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 June 30, 2005or

[ ]  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

Indicate by a checkmark whether the registrant is an accelerated filer (as defined in Securities Exchange Act Rule 12b-2)    Yes    No X

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INLAND MONTHLY INCOME FUND II, L.P.
(a limited partnership)
Balance Sheets
June 30, 2005 and December 31, 2004
(unaudited)Assets



|                                                                                                                                                               |   | 2005       | 2004      
|-------------------------------------------------------------------------------------------------------------------------------------------------------------- | - | ---------- | ----------
|Current assets:                                                                                                                                                |   |            |           
|Cash and cash equivalents                                                                                                                                      | $ | 6,179,587  | 2,950,435 
|Accounts and rents receivable                                                                                                                                  |   | 6,575      | 1,603     
|Investment in securities                                                                                                                                       |   | 5,545      | 3,661     
|Other assets                                                                                                                                                   |   | 3,336      | 8,768     
|                                                                                                                                                               |   |            |           
|Total current assets                                                                                                                                           |   | 6,195,043  | 2,964,467 
|                                                                                                                                                               |   |            |           
|Investment properties (including acquisition fees paid to Affiliates of     $843,175 and $1,250,037 at June 30, 2005 and December 31, 2004,     respectively): |   |            |           
|Land                                                                                                                                                           |   | 1,266,999  | 3,187,438 
|Buildings and improvements (net of impairment loss of $762,000 at     December 31, 2004)                                                                       |   | 9,671,409  | 12,061,443
|                                                                                                                                                               |   |            |           
|                                                                                                                                                               |   | 10,938,408 | 15,248,881
|Less accumulated depreciation                                                                                                                                  |   | 4,437,117  | 5,872,774 
|                                                                                                                                                               |   |            |           
|Net investment properties                                                                                                                                      |   | 6,501,291  | 9,376,107 
|                                                                                                                                                               |   |            |           
|Other assets:                                                                                                                                                  |   |            |           
|Deferred rent receivable (Note 2)                                                                                                                              |   | -          | 168,997   
|                                                                                                                                                               |   |            |           
|Total other assets                                                                                                                                             |   | -          | 168,997   
|                                                                                                                                                               |   |            |           
|Total assets                                                                                                                                                   | $ | 12,696,334 | 12,509,571



See accompanying notes to financial statements.

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INLAND MONTHLY INCOME FUND II, L.P.
(a limited partnership)
Balance Sheets
(continued)
June 30, 2005 and December 31, 2004
(unaudited)Liabilities and Partners' Capital

|                                                                                                                                                                |   | 2005         | 2004        
|--------------------------------------------------------------------------------------------------------------------------------------------------------------- | - | ------------ | ------------
|                                                                                                                                                                |   |              |             
|Current liabilities:                                                                                                                                            |   |              |             
|Accounts payable                                                                                                                                                | $ | 12,110       | 4,326       
|Accrued real estate taxes                                                                                                                                       |   | 328,490      | 46,349      
|Due to Affiliates (Note 3)                                                                                                                                      |   | 7,281        | 2,192       
|Deposits held for others                                                                                                                                        |   | 150,000      | 410,720     
|                                                                                                                                                                |   |              |             
|Total current liabilities                                                                                                                                       |   | 497,881      | 463,587     
|                                                                                                                                                                |   |              |             
|Partners' capital:                                                                                                                                              |   |              |             
|General Partner:                                                                                                                                                |   |              |             
|Capital contribution                                                                                                                                            |   | 500          | 500         
|Cumulative net income                                                                                                                                           |   | 40,997       | 41,725      
|                                                                                                                                                                |   |              |             
|                                                                                                                                                                |   | 41,497       | 42,225      
|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                                                                                                                                           |   | 19,549,532   | 19,396,335  
|Cumulative distributions                                                                                                                                        |   | (29,309,086) | (29,309,086)
|                                                                                                                                                                |   |              |             
|                                                                                                                                                                |   | 12,156,956   | 12,003,759  
|                                                                                                                                                                |   |              |             
|Total Partners' capital                                                                                                                                         |   | 12,198,453   | 12,045,984  
|                                                                                                                                                                |   |              |             
|Total liabilities and Partners' capital                                                                                                                         | $ | 12,696,334   | 12,509,571  



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 and six months ended June 30, 2005 and 2004
(unaudited)

|                                                            |   | Three months  | Three months  | Six months    | Six months   
|----------------------------------------------------------- | - | ------------- | ------------- | ------------- | -------------
|                                                            |   | ended         | ended         | ended         | Ended        
|                                                            |   | June 30, 2005 | June 30, 2004 | June 30, 2005 | June 30, 2004
|Income:                                                     |   |               |               |               |              
|Rental income (Note 2)                                      | $ | 459,426       | 250,089       | 497,380       | 500,177      
|Interest income                                             |   | 25,796        | 3,236         | 35,272        | 6,492        
|Other income                                                |   | 1,363         | 1,400         | 2,813         | 3,200        
|                                                            |   |               |               |               |              
|                                                            |   | 486,585       | 254,725       | 535,465       | 509,869      
|Expenses:                                                   |   |               |               |               |              
|Professional services to Affiliates                         |   | 5,247         | 4,059         | 9,165         | 8,503        
|Professional services to non-    affiliates                 |   | 3,630         | 3,864         | 28,733        | 33,134       
|General and administrative     expenses to Affiliates       |   | 12,393        | 9,264         | 18,881        | 12,875       
|General and administrative     expenses to non-affiliates   |   | 4,282         | 9,452         | 19,283        | 12,244       
|Property operating expenses to     Affiliates               |   | 1,278         | 3,585         | 3,929         | 7,191        
|Property operating expenses to     non-affiliates           |   | 109,247       | 151           | 113,007       | 151          
|Depreciation                                                |   | 69,002        | 69,003        | 138,004       | 138,005      
|Amortization                                                |   | -             | -             | -             | 126          
|                                                            |   |               |               |               |              
|                                                            |   | 205,079       | 99,378        | 331,002       | 212,229      
|                                                            |   |               |               |               |              
|Operating income                                            |   | 281,506       | 155,347       | 204,463       | 297,640      
|                                                            |   |               |               |               |              
|Loss from discontinued operations,   including gain on sale |   | (5,411)       | (66,351)      | (53,878)      | (165,363)    
|                                                            |   |               |               |               |              
|Income before comprehensive income                          |   | 276,095       | 88,996        | 150,585       | 132,277      
|                                                            |   |               |               |               |              
|Unrealized gain on investment   securities                  |   | 618           | -             | 1,884         | -            
|                                                            |   |               |               |               |              
|Comprehensive income                                        | $ | 276,713       | 88,996        | 152,469       | 132,277      
|                                                            |   |               |               |               |              
|                                                            |   |               |               |               |              



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

For the three and six months ended June 30, 2005 and 2004
(unaudited)

|                                                                                                                                                    |   |               |               |               |              
|--------------------------------------------------------------------------------------------------------------------------------------------------- | - | ------------- | ------------- | ------------- | -------------
|                                                                                                                                                    |   | Three months  | Three months  | Six months    | Six months   
|                                                                                                                                                    |   | ended         | ended         | ended         | Ended        
|                                                                                                                                                    |   | June 30, 2005 | June 30, 2004 | June 30, 2005 | June 30, 2004
|Comprehensive income (loss) allocated to:                                                                                                           |   |               |               |               |              
|General Partner                                                                                                                                     |   | 97            | (953)         | (728)         | (1,878)      
|Limited Partners                                                                                                                                    |   | 276,616       | 89,949        | 153,197       | 134,155      
|                                                                                                                                                    |   |               |               |               |              
|Comprehensive income                                                                                                                                | $ | 276,713       | 88,996        | 152,469       | 132,277      
|                                                                                                                                                    |   |               |               |               |              
|Comprehensive income (loss) allocated to the one                                                                                                    |   |               |               |               |              
|General Partner Unit                                                                                                                                | $ | 97            | (953)         | (728)         | (1,878)      
|                                                                                                                                                    |   |               |               |               |              
|Comprehensive income per Unit,   basic and diluted, allocated to   Limited Partners per weighted   average Limited Partnership Units   of 50,095.50 | $ | 5.52          | 1.80          | 3.06          | 2.68         



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 six months ended June 30, 2005 and 2004
(unaudited)

|                                                                                    |   | 2005      | 2004     
|----------------------------------------------------------------------------------- | - | --------- | ---------
|                                                                                    |   |           |          
|Cash flows from operating activities:                                               |   |           |          
|Net income                                                                          | $ | 150,585   | 132,277  
|Adjustments to reconcile net income to net cash provided by   operating activities: |   |           |          
|Gain on sale of investment property                                                 |   | (76,858)  | -        
|Stock received as lease termination fee                                             |   | (49,345)  | -        
|Depreciation                                                                        |   | 151,544   | 187,762  
|Amortization                                                                        |   | -         | 126      
|Changes in assets and liabilities:                                                  |   |           |          
|Accounts and rents receivable                                                       |   | (4,972)   | 36       
|Other assets                                                                        |   | 5,432     | -        
|Deferred rent receivable                                                            |   | 168,997   | 24,865   
|Accounts payable                                                                    |   | 7,784     | (8,091)  
|Real estates taxes payable                                                          |   | 282,141   | 2,446    
|Due to Affiliates                                                                   |   | 5,089     | 7,767    
|                                                                                    |   |           |          
|Net cash provided by operating activities                                           |   | 640,397   | 347,188  
|                                                                                    |   |           |          
|Cash flows from investing activities:                                               |   |           |          
|Proceeds from sale of investment property                                           |   | 2,849,475 | -        
|                                                                                    |   |           |          
|Net cash provided by investing activities                                           |   | 2,849,475 | -        
|                                                                                    |   |           |          
|Cash flows from financing activities:                                               |   |           |          
|Deposits held for others                                                            |   | (260,720) | (59,583) 
|                                                                                    |   |           |          
|Net cash used in financing activities                                               |   | (260,720) | (59,583) 
|                                                                                    |   |           |          
|Net increase in cash and cash equivalents                                           |   | 3,229,152 | 287,605  
|Cash and cash equivalents at beginning of period                                    |   | 2,950,435 | 1,764,717
|                                                                                    |   |           |          
|Cash and cash equivalents at end of period                                          | $ | 6,179,587 | 2,052,322
|                                                                                    |   |           |          



See accompanying notes to financial statements.

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INLAND MONTHLY INCOME FUND II, L.P.
(a limited partnership)
Notes to Financial Statements
June 30, 2005
(unaudited)

Readers of this quarterly report should refer to the Partnership's audited financial statements for the fiscal year ended December 31, 2004, which are included in the Partnership's 2004 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

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 or 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 ("GAAP") 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.

In the opinion of management, the financial statements contain all the adjustments necessary 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.



The components of discontinued operations are outlined below and include the results of operations for the property sold:

|                                                   |   | Three months  | Three months  | Six months    | Six months   
|-------------------------------------------------- | - | ------------- | ------------- | ------------- | -------------
|                                                   |   | ended         | ended         | ended         | Ended        
|                                                   |   | June 30, 2005 | June 30, 2004 | June 30, 2005 | June 30, 2004
|Expenses:                                          |   |               |               |               |              
|Property operating expenses to Affiliates          |   | 427           | -             | 427           | -            
|Property operating expenses to
     non-affiliates |   | 81,842        | 40,084        | 116,769       | 115,606      
|Depreciation                                       |   | -             | 26,267        | 13,540        | 49,757       
|                                                   |   |               |               |               |              
|Net operating loss                                 |   | (82,269)      | (66,351)      | (130,736)     | (165,363)    
|Gain on sale                                       |   | 76,858        | -             | 76,858        | -            
|                                                   |   |               |               |               |              
|Loss from discontinued operations                  | $ | (5,411)       | (66,351)      | (53,878)      | (165,363)    

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INLAND MONTHLY INCOME FUND II, L.P.
(a limited partnership)
Notes to Financial Statements
(continued)
June 30, 2005
(unaudited)



Comprehensive income is defined as the change in equity of a business enterprise from transactions and other events from non-owner sources.  Comprehensive income includes net earnings and other non-owner changes in equity which bypass the statement of operations and are reported as a separate component of partners' capital.  For the six months ended June 30, 2005, other comprehensive income includes the unrealized gain on the available-for-sale investment.  There was no comprehensive income as of June 30, 2004.

(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 $168,997 and $24,865 for the six months ended June 30, 2005 and 2004, respectively, of rental income for the period of occupancy for which stepped rent increases apply and $0 and $168,997 in related deferred rent receivable as of June 30, 2005 and December 31, 2004, respectively.

(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 $7,281 and $2,192 was unpaid as of June 30, 2005 and December 31, 2004, respectively.

An affiliate of the General Partner earned property management fees of $4,356 and $7,191, for the six months ended June 30, 2005 and 2004, respectively, in connection with managing the Partnership's properties. Such fees are included in loss from discontinued operations and property operating expenses to affiliates, all of which was paid as of June 30, 2005 and December 31, 2004.



On August 5, 2004, we received 5,710 shares of Kmart common stock as a termination fee on the lease. The value of the stock at the close of business on August 5, 2004 was $67.53 per share resulting in lease termination fees valued at $385,596, which was included in rental income in 2004.  During 2004, we sold 5,673 shares of the Kmart stock and recorded a gain of $84,944. On May 19, 2005, we received an additional 356 shares of Kmart stock and recorded lease termination fees of $49,345.  We sold the additional 356 shares on May 19, 2005 for $49,345 and recorded no gain. The remaining 37 shares were sold in July 2005.

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INLAND MONTHLY INCOME FUND II, L.P.
(a limited partnership)
Notes to Financial Statements
(continued)
June 30, 2005
(unaudited)



(5) Subsequent Events



In August 2005, an unaffiliated third party made an offer to the Limited Partners to acquire their units in the Partnership for $165 per unit. The General Partner has taken a neutral position on this offer based on the pending sales contracts on the Colonial Manor Living Center and Scandinavian Health Club and the completed sale of the Kmart property in May 2005.

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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 our 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 us and our Affiliates, including the general partner.

We electronically file our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and all amendments to those reports with the Securities and Exchange Commission (SEC).  The public may read and copy any of the reports that are filed with the SEC at the SEC's Public Reference Room at 100 F Street, NE, Washington, DC 20549.  The public may obtain information on the operation of the Public Reference room by calling the SEC at (800)-SEC-0330.  The SEC maintains an Internet site at (www.sec.gov) that contains reports, proxy and information statements and other information regarding issuers that file electronically.

Critical Accounting Policies

The Securities and Exchange Commission issued Financial Reporting Release or FRR No. 60 "Cautionary Advice Regarding Disclosure About Critical Accounting Policies."  A critical accounting policy is one that would materially affect our operations or financial condition, and requires management to make estimates or judgements in certain circumstances. We believe that our most critical accounting policies relate to how we value our investment properties, recognize revenue, and our cost capitalization and depreciation policies. These judgements often result from the need to make estimates about the effect of matters that are inherently uncertain.  The purpose of the FRR is to provide investors with an understanding of how management forms these policies.  Critical accounting policies discussed in this section are not to be confused with accounting principles and methods disclosed in accordance with accounting principles generally accepted in the United States of America or GAAP.  GAAP requires information in financial statements about accounting principles, methods used and disclosures pertaining to significant estimates.  The following disclosure discusses judgements known to management pertaining to trends, events or uncertainties known which were taken into consideration upon the application of those policies and the likelihood that materially different amounts would be reported upon taking into consideration different conditions and assumptions.

Valuation of Investment Properties-On a quarterly basis, in accordance with Statement of Financial Accounting Standards No. 144, we conduct an impairment analysis to ensure that the carrying value of each property does not exceed its estimated fair value.  If this were to occur, we would be required to record an impairment loss equal to the excess of carrying value over fair value.

-10-

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In determining the value of an investment property and whether the property is impaired, management considers several factors such as projected rental and vacancy rates, property operating expenses, capital expenditures and interest rates.  The capitalization and discount rates used to determine property valuation are based on the market in which the property is located, length of leases, tenant financial strength, the economy in general, demographics, environment, property location, visibility, age, physical condition and investor return requirements among others. All of the aforementioned factors are considered by management in determining the value of any particular property.  The value of any particular property is sensitive to the actual results of any of these uncertain factors, either individually or taken as a whole.  Should the actual results differ from management's judgement, the valuation could be negatively or positively affected.

The valuation and possible subsequent impairment of investment properties is a significant estimate that can and does change based on management's continuous process of analyzing each property. As of December 31, 2004, we had recorded an impairment loss on the Kmart property of $762,000.

Revenue Recognition -Under GAAP, we are required to recognize rental income based on the effective monthly rent for each lease.  The effective monthly rent is equal to the average monthly rent during the term of the lease, not the stated rent in the lease for any particular month.  The process, known as "straight-lining" rent generally has the effect of increasing rental revenues during the early phases of a lease and decreasing rental revenues in the latter phases of a lease. If rental income calculated on a straight-line basis exceeds the cash rent due under the lease, the difference is recorded as an increase in deferred rent receivable and included as a component of rental income in the accompanying Statements of Operations.  If the cash rent due under the lease exceeds rental income calculated on a straight-line basis, the difference is recorded as a decrease in deferred rent receivable and is also included as a component of rental income in the accompanying Statements of Operations.

Cost Capitalization and Depreciation Policies -We review all expenditures and capitalize any item exceeding $5,000 deemed to be an upgrade or a tenant improvement.  If we capitalize more expenditures, current depreciation expense would be higher; however, total current expenses would be lower.  Depreciation expense is computed using the straight-line method.  Buildings and improvements are depreciated based upon estimated useful lives of 30 to 40 years for buildings and improvements and the remaining life of the related lease for tenant improvements.

Liquidity and Capital Resources

On August 4, 1988, we commenced an offering of 50,000 (subject to increase to 80,000) limited partnership units or units pursuant to a Registration Statement on Form S-11 under the Securities Act of 1933. The offering terminated on August 4, 1990, after we had sold 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 our partnership. We acquired five properties utilizing $21,224,542 of capital proceeds collected. On January 8, 1991, we sold one of our properties, The Wholesale Club. On November 30, 1999, we sold another of our properties, Eurofresh Plaza. As of June 30, 2005, cumulative distributions to limited partners totaled $29,309,086, 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 $22,520,703 represents distributable cash flow from the properties. We 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 June 30, 2005, we had cash and cash equivalents of $6,179,587. We intend to use such remaining funds for distributions and for working capital requirements.

-11-

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Through June 30, 2002, the properties owned by us were generating cash flow in excess of the 8% annualized distributions to the limited partners (paid monthly), in addition to covering all our operating expenses. As of June 30, 2002, we made cumulative distributions of $253,868 in addition to the 8% annualized return to the limited partners from excess cash flow. As a result of the termination of the Kmart lease on June 29, 2002, we reduced the annualized return to the limited partners to 5%, beginning in July 2002. In December 2002, our general partner temporarily suspended distributions to the limited partners due to uncertainty of the Elite and Scandinavian Health Club leases and re-tenanting costs anticipated with the Kmart property.  We will continue to monitor our cash needs and the cash available for distribution.  To the extent that the cash flow from the properties is insufficient to meet our needs, we may rely on advances from affiliates of the general partner, other short-term financing, or may sell one or more of the properties.

On May 19, 2005, we sold the Kmart property for $2,800,000, net of costs, and recorded a gain of $76,858.

On August 5, 2004, we received 5,710 shares of Kmart common stock as a termination fee on the lease. The value of the stock at the close of business on August 5, 2004 was $67.53 per share resulting in lease termination fees valued at $385,596, which was included in rental income in 2004.  During 2004, we sold 5,673 shares of the Kmart stock and recorded a gain of $84,944. On May 19, 2005, we received an additional 356 shares of Kmart stock and recorded lease termination fees of $49,345.  We sold the additional 356 shares on May 19, 2005 for $49,345 and recorded no gain. The remaining 37 shares were sold in July 2005.



The General Partner hired a consultant/broker specializing in the nursing home industry and commenced marketing of the Colonial Manor property for sale to nursing home operators and land developers after Elite was relieved of its lease obligations. In the interim, the former subtenant has agreed to continue to operate the nursing home to afford a smooth transition with a new operator.

On June 12, 2005, after reviewing several offers, the General Partner accepted an offer of $4.5 million for the sale of the Colonial Manor Nursing Home to a nursing home operator. On June 15, 2005, the appointment of a Receiver was obtained to allow for the continued operation of the nursing home facility until the sale of the asset occurs. It is anticipated that the sale should occur during the third quarter of 2005.

We executed an amendment of the Scandinavian Health Club lease through September 30, 2013. Annual base rent increased from $359,094 to $383,231 per year commencing April 1, 2003.  As part of the extension, in 2003, we paid $400,000 for tenant improvements and equipment at the property. We are currently marketing this property for sale and anticipate a sale by the end 2005.

When the sale of all of our properties are completed, we anticipate terminating the partnership and making a final distribution to the partners shortly thereafter. However, there can be no assurance that these proposed sales will be completed or that a distribution will be made to the limited partners.

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Transactions with Related Parties

Our general partner and its affiliates are entitled to reimbursement for salaries and expenses of their employees relating to our administration. Such costs of $28,046 and $21,378 are included in professional services to affiliates and general and administrative expenses to affiliates for the six months ended June 30, 2005 and 2004, respectively, of which $7,281 and $2,192 was unpaid as of June 30, 2005 and December 31, 2004, respectively.

An affiliate of our general partner earned property management fees of $4,356 and $7,191 for the six months ended June 30, 2005 and 2004, respectively, in connection with managing our properties. Such fees are included in loss from discontinued operations and property operating expenses to affiliates, all of which was paid as of June 30, 2005 and December 31, 2004.

Results of Operations

At June 30, 2005, we owned two operating properties, Scandinavian Health Spa and Colonial Manor Living Center.  Scandinavian Health Spa is leased on a "triple-net" basis which means that all expenses of the property are passed through to the tenant. Colonial Manor Living Center was leased on a "triple-net" basis prior to April 2005 when the tenant terminated its lease.  Since the termination of the Kmart lease, and prior to the sale on May 19, 2005, we were responsible for maintenance of the structure and the parking lot and insurance, real estate taxes and common area maintenance of the Kmart property.

Rental income was $497,380 and $500,177 for the six months ended June 30, 2005 and 2004, respectively. The tenant of the Colonial Manor Living Center informed our general partner that it intended to default on all of its lease obligations under its lease and the lease of the Douglas and Hillside nursing homes (owned by a separate partnership also managed by our general partner). Rent for all three properties was secured by a $400,000 letter of credit which covered all three properties on a joint and several basis. The sale of the Douglas and Hillside nursing homes was completed on April 21, 2005 and was contingent, however, upon release of the letter of credit.  Sales proceeds from the sale of the Douglas and Hillside nursing homes of $228,768, equal to the Colonial Manor proportionate share of the letter of credit, were allocated and paid to us to reimburse us for the Colonial Manor rent which would have been covered under the letter of credit had it not been terminated.   As a result of the Colonial Manor tenant's intent to default on its lease obligations, we have written off the remaining deferred rent receivable of $168,997 as of June 30, 2005 and reduced rental income accordingly.

Interest income was $35,272 and $6,492 for the six months ended June 30, 2005 and 2004, respectively.  The increase in interest income for the six months ended June 30, 2005, as compared to the six months ended June 30, 2004, is due to an increase in cash and cash equivalents available to invest in overnight investments.

General and administrative expenses to affiliates were $18,881 and $12,875 for the six months ended June 30, 2005 and 2004, respectively. The increase in 2005 was due to an increase in data processing expense. General and administrative expenses to non-affiliates were $19,283 and $12,244 for the six months ended June 30, 2005 and 2004, respectively. The increase in 2005 was due to an increase in state tax expense.

Property operating expenses to non-affiliates were $113,007 and $151 for the six months ended June 30, 2005 and 2004, respectively. The increase in 2005 was due to an increase in real estate tax expense as a result of the termination of the Colonial Manor lease.

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The following is a list of approximate occupancy levels for the partnership's investment properties as of the end of each quarter during 2004 and 2005:

|                        | 2004  |       | 2005 
|----------------------- | ----- | ----- | -----
|Properties              | 03/31 | 06/30 | 09/30
|Scandinavian Health Spa | 100%  | 100%  | 100% 
|Broadview Heights, Ohio |       |       |      
|Colonial Manor          | 100%  | 100%  | 100% 
|LaGrange, Illinois      |       |       |      
|Kmart                   | 0%    | 0%    | 0%   
|Chandler, Arizona       |       |       |      

Although the leasee of the Colonial Manor property has terminated its lease, the leasee's former subtenant has agreed to continue to operate the nursing home to afford a smooth transition with a new operator.

Subsequent Events



In August 2005, an unaffiliated third party made an offer to the Limited Partners to acquire their units in the Partnership for $165 per unit. The General Partner has taken a neutral position on this offer based on the pending sales contracts on the Colonial Manor Living Center and Scandinavian Health Club and the completed sale of the Kmart property in May 2005. Limited Partners should consider this information when evaluating whether the solicitation to purchase their shares is in their best interest.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not Applicable.





There were no changes in our internal controls over financial reporting that occurred during the six months ended June 30, 2005 that materially affected, or are reasonably likely to materially affect, our internal control of financial reporting.

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PART II - Other Information

Items 1 through 5 are omitted because of the absence of conditions under which they are required.

(a)  Exhibits:
     31.1 Rule 13a-14(a)/15d-14(a) Certification by principal executive officer
     31.2 Rule 13a-14(a)/15d-14(a) Certification by principal financial officer 
     32.1 Section 1350 Certification by principal executive officer 
     32.2 Section 1350 Certification by principal financial officer 
(b)  Reports on Form 8-K:
          None

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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/ BRENDA G. GUJRAL                     
|      |                                          
|By:   | Brenda G. Gujral                         
|      | President                                
|Date: | August 11, 2005                          
|      |                                          
|      |                                          
|      | /S/ GUADALUPE GRIFFIN                    
|      |                                          
|By:   | Guadalupe Griffin                        
|      | Vice President                           
|Date: | August 11, 2005                          
|      |                                          
|      |                                          
|      | /S/ KELLY TUCEK                          
|      |                                          
|By:   | Kelly Tucek                              
|      | Vice President and                       
|      | Principal Financial Officer              
|Date: | August 11, 2005                          

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