively, of the Partnership's income for the year ended December 31, 1997.











                                     -27-



                      INLAND MONTHLY INCOME FUND II, L.P.
                            (a limited partnership)

                         Notes to Financial Statements
                                  (continued)


(7) Subsequent Events

As of January  28,  2000,  the  lessee  for  the  Colonial  Manor Living Center
exercised its right to extend the lease term for a period of five years through
February 1, 2006.

On January 10, 2000, the  Partnership  paid  a  distribution of $140,427 to the
Limited Partners.

On February 10, 2000, the Partnership  paid a distribution of $2,532,863 to the
Limited Partners,  which  included  proceeds  of  $2,392,818  from  the sale of
Eurofresh Plaza.






































                                     -28-



<TABLE>                                                  INLAND MONTHLY INCOME FUND II, L.P.
                                                               (a limited partnership)
                                                                    Schedule III
                                                      Real Estate and Accumulated Depreciation
                                                                  December 31, 1999
                          Initial cost
                          to Partnership                            Gross amount at which carried
                               (A)              Costs                   at end of period (B)                          Life on which
                     ----------------------- capitalized  ------------------------------------------------- Date      depreciation
                                 Buildings    subsequent              Buildings               Accumulated   Con-      in latest Stmt
                                    and          to                     and         Total     Depreciation  stru-Date of Operations
                        Land    improvements acquisition    Land    improvements     (C)          (D)       cted Acq   is computed
                     ---------- ------------ ------------ --------- ------------- ---------- -------------- ---- ---- --------------
<CAPTION>
<S>                   <C>        <C>          <C>          <C>       <C>           <C>        <C>           <C>  <C>   <C>
Health & Racquet Club:
  Scandinavian Health
    Spa, Inc.                                                                                                    10/19
  Broadview Hts., OH $  850,609   2,165,039          879    850,609   2,165,918    3,016,527      812,211   1984  1988  30 years

Nursing Home Facility:
  Colonial Manor                                                                                                 06/07
  LaGrange, IL          416,390   7,105,491         -       416,390   7,105,491    7,521,881    2,174,373   1924  1989  40 years

Retail Store:
  K mart                                                                                                         12/29
  Chandler, AZ        1,920,439   3,152,034         -     1,920,439   3,152,034    5,072,473    1,059,434   1986  1989  30 years
                     ---------- ------------ ------------ --------- ------------- ---------- -------------
             Totals  $3,187,438  12,422,564          879  3,187,438  12,423,443   15,610,881    4,046,018
                     ========== ============ ============ ========= ============  ========== =============

-------------------------------------------------------------------------------------------------------------------------------
Notes:
  (A) The initial cost to the Partnership represents the original purchase price of the properties, including amounts incurred
      subsequent to acquisition which were contemplated at the time the property was acquired.
  (B) The aggregate cost of real estate owned at December 31, 1999 for Federal income tax purposes was approximately $11,565,000
      (unaudited.)
  (C) Reconciliation of real estate owned:
                                                               1999              1998             1997
                                                               ----              ----             ----
         Balance at beginning of year.................... $  17,955,961       17,812,334       17,812,334
         Capital expenditures............................        43,559          143,627             -
         Disposals.......................................    (2,388,639)            -                -
                                                          --------------    -------------    -------------
         Balance at end of year.......................... $  15,610,881       17,955,961       17,812,334
                                                          ==============    =============    =============

  (D) Reconciliation of accumulated depreciation:

         Balance at beginning of year.................... $   4,047,610        3,617,865        3,186,278
         Depreciation expense............................       429,504          429,745          431,587
         Disposals.......................................      (431,096)            -                -
                                                          --------------    -------------    -------------
         Balance at end of year.......................... $   4,046,018        4,047,610        3,617,865
                                                          ==============    =============    =============

</TABLE>

                                                            -29-


                                     -29-



Item 9.  Changes in and Disagreements with Independent Auditors on Accounting
         and Financial Disclosure

There were  no  disagreements  on  accounting  or  financial disclosure matters
during 1999.


                                   PART III


Item 10.  Directors and Executive Officers of the Registrant

The  General  Partner  of  the   Partnership,  Inland  Real  Estate  Investment
Corporation, was organized in 1984 for the purpose of acting as general partner
of limited partnerships formed  to  acquire,  own  and operate real properties.
The General Partner is a wholly-owned subsidiary  of The Inland Group, Inc.  In
1990, Inland Real Estate Investment  Corporation became the replacement General
Partner for an additional 301  privately-owned real estate limited partnerships
syndicated by Affiliates.    The  General  Partner  has  responsibility for all
aspects of the  Partnership's  operations.    The  relationship  of the General
Partner  to  its  Affiliates  is  described  under  the  caption  "Conflicts of
Interest" at pages 11 to 13 of  the  Prospectus, a copy of which description is
hereby incorporated herein by reference.


Officers and Directors

The officers, directors, and key  employees  of  The Inland Group, Inc. and its
Affiliates ("Inland") that are  likely  to  provide services to the Partnership
are as follows:


                               Functional Title

  Daniel L. Goodwin....... Chairman and Chief Executive Officer
  Robert H. Baum.......... Executive Vice President-General Counsel
  G. Joseph Cosenza....... Senior Vice President-Acquisitions
  Robert D. Parks......... Senior Vice President-Investments
  Norbert J. Treonis...... Senior Vice President-Property Management
  Brenda G. Gujral........ President and Chief Operating Officer-IREIC
  Catherine L. Lynch...... Treasurer
  Roberta S. Matlin....... Assistant Vice President-Investments
  Mark Zalatoris.......... Assistant Vice President-Due Diligence
  Patricia A. DelRosso.... Vice President-Asset Management
  Kelly Tucek............. Assistant Vice President-Partnership Accounting
  Venton J. Carlston...... Assistant Controller











                                     -30-



    DANIEL L. GOODWIN (age 56)   is  Chairman  of the Board of Directors of The
Inland Group, Inc.,  a  billion-dollar  real  estate and financial organization
located in Oak Brook,  Illinois.    Among  Inland's subsidiaries is the largest
property management firm in  Illinois  and  one  of the largest commercial real
estate and mortgage banking firms in the Midwest.

Mr. Goodwin has served as Director  of  the  Avenue  Bank  of Oak Park and as a
director of the Continental Bank of  Oakbrook  Terrace.  He was Chairman of the
Bank Holding Company of American National Bank  of DuPage.  Currently he is the
Chairman of the Board of Inland Mortgage Corporation.

Mr. Goodwin has been in the  housing  industry  for more than 30 years, and has
demonstrated a lifelong interest in  housing-related  issues.  He is a licensed
real estate broker and a member  of  the  National Association of Realtors.  He
has developed thousands of housing units  in the Midwest, New England, Florida,
and the Southwest.   He  is  also  the  author  of a nationally recognized real
estate reference book for the management of residential properties.

Mr. Goodwin has served on  the  Board  of the Illinois State Affordable Housing
Trust Fund for  six  years.    He  is  an  advisor  for  the  Office of Housing
Coordination Services of the State  of  Illinois,  and  a member of the Seniors
Housing Committee of  the  National  Multi-Housing  Council.   He was appointed
Chairman of the Housing Production  Committee for the Illinois State Affordable
Housing Conference by former Governor Edgar.  He also served as a member of the
Cook County Commissioner's Economic  Housing  Development Committee, and he was
the Chairman of the  DuPage  County  Affordable  Housing  Task Force.  The 1992
Catholic  Charities  Award  was  presented  to  Mr.  Goodwin  for  his  work in
addressing affordable housing needs.   The  City  of Hope designated him as the
Man of the Year for the Illinois  construction industry.  In 1989,  the Chicago
Metropolitan  Coalition  on  Aging  presented  Mr.  Goodwin  with  an  award in
recognition of his  efforts  in  making  housing  more  affordable to Chicago's
Senior Citizens.  On May 4, 1995, PADS, Inc. (Public Action to Deliver Shelter)
presented Mr. Goodwin  with  an  award,  recognizing  The  Inland  Group as the
leading corporate provider of transitional  housing  for the homeless people of
DuPage County.  Mr. Goodwin also  serves  as Chairman of New Directions Housing
Corporation, a provider of affordable housing.

Mr. Goodwin is a product  of  Chicago-area schools, and obtained his Bachelor's
and Master's Degrees  from  Illinois  Universities.    Following graduation, he
taught for five  years  in  the  Chicago  Public  Schools.    His commitment to
education has continued through his  work  with  the BBF Family Services' Pilot
Elementary School in  Chicago,  and  the  development  of the Inland Vocational
Training Center  for  the  Handicapped  located  at  Little  City  in Palatine,
Illinois.  He  personally  established  an  endowment  which  funds a perpetual
scholarship program for inner-city  disadvantaged  youth.   In 1990 he received
the Northeastern  Illinois  University  President's  Meritorious Service Award.
Mr. Goodwin  holds  a  Master's  Degree  in  Education  from  Northern Illinois
University, and in 1986, he was awarded an Honorary Doctorate from Northeastern
Illinois University College of Education.    More  than 12 years ago, under Mr.
Goodwin's direction, Inland instituted  a  program to educate disabled students
about the workplace.  Most  of  those  original students are employed at Inland
today, and Inland continues as one of  the largest employers of the disabled in
DuPage County.  Mr. Goodwin has served as a member of the Board of Governors of
Illinois State Colleges and Universities, and  he is currently Vice Chairman of
the Board of Trustee of  Benedictine  University.    Since January 1996, he has
been Chairman of the Northeastern Illinois University Board of Trustees.


                                     -31-



In 1988 Mr. Goodwin received the Outstanding Business Leader Award from the Oak
Brook Jaycees and in March 1994  he  won  the Excellence in Business Award from
the DuPage Area Association of Business  and Industry.  Additionally, he was by
Little Friends on May  17,  1995  for  rescuing their Parent-Handicapped Infant
Program.  He was the  recipient  of  the  1995  March of Dimes Life Achievement
Award and was recently recognized as  the  1998 Corporate Leader of the Year by
the Oak Brook  Area  Association  of  Commerce  and  Industry.   The Ray Graham
Association for  People  with  Disabilities  honored  Mr.  Goodwin  as the 1999
Employer of the Year.   Also,  in  1999,  the YWCA DuPage District bestowed the
Corporate  Recognition  Award   for   Inland's   policies  and  practices  that
demonstrate a commitment to the  advancement  of  women  in the workplace.  For
many years, he  has  been  Chairman  of  the  National  Football League Players
Association Mackey Awards for the benefit  of inner-city youth and he served as
the  recent  Chairman  of  the   Speakers   Club   of  the  Illinois  House  of
Representatives.

    ROBERT H. BAUM (age  55)  has  been  with  The  Inland  Group, Inc. and its
affiliates since 1968 and is one of  the four original principals.  Mr. Baum is
Vice Chairman and Executive Vice President-General Counsel of The Inland Group,
Inc.  In his  capacity  as  General  Counsel,  Mr.  Baum is responsible for the
supervision  of  the  legal  activities  of  The  Inland  Group,  Inc.  and its
affiliates.  This responsibility  includes  the  supervision  of The Inland Law
Department and serving as liaison with outside counsel.  Mr. Baum has served as
a member  of  the  North  American  Securities  Administrators Association Real
Estate Advisory Committee and as a  member of the Securities Advisory Committee
to the Secretary  of  State  of  Illinois.    He  is  a  member of the American
Corporation Counsel Association and  has  also  been  a  guest lecturer for the
Illinois State Bar Association.   Mr. Baum has been admitted to practice before
the Supreme Court of the United States,  as well as the bars of several federal
courts of appeals and federal district courts and the State of Illinois. He has
served as a director of American  National  Bank of DuPage and currently serves
as a director of Westbank.  Mr. Baum  also is a member of the Governing Council
of Wellness House, a  charitable  organization  that provides emotional support
for cancer patients and their families.

    G. JOSEPH COSENZA (age 55)  has  been  with  The Inland Group, Inc. and its
affiliates since 1968 and is one of  the four original principals.  Mr. Cosenza
is a Director  and  Vice  Chairman  of  The  Inland  Group,  Inc. and oversees,
coordinates and directs Inland's  many  enterprises.   In addition, Mr. Cosenza
immediately supervises  a  staff  of  twelve  persons  who  engage  in property
acquisition.  Mr. Cosenza has been  a  consultant to other real estate entities
and lending institutions on property appraisal methods.

Mr. Cosenza received his B.A.  Degree from Northeastern Illinois University and
his M.S. Degree from  Northern  Illinois  University.    From  1967 to 1968, he
taught in the LaGrange  Illinois  School  District  and  from  1968 to 1972, he
served as Assistant  Principal  and  taught  in  the  Wheeling, Illinois School
District.  Mr. Cosenza has been a licensed real estate broker since 1968 and an
active member of various national and local real estate associations, including
the National Association of Realtors and the Urban Land Institute.

Mr. Cosenza has also been Chairman  of  the  Board of American National Bank of
DuPage, and has  served  on  the  Board  of  Directors  of  Continental Bank of
Oakbrook Terrace.  He  is  presently  a  Director  on  the Board of Westbank in
Westchester and Hillside, Illinois.


                                     -32-



    ROBERT D. PARKS (age 55)  is a Director of The Inland Group, Inc.; Chairman
of  Inland  Real  Estate  Investment  Corporation;  President,  Chief Executive
Officer, Chief Operating Officer and  Affiliated Director of Inland Real Estate
Corporation, and Chairman, Chief  Executive  Officer and Affiliated Director of
Inland Retail Real Estate Trust, Inc.

Mr. Parks is responsible for  the ongoing administration of existing investment
programs,  corporate  budgeting  and  administration  for  Inland  Real  Estate
Investment Corporation.   He  oversees  and  coordinates  the  marketing of all
investments and investor relations.

Prior to joining Inland, Mr.  Parks  was  a  school teacher in Chicago's public
schools.  He received his B.A. degree from Northeastern Illinois University and
his M.A. degree from the University  of  Chicago.    He is a member of the Real
Estate Investment Association and a member  of the National Association of Real
Estate Investment Trusts (NAREIT).

    NORBERT J.  TREONIS  (age  49)    joined  The  Inland  Group,  Inc. and its
affiliates in 1975 and he is  currently Chairman and Chief Executive Officer of
The Inland Property Management Group, Inc.  and a Director of The Inland Group,
Inc.  He serves on the  Board  of Directors of all Inland subsidiaries involved
in the  property  management,  acquisitions  and  maintenance  of  real estate,
including  Mid-America   Management   Corporation,   Metropolitan  Construction
Services, Inc. and Inland Commercial Property  Management, Inc.  Mr. Treonis is
charged with the responsibility of  the  overall  management and leasing of all
apartment units, retail, industrial and commercial properties nationwide.

Mr. Treonis is a licensed real estate broker.  He is a past member of the Board
of Directors of American National Bank of DuPage, the Apartment Building Owners
and  Managers  Association,   the   National   Apartment  Association  and  the
Chicagoland Apartment Association.

    BRENDA G. GUJRAL  (age  58)  is  President  and  Chief Operating Officer of
Inland Real Estate Investment  Corporation  (IREIC),  the parent company of the
Advisor.  She is  also  President  and  Chief  Operating Officer of the Dealer-
Manager, Inland Securities Corporation  (ISC),  a  member  firm of the National
Association of Securities Dealers (NASD).

Mrs. Gujral has overall responsibility  for  the operations of IREIC, including
the distribution  of  checks  to  over  50,000  investors,  review  of periodic
communications to those investors, the  filing  of quarterly and annual reports
for Inland's publicly registered  investment  programs  with the Securities and
Exchange Commission, compliance with other  SEC and NASD securities regulations
both for IREIC and ISC,  review  of  asset management activities, and marketing
and communications with  the  independent  broker/dealer firms selling Inland's
current and prior programs.  Mrs.  Gujral works with internal and outside legal
counsel in structuring and registering  the prospectuses for IREIC's investment
programs.

Mrs. Gujral has been with  Inland  for  18  years, becoming an officer in 1982.
Prior to joining  Inland,  she  worked  for  the  Land  Use Planning Commission
establishing an office in Portland,  Oregon,  to implement land use legislation
for that state.

She is a graduate of California State  University.   She holds Series 7, 22, 39
and 63 licenses from the NASD  and  is  a member of the National Association of
Real Estate Investment Trusts (NAREIT)  and  the National Association of Female
Executives.


                                     -33-



    CATHERINE L. LYNCH (age 41) joined  Inland  in 1989 and is the Treasurer of
Inland Real  Estate  Investment  Corporation.    Ms.  Lynch  is responsible for
managing the Corporate Accounting  Department.    Prior  to joining Inland, Ms.
Lynch worked in the  field  of  public  accounting  for KPMG Peat Marwick since
1980.    She  received  her  B.S.  degree  in  Accounting  from  Illinois State
University.  Ms. Lynch is  a  Certified  Public  Accountant and a member of the
American  Institute  of  Certified  Public  Accountants  and  the  Illinois CPA
Society.  She is registered with the National Association of Securities Dealers
as a Financial Operations Principal.

    ROBERTA S. MATLIN (age 55)   joined  Inland in 1984 as Director of Investor
Administration  and  currently  serves  as  Senior  Vice President-Investments.
Prior to that, Ms. Matlin spent 11  years with the Chicago Region of the Social
Security Administration of the  United  States  Department  of Health and Human
Services.  She is  a  Director  of  Inland  Real Estate Investment Corporation,
Inland Securities Corporation, and  Inland  Real Estate Advisory Services, Inc.
As Senior  Vice  President-Investments,  she  directs  the  day-to-day internal
operations of the General Partner.    Ms.  Matlin received her B.A. degree from
the University of Illinois.  She is registered with the National Association of
Securities Dealers, Inc. as a General Securities Principal.

    MARK ZALATORIS (age 42) joined Inland  in 1985 and currently serves as Vice
President of Inland Real  Estate  Investment Corporation.  His responsibilities
include the coordination of due  diligence activities by selling broker/dealers
and is also involved with limited partnership asset management, especially with
regard to financing activities.  Mr.  Zalatoris is a graduate of the University
of Illinois where he  received  a  Bachelors  degree  in  Finance and a Masters
degree in Accounting and Taxation.    He  is  a Certified Public Accountant and
holds a General Securities License with Inland Securities Corporation.

    PATRICIA A. DELROSSO (age 47) joined  Inland  in 1985.  Ms. DelRosso serves
as Senior Vice President of  Inland  Real  Estate Investment Corporation in the
area of Asset Management.    As  head  of  the Asset Management Department, she
develops  operating  and   disposition   strategies  for  all  investment-owned
properties.  Ms. DelRosso received her Bachelor's degree from George Washington
University and her Master's from Virginia  Tech  University.  Ms. DelRosso is a
licensed real estate  broker,  NASD  registered securities sales representative
and is a member of the Urban Land Institute.



















                                     -34-



    KELLY TUCEK (age  37)  joined  Inland  in  1989  and  is  an Assistant Vice
President of Inland Real Estate Investment Corporation.  As of August 1996, Ms.
Tucek is responsible for  the  Investment  Accounting Department which includes
all public partnership accounting functions along with quarterly and annual SEC
filings.  Prior to joining Inland, Ms.  Tucek was on the audit staff of Coopers
and Lybrand since  1984.    She  received  her  B.A.  Degree  in Accounting and
Computer Science from North Central College.

    VENTON J. CARLSTON (age 42)    joined  Inland  in 1985 and is the Assistant
Controller of Inland Real Estate Investment Corporation where he supervises the
corporate  bookkeeping  staff  and   is  responsible  for  financial  statement
preparation and budgeting for Inland Real Estate Investment Corporation and its
subsidiaries.    Prior  to  joining  Inland,  Mr.  Carlston  was  a partnership
accountant with JMB Realty.   He  received  his  B.S. degree in Accounting from
Southern Illinois University.   Mr.  Carlston  is a Certified Public Accountant
and a member of the Illinois CPA  Society.   He is registered with the National
Association of Securities Dealers, Inc. as a Financial Operations Principal.


Item 11.  Executive Compensation

The General Partner is entitled to receive a share of cash distributions when a
Preferential Return of 10% of Cash  Available for Distribution has been made to
the Limited Partners, and a share  of  profits or losses as described under the
caption "Cash Distributions" at page 42  and "Allocation of Profits and Losses"
at pages 41  and  42  of  the  Prospectus,  and  at  pages  A-6  to A-10 of the
Partnership Agreement, included  as  an  exhibit  to  the  Prospectus, which is
incorporated herein by reference. Reference is also made to Note 2 of the Notes
to Financial Statements (Item 8  of  this  Annual  Report) for a description of
such distributions and allocations for 1999.

The Partnership  is  permitted  to  engage  in  various  transactions involving
Affiliates of the General Partner  of  the  Partnership, as described under the
captions "Compensation and Fees" at  pages  7-9  and "Conflicts of Interest" at
pages 9-11 of the Prospectus, and at pages A-12 through A-20 of the Partnership
Agreement, included as  an  exhibit  to  the  Prospectus, which is incorporated
herein by reference. The relationship of the General Partner (and its directors
and officers) to its Affiliates is set forth above in Item 10.

The General Partner of the Partnership and its Affiliates may be reimbursed for
their expenses or  out-of-pocket  expenses  relating  to  administration of the
Partnership and  salaries  and  direct  expenses  of  employees  of the General
Partner and its  Affiliates  for  the  administration  of the Partnership. Such
costs for 1999 were $40,112, of which $878 was unpaid as of December 31, 1999.

During 1999, Affiliates of  the  General  Partner  earned $33,762 in management
fees in connection with managing the  Partnership's properties, all of which is
paid as of December 31, 1999.









                                     -35-



Item 12. Security Ownership of Certain Beneficial Owners and Management

(a) No person or group is  known  by  the  Partnership to own beneficially more
than 5% of the outstanding Units of the Partnership.

(b) The officers and directors of the General Partner of the Partnership own as
a group the following Units of the Partnership:


                                 Amount and Nature
                                  of Beneficial           Percent
    Title of Class                  Ownership            of Class
    --------------               -----------------    --------------
    Limited Partnership          58.76 Units directly  Less than 1/2%
     Units


    No officer or director of the  General Partner of the Partnership possesses
    a right to acquire beneficial ownership of Units of the Partnership.

    All of the outstanding shares of the General Partner of the Partnership are
    owned by an Affiliate or its  officers  and directors as set forth above in
    Item 10.

(c) There exists no arrangement,  known  to  the  Partnership, the operation of
    which may, at a  subsequent  date,  result  in  a  change in control of the
    Partnership.


Item 13. Certain Relationships and Related Transactions

There were  no  significant  transactions  or  business  relationships with the
General Partner, Affiliates or their  management  other than those described in
Items 10 and 11 above. Reference is  made  to  Note 3 of the Notes to Financial
Statements (Item 8 of  this  Annual  Report)  for information regarding related
party transactions.





















                                     -36-



                                    PART IV


Item 14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K

(a) The Financial Statements listed  in  the  index  at  page 12 of this Annual
    Report are filed as part of this Annual Report.

(b) Exhibits. The following exhibits are filed as part of this report:

    27   Financial Data Schedule

    The following exhibits are incorporated herein by reference:

    3 Amended and Restated Agreement of Limited Partnership, and Certificate of
    Limited Partnership included as Exhibits  A  and  B of the Prospectus dated
    August 4,  1988,  as  supplemented,  are  incorporated  herein by reference
    thereto.

    4 Form of Certificate of Ownership representing interests in the registrant
    filed as Exhibit 4 to  Registration  Statement  on  Form S-11, File No. 33-
    22513, is incorporated herein by reference thereto.

    28 Prospectus dated  August  4,  1988,  as  supplemented, included in Post-
    effective Amendment No. 2 to Form S-11 Registration Statement, File No. 33-
    22513, is incorporated herein by reference thereto.

(c) Financial Statement Schedules.

    Financial statement schedules for the  years  ended December 31, 1999, 1998
    and 1997 are submitted herewith:

                                                                     Page
                                                                     ----

    Real Estate and Accumulated Depreciation, (Schedule III)........  29

    All schedules other than those indicated  in the index have been omitted as
    the required information is inapplicable or the information is presented in
    the financial statements or related notes.

(d) Reports on Form 8-K.

    None.


No Annual Report or proxy  material  for  the  year  1999  has been sent to the
Partners of the Partnership.  An  Annual  Report  will  be sent to the Partners
subsequent to this  filing  and  the  Partnership  will  furnish copies of such
report to the Commission when it is sent to the Partners.







                                     -37-



                                  SIGNATURES

Pursuant to the requirements of Section 13 or 15 (d) 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 MONTHLY INCOME FUND II, L.P.
                            Inland Real Estate Investment Corporation
                            General Partner

                                  /s/ Robert D. Parks

                            By:   Robert D. Parks
                                  Chairman of the Board
                                  and Chief Executive Officer
                            Date: March 22, 2000

Pursuant to the  requirements  of  the  Securities  Exchange  Act of 1934, this
report has  been  signed  below  by  the  following  persons  on  behalf of the
registrant and in the capacities and on the dates indicated:

                            By:   Inland Real Estate Investment Corporation
                                  General Partner

                                  /s/ Robert D. Parks

                            By:   Robert D. Parks
                                  Chairman of the Board
                                  and Chief Executive Officer
                            Date: March 22, 2000

                                  /s/ Patricia A. DelRosso

                            By:   Patricia A. DelRosso
                                  Senior Vice President
                            Date: March 22, 2000

                                  /s/ Kelly Tucek

                            By:   Kelly Tucek
                                  Principal Financial Officer
                                  and Principal Accounting Officer
                            Date: March 22, 2000

                                  /s/ Daniel L. Goodwin

                            By:   Daniel L. Goodwin
                                  Director
                            Date: March 22, 2000

                                  /s/ Robert H. Baum

                            By:   Robert H. Baum
                                  Director
                            Date: March 22, 2000


                                     -38-