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

                                   FORM 10-Q


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

               For the Quarterly Period Ended September 30, 1998

                                      or

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

For the transition period from                    to                   


                           Commission File #0-17593


                     Inland 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:  630-218-8000


                                   N/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   




                                      -1-



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

                              Balance Sheets

                 September 30, 1998 and December 31, 1997
                                (unaudited)


                                  Assets
                                  ------
 
                                                       1998          1997
                                                       ----          ----
Current assets:
  Cash and cash equivalents (Note 1).............. $ 1,332,562     1,151,954
  Accounts and rents receivable...................     263,730       170,804
  Current portion of deferred rent receivable
    (Note 2)......................................        -            1,103
  Other assets....................................       2,966         2,061
                                                   ------------  ------------
Total current assets..............................   1,599,258     1,325,922
                                                   ------------  ------------
Investment properties (including acquisition fees
  paid to Affiliates of $1,430,682)(Notes 1 and 3):
    Land..........................................   3,998,149     3,998,149 
    Buildings and improvements....................  13,867,687    13,814,185
                                                   ------------  ------------
                                                    17,865,836    17,812,334
      Less accumulated depreciation...............   3,938,519     3,617,865
                                                   ------------  ------------
Net investment properties.........................  13,927,317    14,194,469
                                                   ------------  ------------
Other assets:
  Deferred leasing fees to Affiliates (net of
    accumulated amortization of $138,482 and
    $124,912 at September 30, 1998 and December 31,
    1997, respectively) (Notes 1 and 3)...........      89,250       102,820
  Deferred rent receivable, less current portion
    (Note 2)......................................     299,453       349,868
                                                   ------------  ------------
Total other assets................................     388,703       452,688
                                                   ------------  ------------
Total assets...................................... $15,915,278    15,973,079 
                                                   ============  ============










                See accompanying notes to financial statements.


                                      -2-



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

                                Balance Sheets
                                  (continued)

                   September 30, 1998 and December 31, 1997
                                  (unaudited)


                       Liabilities and Partners' Capital
                       ---------------------------------

                                                       1998          1997
                                                       ----          ----
Current liabilities:
  Accounts payable................................ $    10,202         2,708
  Accrued real estate taxes.......................     226,406       188,729
  Distributions payable (Note 4)..................     135,900       140,427
  Due to Affiliates (Note 3)......................       8,197         1,648
  Deposits held for others........................     553,066       384,448
  Other current liabilities.......................       6,593        26,925
                                                   ------------  ------------
Total current liabilities.........................     940,364       744,885

Commission payable to Affiliates (Note 3).........     132,000       132,000
                                                   ------------  ------------
Total liabilities.................................   1,072,364       876,885
                                                   ------------  ------------
Partners' capital (Notes 1, 3 and 4):
  General Partner:
    Capital contribution..........................         500           500
    Cumulative net income.........................      61,067        64,274
                                                   ------------  ------------
                                                        61,567        64,774
  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.........................  13,737,825    12,751,226
    Cumulative distributions...................... (20,872,988)  (19,636,316)
                                                   ------------  ------------
                                                    14,781,347    15,031,420
                                                   ------------  ------------
Total Partners' capital...........................  14,842,914    15,096,194
                                                   ------------  ------------
Total liabilities and Partners' capital........... $15,915,278    15,973,079
                                                   ============  ============






                See accompanying notes to financial statements.


                                      -3-



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

                           Statements of Operations

        For the three and nine months ended September 30, 1998 and 1997
                                  (unaudited)

                                         Three months           Nine months
                                            ended                 ended
                                         September 30,         September 30,
                                         -------------         -------------
                                       1998       1997       1998        1997
Income:                                ----       ----       ----        ----
  Rental income (Notes 1 and 2).... $ 473,076    480,653  1,439,314  1,437,430
  Additional rental income.........    41,361     41,731    120,528    125,279
  Interest income..................    10,739      9,170     31,419     26,826
  Other income.....................      -          -            20     17,489
                                    ---------- ---------- ---------- ----------
                                      525,176    531,554  1,591,281  1,607,024
Expenses:                           ---------- ---------- ---------- ----------
  Professional services to
    Affiliates.....................     4,186      3,300      9,982      9,230
  Professional services to
    non-affiliates.................      -          -        27,250     27,230
  General and administrative
    expenses to Affiliates.........     6,739      6,870     17,422     20,368
  General and administrative
    expenses to non-affiliates.....     1,481      1,567     13,045     14,397
  Property operating expenses to
    Affiliates.....................     7,318      7,392     23,574     23,703
  Property operating expenses to
    non-affiliates.................    57,183     90,379    182,392    249,784
  Depreciation.....................   104,860    107,897    320,654    323,691
  Amortization.....................     4,523      4,524     13,570     13,570
                                    ---------- ---------- ---------- ----------
                                      186,290    221,929    607,889    681,973
                                    ---------- ---------- ---------- ----------
Net income......................... $ 338,886   309,625     983,392    925,051
                                    ========== ========== ========== ==========
Net income (loss) allocated to:
  General Partner..................    (1,049)    (1,079)    (3,207)    (3,237)
  Limited Partners.................   339,935    310,704    986,599    928,288
                                    ---------- ---------- ---------- ----------
Net income......................... $ 338,886    309,625    983,392    925,051
                                    ========== ========== ========== ==========
Net loss allocated to the one
  General Partner Unit............. $  (1,049)    (1,079)    (3,207)    (3,237)
                                    ========== ========== ========== ==========
Net income per Unit, basic and 
  diluted, allocated to Limited 
  Partners per weighted average
  Limited Partnership Units of  
  50,095.50........................ $    6.78       6.20      19.69      18.53
                                    ========== ========== ========== ==========

                See accompanying notes to financial statements.


                                      -4-



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

                           Statements of Cash Flows

               For nine months ended September 30, 1998 and 1997
                                  (unaudited)



                                                       1998          1997
                                                       ----          ----
Cash flows from operating activities:
  Net income...................................... $   983,392       925,051
  Adjustments to reconcile net income to
      net cash provided by operating activities:
    Depreciation..................................     320,654       323,691
    Amortization..................................      13,570        13,570
    Deferred rent receivable......................      51,518        23,379
    Changes in assets and liabilities:
      Accounts and rents receivable...............     (92,926)      (49,198)
      Other assets................................        (905)       (2,768)
      Accounts payable............................       7,494        (7,953)
      Accrued real estate taxes...................      37,677       (42,418)
      Due to Affiliates...........................       6,549         7,877
      Other current liabilities...................     (20,332)         -
                                                   ------------  ------------
Net cash provided by operating activities.........   1,306,691     1,191,231
                                                   ------------  ------------
Cash flows from investing activities:
  Additions to investment properties..............     (53,502)         -
                                                   ------------  ------------
Net cash used in investing activities.............     (53,502)         -
                                                   ------------  ------------
Cash flows from financing activities:
  Deposits held for others........................     168,618       (74,390)
  Cash distributions..............................  (1,241,199)   (1,240,817)
                                                   ------------  ------------
Net cash used in financing activities.............  (1,072,581)   (1,315,207)
Net increase (decrease) in cash and cash           ------------  ------------
  equivalents.....................................     180,608      (123,976)
Cash and cash equivalents at beginning of period..   1,151,954     1,043,462
                                                   ------------  ------------
Cash and cash equivalents at end of period........ $ 1,332,562       919,486
                                                   ============  ============










                See accompanying notes to financial statements.


                                      -5-



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

                         Notes to Financial Statements

                              September 30, 1998
                                  (unaudited)


Readers of this  Quarterly  Report  should  refer  to the Partnership's audited
financial statements for the  fiscal  year  ended  December 31, 1997, which are
included  in  the  Partnership's  1997   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 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 periods.
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 ("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
September 30, 1998, the Partnership has not recognized any such impairment.







                                      -6-



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

                         Notes to Financial Statements
                                  (continued)

                              September 30, 1998
                                  (unaudited)


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.
Maintenance  and  repair  expenses  are  charged  to  operations  as  incurred.
Significant improvements are capitalized  and  depreciated over their estimated
useful lives.

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 periods ended September 30, 1998 and
December 31, 1997,  included  in  cash  and  cash  equivalents is approximately
$541,700 and $372,200, respectively, held in an unrestricted escrow account for
the payment of real estate taxes for Colonial Manor Living Center.

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.

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

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.












                                      -7-



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

                         Notes to Financial Statements
                                  (continued)

                              September 30, 1998
                                  (unaudited)


(2) Deferred Rent Receivable

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  $51,518  and  $23,379 for the nine
months ended September 30, 1998  and  1997,  respectively, of rental income for
the period of occupancy for which stepped rent increases apply and $299,453 and
$350,971 in related  deferred  rent  receivable  as  of  September 30, 1998 and
December 31, 1997, 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 Euro-Fresh Market Plaza.


(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 $8,197 and $1,648 was unpaid  as  of  September 30, 1998 and December 31,
1997, respectively.

An Affiliate of the General Partner  earned Property Management Fees of $23,574
and  $23,703  for  the  nine   months   ended  September  30,  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
was paid as of September 30, 1998.

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 October 1998, the  Partnership  paid  a  distribution of $135,900 to the
Limited Partners.






                                      -8-



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 of "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.  As of September
30, 1998, cumulative distributions to  Limited Partners totaled $20,872,988, of
which $4,395,565 represents proceeds from  the  sale  of The Wholesale Club and
$16,477,423  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 September 30,  1998,  the  Partnership  had  cash and cash equivalents of
$1,332,562 which includes approximately $541,700 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,
including reroofing at  Euro-Fresh  Market  Plaza,  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
September 30,  1998,  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 September 30, 1998, the Partnership  owns four operating properties.  Two of
the  Partnership's  four  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 leases
of the other two properties  owned  by  the  Partnership, K mart and Euro-Fresh
Market Plaza, provide that  the  Partnership  be responsible for maintenance of
the structure and the parking lot and the tenants are 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.

Rental income for the  nine  months  ended  September  30, 1998, was relatively
comparable to the nine months ended  September  30,  1997.  As of September 30,
1998, there were four vacant spaces at Euro-Fresh Market Plaza for 5,764 square
feet.

Interest income increased for  the  three  and  nine months ended September 30,
1998, as compared to the three and nine months ended September 30, 1997, due to
an increase in cash available to invest in short-term investments.

The other income recorded for the  nine  months ended September 30, 1997 is the
result of the  Partnership  receiving  miscellaneous  receipts  relating to the
Colonial Manor Living Center.

General and administrative expenses to  Affiliates  decreased for the three and
nine months ended September 30, 1998, as  compared to the three and nine months
ended September 30, 1997, due to a decrease in investor service expenses. 

Property operating expenses to non-affiliates  decreased for the three and nine
months ended September 30, 1998, as compared to the three and nine months ended
September  30,  1997,  due  to  decreases  in  repair  and  maintenance,  other
professional services, and real estate taxes  at Euro-Fresh Market Plaza.  This
decrease was partially offset by increases in common area maintenance and legal
expenses at the property.





















                                     -10-



The following is a list  of  approximate occupancy levels for the Partnership's
investment properties as of the end of each quarter during 1997 and 1998:


                                     1997                        1998
                          ------------------------    ------------------------
                           at     at    at    at        at    at    at    at
        Properties         3/31  6/30  9/30  12/31     3/31  6/30  9/30  12/31
        ----------         ----  ----  ----  ----      ----  ----  ----  -----
Scandinavian Health Spa    100%  100%  100%  100%     100%   100%  100%
  Broadview Heights, Ohio

Colonial Manor             100%  100%  100%  100%     100%   100%  100%
  LaGrange, Illinois

K mart                     100%  100%  100%  100%     100%   100%  100%
  Chandler, Arizona

Euro-Fresh Market Plaza     93%   98%   98%   95%      95%    95%   89%
  Palatine, Illinois


Year 2000 Issues

GENERAL

Many computer operating  systems  and  software  applications were designed such
that the year 1999 is the  maximum  date  that  can be processed accurately.  In
conducting business, the Partnership  relies  on computers and operating systems
provided by equipment manufacturers, and  also on application software developed
internally  and,  to  a  limited  extent,  by  outside  software  vendors.   The
Partnership has assessed its  vulnerability  to  the so-called "Year-2000 Issue"
with respect to its equipment and computer systems.

STATE OF READINESS

The  Partnership  has  identified  the  following  three  areas  for "Year-2000"
compliance efforts:

Business  Computer  Systems:  The  majority  of  the  Partnership's  information
technology systems  were  developed  internally  and  include  accounting, lease
management, investment portfolio  tracking,  and  tax  return  preparation.  The
Partnership has rights to  the  source  code  for these applications and employs
programmers who are  knowledgeable  regarding  these  systems.    The process of
testing these internal  systems  to  determine  year  2000  compliance is nearly
complete.  The Partnership does  not  anticipate  any material costs relating to
its  business  computer  systems  regarding   year  2000  compliance  since  the
Partnership's  critical  hardware  and  software  systems  use  four  digits  to
represent the applicable year.  The  Partnership does use various computers, so-
called "PC's", that may run software  that  may not use four digits to represent
the applicable year.  The  Partnership  is  in  the  process  of  testing the PC
hardware and software to determine  year  2000  compliance, but it must be noted
that such PC's  are  incidental  to  the  Partnership's  critical  systems.  The
Partnership is considering independent testing of its critical systems.



                                     -11-



Tenants and Suppliers: The Partnership  is  in the process of surveying tenants,
suppliers and other parties with whom  the Partnership does a significant amount
of business to identify the  Partnership's  potential exposure in the event such
parties are not year 2000 compliant in a timely manner. Since this area involves
some parties over which the Partnership  has  no control, such as public utility
companies, it  is  difficult,  at  best,  to  judge  the  status  of the outside
companies' year 2000 compliance.  The  Partnership  is  working closely with all
suppliers of goods and  services  in  an  effort  to  minimize the impact of the
failure of any supplier to become year  2000 compliant by December 31, 1999. The
Partnership's investigations and assessments of possible year 2000 issues are in
a preliminary stage, and currently the  Partnership is not aware of any material
impact on its business, operations or  financial condition due to year 2000 non-
compliance by any of the Partnership's tenants or suppliers. 

Non-Information Technology Systems:  In  the  operation  of  its properties, the
Partnership  has   acquired   equipment   with   embedded   technology  such  as
microcontrollers,  which  operate  heating,  ventilation,  and  air conditioning
systems, fire alarms, security systems, telephones and other equipment utilizing
time-sensitive technology.  The Partnership is  in the process of evaluating its
potential exposure and costs if  such non-information technology systems are not
year 2000 compliant and expects to be able to complete its assessment during the
second quarter of 1999.

YEAR 2000 COSTS

The Partnership's General  Partner  and  its  Affiliates  estimate that costs to
achieve  year  2000   compliance   will   not   exceed  $50,000.  However,  only
approximately 1% of these costs will  be  directly  allocated to and paid by the
Partnership. The balance of the  year  2000 compliance costs, approximately 99%,
will be paid  by  the  General  Partner  and  its  Affiliates.   Total year 2000
compliance  costs  incurred  through   September   30,  1998  are  estimated  at
approximately $5,000.

YEAR 2000 RISKS

The most reasonable likely worst case  scenario for the Partnership with respect
to the year 2000 non-compliance  of  its  business computer systems would be the
inability to access  information  which  could  result  in  the failure to issue
financial reports.   The  most  reasonable  likely  worst  case scenario for the
Partnership with respect  to  the  year  2000  non-compliance  of its tenants is
failure to receive rental  income  which  could  result in the Partnership being
unable to meet  cash  requirements  for  monthly  expenses.  The most reasonable
likely worst case scenario for  the  Partnership  with  respect to the year 2000
non-compliance of its suppliers  is  the  failure to supply necessary utilities;
including, but not limited to heating,  as  a result of a malfunctioning of non-
information technology systems in some of the Partnership's properties.

CONTINGENCY PLAN

The Partnership is in the process  of  formulating a contingency plan which will
be developed by July of 1999.






                                     -12-



                          PART II - Other Information

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

Item 7.  Exhibits and Reports on Form 8-K

     (a) Exhibits:

         (27) Financial Data Schedule

     (b) Reports on Form 8-K:

         None











































                                     -13-



                                  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: November 12, 1998


                                  /S/ PATRICIA A. CHALLENGER

                            By:   Patricia A. Challenger
                                  Senior Vice President
                            Date: November 12, 1998


                                  /S/ KELLY TUCEK

                            By:   Kelly Tucek
                                  Principal Financial Officer and
                                  Principal Accounting Officer
                            Date: November 12, 1998





















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