UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549FORM 10-Q

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

For the Quarterly Period Ended March 31, 2002or

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

For the transition period from __________ to __________
Commission File #0-17593Inland Monthly Income Fund II, L.P.(Exact name of registrant as specified in its charter)



|Delaware                          | #36-3587209                            
|--------------------------------- | ---------------------------------------
|(State or other jurisdiction      | (I.R.S. Employer Identification Number)
|of incorporation or organization) |                                        



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

Registrant's telephone number, including area code:  630-218-8000N/A
(Former name, former address and former fiscal
year, if changed since last report)

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

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INLAND MONTHLY INCOME FUND II, L.P.
(a limited partnership)
Balance Sheets
March 31, 2002 and December 31, 2001
(unaudited)Assets

|                                                                                                                                                             |   | 2002       | 2001      
|------------------------------------------------------------------------------------------------------------------------------------------------------------ | - | ---------- | ----------
|                                                                                                                                                             |   |            |           
|Current assets:                                                                                                                                              |   |            |           
|Cash and cash equivalents                                                                                                                                    | $ | 1,230,628  | 1,332,850 
|Accounts and rents receivable                                                                                                                                |   | -          | 658       
|                                                                                                                                                             |   |            |           
|Total current assets                                                                                                                                         |   | 1,230,628  | 1,333,508 
|                                                                                                                                                             |   |            |           
|Investment properties (including acquisition fees paid to Affiliates of     $1,250,037 at March 31, 2002 and December 31, 2001):                             |   |            |           
|Land                                                                                                                                                         |   | 3,187,438  | 3,187,438 
|Buildings and improvements                                                                                                                                   |   | 12,423,443 | 12,423,443
|                                                                                                                                                             |   |            |           
|                                                                                                                                                             |   | 15,610,881 | 15,610,881
|Less accumulated depreciation                                                                                                                                |   | 4,874,019  | 4,788,274 
|                                                                                                                                                             |   |            |           
|Net investment properties                                                                                                                                    |   | 10,736,862 | 10,822,607
|                                                                                                                                                             |   |            |           
|Other assets:                                                                                                                                                |   |            |           
|Deferred leasing fees to Affiliates (net of accumulated amortization of     $186,376 and $184,864 at March 31, 2002 and December 31, 2001,     respectively) |   | 41,356     | 42,868    
|Deferred rent receivable (Note 2)                                                                                                                            |   | 399,186    | 377,567   
|                                                                                                                                                             |   |            |           
|Total other assets                                                                                                                                           |   | 440,542    | 420,435   
|                                                                                                                                                             |   |            |           
|Total assets                                                                                                                                                 | $ | 12,408,032 | 12,576,550
|                                                                                                                                                             |   | ========== | ==========



See accompanying notes to financial statements.
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INLAND MONTHLY INCOME FUND II, L.P.
(a limited partnership)



Balance Sheets
(continued)



March 31, 2002 and December 31, 2001
(unaudited)





Liabilities and Partners' Capital



|                                                                                                                                                                   |   | 2002         | 2001        
|------------------------------------------------------------------------------------------------------------------------------------------------------------------ | - | ------------ | ------------
|                                                                                                                                                                   |   |              |             
|Current liabilities:                                                                                                                                               |   |              |             
|Accounts payable                                                                                                                                                   | $ | 7,922        | 1,274       
|Distributions payable (Note 4)                                                                                                                                     |   | 124,169      | 124,169     
|Due to Affiliates (Note 3)                                                                                                                                         |   | 5,274        | 7,775       
|Deposits held for others                                                                                                                                           |   | 260,446      | 362,610     
|                                                                                                                                                                   |   |              |             
|Total current liabilities                                                                                                                                          |   | 397,811      | 498,828     
|                                                                                                                                                                   |   |              |             
|Commission payable to Affiliate (Note 3)                                                                                                                           |   | 132,000      | 132,000     
|                                                                                                                                                                   |   |              |             
|Total liabilities                                                                                                                                                  |   | 529,811      | 631,828     
|                                                                                                                                                                   |   |              |             
|Partners' capital:                                                                                                                                                 |   |              |             
|General Partner:                                                                                                                                                   |   |              |             
|Capital contribution                                                                                                                                               |   | 500          | 500         
|Cumulative net income                                                                                                                                              |   | 51,714       | 52,571      
|                                                                                                                                                                   |   |              |             
|                                                                                                                                                                   |   | 52,214       | 53,071      
|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                                                                                                                                              |   | 18,546,175   | 18,255,326  
|Cumulative distributions                                                                                                                                           |   | (28,636,678) | (28,276,185)
|                                                                                                                                                                   |   |              |             
|                                                                                                                                                                   |   | 11,826,007   | 11,895,651  
|                                                                                                                                                                   |   |              |             
|Total Partners' capital                                                                                                                                            |   | 11,878,221   | 11,948,722  
|                                                                                                                                                                   |   |              |             
|Total liabilities and Partners' capital                                                                                                                            | $ | 12,408,032   | 12,576,550  



See accompanying notes to financial statements.
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INLAND MONTHLY INCOME FUND II, L.P.
(a limited partnership)
Statements of Operations
For the three months ended March 31, 2002 and 2001
(unaudited)

|                                                                                                                |   | 2002        | 2001       
|--------------------------------------------------------------------------------------------------------------- | - | ----------- | -----------
|Income:                                                                                                         |   |             |            
|Rental income (Note 2)                                                                                          | $ | 425,098     | 443,838    
|Additional rental income                                                                                        |   | 2,260       | 2,260      
|Interest income                                                                                                 |   | 4,067       | 11,358     
|Other income                                                                                                    |   | -           | 109        
|                                                                                                                |   |             |            
|                                                                                                                |   | 431,425     | 457,565    
|Expenses:                                                                                                       |   |             |            
|Professional services to Affiliates                                                                             |   | 2,242       | 6,336      
|Professional services to non-affiliates                                                                         |   | 24,660      | 16,253     
|General and administrative expenses to Affiliates                                                               |   | 6,116       | 7,996      
|General and administrative expenses to non-affiliates                                                           |   | 11,630      | 7,570      
|Property operating expenses to Affiliates                                                                       |   | 4,828       | 4,144      
|Property operating expenses to non-affiliates                                                                   |   | 4,700       | 2,364      
|Depreciation                                                                                                    |   | 85,745      | 95,679     
|Amortization                                                                                                    |   | 1,512       | 1,513      
|                                                                                                                |   |             |            
|                                                                                                                |   | 141,433     | 141,855    
|                                                                                                                |   |             |            
|Net income                                                                                                      | $ | 289,992     | 315,710    
|                                                                                                                |   | ==========  | =========  
|Net income (loss) allocated to:                                                                                 |   |             |            
|General Partner                                                                                                 | $ | (857)       | (957)      
|Limited Partners                                                                                                |   | 290,849     | 316,667    
|                                                                                                                |   |             |            
|Net income                                                                                                      | $ | 289,992     | 315,710    
|                                                                                                                |   | =========== | ========== 
|                                                                                                                |   |             |            
|Net loss allocated to the one General Partner Unit:                                                             | $ | (857)       | (957)      
|                                                                                                                |   | ==========  | ===========
|Net income per Unit allocated to Limited Partners per weighted average   Limited Partnership Units of 50,095.50 | $ | 5.81        | 6.32       
|                                                                                                                |   | ==========  | =========  





See accompanying notes to financial statements.
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INLAND MONTHLY INCOME FUND II, L.P.
(a limited partnership)
Statements of Cash Flows
For three months ended March 31, 2002 and 2001
(unaudited)

|                                                                                    |   | 2002       | 2001     
|----------------------------------------------------------------------------------- | - | ---------- | ---------
|                                                                                    |   |            |          
|Cash flows from operating activities:                                               |   |            |          
|Net income                                                                          | $ | 289,992    | 315,710  
|Adjustments to reconcile net income to net cash provided by   operating activities: |   |            |          
|Depreciation                                                                        |   | 85,745     | 95,679   
|Amortization                                                                        |   | 1,512      | 1,513    
|Changes in assets and liabilities:                                                  |   |            |          
|Accounts and rents receivable                                                       |   | 658        | (80,752) 
|Other assets                                                                        |   | -          | 95       
|Deferred rent receivable                                                            |   | (21,619)   | -        
|Accounts payable                                                                    |   | 6,648      | (32,624) 
|Due to Affiliates                                                                   |   | (2,501)    | (4,748)  
|                                                                                    |   |            |          
|Net cash provided by operating activities                                           |   | 360,435    | 294,873  
|                                                                                    |   |            |          
|Cash flows from financing activities:                                               |   |            |          
|Deposits held for others                                                            |   | (102,164)  | (116,547)
|Cash distributions                                                                  |   | (360,493)  | (359,965)
|                                                                                    |   |            |          
|Net cash used in financing activities                                               |   | (462,657)  | (476,512)
|                                                                                    |   |            |          
|Net decrease in cash and cash equivalents                                           |   | (102,222)  | (181,639)
|Cash and cash equivalents at beginning of period                                    |   | 1,332,850  | 1,413,462
|                                                                                    |   |            |          
|Cash and cash equivalents at end of period                                          | $ | 1,230,628  | 1,231,823
|                                                                                    |   | ========== | =========



See accompanying notes to financial statements.
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INLAND MONTHLY INCOME FUND II, L.P.
(a limited partnership)
Notes to Financial Statements
March 31, 2002
(unaudited)

Readers of this Quarterly Report should refer to the Partnership's audited financial statements for the fiscal year ended December 31, 2001, which are included in the Partnership's 2001 Annual Report, as certain footnote disclosures which would substantially duplicate those contained in such audited financial statements have been omitted from this Report.



(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 accounting principles generally accepted in the United States of America 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 periods. Actual results could differ from those estimates.

In the opinion of management, the financial statements contain all the adjustments necessary, which are of a normal recurring nature, to present fairly the financial position and results of operations for the periods presented herein.  Results of interim periods are not necessarily indicative of the results to be expected for the year.



(2)  Deferred Rent Receivable

Certain tenant leases contain provisions providing for scheduled 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 an increase of $21,619 and $0 for the three months ended March 31, 2002 and 2001, of rental income for the period of occupancy for which scheduled rent increases apply and $399,186 and $377,567 in related deferred rent receivable as of March 31, 2002 and December 31, 2001, respectively.  These amounts will be collected over the terms of the related leases as scheduled rent payments are made.

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INLAND MONTHLY INCOME FUND II, L.P.
(a limited partnership)
Notes to Financial Statements
(continued)
March 31, 2002
(unaudited)



(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 and general and administrative expenses to Affiliates, of which $5,274 and $7,775 was unpaid as of March 31, 2002 and December 31, 2001, respectively.

An Affiliate of the General Partner earned Property Management Fees of $4,828 and $4,144 for the three months ended March 31, 2002 and 2001, respectively, in connection with managing the Partnership's properties.  Such fees are included in property operating expenses to Affiliates, all of which was paid as of March 31, 2002 and 2001.

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.



(4)  Subsequent Events

During April 2002, the Partnership paid a distribution of $124,169 to the Limited Partners.

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Item 2.  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 quarterly report on Form 10-Q 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, federal, state or local regulations; adverse changes in general economic or local conditions; inability of borrower to meet financial obligations; 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 has 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 March 31, 2002, cumulative distributions to Limited Partners totaled $28,636,678, of which $4,395,565 represents proceeds from the sale of The Wholesale Club, $2,392,818 represents proceeds from the sale of Eurofresh Plaza, and $21,848,295 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 March 31, 2002, the Partnership had cash and cash equivalents of approximately $1,230,000 which includes approximately $260,000 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 property upgrades, distributions and for other 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 March 31, 2002, 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.



Results of Operations

At March 31, 2002, 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, Kmart, 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.

Rental income decreased for the three months ended March 31, 2002, as compared to the three months ended March 31, 2001, due to the reduction in the annual rent on the Colonial Manor Living Center under the new lease, which began July 1, 2001.



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The Kmart Corporation filed for Chapter 11 bankruptcy reorganization on January 22, 2002.  As a result thereof, Kmart has the option to accept or reject its lease with the Partnership.  On March 8, 2002, Kmart Corporation announced its intent to close 283 stores, including the Chandler, Arizona store. The Bankruptcy Court approved these closings on March 20, 2002, as well as the liquidation procedures.  Kmart indicated that the goal for closing these stores is by no later than September 2002. Until such time as the store is closed, Kmart is expected to continue to pay rent.  The General Partner believes that the current rent at $5.37 per square foot is lower than market, and therefore, the space should be leasable to new tenants.



General and administrative expenses to Affiliates decreased for the three months ended March 31, 2002, as compared to the three months ended March 31, 2001, due to a decrease in postage expense.  General and administrative expenses to non-affiliates increased for the three months ended March 31, 2002, as compared to the three months ended March 31, 2001, due to an increase in printing expense.





The following is a list of approximate occupancy levels for the Partnership's investment properties as of the end of each quarter during 2001 and 2002:

|                        | 2001  |       | 2002 
|----------------------- | ----- | ----- | -----
|Properties              | 03/31 | 06/30 | 09/30
|                        |       |       |      
|Scandinavian Health Spa | 100%  | 100%  | 100% 
|Broadview Heights, Ohio |       |       |      
|                        |       |       |      
|Colonial Manor          | 100%  | 100%  | 100% 
|LaGrange, Illinois      |       |       |      
|                        |       |       |      
|Kmart                   | 100%  | 100%  | 100% 
|Chandler, Arizona       |       |       |      





PART II - Other Information

Items 1 through 6(b) are omitted because of the absence of conditions under which they are required.

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SIGNATURES

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



|      | INLAND MONTHLY INCOME FUND II, L.P.      
|----- | -----------------------------------------
|      |                                          
|By:   | Inland Real Estate Investment Corporation
|      | General Partner                          
|      |                                          
|      |                                          
|      | /S/ ROBERT D. PARKS                      
|      |                                          
|By:   | Robert D. Parks                          
|      | Chairman                                 
|Date: | May 14, 2002                             
|      |                                          
|      |                                          
|      | /S/ PATRICIA A. DELROSSO                 
|      |                                          
|By:   | Patricia A. DelRosso                     
|      | Senior Vice President                    
|Date: | May 14, 2002                             
|      |                                          
|      |                                          
|      | /S/ KELLY TUCEK                          
|      |                                          
|By:   | Kelly Tucek                              
|      | Principal Financial Officer and          
|      | Principal Accounting Officer             
|Date: | May 14, 2002                             

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