United States
                       Securities and Exchange Commission
                             Washington, D.C. 20549

                                   Form 10-QSB

(Mark One)
[X]   QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
      ACT OF 1934

              For the quarterly period ended September 30, 2004


[ ]   TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT


             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



                          NATIONAL PROPERTY INVESTORS 7

                                  BALANCE SHEET
                                   (Unaudited)
                        (in thousands, except unit data)

                               September 30, 2004

<TABLE>
<CAPTION>


Assets
<S>                                                                            <C>
   Cash and cash equivalents                                                   $ 331
   Receivables and deposits                                                       109
   Restricted escrows                                                             182
   Other assets                                                                   197
   Investment property:
       Land                                                    $ 1,094
       Buildings and related personal property                   10,054
                                                                 11,148
       Less accumulated depreciation                             (7,437)        3,711
                                                                              $ 4,530
Liabilities and Partners' Deficit
Liabilities
   Accounts payable                                                            $ 90
   Tenant security deposit liabilities                                             21
   Accrued property taxes                                                          37
   Other liabilities                                                              155
   Mortgage note payable                                                        5,053

Partners' Deficit:
   General partner                                              $ (310)
   Limited partners (60,517 units
      issued and outstanding)                                      (516)         (826)
                                                                              $ 4,530

                See Accompanying Notes to Financial Statements
</TABLE>



<PAGE>




                          NATIONAL PROPERTY INVESTORS 7

                            STATEMENTS OF OPERATIONS
                                   (Unaudited)
                      (in thousands, except per unit data)

<TABLE>
<CAPTION>

                                                Three Months Ended      Nine Months Ended
                                                   September 30,          September 30,
                                                 2004        2003        2004       2003
                                                          (Restated)             (Restated)
Revenues:
<S>                                              <C>         <C>        <C>         <C>
  Rental income                                  $ 302       $ 321      $ 877       $ 984
  Other income                                       32          26         66          56
     Total revenues                                 334         347        943       1,040

Expenses:
  Operating                                         175         145        422         369
  General and administrative                         24          99        159         305
  Depreciation                                       93          91        281         277
  Interest                                           91          93        276         283
  Property taxes                                     12          12         36          36
     Total expenses                                 395         440      1,174       1,270

Loss from continuing operations                     (61)        (93)      (231)       (230)
Income (loss) from discontinued
  operations (Note A)                                --         189     (1,171)        194
Gain on sale of discontinued
  operations (Note C)                                17          --      6,645          --
Net (loss) income                                $ (44)      $ 96      $ 5,243      $ (36)

Net (loss) income allocated to
  general partner (1%)                           $ (1)        $ 1        $ 52       $ --
Net (loss) income allocated to
  limited partners (99%)                            (43)         95      5,191         (36)
                                                 $ (44)      $ 96      $ 5,243      $ (36)
Net (loss) income per limited partnership unit:
    Loss from continuing operations             $ (0.99)    $ (1.52)   $ (3.78)    $ (3.76)
    Income (loss) from discontinued
      operations                                     --        3.09     (19.15)       3.17
     Gain on sale of discontinued
      operations                                   0.28          --     108.71          --
                                                $ (0.71)    $ 1.57     $ 85.78     $ (0.59)
Distributions per limited
  partnership unit                               $ --       $ 10.72    $113.84     $ 37.54

                See Accompanying Notes to Financial Statements
</TABLE>



<PAGE>




                          NATIONAL PROPERTY INVESTORS 7

                    STATEMENT OF CHANGES IN PARTNERS' DEFICIT
                                   (Unaudited)
                        (in thousands, except unit data)


<TABLE>
<CAPTION>

                                     Limited
                                   Partnership    General     Limited
                                      Units       Partner     Partners      Total

<S>                                   <C>              <C>    <C>          <C>
Original capital contributions        60,517           1      $30,259      $30,260

Partners' (deficiency) capital
   at December 31, 2003               60,517      $ (293)     $ 1,182       $ 889

Distributions to partners                 --         (69)      (6,889)      (6,958)

Net income for the nine months
   ended September 30, 2004               --          52        5,191        5,243

Partners' deficit at
   September 30, 2004                 60,517      $ (310)      $ (516)     $ (826)

                        See Accompanying Notes to Financial Statements
</TABLE>



<PAGE>



                          NATIONAL PROPERTY INVESTORS 7

                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                 (in thousands)

<TABLE>
<CAPTION>

                                                                  Nine Months Ended
                                                                    September 30,
                                                                      2004     2003
Cash flows from operating activities:
<S>                                                              <C>          <C>
  Net income (loss)                                              $ 5,243      $ (36)
  Adjustments to reconcile net income (loss) to net cash
   (used in) provided by operating activities:
     Depreciation                                                    411       1,586
     Amortization of loan costs                                        9          53
     Casualty gain                                                    --         (54)
     Loss on early extinguishment of debt                          1,119          14
     Gain on sale of discontinued operations                      (6,645)         --
     Change in accounts:
      Receivables and deposits                                       264        (144)
      Other assets                                                     7        (112)
      Accounts payable                                              (167)        (41)
      Tenant security deposit liabilities                            (14)         (1)
      Accrued property taxes                                          37         293
      Due to affiliates                                              (72)         --
      Other liabilities                                             (217)       (169)
        Net cash (used in) provided by operating activities          (25)      1,389

Cash flows from investing activities:
  Property improvements and replacements                            (182)       (426)
  Insurance proceeds received                                         --          59
  Net receipts from restricted escrows                                87         147
  Net proceeds from sale of discontinued operations                8,748          --
        Net cash provided by (used in) investing activities        8,653        (220)

Cash flows from financing activities:
  Repayment of mortgage note payable                              (3,790)     (7,600)
  Debt extinguishment cost                                        (1,027)         --
  Proceeds from mortgage notes payable                                --       9,290
  Payments on mortgage notes payable                                (150)       (349)
  Loan costs additions                                                --        (213)
  Distributions to partners                                       (6,958)     (2,295)
        Net cash used in financing activities                    (11,925)     (1,167)

Net (decrease) increase in cash and cash equivalents              (3,297)          2
Cash and cash equivalents at beginning of period                   3,628         614

Cash and cash equivalents at end of period                        $ 331       $ 616

Supplemental disclosure of cash flow information:
  Cash paid for interest                                          $ 371      $ 1,285

Supplemental disclosure of non-cash activity:
  Replacement reserves in accounts receivable                      $ --        $ 93

                See Accompanying Notes to Financial Statements
</TABLE>



<PAGE>



                          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"  or  "Registrant")  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"),
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, 2004 are not  necessarily  indicative of
the results that may be expected  for the fiscal year ending  December 31, 2004.
For further information, refer to the financial statements and footnotes thereto
included in the  Partnership's  Annual Report on Form 10-KSB for the fiscal year
ended  December  31,  2003.  The  Managing  General  Partner is an  affiliate of
Apartment  Investment and Management Company  ("AIMCO"),  a publicly traded real
estate investment trust.

In accordance with Statement of Financial Accounting Standards ("SFAS") No. 144,
the  accompanying  statements of operations  for the three and nine months ended
September  30,  2003 have been  restated to reflect  the  operations  of Patchen
Place,  Northwoods  I & II and South  Point  Apartments  as income  (loss)  from
discontinued  operations  due to their sales in 2003.  Patchen Place was sold in
October 2003 and  Northwoods I & II and South Point were sold in December  2003.
In addition,  the  statements of operations  have been restated as of January 1,
2003 to reflect the  operations  of The Pines  Apartments  as income (loss) from
discontinued operations due to its sale in April 2004.

Note B - Transactions with Affiliated Parties

The Partnership has no employees and depends 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.

Affiliates of the Managing  General Partner were entitled to receive 5% of gross
receipts from all of the Partnership's  properties as compensation for providing
property   management   services.   The  Partnership  paid  to  such  affiliates
approximately  $75,000 and $271,000 for the nine months ended September 30, 2004
and 2003,  respectively,  which is included  in  operating  expenses  and income
(loss) from discontinued operations.

An  affiliate  of  the  Managing  General  Partner  received   reimbursement  of
accountable  administrative  expenses  amounting  to  approximately  $81,000 and
$178,000 for the nine months ended  September  30, 2004 and 2003,  respectively,
which  is  included  in  general  and  administrative  expenses  and  investment
properties.   Included  in  these  amounts  are  fees  related  to  construction
management  services provided by an affiliate of the Managing General Partner of
approximately  $6,000 and $13,000 for the nine months ended  September  30, 2004
and 2003, respectively.  The construction management service fees are calculated
based on a percentage of current year additions to investment properties.

For services relating to the  administration of the Partnership and operation of
Partnership  properties,  the  Managing  General  Partner is entitled to receive
payment for  non-accountable  expenses up to a maximum of $150,000 per year from
distributions from operations,  based upon the number of Partnership units sold,
subject  to  certain   limitations.   The  Managing   General  Partner  received
approximately  $91,000 in reimbursements for the nine months ended September 30,
2003,  which is included in general and  administrative  expenses.  No such fees
were earned during the same period in 2004 as there were no  distributions  from
operations.

For managing the affairs of the Partnership, the Managing General Partner of the
Partnership  is entitled to receive a  partnership  management  fee.  The fee is
equal to 4% of the  Partnership's  adjusted cash from operations,  as defined in
the Partnership  Agreement,  in any year, provided that 50% of the fee shall not
be paid until the Partnership has distributed to the limited  partners  adjusted
cash from operations in such year which is equal to 5% of the limited  partners'
adjusted invested capital, as defined,  on a non-cumulative  basis. In addition,
50% of the fee shall not be paid until the  Partnership  has  distributed to the
limited partners adjusted cash from operations in such year which is equal to 8%
of the limited partners'  adjusted  invested capital on a non-cumulative  basis.
The fee shall be paid when adjusted cash from  operations is  distributed to the
limited partners.  The Managing General Partner was not entitled to receive this
fee during the nine months ended September 30, 2004 or 2003.

NPI Equity,  on behalf of the Partnership and certain  affiliated  partnerships,
has established a revolving credit facility (the  "Partnership  Revolver") to be
used to fund deferred  maintenance  and working capital needs of the Partnership
and certain other  affiliated  partnerships in the National  Property  Investors
Partnership  Series.  The maximum draw  available to the  Partnership  under the
Partnership Revolver is $500,000. Loans under the Partnership Revolver will have
a term of 365 days, be unsecured and bear interest at the prime rate plus 2% per
annum. The maturity date of any such borrowing  accelerates in the event of: (i)
the removal of NPI Equity as the managing  general  partner  (whether or not for
cause);  (ii) the sale or refinancing of a property by the Partnership  (whether
or not a borrowing under the Partnership  Revolver was made with respect to such
property);  or (iii) the liquidation of the Partnership.  At September 30, 2004,
the Partnership had no outstanding amounts due under this Partnership  Revolver.
Subsequent  to  September  30,  2004,  the  Partnership  received  approximately
$290,000 under this revolver to pay outstanding accounts payable at Fairway View
II Apartments.

In addition to  reimbursement  for services of  affiliates,  an affiliate of the
Managing  General Partner earned  approximately  $93,000 for services related to
the  refinancings  of Patchen Place and South Point  Apartments  during the nine
months ended September 30, 2003. No such  reimbursements  were earned during the
same period in 2004.

The  Partnership  insures its  property up to certain  limits  through  coverage
provided by AIMCO which is  generally  self-insured  for a portion of losses and
liabilities  related to workers  compensation,  property  casualty  and  vehicle
liability.  The Partnership  insures its property above the AIMCO limits through
insurance  policies  obtained  by  AIMCO  from  insurers  unaffiliated  with the
Managing  General  Partner.  During the nine months ended September 30, 2004 and
2003,  the  Partnership  was charged by AIMCO and its  affiliates  approximately
$44,000 and $92,000  respectively,  for insurance  coverage and fees  associated
with policy claims administration.

Note C- Sale of Investment Property

On April 30, 2004, the  Partnership  sold The Pines  Apartments to a third party
for net proceeds of approximately $8,748,000 after payment of closing costs. The
Partnership realized a gain of approximately $6,645,000 as a result of the sale.
The Partnership used  approximately  $3,790,000 of the net proceeds to repay the
mortgage encumbering the property. In addition,  the Partnership recorded a loss
on early  extinguishment  of debt of  approximately  $1,119,000  as a result  of
unamortized loan costs being written off and a prepayment  penalty.  This amount
is included in income (loss) from  discontinued  operations.  In accordance with
SFAS 144, the  accompanying  statements of  operations  have been restated as of
January  1,  2003  to  reflect  the  operations  of  The  Pines   Apartments  as
discontinued operations.  Included in income (loss) from discontinued operations
for the nine months ended September 30, 2004 and 2003 is approximately  $473,000
and  $1,122,000  respectively,   of  revenue  generated  by  the  property.  The
additional  gain of  approximately  $17,000  recognized  during the three months
ended  September  30,  2004  was  due  to the  write  off  of  expense  reserves
established at the time of the sale which were determined to be unneeded.

Note D - Refinancing of Mortgage Notes Payable

On May 16, 2003, the  Partnership  refinanced the mortgage  encumbering  Patchen
Place Apartments.  The refinancing  replaced the existing mortgage of $3,000,000
with a new mortgage in the amount of $4,290,000.  Total  capitalized  loan costs
were approximately  $98,000 during the nine months ended September 30, 2003. The
Partnership   recognized  a  loss  on  the  early   extinguishment  of  debt  of
approximately $7,000 during the nine months ended September 30, 2003, due to the
write off of  unamortized  loan costs and debt  discounts,  which is included in
income (loss) from discontinued operations.

On June 27, 2003,  the  Partnership  refinanced the mortgage  encumbering  South
Point Apartments.  The refinancing  replaced the existing mortgage of $4,600,000
with a new mortgage in the amount of $5,000,000.  Total  capitalized  loan costs
were approximately $115,000 during the nine months ended September 30, 2003. The
Partnership   recognized  a  loss  on  the  early   extinguishment  of  debt  of
approximately $7,000 during the nine months ended September 30, 2003, due to the
write off of  unamortized  loan costs and debt  discounts,  which is included in
income (loss) from discontinued operations.

Initially the May 16, 2003  refinancing of Patchen Place Apartments and the June
27, 2003  refinancing  of South Point  Apartments  were under an interim  credit
facility  ("Interim Credit Facility") which also provided for the refinancing of
several other properties. The Interim Credit Facility created separate loans for
each property refinanced thereunder,  which loans were not  cross-collateralized
or  cross-defaulted  with each  other.  During  the term of the  Interim  Credit
Facility,  Patchen  Place and  South  Point  Apartments  were  required  to make
interest-only  payments.  The first  month's  interest  rate for  Patchen  Place
Apartments was 2.78% and for South Point Apartments was 2.60%.

As of July 1 and August 1,  2003,  the loans on  Patchen  Place and South  Point
Apartments,  respectively,  were  assumed  by a  different  lender.  The  credit
facility  ("Permanent  Credit Facility") with the new lender had a maturity date
of  September  2007 with an option for the  Partnership  to elect one  five-year
extension.  This Permanent  Credit Facility also created separate loans for each
property  refinanced  thereunder,  which loans are not  cross-collateralized  or
cross-defaulted  with each other. Each note under this Permanent Credit Facility
was initially a variable rate loan,  and after three years the  Partnership  had
the option of converting the note to a fixed rate loan. The interest rate on the
variable  rate  loans  was 85  basis  points  over  the  Fannie  Mae  discounted
mortgage-backed  security index (1.9% per annum at September 30, 2003),  and the
rate reset monthly. Each loan automatically renewed at the end of each month. In
addition,   monthly  principal   payments  were  required  based  on  a  30-year
amortization schedule,  using the interest rate in effect during the first month
that the properties were on the Permanent  Credit  Facility.  The loans could be
prepaid  without  penalty.  The loans were repaid when Patchen Place  Apartments
sold in October 2003 and South Point Apartments sold in December 2003.


<PAGE>



Note E - Casualty Gain

On February 15, 2003 an ice storm caused damage to exterior  sections on some of
the buildings and to the  landscaping  at Patchen  Place  Apartments.  No actual
units were damaged  during the storm.  As a result of the damage,  approximately
$40,000 of fixed assets and  approximately  $35,000 of accumulated  depreciation
were  written  off. The  property  received  approximately  $59,000 in insurance
proceeds and recognized a casualty gain of approximately  $54,000 as a result of
the  difference  between  the  proceeds  received  and the net book value of the
assets  written off. This amount is included in income (loss) from  discontinued
operations due to the sale of Patchen Place Apartments in October 2003.

Note F - Contingencies

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. (the "Nuanes action") in the Superior Court of the
State of  California  for the  County  of San  Mateo.  The  plaintiffs  named as
defendants,  among others,  the  Partnership,  its Managing  General Partner and
several of their  affiliated  partnerships  and corporate  entities.  The action
purported  to  assert  claims  on  behalf  of a class of  limited  partners  and
derivatively  on behalf  of a number  of  limited  partnerships  (including  the
Partnership)  that are named as nominal  defendants,  challenging,  among  other
things,  the  acquisition  of  interests  in certain  Managing  General  Partner
entities by Insignia Financial Group, Inc.  ("Insignia") and entities that were,
at one  time,  affiliates  of  Insignia;  past  tender  offers  by the  Insignia
affiliates to acquire limited partnership units;  management of the partnerships
by the  Insignia  affiliates;  and the series of  transactions  which  closed on
October 1, 1998 and February 26, 1999 whereby  Insignia and Insignia  Properties
Trust,  respectively,  were merged into AIMCO.  The plaintiffs  sought  monetary
damages and equitable relief, including judicial dissolution of the Partnership.
In addition,  during the third quarter of 2001, a complaint  captioned Heller v.
Insignia  Financial  Group (the  "Heller  action")  was filed  against  the same
defendants  that are named in the  Nuanes  action.  On or about  August 6, 2001,
plaintiffs filed a first amended  complaint.  The Heller action was brought as a
purported derivative action, and asserted claims for, among other things, breach
of fiduciary  duty,  unfair  competition,  conversion,  unjust  enrichment,  and
judicial dissolution.

On January 8, 2003,  the parties filed a  Stipulation  of Settlement in proposed
settlement of the Nuanes action and the Heller action.

In general  terms,  the  proposed  settlement  provides  for  certification  for
settlement  purposes of a settlement class consisting of all limited partners in
this  Partnership and others (the  "Partnerships")  as of December 20, 2002, the
dismissal  with  prejudice  and  release  of claims  in the  Nuanes  and  Heller
litigation,  payment by AIMCO of $9.9  million  (which shall be  distributed  to
settlement  class  members  after  deduction of attorney fees and costs of class
counsel and certain costs of settlement) and up to $1 million toward the cost of
independent  appraisals of the  Partnerships'  properties  by a court  appointed
appraiser.  An affiliate of the Managing General Partner has also agreed to make
at least one round of tender offers to purchase all of the partnership interests
in the Partnerships within one year of final approval,  if it is granted, and to
provide  partners with the independent  appraisals at the time of these tenders.
The proposed  settlement also provided for the limitation of the allowable costs
which  the  Managing   General   Partner  or  its  affiliates  will  charge  the
Partnerships  in connection with this litigation and imposes limits on the class
counsel  fees and  costs in this  litigation.  On April  11,  2003,  notice  was
distributed  to  limited   partners   providing  the  details  of  the  proposed
settlement.

On June 13, 2003, the court granted final approval of the settlement and entered
judgment in both the Nuanes and Heller actions.  On August 12, 2003, an objector
("Objector") filed an appeal (the "Appeal") seeking to vacate and/or reverse the
order approving the settlement and entering  judgment  thereto.  On November 24,
2003,  the Objector  filed an  application  requesting  the court order AIMCO to
withdraw settlement tender offers it had commenced,  refrain from making further
offers  pending  the appeal and auction  any units  tendered  to third  parties,
contending  that the offers did not  conform  with the terms of the  settlement.
Counsel  for the  Objector  (on behalf of another  investor)  had  alternatively
requested the court take certain action  purportedly to enforce the terms of the
settlement agreement. On December 18, 2003, the court heard oral argument on the
motions  and denied them both in their  entirety.  The  Objector  filed a second
appeal challenging the court's use of a referee and its order requiring Objector
to pay those fees.

On January 28, 2004,  the  Objector  filed his opening  brief in the Appeal.  On
April 23, 2004, the Managing General Partner and its affiliates filed a response
brief in support of the settlement and the judgment thereto. The plaintiffs have
also filed a brief in support of the settlement. On June 4, 2004, Objector filed
a reply to the briefs  submitted by the Managing General Partner and Plaintiffs.
In addition both the Objector and plaintiffs filed briefs in connection with the
second  appeal.  The Court of Appeals  heard oral  argument  on both  appeals on
September 22, 2004 and took the matters under submission.

The  Managing  General  Partner  does  not  anticipate  that  any  costs  to the
Partnership, whether legal or settlement costs, associated with these cases will
be material to the Partnership's overall operations.

On August 8, 2003 AIMCO  Properties  L.P., an affiliate of the Managing  General
Partner,  was served  with a  complaint  in the United  States  District  Court,
District of Columbia alleging that AIMCO Properties L.P.  willfully violated the
Fair Labor Standards Act ("FLSA") by failing to pay maintenance workers overtime
for all  hours  worked  in  excess  of forty  per  week.  On  March 5,  2004 the
plaintiffs filed an amended complaint also naming NHP Management Company,  which
is also an affiliate of the Managing General Partner. The complaint is styled as
a Collective  Action  under the FLSA and seeks to certify  state  subclasses  in
California, Maryland, and the District of Columbia. Specifically, the plaintiffs
contend that AIMCO Properties L.P. failed to compensate  maintenance workers for
time  that they were  required  to be  "on-call".  Additionally,  the  complaint
alleges AIMCO  Properties  L.P.  failed to comply with the FLSA in  compensating
maintenance  workers  for time that they  worked in  responding  to a call while
"on-call".  The defendants have filed an answer to the amended complaint denying
the  substantive  allegations.  Some  discovery  has taken place and  settlement
negotiations  continue.  Although the outcome of any  litigation  is  uncertain,
AIMCO  Properties,  L.P. does not believe that the ultimate  outcome will have a
material  adverse  effect on its financial  condition or results of  operations.
Similarly,  the  Managing  General  Partner  does not believe  that the ultimate
outcome  will have a  material  adverse  effect on the  Partnership's  financial
condition or results of operations.

The  Partnership  is unaware  of any other  pending  or  outstanding  litigation
matters  involving  it or its  investment  properties  that are not of a routine
nature arising in the ordinary course of business.

As  previously  disclosed,  the  Central  Regional  Office of the United  States
Securities  and  Exchange   Commission   (the  "SEC")  is  conducting  a  formal
investigation relating to certain matters.  Although the staff of the SEC is not
limited  in the  areas  that it may  investigate,  AIMCO  believes  the areas of
investigation include AIMCO's miscalculated monthly net rental income figures in
third quarter 2003,  forecasted  guidance,  accounts payable,  rent concessions,
vendor  rebates,  capitalization  of payroll and certain  other  costs,  and tax
credit  transactions.  AIMCO is cooperating  fully. AIMCO is not able to predict
when the matter  will be  resolved.  AIMCO does not  believe  that the  ultimate
outcome  will  have a  material  adverse  effect on its  consolidated  financial
condition or results of operations. Similarly, the Managing General Partner does
not believe that the ultimate outcome will have a material adverse effect on the
Partnership's financial condition or results of operations.

<PAGE>



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

The matters discussed in this report contain certain forward-looking statements,
including, without limitation, statements regarding future financial performance
and the effect of government  regulations.  Actual results may differ materially
from those described in the forward-looking statements and will be affected by a
variety of risks and factors including,  without limitation:  national and local
economic  conditions;  the terms of  governmental  regulations  that  affect the
Registrant and interpretations of those regulations; the competitive environment
in which the Registrant operates;  financing risks, including the risk that cash
flows from operations may be insufficient to meet required payments of principal
and interest;  real estate risks, including variations of real estate values and
the general  economic  climate in local markets and  competition  for tenants in
such markets;  litigation,  including  costs  associated  with  prosecuting  and
defending  claims  and  any  adverse   outcomes,   and  possible   environmental
liabilities.   Readers  should  carefully  review  the  Registrant's   financial
statements and the notes thereto,  as well as the risk factors  described in the
documents  the  Registrant  files  from  time to time  with the  Securities  and
Exchange Commission.

The Partnership's  investment  property consists of one apartment  complex.  The
following table sets forth the average occupancy of the property for each of the
nine month periods ended September 30, 2004 and 2003:

                                                   Average Occupancy
                                                    2004       2003

      Fairway View II Apartments (1)                83%        91%
         Baton Rouge, Louisiana

(1)   The  Managing  General  Partner  attributes  the  decrease in occupancy at
      Fairway View II Apartments to strong  competition from new construction in
      the local market area and to stricter credit standards for tenants.

The  Partnership's  financial  results depend upon a number of factors including
the ability to attract and maintain tenants at the investment property, interest
rates on the mortgage loan,  costs incurred to operate the investment  property,
general economic conditions and weather. As part of the ongoing business plan of
the  Partnership,  the  Managing  General  Partner  monitors  the rental  market
environment of its investment  property to assess the  feasibility of increasing
rents, maintaining or increasing occupancy levels and protecting the Partnership
from increases in expenses.  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,   the  Managing  General  Partner  may  use  rental
concessions and rental rate reductions to offset  softening  market  conditions;
accordingly,  there is no guarantee  that the Managing  General  Partner will be
able to sustain such a plan.  Further,  a number of factors that are outside the
control of the  Partnership  such as the local economic  climate and weather can
adversely or positively affect the Partnership's financial results.

Results of Operations

The  Partnership's  net loss for the three months ended  September  30, 2004 was
approximately  $44,000 compared to net income of  approximately  $96,000 for the
corresponding  period in 2003. The  Partnership's net income for the nine months
ended September 30, 2004 was  approximately  $5,243,000  compared to net loss of
approximately  $36,000 for the corresponding period in 2003. The decrease in net
income  for  the  three  month  period  is  due to a  decrease  in  income  from
discontinued  operations  partially  offset by the gain on sale of  discontinued
operations.  The  decrease  in net loss for the nine month  period is due to the
recognition of the gain on sale of The Pines  Apartments  partially  offset by a
decrease in income from discontinued operations.


<PAGE>


In accordance with Statement of Financial Accounting Standards ("SFAS") No. 144,
the  accompanying  statements of operations  for the three and nine months ended
September  30,  2003 have been  restated to reflect  the  operations  of Patchen
Place,  Northwoods  I & II and South  Point  Apartments  as income  (loss)  from
discontinued  operations  due to their sales in 2003.  Patchen Place was sold in
October 2003 and  Northwoods I & II and South Point were sold in December  2003.
In addition,  the  statements of operations  have been restated as of January 1,
2003 to reflect the  operations  of The Pines  Apartments  as income (loss) from
discontinued operations due to its sale in April 2004.

On April 30, 2004, the  Partnership  sold The Pines  Apartments to a third party
for net proceeds of approximately $8,748,000 after payment of closing costs. The
Partnership realized a gain of approximately $6,645,000 as a result of the sale.
The Partnership used  approximately  $3,790,000 of the net proceeds to repay the
mortgage encumbering the property. In addition,  the Partnership recorded a loss
on early  extinguishment  of debt of  approximately  $1,119,000  as a result  of
unamortized loan costs being written off and a prepayment  penalty.  This amount
is included in income (loss) from  discontinued  operations.  In accordance with
SFAS 144, the  accompanying  statements of  operations  have been restated as of
January  1,  2003  to  reflect  the  operations  of  The  Pines   Apartments  as
discontinued operations.  Included in income (loss) from discontinued operations
for the nine months ended September 30, 2004 and 2003 is approximately  $473,000
and  $1,122,000  respectively,   of  revenue  generated  by  the  property.  The
additional  gain of  approximately  $12,000  recognized  during the three months
ended September 30, 2004 is due to expense  reserves  established at the time of
the sale, which were determined to be unneeded.

Excluding the gain on sale and the discontinued  operations,  the  Partnership's
loss from  continuing  operations for the three and nine months ended  September
30, 2004 was approximately $61,000 and $231,000, respectively,  compared to loss
from  continuing  operations  of  approximately  $93,000  and  $230,000  for the
corresponding  periods in 2003. The decrease in loss from continuing  operations
for the three  month  period is due to a decrease  in total  expenses  partially
offset  by a  decrease  in total  revenue.  Although  the loss  from  continuing
operations for the nine month period remained relatively constant, a decrease in
total  revenues  was  offset by a decrease  in total  expenses.  Total  revenues
decreased  for both periods due to a decrease in rental  income.  Rental  income
decreased  due to a decrease in occupancy and an increase in bad debt expense at
Fairway View Apartments.

Total expenses  decreased for the three and nine month periods due to a decrease
in general  and  administrative  expense,  partially  offset by an  increase  in
operating  expense.  Operating expense increased due to increases in advertising
and administrative expense.  Advertising expense increased due to an increase in
leasing promotions at the investment property.  Administrative expense increased
due to  increases  in training and travel  expenses  and credit  collection  and
eviction  expenses.  In  addition,  the  Partnership  expensed  loan costs for a
refinancing of the mortgage  encumbering  the investment  property which did not
close.

General and  administrative  expense decreased for both periods due to decreases
in the costs of services included in the management  reimbursements  paid to the
Managing General Partner, as allowed under the Partnership Agreement, and in the
fees paid to the Managing General Partner in connection with  distributions from
operations.  Also included in general and  administrative  expenses for the nine
months ended September 30, 2004 and 2003 are costs associated with the quarterly
and annual  communications with investors and regulatory agencies and the annual
audit required by the Partnership Agreement.

Liquidity and Capital Resources

At  September  30,  2004,  the  Partnership  had cash and  cash  equivalents  of
approximately $331,000 compared to approximately $616,000 at September 30, 2003.
For the nine  months  ended  September  30,  2004,  cash  and  cash  equivalents
decreased  by  approximately   $3,297,000  due  to  approximately   $25,000  and
$11,925,000  of cash used in operating and financing  activities,  respectively,
partially  offset by  approximately  $8,653,000  of cash  provided by  investing
activities.  Cash used in financing activities consisted of the repayment of the
mortgage  encumbering The Pines Apartments,  principal payments on the mortgages
encumbering the Partnership's investment properties,  debt extinguishment costs,
and  distributions  to the  partners.  Cash  provided  by  investing  activities
consisted of net proceeds from the sale of The Pines Apartments and net receipts
from  restricted  escrows,   partially  offset  by  property   improvements  and
replacements.  The Partnership  invests its working capital in interest  bearing
accounts.

NPI Equity,  on behalf of the Partnership and certain  affiliated  partnerships,
has established a revolving credit facility (the  "Partnership  Revolver") to be
used to fund deferred  maintenance  and working capital needs of the Partnership
and certain other  affiliated  partnerships in the National  Property  Investors
Partnership  Series.  The maximum draw  available to the  Partnership  under the
Partnership Revolver is $500,000. Loans under the Partnership Revolver will have
a term of 365 days, be unsecured and bear interest at the prime rate plus 2% per
annum. The maturity date of any such borrowing  accelerates in the event of: (i)
the removal of NPI Equity as the managing  general  partner  (whether or not for
cause);  (ii) the sale or refinancing of a property by the Partnership  (whether
or not a borrowing under the Partnership  Revolver was made with respect to such
property);  or (iii) the liquidation of the Partnership.  At September 30, 2004,
the Partnership had no outstanding amounts due under this Partnership  Revolver.
Subsequent  to  September  30,  2004,  the  Partnership  received  approximately
$290,000 under this revolver to pay outstanding accounts payable at Fairway View
II Apartments.

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 property 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
monitors  developments  in the  area of legal  and  regulatory  compliance.  For
example,  the  Sarbanes-Oxley  Act  of  2002  mandates  or  suggests  additional
compliance  measures  with  regard to  governance,  disclosure,  audit and other
areas.  In light of these changes,  the  Partnership  expects that it will incur
higher  expenses  related to compliance.  Capital  improvements  planned for the
Partnership's property are detailed below.

Fairway View II

During the nine months ended  September  30,  2004,  the  Partnership  completed
approximately  $147,000 of capital  improvements  at Fairway View II Apartments,
consisting  primarily  of  roof  replacements,  electrical  upgrades  and  floor
covering, appliance, and air conditioning unit replacements.  These improvements
were funded from  operating  cash flow.  The  Partnership  evaluates the capital
improvement  needs of the  property  during  the year and  currently  expects to
complete an additional $380,000 in capital  improvements during the remainder of
2004.  Additional capital  improvements may be considered and will depend on the
physical  condition  of the  property as well as  replacement  reserves  and the
anticipated cash flow generated by the property.

The Pines

During the nine months ended  September  30,  2004,  the  Partnership  completed
approximately   $35,000  of  capital   improvements  at  The  Pines  Apartments,
consisting  primarily of floor covering and roof replacements and heating system
upgrades.  These  improvements  were funded from  operating cash flow. The Pines
Apartments were sold April 30, 2004.

The additional  capital  improvements will be incurred only if cash is available
from operations or from Partnership  reserves.  To the extent that such budgeted
capital improvements are completed,  the Partnership's  distributable cash flow,
if any, may be adversely affected at least in the short term.

The  Partnership's  assets are thought to be sufficient for any near-term  needs
(exclusive  of  capital   improvements)   of  the   Partnership.   The  mortgage
indebtedness  encumbering the investment  property of  approximately  $5,053,000
matures  December  1,  2021 at  which  time the  loan is  scheduled  to be fully
amortized.

Pursuant to the Partnership Agreement,  the term of the Partnership is scheduled
to expire on December 31, 2008. Accordingly,  prior to such date the Partnership
will need to  either  sell its  investment  property  or extend  the term of the
Partnership.

The Partnership  distributed the following  amounts during the nine months ended
September 30, 2004 and 2003 (in thousands, except per unit data):

<TABLE>
<CAPTION>

                        Nine Months       Per Limited       Nine Months       Per Limited
                           Ended          Partnership          Ended          Partnership
                     September 30, 2004       Unit       September 30, 2003      Unit

<S>                         <C>               <C>              <C>              <C>
Operations                  $ --              $ --             $ 948            $15.50
Sale (1)                    6,958            113.84                --               --
Refinancing (2)                --                --             1,347            22.04
    Total                  $6,958           $113.84            $2,295           $37.54
</TABLE>

(1)   Proceeds from the sales of South Point Apartments in December 2003 and The
      Pines Apartments in April 2004.

(2)   Proceeds from the refinancing of Patchen Place Apartments in May 2003.

Future cash  distributions  will depend on the levels of net cash generated from
operations,  the  availability  of cash  reserves and the timing of  refinancing
and/or  property sale. The  Partnership's  cash  available for  distribution  is
reviewed  on a monthly  basis.  There  can be no  assurance,  however,  that the
Partnership  will  generate  sufficient  funds from  operations  after  required
capital expenditures, to permit further distributions to its partners during the
remainder of 2004 or subsequent periods.

Other

In addition to its indirect  ownership of the Managing  General Partner interest
in the Partnership, AIMCO and its affiliates owned 42,461.67 limited partnership
units (the "Units") in the  Partnership  representing  70.16% of the outstanding
Units at September 30, 2004. A number of these Units were  acquired  pursuant to
tender offers made by AIMCO or its affiliates.  It is possible that AIMCO or its
affiliates will acquire  additional  Units in exchange for cash or a combination
of cash and units in AIMCO Properties, L.P., the operating partnership of AIMCO,
either through private  purchases or tender offers.  Pursuant to the Partnership
Agreement,  unit  holders  holding a majority of the Units are  entitled to take
action with  respect to a variety of matters that  include,  but are not limited
to,  voting on certain  amendments  to the  Partnership  Agreement and voting to
remove the Managing General  Partner.  As a result of its ownership of 70.16% of
the outstanding  Units,  AIMCO and its affiliates are in a position to influence
all such voting  decisions with respect to the  Partnership.  However,  DeForest
Ventures II L.P.,  from whom AIMCO IPLP,  L.P.,  an  affiliate  of the  Managing
General  Partner  and of AIMCO,  acquired  25,399  Units  (41.97% of the units),
agreed for the benefit of  non-tendering  unit  holders,  that it would vote its
Units: (i) against any increase in compensation  payable to the Managing General
Partner or to its affiliates;  and (ii) on all other matters  submitted by it or
its  affiliates,  in  proportion  to the votes cast by third party unit holders.
Except for the foregoing, no other limitations are imposed on IPLP's, AIMCO's or
any other affiliates right to vote each unit held. Although the Managing General
Partner owes fiduciary duties to the limited  partners of the  Partnership,  the
Managing  General  Partner  also  owes  fiduciary  duties  to  AIMCO as its sole
stockholder.  As a  result,  the  duties of the  Managing  General  Partner,  as
Managing General  Partner,  to the Partnership and its limited partners may come
into  conflict with the duties of the Managing  General  Partner to AIMCO as its
sole stockholder.


<PAGE>



Critical Accounting Policies and Estimates

The financial  statements are prepared in accordance with accounting  principles
generally  accepted in the United States,  which require the Partnership to make
estimates and  assumptions.  The  Partnership  believes that of its  significant
accounting  policies,  the following may involve a higher degree of judgment and
complexity.

Impairment of Long-Lived Assets

Investment property is recorded at cost, less accumulated  depreciation,  unless
considered  impaired.  If events or  circumstances  indicate  that the  carrying
amount of a property may be impaired, the Partnership will make an assessment of
its recoverability by estimating the undiscounted  future cash flows,  excluding
interest charges, of the property.  If the carrying amount exceeds the aggregate
future cash flows,  the  Partnership  would  recognize an impairment loss to the
extent the carrying amount exceeds the fair value of the property.

Real  property  investments  are  subject  to varying  degrees of risk.  Several
factors  may  adversely  affect  the  economic  performance  and  value  of  the
Partnership's  investment  property.  These factors include, but are not limited
to,  changes  in the  national,  regional  and  local  economic  climate;  local
conditions,  such as an oversupply of multifamily  properties;  competition from
other available  multifamily property owners and changes in market rental rates.
Any adverse changes in these factors could cause impairment of the Partnership's
assets.

Revenue Recognition

The Partnership generally leases apartment units for twelve-month terms or less.
Rental income  attributable to leases is recognized monthly as it is earned. The
Partnership  evaluates all accounts receivable from residents and establishes an
allowance, after the application of security deposits, for accounts greater than
30 days past due on current tenants and all receivables due from former tenants.
The Partnership will offer rental concessions during particularly slow months or
in response to heavy  competition from other similar  complexes in the area. Any
concessions  given at the inception of the lease are amortized  over the life of
the lease.

ITEM 3.     CONTROLS AND PROCEDURES

(a) Disclosure Controls and Procedures.  The Partnership's management,  with the
participation of the principal executive officer and principal financial officer
of the Managing  General  Partner,  who are the equivalent of the  Partnership's
principal executive officer and principal financial officer,  respectively,  has
evaluated  the  effectiveness  of  the  Partnership's  disclosure  controls  and
procedures (as such term is defined in Rules  13a-15(e) and 15d-15(e)  under the
Securities  Exchange Act of 1934, as amended (the "Exchange Act")) as of the end
of the period covered by this report.  Based on such  evaluation,  the principal
executive  officer  and  principal  financial  officer of the  Managing  General
Partner, who are the equivalent of the Partnership's principal executive officer
and principal  financial officer,  respectively,  have concluded that, as of the
end of such period,  the  Partnership's  disclosure  controls and procedures are
effective.

(b) Internal Control Over Financial  Reporting.  There have not been any changes
in the Partnership's  internal control over financial reporting (as such term is
defined in Rules  13a-15(f)  and  15d-15(f)  under the Exchange  Act) during the
fiscal quarter to which this report relates that have  materially  affected,  or
are reasonably likely to materially affect,  the Partnership's  internal control
over financial reporting.



<PAGE>



                           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. (the "Nuanes action") in the Superior Court of the
State of  California  for the  County  of San  Mateo.  The  plaintiffs  named as
defendants,  among others,  the  Partnership,  its Managing  General Partner and
several of their  affiliated  partnerships  and corporate  entities.  The action
purported  to  assert  claims  on  behalf  of a class of  limited  partners  and
derivatively  on behalf  of a number  of  limited  partnerships  (including  the
Partnership)  that are named as nominal  defendants,  challenging,  among  other
things,  the  acquisition  of  interests  in certain  Managing  General  Partner
entities by Insignia Financial Group, Inc.  ("Insignia") and entities that were,
at one  time,  affiliates  of  Insignia;  past  tender  offers  by the  Insignia
affiliates to acquire limited partnership units;  management of the partnerships
by the  Insignia  affiliates;  and the series of  transactions  which  closed on
October 1, 1998 and February 26, 1999 whereby  Insignia and Insignia  Properties
Trust,  respectively,  were merged into AIMCO.  The plaintiffs  sought  monetary
damages and equitable relief, including judicial dissolution of the Partnership.
In addition,  during the third quarter of 2001, a complaint  captioned Heller v.
Insignia  Financial  Group (the  "Heller  action")  was filed  against  the same
defendants  that are named in the  Nuanes  action.  On or about  August 6, 2001,
plaintiffs filed a first amended  complaint.  The Heller action was brought as a
purported derivative action, and asserted claims for, among other things, breach
of fiduciary  duty,  unfair  competition,  conversion,  unjust  enrichment,  and
judicial dissolution.

On January 8, 2003,  the parties filed a  Stipulation  of Settlement in proposed
settlement of the Nuanes action and the Heller action.

In general  terms,  the  proposed  settlement  provides  for  certification  for
settlement  purposes of a settlement class consisting of all limited partners in
this  Partnership and others (the  "Partnerships")  as of December 20, 2002, the
dismissal  with  prejudice  and  release  of claims  in the  Nuanes  and  Heller
litigation,  payment by AIMCO of $9.9  million  (which shall be  distributed  to
settlement  class  members  after  deduction of attorney fees and costs of class
counsel and certain costs of settlement) and up to $1 million toward the cost of
independent  appraisals of the  Partnerships'  properties  by a court  appointed
appraiser.  An affiliate of the Managing General Partner has also agreed to make
at least one round of tender offers to purchase all of the partnership interests
in the Partnerships within one year of final approval,  if it is granted, and to
provide  partners with the independent  appraisals at the time of these tenders.
The proposed  settlement also provided for the limitation of the allowable costs
which  the  Managing   General   Partner  or  its  affiliates  will  charge  the
Partnerships  in connection with this litigation and imposes limits on the class
counsel  fees and  costs in this  litigation.  On April  11,  2003,  notice  was
distributed  to  limited   partners   providing  the  details  of  the  proposed
settlement.

On June 13, 2003, the court granted final approval of the settlement and entered
judgment in both the Nuanes and Heller actions.  On August 12, 2003, an objector
("Objector") filed an appeal (the "Appeal") seeking to vacate and/or reverse the
order approving the settlement and entering  judgment  thereto.  On November 24,
2003,  the Objector  filed an  application  requesting  the court order AIMCO to
withdraw settlement tender offers it had commenced,  refrain from making further
offers  pending  the appeal and auction  any units  tendered  to third  parties,
contending  that the offers did not  conform  with the terms of the  settlement.
Counsel  for the  Objector  (on behalf of another  investor)  had  alternatively
requested the court take certain action  purportedly to enforce the terms of the
settlement agreement. On December 18, 2003, the court heard oral argument on the
motions  and denied them both in their  entirety.  The  Objector  filed a second
appeal challenging the court's use of a referee and its order requiring Objector
to pay those fees.

On January 28, 2004,  the  Objector  filed his opening  brief in the Appeal.  On
April 23, 2004, the Managing General Partner and its affiliates filed a response
brief in support of the settlement and the judgment thereto. The plaintiffs have
also filed a brief in support of the settlement. On June 4, 2004, Objector filed
a reply to the briefs  submitted by the Managing General Partner and Plaintiffs.
In addition both the Objector and plaintiffs filed briefs in connection with the
second  appeal.  The Court of Appeals  heard oral  argument  on both  appeals on
September 22, 2004 and took the matters under submission.

The  Managing  General  Partner  does  not  anticipate  that  any  costs  to the
Partnership, whether legal or settlement costs, associated with these cases will
be material to the Partnership's overall operations.

On August 8, 2003 AIMCO  Properties  L.P., an affiliate of the Managing  General
Partner,  was served  with a  complaint  in the United  States  District  Court,
District of Columbia alleging that AIMCO Properties L.P.  willfully violated the
Fair Labor Standards Act ("FLSA") by failing to pay maintenance workers overtime
for all  hours  worked  in  excess  of forty  per  week.  On  March 5,  2004 the
plaintiffs filed an amended complaint also naming NHP Management Company,  which
is also an affiliate of the Managing General Partner. The complaint is styled as
a Collective  Action  under the FLSA and seeks to certify  state  subclasses  in
California, Maryland, and the District of Columbia. Specifically, the plaintiffs
contend that AIMCO Properties L.P. failed to compensate  maintenance workers for
time  that they were  required  to be  "on-call".  Additionally,  the  complaint
alleges AIMCO  Properties  L.P.  failed to comply with the FLSA in  compensating
maintenance  workers  for time that they  worked in  responding  to a call while
"on-call".  The defendants have filed an answer to the amended complaint denying
the  substantive  allegations.  Some  discovery  has taken place and  settlement
negotiations  continue.  Although the outcome of any  litigation  is  uncertain,
AIMCO  Properties,  L.P. does not believe that the ultimate  outcome will have a
material  adverse  effect on its financial  condition or results of  operations.
Similarly,  the  Managing  General  Partner  does not believe  that the ultimate
outcome  will have a  material  adverse  effect on the  Partnership's  financial
condition or results of operations.

ITEM 6.     EXHIBITS

            See Exhibit Index attached.


<PAGE>



                                   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/Martha L. Long
                                          Martha L. Long
                                          Senior Vice President


                                    By:   /s/Stephen B. Waters
                                          Stephen B. Waters
                                          Vice President


                                    Date: November 12, 2004



<PAGE>



                                  EXHIBIT INDEX

Exhibit Number    Description of Exhibit

 2.5              Master Indemnity Agreement dated as of August 17, 1995. (1)

 3.4              (a)   Agreement of Limited Partnership. (3)

                  (b) Amendments to the Agreement of Limited Partnership. (4)

                  (c) Amendments to the Agreement of Limited Partnership. (5)

                  (d) Amendments to the Agreements of Limited Partnership. (6)

(1)               Incorporated  by  reference to Exhibit 2.5 to Form 8-K filed
                  by Insignia with the Securities  and Exchange  Commission on
                  September 1, 1995.

(3)               Incorporated  by reference to Exhibit A to the Prospectus of
                  the  Registrant  dated  July  5,  1978,   contained  in  the
                  Registrant's  Registration  Statement on Form S-11 (Reg. No.
                  2-599991).

(4)               Incorporated by reference to the Definitive Proxy Statement of
                  the Partnership dated July 2, 1981.

(5)               Incorporated by reference to Definitive Proxy statement of the
                  Partnership dated April 3, 1991.

(6)               Incorporated  by  reference,  to the  Statement  Furnished  in
                  Connection With the Solicitation of Consents of the Registrant
                  dated August 28, 1992.

10.12             Multifamily  Note dated  November 30,  2001,  by and between
                  National   Property   Investors  7,  a  California   Limited
                  Partnership  and GMAC  Commercial  Mortgage  Corporation,  a
                  California   corporation   relating   to  Fairway   View  II
                  Apartments  (incorporated  by reference to the  Registrant's
                  Annual  Report on Form  10-KSB for the year  ended  December
                  31, 2002).

10.17             Purchase and Sale  Contract  between  Registrant  and Vermeil,
                  LLC,  dated July 31, 2003  (incorporated  by  reference to the
                  Registrant's  Quarterly  Report on Form 10-QSB for the quarter
                  ended September 30, 2003).

10.18             Reinstatement  and  Amendment  of Purchase  and Sale  Contract
                  between  Registrant and Vermeil,  LLC, dated September 5, 2003
                  (incorporated  by  reference  to  the  Registrant's  Quarterly
                  Report on Form  10-QSB for the  quarter  ended  September  30,
                  2003).

10.19             Purchase and Sale Contract  between  Registrant and Watervliet
                  Shores  Associates,  dated September 11, 2003 (incorporated by
                  reference to the Registrant's Current Report on Form 8-K dated
                  December 9, 2003).

10.20             Purchase and Sale Contract  between  Registrant and The Dilweg
                  Companies,  LLC,  dated  October  20,  2003  (incorporated  by
                  reference to the Registrant's Current Report on Form 8-K dated
                  December 30, 2003).

10.21             Amendment to Purchase and Sale Contract between Registrant and
                  The  Dilweg   Companies,   LLC,   dated   October   27,   2003
                  (incorporated by reference to the Registrant's  Current Report
                  on Form 8-K dated December 30, 2003).



<PAGE>


10.22             Reinstatement  and Second  Amendment  to  Purchase  and Sale
                  Contract between  Registrant and The Dilweg Companies,  LLC,
                  dated  November 6, 2003  (incorporated  by  reference to the
                  Registrant's  Current  Report on Form 8-K dated December 30,
                  2003).

10.23             Third   Amendment  to  Purchase  and  Sale  Contract   between
                  Registrant and The Dilweg  Companies,  LLC, dated December 17,
                  2003  (incorporated by reference to the  Registrant's  Current
                  Report on Form 8-K dated December 30, 2003).

10.24             Assignment  and  Assumption  of Real Estate  Sale  Agreement
                  between The Dilweg  Companies,  LLC and HD South Point, LLC,
                  dated  December 30, 2003  (incorporated  by reference to the
                  Registrant's  Current  Report on Form 8-K dated December 30,
                  2003).

10.25             Purchase  and Sale  Contract  between  Registrant  and Jackson
                  Square Properties,  LLC, dated February 21, 2004 (incorporated
                  by  reference  to the  Registrant's  Quarterly  Report on Form
                  10-QSB for the quarter ended March 31, 2004).

10.26             Amendment to Purchase and Sale Contract between Registrant and
                  Jackson   Square   Properties,   LLC  dated   March  23,  2004
                  (incorporated  by  reference  to  the  Registrant's  Quarterly
                  Report on Form 10-QSB for the quarter ended March 31, 2004).

31.1              Certification  of  equivalent  of  Chief  Executive  Officer
                  pursuant     to     Securities     Exchange     Act    Rules
                  13a-14(a)/15d-14(a),  as Adopted  Pursuant to Section 302 of
                  the Sarbanes-Oxley Act of 2002.

31.2              Certification  of  equivalent  of  Chief  Financial  Officer
                  pursuant     to     Securities     Exchange     Act    Rules
                  13a-14(a)/15d-14(a),  as Adopted  Pursuant to Section 302 of
                  the Sarbanes-Oxley Act of 2002.

32.1              Certification   Pursuant  to  18  U.S.C.  Section  1350,  as
                  Adopted  Pursuant to Section 906 of the  Sarbanes-Oxley  Act
                  of 2002.




<PAGE>




Exhibit 31.1


                                  CERTIFICATION


I, Martha L. Long, certify that:


1.    I have reviewed this quarterly report on Form 10-QSB of National  Property
      Investors 7;

2.    Based on my knowledge,  this report does not contain any untrue  statement
      of a material fact or omit to state a material fact  necessary to make the
      statements made, in light of the circumstances under which such statements
      were made,  not  misleading  with  respect  to the period  covered by this
      report;

3.    Based on my  knowledge,  the  financial  statements,  and other  financial
      information  included  in this  report,  fairly  present  in all  material
      respects the financial condition,  results of operations and cash flows of
      the small  business  issuer as of, and for, the periods  presented in this
      report;

4.    The  small  business  issuer's  other  certifying  officer(s)  and  I  are
      responsible  for  establishing  and  maintaining  disclosure  controls and
      procedures (as defined in Exchange Act Rules  13a-15(e) and 15d-15(e)) for
      the small business issuer and have:

      (a)   Designed such  disclosure  controls and  procedures,  or caused such
            disclosure   controls  and  procedures  to  be  designed  under  our
            supervision,  to ensure that  material  information  relating to the
            small business issuer, including its consolidated  subsidiaries,  is
            made  known to us by  others  within  those  entities,  particularly
            during the period in which this report is being prepared;

      (b)   Evaluated  the   effectiveness   of  the  small  business   issuer's
            disclosure  controls and procedures and presented in this report our
            conclusions about the  effectiveness of the disclosure  controls and
            procedures, as of the end of the period covered by this report based
            on such evaluation; and

      (c)   Disclosed in this report any change in the small  business  issuer's
            internal  control over financial  reporting that occurred during the
            small  business  issuer's  most  recent  fiscal  quarter  (the small
            business  issuer's  fourth  fiscal  quarter in the case of an annual
            report) that has  materially  affected,  or is reasonably  likely to
            materially affect, the small business issuer's internal control over
            financial reporting; and

5.    The  small  business  issuer's  other  certifying  officer(s)  and I  have
      disclosed,  based on our most recent  evaluation of internal  control over
      financial reporting, to the small business issuer's auditors and the audit
      committee of the small  business  issuer's  board of directors (or persons
      performing the equivalent functions):

      (a)   All significant  deficiencies and material  weaknesses in the design
            or operation of internal control over financial  reporting which are
            reasonably  likely to adversely  affect the small business  issuer's
            ability  to  record,   process,   summarize  and  report   financial
            information; and

      (b)   Any fraud,  whether or not  material,  that  involves  management or
            other  employees who have a significant  role in the small  business
            issuer's internal control over financial reporting.

Date:  November 12, 2004

                                    /s/Martha L. Long
                                    Martha L. Long
                                    Senior  Vice   President   of  NPI  Equity
                                    Investments,   Inc.,   equivalent  of  the
                                    chief executive officer of the Partnership


<PAGE>



Exhibit 31.2


                                  CERTIFICATION


I, Stephen B. Waters, certify that:


1.    I have reviewed this quarterly report on Form 10-QSB of National  Property
      Investors 7;

2.    Based on my knowledge,  this report does not contain any untrue  statement
      of a material fact or omit to state a material fact  necessary to make the
      statements made, in light of the circumstances under which such statements
      were made,  not  misleading  with  respect  to the period  covered by this
      report;

3.    Based on my  knowledge,  the  financial  statements,  and other  financial
      information  included  in this  report,  fairly  present  in all  material
      respects the financial condition,  results of operations and cash flows of
      the small  business  issuer as of, and for, the periods  presented in this
      report;

4.    The  small  business  issuer's  other  certifying  officer(s)  and  I  are
      responsible  for  establishing  and  maintaining  disclosure  controls and
      procedures (as defined in Exchange Act Rules  13a-15(e) and 15d-15(e)) for
      the small business issuer and have:

      (a)   Designed such  disclosure  controls and  procedures,  or caused such
            disclosure   controls  and  procedures  to  be  designed  under  our
            supervision,  to ensure that  material  information  relating to the
            small business issuer, including its consolidated  subsidiaries,  is
            made  known to us by  others  within  those  entities,  particularly
            during the period in which this report is being prepared;

      (b)   Evaluated  the   effectiveness   of  the  small  business   issuer's
            disclosure  controls and procedures and presented in this report our
            conclusions about the  effectiveness of the disclosure  controls and
            procedures, as of the end of the period covered by this report based
            on such evaluation; and

      (c)   Disclosed in this report any change in the small  business  issuer's
            internal  control over financial  reporting that occurred during the
            small  business  issuer's  most  recent  fiscal  quarter  (the small
            business  issuer's  fourth  fiscal  quarter in the case of an annual
            report) that has  materially  affected,  or is reasonably  likely to
            materially affect, the small business issuer's internal control over
            financial reporting; and

5.    The  small  business  issuer's  other  certifying  officer(s)  and I  have
      disclosed,  based on our most recent  evaluation of internal  control over
      financial reporting, to the small business issuer's auditors and the audit
      committee of the small  business  issuer's  board of directors (or persons
      performing the equivalent functions):

      (a)   All significant  deficiencies and material  weaknesses in the design
            or operation of internal control over financial  reporting which are
            reasonably  likely to adversely  affect the small business  issuer's
            ability  to  record,   process,   summarize  and  report   financial
            information; and

      (b)   Any fraud,  whether or not  material,  that  involves  management or
            other  employees who have a significant  role in the small  business
            issuer's internal control over financial reporting.

Date:  November 12, 2004

                                    /s/Stephen B. Waters
                                    Stephen B. Waters
                                    Vice President of NPI Equity  Investments,
                                    Inc.,  equivalent  of the chief  financial
                                    officer of the Partnership


<PAGE>


Exhibit 32.1


                          Certification of CEO and CFO
                       Pursuant to 18 U.S.C. Section 1350,
                             As Adopted Pursuant to
                Section 906 of the Sarbanes-Oxley Act of 2002



In  connection  with the  Quarterly  Report on Form 10-QSB of National  Property
Investors 7 (the  "Partnership"),  for the quarterly  period ended September 30,
2004 as filed with the  Securities  and Exchange  Commission  on the date hereof
(the "Report"), Martha L. Long, as the equivalent of the Chief Executive Officer
of the  Partnership,  and  Stephen B.  Waters,  as the  equivalent  of the Chief
Financial  Officer of the  Partnership,  each hereby  certifies,  pursuant to 18
U.S.C.  Section 1350, as adopted  pursuant to Section 906 of the  Sarbanes-Oxley
Act of 2002, that, to the best of his knowledge:

      (1)   The Report fully complies with the  requirements of Section 13(a) or
            15(d) of the Securities Exchange Act of 1934; and

      (2)   The  information  contained in the Report  fairly  presents,  in all
            material respects, the financial condition and results of operations
            of the Partnership.


                                           /s/Martha L. Long
                                    Name:  Martha L. Long
                                    Date:  November 12, 2004


                                           /s/Stephen B. Waters
                                    Name:  Stephen B. Waters
                                    Date:  November 12, 2004


This  certification is furnished with this Report pursuant to Section 906 of the
Sarbanes-Oxley  Act of 2002 and shall not be deemed filed by the Partnership for
purposes of Section 18 of the Securities Exchange Act of 1934, as amended.