FORM 10-QSB--QUARTERLY OR TRANSITIONAL REPORT UNDER SECTION 13 OR 15(D)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
                        QUARTERLY OR TRANSITIONAL REPORT

                    U.S. Securities And Exchange Commission
                            Washington, D.C.  20549


                                  FORM 10-QSB


(Mark One)
[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


[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

               For the transition period from.........to.........


                         Commission file number 0-13454



                         NATIONAL PROPERTY INVESTORS 7
       (Exact name of small business issuer as specified in its charter)

         California                                              13-3230613
(State or other jurisdiction of                               (I.R.S. Employer
 incorporation or organization)                              Identification No.)


                     55 Beattie Place, Post Office Box 1089
                        Greenville, South Carolina 29602
                    (Address of principal executive offices)


                                 (864) 239-1000
                          (Issuer's telephone number)


Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 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

                         PART I - FINANCIAL INFORMATION


ITEM 1.  FINANCIAL STATEMENTS


a)
                         NATIONAL PROPERTY INVESTORS 7
                                 BALANCE SHEET
                                  (Unaudited)

                               September 30, 1998
                        (in thousands, except unit data)


Assets
  Cash and cash equivalents                             $  2,123
  Receivables and deposits                                   568
  Restricted escrows                                         488
  Other assets                                               540
  Investment properties:
    Land                                     $  3,738
    Buildings and related property             41,970
                                               45,708
    Less accumulated depreciation             (25,358)    20,350

                                                               
                                                        $ 24,069

Liabilities and Partners' Capital (Deficit)

Liabilities
  Accounts payable                                      $     83
  Tenant security deposit liabilities                        129
  Accrued property taxes                                     238
  Other liabilities                                          278
  Mortgage notes payable                                  20,256

Partners' Capital (Deficit):
  General partner's                          $   (272)
  Limited partners' (60,517 units issued
       and outstanding)                         3,357      3,085
                                                              
                                                        $ 24,069

                 See Accompanying Notes to Financial Statements

b)
                         NATIONAL PROPERTY INVESTORS 7
                            STATEMENTS OF OPERATIONS
                                  (Unaudited)
                        (in thousands, except unit data)


                             Three Months Ended   Nine Months Ended
                                September 30,       September 30,
                                1998      1997      1998      1997
Revenues:
 Rental income                $ 1,742   $ 1,736   $ 5,119   $ 5,166
 Other income                     109       116       294       334
   Total revenues               1,851     1,852     5,413     5,500

Expenses:
 Operating                        774       963     2,298     2,421
 General and administrative       105        62       317       198
 Depreciation                     432       428     1,279     1,268
 Interest                         409       411     1,229     1,232
 Property taxes                    97        97       292       305
   Total expenses               1,817     1,961     5,415     5,424
                                                                  
Net income (loss)             $    34   $  (109)  $    (2)  $    76

Net income (loss) allocated
  to general partner (1%)     $    --   $    (1)  $    --   $     1
Net income (loss) allocated
  to limited partners (99%)        34      (108)       (2)       75
                                                                  
Net income (loss)             $    34   $  (109)  $    (2)  $    76

Net income (loss) per
  limited partnership unit    $   .56   $ (1.78)  $  (.03)  $  1.24

Distributions per limited
  partnership unit            $ 12.27   $    --   $ 27.17   $    --

                 See Accompanying Notes to Financial Statements

c)
                         NATIONAL PROPERTY INVESTORS 7
              STATEMENT OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
                                  (Unaudited)
                        (in thousands, except unit data)


                                  Limited
                                Partnership  General    Limited
                                   Units    Partner's  Partners'    Total
                                                                        
Original capital contributions    60,517     $     1    $30,259    $30,260

Partners' (deficit) capital
at December 31, 1997              60,517     $  (255)   $ 5,003    $ 4,748

Distributions to partners             --         (17)    (1,644)    (1,661)

Net loss for the nine months
ended September 30, 1998              --          --         (2)        (2)

Partners' (deficit) capital
at September 30, 1998             60,517     $  (272)   $ 3,357    $ 3,085

                 See Accompanying Notes to Financial Statements

d)
                         NATIONAL PROPERTY INVESTORS 7
                            STATEMENTS OF CASH FLOWS
                                  (Unaudited)
                                 (in thousands)



                                                  Nine Months Ended
                                                    September 30,
                                                    1998      1997
Cash flows from operating activities:
  Net (loss) income                               $    (2)  $    76
  Adjustments to reconcile net (loss) income to
   net cash provided by operating activities:
   Depreciation                                     1,279     1,268
   Amortization of loan costs                          83        84
   Change in accounts:
     Receivables and deposits                        (146)     (192)
     Other assets                                      29         1
     Accounts payable                                  (5)     (156)
     Tenant security deposit liabilities                1       (16)
     Accrued property taxes                           182       170
     Other liabilities                                  9        17

       Net cash provided by operating activities    1,430     1,252

Cash flows from investing activities:
  Property improvements and replacements             (282)     (312)
  Net withdrawals from (deposits to) restricted 
     escrows                                          164       (93)

       Net cash used in investing activities         (118)     (405)

Cash flows from financing activities:
  Payments on mortgage notes payable                  (28)      (25)
  Loan costs paid                                      --       (49)
  Distributions to partners                        (1,661)   (1,955)

       Net cash used in financing activities       (1,689)   (2,029)

Net decrease in cash and cash equivalents            (377)   (1,182)

Cash and cash equivalents at beginning of period    2,500     5,471
                                                                  
Cash and cash equivalents at end of period        $ 2,123   $ 4,289

Supplemental disclosure of cash flow information:
  Cash paid for interest                          $ 1,147   $ 1,149

                 See Accompanying Notes to Financial Statements

e)
                         NATIONAL PROPERTY INVESTORS 7
                         NOTES TO FINANCIAL STATEMENTS
                                  (Unaudited)

NOTE A - BASIS OF PRESENTATION

The accompanying unaudited financial statements of National Property Investors 7
(the "Partnership") have been prepared in accordance with generally accepted
accounting principles for interim financial information and with the
instructions to Form 10-QSB and Item 310(b) of Regulation S-B. Accordingly, they
do not include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements.  In the
opinion of NPI Equity Investments, Inc., (the "Managing General Partner" or "NPI
Equity"), all adjustments (consisting of normal recurring accruals) considered
necessary for a fair presentation have been included. Operating results for the
three and nine month periods ended September 30, 1998, are not necessarily
indicative of the results that may be expected for the fiscal year ending
December 31, 1998.  For further information, refer to the financial statements
and footnotes thereto included in the Partnership's annual report on Form 10-KSB
for the year ended December 31, 1997.

Certain reclassifications have been made to the 1997 information to conform to
the 1998 presentation.

NOTE B - TRANSACTIONS WITH AFFILIATED PARTIES

The Partnership has no employees and is dependent on the Managing General
Partner and its affiliates for the management and administration of all
partnership activities. The partnership agreement provides for payments to
affiliates for services and as reimbursement of certain expenses incurred by
affiliates on behalf of the Partnership.

The following transactions with the Managing General Partner and/or its
affiliates were incurred in the nine month periods ended September 30, 1998 and
1997 (in thousands):

                                                         Nine Months Ended
                                                            September 30,
                                                           1998      1997

Property management fees (included in operating expenses) $ 272     $ 273
Reimbursement for services of affiliates, including
 approximately $9,000 and $5,000 of construction
 services reimbursements for the nine months ended
 September 30, 1998 and September 30, 1997, respectively
 (included in, general and administrative, and
 operating expenses)                                        154       137

In addition to the items noted above, for services relating to the
administration of the Partnership and operation of Partnership properties, NPI
Equity is entitled to receive payment for non-accountable expenses up to a
maximum of $150,000 per year, based upon the number of Partnership units sold,
subject to certain limitations.  NPI Equity was entitled to a reimbursement,
which is included in general and administrative expense, of approximately
$91,000 during the nine months ended September 30, 1998, and was not entitled to
receive a reimbursement during the nine months ended September 30, 1997.

For managing the affairs of the Registrant, the Managing General Partner of the
Registrant is entitled to receive a partnership management fee.  The fee is
equal to 4% of the Registrant's adjusted cash from operations, 50% of which is
subordinated to the limited partners' receipt of an 8% return on adjusted
invested capital and 50% of which is subordinated to the limited partners'
receipt of a 5% return on adjusted invested capital.  The Managing General
Partner was entitled to a fee of approximately $34,000 during the nine months
ended September 30, 1998, and was not entitled to receive a fee for the nine
months ended September 30, 1997.

For the period from January 1, 1997, through August 31, 1997, the Partnership
insured its properties under a master policy through an agency affiliated with
the Managing General Partner, but with an insurer unaffiliated with the Managing
General Partner. An affiliate of the Managing General Partner acquired, in the
acquisition of a business, certain financial obligations from an insurance
agency which was later acquired by the agent who placed the master policy.  The
agent assumed the financial obligations to the affiliate of the Managing General
Partner which received payments on these obligations from the agent.  The amount
of the Partnership's insurance premiums accruing to the benefit of the affiliate
of the Managing General Partner by virtue of the agent's obligations is not
significant.

NOTE C - DISTRIBUTIONS TO PARTNERS

Distributions totaling approximately $1,661,000 were declared and paid from
operating funds during the nine months ended September 30, 1998.  Approximately
$17,000 was paid to the Managing General Partner, and approximately $1,644,000
($27.17 per limited partnership unit) was paid to the limited partners.  During
January 1997, a distribution of approximately $1,955,000 was paid to the
partners.  Approximately $20,000 was paid to the Managing General Partner and
approximately $1,935,000 ($32.30 per limited partnership unit) was paid to the
limited partners.  This distribution was declared in December 1996 and it
primarily represented proceeds from property refinancings.

NOTE D - TRANSFER OF CONTROL; SUBSEQUENT EVENT

On October 1, 1998, Insignia Financial Group, Inc. ("Insignia") completed its
merger with and into Apartment Investment and Management Company ("AIMCO"), a
publicly traded real estate investment trust, with AIMCO being the surviving
corporation (the "Insignia Merger"). As a result of the Insignia Merger, AIMCO
acquired control of the Managing General Partner.  In addition, AIMCO also
acquired approximately 51% of the outstanding common shares of beneficial
interest of Insignia Properties Trust ("IPT"), the entity which controls the
Managing General Partner.  Also, effective October 1, 1998, IPT and AIMCO
entered into an Agreement and plan of Merger pursuant to which IPT is to be
merged with and into AIMCO or a subsidiary of AIMCO (the "IPT Merger").  The IPT
Merger requires the approval of the holders of a majority of the outstanding IPT
Shares. AIMCO has agreed to vote all of the IPT Shares owned by it in favor of
the IPT Merger and has granted an irrevocable limited proxy to unaffiliated
representatives of IPT to vote the IPT Shares acquired by AIMCO and its
subsidiaries in favor of the IPT Merger.  As a result of AIMCO's ownership and
its agreement, the vote of no other holder of IPT is required to approve the
merger.  The Managing General Partner does not believe that this transaction
will have a material effect on the affairs and operations of the Partnership.


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

The Partnership's investment properties consist of five apartment complexes.
The following table sets forth the average occupancy of the properties for each
of the nine month periods ended September 30, 1998 and 1997:


                            Average Occupancy
                              1998     1997
Fairway View II Apartments
  Baton Rouge, Louisiana      96%       94%

Northwoods Apartments
  Pensacola, Florida          95%       95%

Patchen Place Apartments
  Lexington, Kentucky         85%       88%

The Pines Apartments
  Roanoke, Virginia           95%       96%

South Point Apartments
  Durham, North Carolina      89%       92%

The Managing General Partner attributes the decrease in occupancy at Patchen
Place Apartments and South Point Apartments to soft markets caused by increased
competition as a result of newly constructed units and lower interest rates
enticing first time homebuyers.

The Partnership's net loss for the nine month period ended September 30, 1998,
was approximately $2,000 compared to net income of approximately $76,000 for the
nine month period ended September 30, 1997. The Partnership's net income for the
three month period ended September 30, 1998, was approximately $34,000 compared
to a net loss of approximately $109,000 for the three month period ended
September 30, 1997. The decrease in net income for the nine months ended
September 30, 1998, is primarily due to a decrease in rental and other income
and an increase in general and administrative expense. Rental income decreased
as a result of decreased occupancy at Patchen Place, South Point and The Pines
Apartments, as well as increased concession costs at these properties incurred
in an effort to improve occupancy. This decrease in rental income was partially
offset by increased occupancy at Fairway View II Apartments and increased rental
rates at Fairway View II, Patchen Place, Northwoods, and The Pines Apartments.
Other income decreased due to a decrease in interest income which resulted from
lower cash balances being held by the Partnership during the nine months ended
September 30, 1998, compared to the corresponding period of 1997.  The decrease
in cash balances was a result of distributions made during 1997 and 1998.
General and administrative expenses increased primarily due to an $91,000 non-
accountable reimbursement and a $34,000 partnership management fee paid to the
Managing General Partner in connection with the distributions made during the
nine months ended September 30, 1998 (see "Note B - Transactions with Affiliated
Parties"). Partially offsetting these decreases in net income was a decrease in
operating expenses primarily as a result of decreased maintenance expenses due
to a renovation project at Fairway View II Apartments completed in 1997.
Included in operating expense for the nine month period ended September 30,
1998, is approximately $105,000 of major repairs and maintenance comprised
primarily of exterior building repairs in connection with the continuation of
the exterior renovation project which was started during 1997 at Patchen Place
Apartments.  For the nine month period ended September 30, 1997, maintenance
expense included approximately $248,000 of major repairs and maintenance
comprised primarily of parking lot repairs, exterior building repairs, exterior
painting, and swimming pool repairs.

The increase in net income for the three month period ended September 30, 1998
compared to the corresponding period in 1997 was primarily due to the decrease
in operating expense discussed above.

As part of the ongoing business plan of the Partnership, the Managing General
Partner monitors the rental market environment of its investment properties to
assess the feasibility of increasing rents, maintaining or increasing occupancy
levels and protecting the Partnership from increases in expense.  As part of
this plan, the Managing General Partner attempts to protect the Partnership from
the burden of inflation-related increases in expenses by increasing rents and
maintaining a high overall occupancy level.  However, due to changing market
conditions, which can result in the use of rental concessions and rental
reductions to offset softening market conditions, there is no guarantee that the
Managing General Partner will be able to sustain such a plan.

At September 30, 1998, the Partnership had cash and cash equivalents of
approximately $2,123,000 compared to approximately $4,289,000 at September 30,
1997. The net decrease in cash and cash equivalents for the nine months ended
September 30, 1998, was approximately $377,000 compared to a net decrease of
approximately $1,182,000 for the nine months ended September 30, 1997.  Net cash
provided by operating activities increased primarily as a result of a decrease
in cash used for accounts payable related to the timing of payments to vendors
and a decrease in cash used for receivables and deposits due to the timing of
cash receipts.  These increases were partially offset by the decrease in net
income discussed above.  Net cash used in investing activities decreased due to
an increase in net withdrawals from restricted escrows and a decrease in
property improvements and replacements.  Net cash used in financing activities
decreased primarily as a result of lower distributions paid to partners during
the nine months ended September 30, 1998 compared to the corresponding period in
1997.  In addition, there were loan costs paid for the refinancing of Northwoods
Apartments in 1997 with no comparable costs incurred in 1998.

The Managing General Partner has extended to the Partnership a credit line of up
to $500,000.  At the present time, the Partnership has no outstanding amounts
due under this line of credit.  Based on present plans, management does not
anticipate the need to borrow in the near future.  Other than cash and cash
equivalents, the line of credit is the Partnership's only unused source of
liquidity.

The sufficiency of existing liquid assets to meet future liquidity and capital
expenditure requirements is directly related to the level of capital
expenditures required at the properties to adequately maintain the physical
assets and other operating needs of the Partnership and to comply with Federal,
State and local legal and regulatory requirements.  The Managing General Partner
is currently assessing the need for capital improvements at each of the
Partnership's properties. To the extent that additional capital improvements are
required, the Partnership's distributable cash flow, if any, may be adversely
affected.  The mortgage indebtedness of approximately $20,256,000 is amortized
over varying periods with required balloon payments ranging from February 1,
2001 to November 2003.  The Managing General Partner will attempt to refinance
such indebtedness or sell the properties prior to such maturity date.  If the
properties cannot be refinanced or sold for a sufficient amount, the Partnership
will risk losing such properties through foreclosure.  In January 1997, the
Partnership distributed approximately $1,955,000 to the partners. This
distribution was accrued at December 31, 1996. Approximately $1,935,000 ($31.97
per limited partnership unit) was distributed to the limited partners;
approximately $20,000 was distributed to the general partner. Approximately
$1,561,000 of the distribution originated from refinancing proceeds of Fairway
View II, Patchen Place, Northwoods I & II, and South Point.  The remaining
amount originated from operations. In January 1998, the Partnership distributed
approximately $911,000 to the partners. The limited partners received
approximately $902,000 ($14.90 per limited partnership unit) and the general
partner received approximately $9,000.  In September 1998, the Partnership
distributed approximately $750,000 to the partners.  Approximately $742,000
($12.27 per limited partnership unit) was distributed to the limited partners
and the general partner received approximately $8,000. The Partnership's future
distribution policy will be reviewed on a quarterly basis.  There can be no
assurance, however, that the Partnership will generate sufficient funds from
operations to permit further distributions to its partners in 1998 or subsequent
periods.

On October 1, 1998, Insignia Financial Group, Inc. completed its merger with and
into Apartment Investment and Management Company ("AIMCO"), a publicly traded
real estate investment trust, with AIMCO being the surviving corporation (the
"Insignia Merger"). As a result of the Insignia Merger, AIMCO acquired control
of the Managing General Partner.  In addition, AIMCO also acquired approximately
51% of the outstanding common shares of beneficial interest of Insignia
Properties Trust ("IPT"), the entity which controls the Managing General
Partner.  Also, effective October 1, 1998, IPT and AIMCO entered into an
Agreement and plan of Merger pursuant to which IPT is to be merged with and into
AIMCO or a subsidiary of AIMCO (the "IPT Merger").  The IPT Merger requires the
approval of the holders of a majority of the outstanding IPT Shares. 
AIMCO has agreed to vote all of the IPT Shares owned by it in favor of the IPT
Merger and has granted an irrevocable limited proxy to unaffiliated
representatives of IPT to vote the IPT Shares acquired by AIMCO and its
subsidiaries in favor of the IPT Merger.  As a result of AIMCO's ownership and
its agreement, the vote of no other holder of IPT is required to approve the
merger.  The Managing General Partner does not believe that this The Managing 
General Partner does not believe that this transaction will have a material 
effect on the affairs and operations of the Partnership.

Year 2000

General Description of the Year 2000 Issue and the Nature and Effects of the
Year 2000 on Information Technology (IT) and Non-IT Systems

The Year 2000 Issue is the result of computer programs being written using two
digits rather than four to define the applicable year.  The Partnership is
dependent upon the Managing General Partner and its affiliates for management
and administrative services ("Managing Agent").  Any computer programs or
hardware that have date-sensitive software or embedded chips may recognize a
date using "00" as the year 1900 rather than the year 2000.  This could result
in a system failure or miscalculations causing disruptions of operations,
including, among other things, a temporary inability to process transactions,
send invoices, or engage in similar normal business activities.

The Managing Agent has determined that it will be required to modify or replace
significant portions of its software and certain hardware so that those systems
will properly utilize dates beyond December 31, 1999. The Managing Agent
presently believes that with modifications or replacements of existing software
and certain hardware, the Year 2000 Issue can be mitigated.  However, if such
modifications and replacements are not made, or are not completed timely, the
Year 2000 Issue could have a material impact on the operations of the Managing
Agent and the Partnership.

Status of Progress in Becoming Year 2000 Compliant

The Managing Agent's plan to resolve the Year 2000 Issue involves the following
four phases: assessment, remediation, testing and implementation.  To date, the
Managing Agent has fully completed its assessment of all information systems
that could be significantly affected by the Year 2000, and has begun the
remediation, testing and implementation phase on both hardware and software
systems.  Assessments are continuing in regards to embedded systems in operating
equipment.  The Managing Agent anticipates having all phases complete by June 1,
1999.

In addition to the areas the Partnership is relying on the Managing Agent to
verify compliance with,  the Partnership has certain operating equipment,
primarily at the property sites,  which needed to be evaluated for Year 2000
compliance.  The focus of the Managing General Partner was to the security
systems, elevators, heating-ventilation-air-conditioning systems, telephone
systems and switches, and sprinkler systems. The Managing General Partner is
currently engaged in the identification of all non-compliant operational
systems, and is in the process of estimating the costs associated with any
potential modifications or replacements needed to such systems in order for them
to be Year 2000 compliant.  It is not expected that such costs would have a
material adverse affect upon  the operations of the Partnership.

Risk Associated with the Year 2000

The Managing General Partner believes that the Managing Agent has an effective
program in place to resolve the Year 2000 issue in a timely manner and has
appropriate contingency plans in place for critical applications that could
affect the Partnership's operations.   To date, the Managing General Partner is
not aware of any external agent with a Year 2000 issue that would materially
impact the Partnership's results of operations, liquidity or capital resources.
However, the Managing General Partner has no means of ensuring that external
agents will be Year 2000 compliant.  The Managing General Partner does not
believe that the inability of external agents to complete their Year 2000
resolution process in a timely manner will have a material impact on the
financial position or results of operations of the Partnership.  However, the
effect of non-compliance by external agents is not readily determinable.

Other

Certain items discussed in this quarterly report may constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995 (the "Reform Act") and as such may involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance
or achievements of the Partnership to be materially different from any future
results, performance or achievements expressed or implied by such forward-
looking statements.  Such forward-looking statements speak only as of the date
of this quarterly report.  The Partnership expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any forward-looking
statements contained herein to reflect any change in the Partnership's
expectations with regard thereto or any change in events, conditions or
circumstances on which any such statement is based.



                          PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

In March 1998, several putative unit holders of limited partnership units of the
Partnership commenced an action entitled Rosalie Nuanes, et al. v. Insignia
Financial Group, Inc., et al. in Superior Court of the State of California for
the County of San Mateo.  The Plaintiffs named as defendants, among others, the
Partnership, the Managing General Partner and several of their affiliated
partnerships and corporate entities. The complaint purports to assert claims on
behalf of a class of limited partners and derivatively on behalf of a number of
limited partnerships (including the Partnership) which are named as nominal
defendants, challenging the acquisition by Insignia Financial Group, Inc.
"Insignia" and entities which were, at the time, affiliates of Insignia 
("Insignia Affiliates") of interests in certain general partner entities, 
past tender offers by Insignia Affiliates to acquire limited partnership units, 
the management of partnerships by Insignia Affiliates as well as a recently 
announced agreement between Insignia and AIMCO.  The complaint seeks monetary 
damages and equitable relief, including judicial dissolution of the 
Partnership.  On June 25, 1998, the Managing General Partner filed a motion 
seeking dismissal of the action. In lieu of responding to the motion, the 
plaintiffs have filed an amended complaint. The Managing General Partner has 
filed demurrers to the amended complaint, which are scheduled to be
heard on January 8, 1999.  The Managing General Partner believes the action to
be without merit, and intends to vigorously defend it.

On July 30, 1998, certain entities claiming to own limited partnership interests
in certain limited partnerships whose general partners were, at the time,
affiliates of Insignia filed a complaint entitled Everest Properties LLC. v.
Insignia Financial Group, Inc. in the Superior Court of the State of California,
County of Los Angeles. The action involves 44 real estate limited partnerships
(including the Partnership) in which the plaintiffs allegedly own interests and
which Insignia Affiliates allegedly manage or control (the "Subject
Partnerships").  The complaint names as defendants Insignia, several Insignia
Affiliates alleged to be managing partners of the defendant limited
partnerships, the Partnership and the Managing General Partner. Plaintiffs
allege that they have requested from, but have been denied by each of the
Subject Partnerships, lists of their respective limited partners for the purpose
of making tender offers to purchase up to 4.9% of the limited partner units of
each of the Subject Partnerships.  The complaint also alleges that certain of
the defendants made tender offers to purchase limited partner units in many of
the Subject Partnerships, with the alleged result that plaintiffs have been
deprived of the benefits they would have realized from ownership of the
additional units.  The plaintiffs assert eleven causes of action, including
breach of contract, unfair business practices, and violations of the partnership
statutes of the states in which the Subject Partnerships are organized.
Plaintiffs seek compensatory, punitive and treble damages. The Managing General
Partner filed an answer to the complaint on September 15, 1998.  The Managing
General Partner believes the claims to be without merit and intends to defend
the action vigorously.

The Partnership is unaware of any other pending or outstanding litigation that
is not of a routine nature.  The Managing General Partner believes all such
pending or outstanding litigation will be resolved without a material adverse
effect upon the business, financial condition, or operations of the Partnership.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

       a)    Exhibits:

             Exhibit 27, Financial Data Schedule, is filed as an exhibit to this
             report.

       b)    Reports on Form 8-K:

             None were filed during the quarter ended September 30, 1998.



                                   SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.


                               NATIONAL PROPERTY INVESTORS 7


                               By:          NPI EQUITY INVESTMENTS, INC.
                                            Its Managing General Partner


                               By:          /s/Patrick Foye           
                                            Patrick Foye
                                            Executive Vice President


                               By:          /s/Timothy R. Garrick          
                                            Timothy R. Garrick
                                            Vice President - Accounting
                                            (Duly Authorized Officer)


                               Date:        November 13, 1998