SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549

                                   FORM 10-Q
(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, 1996
                               ------------------
                                      OR

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

For the transition period from              to             
                               ------------    ------------
Commission file number 0-13334
                       -------

                   BALCOR REALTY INVESTORS 84-SERIES II,
                     A REAL ESTATE LIMITED PARTNERSHIP         
          -------------------------------------------------------
          (Exact name of registrant as specified in its charter)

          Maryland                                       36-3223939    
-------------------------------                     -------------------
(State or other jurisdiction of                      (I.R.S. Employer  
incorporation or organization)                      Identification No.)

2355 Waukegan Road
Bannockburn, Illinois                                     60015    
----------------------------------------            ------------------- 
(Address of principal executive offices)                (Zip Code)

Registrant's telephone number, including area code (847) 267-1600
                                                  --------------
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

Yes   X    No     
    -----     -----
<PAGE>
                     BALCOR REALTY INVESTORS 84-SERIES II,
                       A REAL ESTATE LIMITED PARTNERSHIP
                       (A Maryland Limited Partnership)

                                BALANCE SHEETS
                   September 30, 1996 and December 31, 1995
                                  (Unaudited)

                                    ASSETS

                                                  1996            1995
                                             -------------   -------------
Cash and cash equivalents                    $  1,532,493    $    419,227
Escrow deposits                                   618,211       1,158,746
Accounts and accrued interest receivable          838,076         189,252
Prepaid expenses                                  116,901         159,160
Deferred expenses, net of accumulated
  amortization of $412,978 in 1996
  and $763,343 in 1995                            266,286         565,727
                                             -------------   -------------
                                                3,371,967       2,492,112
                                             -------------   -------------
Investment in real estate:
  Land                                          4,715,580      11,076,389
  Buildings and improvements                   25,076,996      71,945,955
                                             -------------   -------------
                                               29,792,576      83,022,344
  Less accumulated depreciation                11,782,031      31,102,341
                                             -------------   -------------
Investment in real estate, net of
  accumulated depreciation                     18,010,545      51,920,003
                                             -------------   -------------
                                             $ 21,382,512    $ 54,412,115
                                             =============   =============


                       LIABILITIES AND PARTNERS' DEFICIT

Loans payable-affiliate                                      $  8,385,555
Accounts payable                             $    103,593         141,388
Due to affiliates                                  73,467         126,650
Accrued liabilities, principally
  interest and real estate taxes                  471,029       1,078,917
Security deposits                                 137,892         273,669
Mortgage notes payable                         24,203,736      65,239,773
                                             -------------   -------------
  Total liabilities                            24,989,717      75,245,952
                                             -------------   -------------
Affiliates' participation in joint 
  ventures                                        191,900      (1,322,633)
                                             -------------   -------------
<PAGE>
                     BALCOR REALTY INVESTORS 84-SERIES II,
                       A REAL ESTATE LIMITED PARTNERSHIP
                       (A Maryland Limited Partnership)

                                BALANCE SHEETS
                   September 30, 1996 and December 31, 1995
                                  (Unaudited)
                                  (Continued)


Limited Partners' deficit (87,037
  Interests issued and outstanding)            (3,045,883)    (18,559,083)
General Partner's deficit                        (753,222)       (952,121)
                                             -------------   -------------
  Total partners' deficit                      (3,799,105)    (19,511,204)
                                             -------------   -------------
                                             $ 21,382,512    $ 54,412,115
                                             =============   =============

The accompanying notes are an integral part of the financial statements.
<PAGE>
                     BALCOR REALTY INVESTORS 84-SERIES II,
                       A REAL ESTATE LIMITED PARTNERSHIP
                       (A Maryland Limited Partnership)

                       STATEMENTS OF INCOME AND EXPENSES
             for the nine months ended September 30, 1996 and 1995
                                  (Unaudited)

                                                  1996            1995
                                             -------------   -------------
Income:
  Rental and service                         $  8,144,984    $ 11,644,900
  Interest on short-term investments               78,982          46,559
                                             -------------   -------------
    Total income                                8,223,966      11,691,459
                                             -------------   -------------
Expenses:
  Interest on mortgage notes payable            2,733,841       4,323,944
  Interest on short-term loans from 
    an affiliate                                  189,838         412,519
  Depreciation                                  1,096,062       1,641,573
  Amortization of deferred expenses               111,029         133,565
  Property operating                            3,486,440       4,357,337
  Real estate taxes                               690,293         929,676
  Property management fees                        390,289         573,516
  Administrative                                  498,256         414,526
                                             -------------   -------------
    Total expenses                              9,196,048      12,786,656
                                             -------------   -------------
Loss before gain on sale of properties,       
  participation in joint ventures and 
  extraordinary items                            (972,082)     (1,095,197)
                                                              
Gain on sales of properties                    24,331,787

Affiliates' participation in (income) loss
  from joint ventures                          (3,246,631)         27,446
                                             -------------   -------------
Income (loss) before extaordinary items        20,113,074      (1,067,751)
                                             -------------   -------------
Extraordinary items:
  Gain on forgiveness of debt                     157,826
  Affiliate's participation in gain
    on forgiveness of debt                        (41,897)
  Debt extinguishment expense                    (360,073)
  Affiliate's participation in debt
    extinguishment expense                         20,945
                                             ------------- 
    Total extraordinary items                    (223,199)
                                             -------------   -------------
Net income (loss)                            $ 19,889,875    $ (1,067,751)
                                             =============   =============

The accompanying notes are an integral part of the financial statements.
<PAGE>
                     BALCOR REALTY INVESTORS 84-SERIES II,
                       A REAL ESTATE LIMITED PARTNERSHIP
                       (A Maryland Limited Partnership)

                       STATEMENTS OF INCOME AND EXPENSES
             for the nine months ended September 30, 1996 and 1995
                                  (Unaudited)
                                  (Continued)


                                                  1996            1995
                                             -------------   -------------
Income (loss) before extaordinary items
  allocated to General Partner               $    201,131    $    (10,678)
                                             =============   =============
Income (loss) before extaordinary items
  allocated to Limited Partners              $ 19,911,943    $ (1,057,073)
                                             =============   =============
Income (loss) before extaordinary items
  per Limited Partnership Interest(87,037
  issued and outstanding)                    $     228.78    $     (12.15)
                                             =============   =============
Extraordinary items allocated to
  General Partner                            $     (2,232)           None
                                             =============   =============
Extraordinary items allocated to
  Limited Partners                           $   (220,967)           None
                                             =============   =============
Extraordinary items per Limited 
  Partnership Interest (87,037 issued
  and outstanding)                           $      (2.54)           None
                                             =============   =============
Net income (loss) allocated to 
  General Partner                            $    198,899    $    (10,678)
                                             =============   =============
Net income (loss) allocated to
  Limited Partners                           $ 19,690,976    $ (1,057,073)
                                             =============   =============
Net income (loss) per Limited Partnership
  Interests (87,037 issued and outstanding)  $     226.24    $     (12.15)
                                             =============   =============
Distribution to Limited Partners             $  4,177,776            None
                                             =============   =============
Distribution per Limited
  Partnership Interest                       $      48.00            None
                                             =============   =============

The accompanying notes are an integral part of the financial statements.
<PAGE>
                     BALCOR REALTY INVESTORS 84-SERIES II,
                       A REAL ESTATE LIMITED PARTNERSHIP
                       (A Maryland Limited Partnership)

                       STATEMENTS OF INCOME AND EXPENSES
              for the quarters ended September 30, 1996 and 1995
                                  (Unaudited)


                                                  1996            1995
                                             -------------   -------------
Income:
  Rental and service                         $  1,559,453    $  3,912,867
  Interest on short-term investments               14,456          12,954
                                             -------------   -------------
    Total income                                1,573,909       3,925,821
                                             -------------   -------------
Expenses:
  Interest on mortgage notes payable              517,205       1,442,945
  Interest on short-term loans from
    an affiliate                                                  141,519
  Depreciation                                    188,638         547,190
  Amortization of deferred expenses                23,427          44,520
  Property operating                              817,562       1,660,259
  Real estate taxes                               117,528         318,711
  Property management fees                         71,451         197,093
  Administrative                                  117,458         142,453
                                             -------------   -------------
    Total expenses                              1,853,269       4,494,690
                                             -------------   -------------

Loss before participation in joint ventures      (279,360)       (568,869)

Affiliates' participation in loss from
  joint ventures                                                   36,992
                                             -------------   -------------
Net loss                                     $   (279,360)   $   (531,877)
                                             =============   =============
Net loss allocated to General Partner        $     (2,793)   $     (5,319)
                                             =============   =============
Net loss allocated to Limited Partners       $   (276,567)   $   (526,558)
                                             =============   =============
Net loss per Limited Partnership Interest
  (87,037 issued and outstanding)            $      (3.17)   $      (6.05)
                                             =============   =============
Distribution to Limited Partners             $  4,177,776            None
                                             =============   =============
Distribution per Limited
  Partnership Interest                       $      48.00            None
                                             =============   =============

The accompanying notes are an integral part of the financial statements.
<PAGE>
                     BALCOR REALTY INVESTORS 84-SERIES II,
                       A REAL ESTATE LIMITED PARTNERSHIP
                       (A Maryland Limited Partnership)

                           STATEMENTS OF CASH FLOWS
             for the nine months ended September 30, 1996 and 1995
                                  (Unaudited)


                                                  1996            1995
                                             -------------   -------------
Operating activities:
  Net income (loss)                          $ 19,889,875    $ (1,067,751)
  Adjustments to reconcile net income (loss)
    to net cash (used in) provided by
    operating activities:
      Gain on forgiveness of debt                (157,826)
      Affiliate's participation in gain on
        forgiveness of debt                        41,897
      Debt extinguishment expense                 360,073
      Affiliate's participation in debt 
        extinguishment expense                    (20,945)
      Gain on sales of properties             (24,331,787)
      Affiliates' participation in income
        (loss) from joint ventures              3,246,631         (27,446)
      Depreciation of properties                1,096,062       1,641,573
      Amortization of deferred expenses           111,029         133,565
      Net change in:
        Escrow deposits                           540,535         (71,008)
        Accounts and accrued interest
          receivable                             (648,824)        312,693
        Prepaid expenses                           42,259        (271,424)
        Accounts payable                          (37,795)        (43,656)
        Due to affiliates                         (53,183)       (183,055)
        Accrued liabilities                      (607,888)         87,092
        Security deposits                        (135,777)         (6,495)
                                             -------------   -------------
  Net cash (used in) provided by operating 
    activities                                   (665,664)        504,088
                                             -------------   -------------
Investing activities:
  Proceeds from sales of properties            58,215,000
  Cost incurred in connection with sales of
    properties                                 (1,069,817)
                                             -------------
  Net cash provided by investing activities    57,145,183
                                             -------------
Financing activities:
  Distribution to Limited Partners             (4,177,776)
  Capital contributions by joint venture
    partners-affiliate                                             25,323
<PAGE>
                     BALCOR REALTY INVESTORS 84-SERIES II,
                       A REAL ESTATE LIMITED PARTNERSHIP
                       (A Maryland Limited Partnership)

                           STATEMENTS OF CASH FLOWS
             for the nine months ended September 30, 1996 and 1995
                                  (Unaudited)
                                  (Continued)


  Distributions to joint venture partners-
    affiliates                                 (1,753,050)        (56,269)
  Proceeds from loans payable-affiliate                           537,000
  Repayment of loans payable-affiliate         (8,385,555)       (400,000)
  Principal payments on mortgage notes 
    payable                                      (413,632)       (551,683)
  Repayment of mortgage notes payable         (40,464,579)
  Payment of prepayment penalties                (171,661)
                                             -------------   -------------
  Net cash used in financing activities       (55,366,253)       (445,629)
                                             -------------   -------------

Net change in cash and cash equivalents         1,113,266          58,459
Cash and cash equivalents at beginning
  of period                                       419,227         325,412
                                             -------------   -------------
Cash and cash equivalents at end of period   $  1,532,493    $    383,871
                                             =============   =============

The accompanying notes are an integral part of the financial statements.
<PAGE>
                     BALCOR REALTY INVESTORS 84-SERIES II,
                       A REAL ESTATE LIMITED PARTNERSHIP
                       (A Maryland Limited Partnership)

                         NOTES TO FINANCIAL STATEMENTS

1. Accounting Policy:

In the opinion of management, all adjustments necessary for a fair presentation
have been made to the accompanying statements for the nine months and quarter
ended September 30, 1996, and all such adjustments are of a normal and
recurring nature.

2. Interest Expense:

During the nine months ended September 30, 1996 and 1995, the Partnership
incurred interest expense on mortgage notes payable of $2,733,841 and
$4,323,944 and paid interest expense of $2,903,698 and $4,374,226,
respectively.

3. Transactions with Affiliates:

Fees and expenses paid and payable by the Partnership to affiliates during the
nine months and quarter ended September 30, 1996 were:

                                           Paid
                                  ------------------------
                                  Nine Months    Quarter      Payable
                                   ------------   ---------    --------

   Reimbursement of expenses to
     the General Partner, at cost    $107,701     $19,338      $73,467


During the first six months of 1996, the Partnership repaid the General Partner
loan, which had an outstanding balance of $8,385,555 at December 31, 1995,
primarily with proceeds from the sales of the Seabrook, La Contenta and Meadow
Creek apartment complexes. (See Note 4 of Notes to Financial Statements for
additional information.) During the nine months ended September 30, 1996 and
1995, the Partnership incurred interest expense of $189,838 and $412,519, and
paid interest expense of $277,324 and $527,062 on these loans, respectively.
Interest expense was computed at the American Express Company cost of funds
rate plus a spread to cover administrative expenses.  The interest rate was
5.911% at the date of the loan repayment.

4. Property Sales:

(a) The Seabrook Apartments was owned by a joint venture consisting of the
Partnership and two affiliates. The Partnership and the affiliates held
participating percentages in the joint venture of 83.72% and 16.28%,
respectively.  In February 1996, the joint venture sold the property in an all
cash sale for $5,915,000. From the proceeds of the sale, the joint venture paid
$5,081,898 to the third party mortgage holder in full satisfaction of the first
mortgage loan, and paid $190,517 in selling costs. The basis of the property
was $4,361,052, which is net of accumulated depreciation of $2,625,226. For
financial statement purposes, the Partnership recognized a gain of $1,363,431
<PAGE>
from the sale of this property, of which $228,084 is the minority joint venture
partners' shares. 

(b) In April 1996, the Partnership sold the La Contenta Apartments in an all
cash sale for $11,300,000. From the proceeds of the sale, the Partnership paid
$6,970,559 to the third party mortgage holder in full satisfaction of the first
mortgage loan, and paid $236,400 in selling costs and $69,765 in prepayment
penalties. The basis of the property was $4,737,918, which is net of
accumulated depreciation of $3,049,224. For financial statement purposes, the
Partnership recognized a gain of $6,325,682 from the sale of this property. 

(c) In May 1996, the Partnership sold the Meadow Creek Apartments in an all
cash sale for $11,100,000. From the proceeds of the sale, the Partnership paid
$5,076,321 to the third party mortgage holder in full satisfaction of the first
mortgage loan, and paid $365,650 in selling costs and $101,896 in prepayment
penalties. The basis of the property was $4,195,785, which is net of
accumulated depreciation of $2,861,903. For financial statement purposes, the
Partnership recognized a gain of $6,538,565 from the sale of this property. 

(d) In June 1996, the Partnership sold the Ridgetree Apartments - Phase II in
an all cash sale for $9,200,000. From the proceeds of the sale, the Partnership
paid $7,798,124 to the third party mortgage holder in full satisfaction of the
first and second mortgage loans, and paid $107,000 in selling costs. The basis
of the property was $6,909,090, which is net of accumulated depreciation of
$4,455,600. For financial statement purposes, the Partnership recognized a gain
of $2,183,910 from the sale of this property.

(e) The Rosehill Pointe Apartments was owned by a joint venture consisting of
the Partnership and an affiliate. The Partnership and the affiliate hold
participating percentages in the joint venture of 61.62% and 38.38%,
respectively. In June 1996, the joint venture sold the property in an all cash
sale for $20,700,000. From the proceeds of the sale, the joint venture paid
$15,537,677 to the third party mortgage holders in full satisfaction of the
first and second mortgage loans, and paid $170,250 in selling costs. The basis
of the property was $12,609,551, which is net of accumulated depreciation of
$7,424,419. For financial statement purposes, the Partnership recognized a gain
of $7,920,199 from the sale of this property, of which $3,055,484 is the
minority joint venture partner's share.

5.  Extraordinary Items:

(a) During 1996, the Partnership recognized an extraordinary gain on
forgiveness of debt of $157,826 as a result of the sales of the La Contenta,
Meadow Creek and Rosehill Pointe apartment complexes, of which $41,897
represents the Rosehill Pointe Apartments affiliate's share. 

(b) In connection with the sales of the La Contenta and Meadow Creek apartment
complexes during 1996, the Partnership paid $171,661 of prepayment penalties.
In addition, the Partnership fully amortized the remaining deferred financing
fees in the amount of $188,412 as a result of the sales of the La Contenta,
Meadow Creek, Ridgetree - Phase II and Rosehill Pointe apartment complexes
during 1996.  These amounts were recognized as extraordinary items and
classified as debt extinguishment expense of $360,073, of which $20,945
represents the Rosehill Pointe Apartments affiliate's share.
<PAGE>
6. Subsequent Event:

In October 1996, the Partnership paid $870,370 ($10 per Interest) to Limited
Partners, representing a special distribution of Net Cash Proceeds received in
connection with the sales of the Ridgetree - Phase II and Rosehill Pointe
apartment complexes.
<PAGE>
                     BALCOR REALTY INVESTORS 84-SERIES II,
                       A REAL ESTATE LIMITED PARTNERSHIP
                       (A Maryland Limited Partnership)

                     MANAGEMENT'S DISCUSSION AND ANALYSIS

Balcor Realty Investors 84-Series II, A Real Estate Limited Partnership (the
"Partnership") is a limited partnership formed in 1983 to invest in and operate
income-producing real property. The Partnership raised $87,037,000 through the
sale of Limited Partnership Interests and utilized these proceeds to acquire
fourteen real property investments. The Partnership has since disposed of
eleven of these properties, including five properties which were sold during
1996. The Partnership continues to operate the three remaining properties.

Inasmuch as the management's discussion and analysis below relates primarily to
the time period since the end of the last fiscal year, investors are encouraged
to review the financial statements and the management's discussion and analysis
contained in the annual report for 1995 for a more complete understanding of
the Partnership's financial position.

Operations
----------

Summary of Operations
---------------------

The Partnership sold five properties in 1996 and recognized significant gains
on these sales for financial statement purposes. As a result of these sales and
the timing of the related gains, the Partnership generated net income during
the nine months ended September 30, 1996 as compared to a net loss during the
same period in 1995 and recognized a decrease in the net loss during the
quarter ended September 30, 1996 as compared to the same period in 1995.
Further discussion of the Partnership's operations is summarized below.

1996 Compared to 1995
---------------------

Unless otherwise noted, discussions of fluctuations between 1996 and 1995 refer
to both the nine months and quarters ended September 30, 1996 and 1995.

The Partnership sold the La Contenta, Meadow Creek, Ridgetree - Phase II,
Rosehill Pointe and Seabrook apartment complexes during 1996. As a result, the
Partnership recognized gains of $24,331,787 on the sales during the nine months
ended September 30, 1996. These sales also resulted in decreases in rental and
service income, interest expense on mortgage notes payable, depreciation,
amortization, property operating expenses, real estate taxes and property
management fees during 1996 as compared to 1995.

All three of the Partnership's remaining properties experienced higher rental
rates in 1996 which resulted in increased rental and service income and
property management fees and partially offset the decreases from the five
property sales.
<PAGE>
Proceeds received in connection with the sales of the Meadow Creek, Ridgetree -
Phase II and Rosehill Pointe apartment complexes were invested in short-term
investments prior to their distribution to Limited Partners in July 1996. As a
result, interest income on short-term investments increased during 1996 as
compared to 1995.

Due to decreases in the short-term loan balance during 1996 and its full
repayment in June 1996, interest expense on short-term loans from an affiliate
decreased during the nine months ended September 30, 1996 as compared to the
same period in 1995 and ceased during the quarter ended September 30, 1996.

Due to higher consulting fees, administrative expenses increased during the
nine months ended September 30, 1996 as compared to the same period in 1995.
Lower accounting fees incurred during 1996 partially offset the increase for
the nine months and resulted in a decrease in administrative expenses during
the quarter ended September 30, 1996 as compared to the same period in 1995.  

The gains recognized in connection with the sales of the Rosehill Pointe and
Seabrook apartment complexes resulted in the recognition of affiliates'
participation in income from joint ventures during the nine months ended
September 30, 1996 as compared to affiliates' participation in loss from joint
ventures during the same period in 1995. In addition, as a result of the
properties' sales during the first six months of 1996, affiliates'
participation in loss from joint ventures ceased during the quarter ended
September 30, 1996.

As a result of the sales of the La Contenta, Meadow Creek and Rosehill Pointe
apartment complexes, the Partnership recognized an extraordinary gain on
forgiveness of debt of $157,826, of which $41,897 represents Rosehill Pointe
Apartments affiliate's share, during the nine months ended September 30, 1996.

Due to the sales of the La Contenta, Meadow Creek, Ridgetree - Phase II and
Rosehill Pointe apartment complexes, remaining unamortized deferred financing
fees in the amount of $188,412 and prepayment penalties of $171,661 were
recognized as an extraordinary item and classified as debt extinguishment
expense of $360,073, of which $20,945 represents the Rosehill Pointe Apartments
affiliate's share, during the nine months ended September 30, 1996.

Liquidity and Capital Resources
-------------------------------

The cash position of the Partnership increased by approximately $1,113,000 as
of September 30, 1996 when compared to December 31, 1995. The Partnership used
cash of approximately $666,000 to fund its operating activities. The revenue
generated by the Partnership's properties was offset by the payment of
administrative expenses, short-term interest expense and expenditures relating
to damage caused by a hail storm at the Westwood Village Apartments and snow
damage incurred at the Spring Creek Apartments. The Partnership expects to be
reimbursed by its insurance carrier for the costs of the damage. The
Partnership received cash of approximately $57,145,000 from its investing
activities relating to the sales of the La Contenta, Meadow Creek, Ridgetree -
Phase II, Rosehill Pointe and Seabrook apartment complexes. The Partnership
<PAGE>
used cash to fund its financing activities which consisted of the payment of a
distribution totaling approximately $4,178,000 to the Limited Partners, the
repayment of the $8,385,555 loan from the General Partner, the repayment of
mortgage notes payable of approximately $40,465,000, the payment of prepayment
penalties of approximately $172,000 related to two property sales, principal
payments on mortgage notes payable of approximately $414,000 and distributions
to joint venture partners of approximately $1,753,000. The Partnership also
made a special distribution to Limited Partners from Net Cash Proceeds in
October 1996 as described below.

The Partnership classifies the cash flow performance of its properties as
either positive, a marginal deficit or a significant deficit, each after
consideration of debt service payments unless otherwise indicated. A deficit is
considered to be significant if it exceeds $250,000 annually or 20% of the
property's rental and service income. The Partnership defines cash flow
generated from its properties as an amount equal to the property's revenue
receipts less property related expenditures, which include debt service
payments. During the nine months ended September 30, 1996 and 1995, the Park
Colony and Westwood Village apartment complexes generated positive cash flow.
The Spring Creek Apartments, which had generated a marginal cash flow deficit
during the nine months ended September 30, 1995, generated positive cash flow
during the same period in 1996 as a result of higher rental income. In
addition, the Meadow Creek and Rosehill Pointe apartment complexes, which were
sold in May and June 1996, respectively, generated positive cash flow during
1995 and prior to their sales in 1996. The Seabrook and Ridgetree - Phase II
apartment complexes, which were sold in February and June 1996, respectively,
generated marginal cash flow deficits during 1995 and prior to their sales in
1996. The La Contenta Apartments, which was sold in April 1996, generated
positive cash flow during 1995 and a marginal cash flow deficit prior to its
sale in 1996. As of September 30, 1996, occupancy rates of the Partnership's
remaining properties ranged from 93% to 97%. 

The General Partner continues to pursue a number of actions aimed at improving
the cash flow of the Partnership's remaining properties, including improving
property operating performance, and seeking rent increases where market
conditions allow. 

The General Partner believes that the market for multifamily housing properties
is favorable to sellers of these properties and has accelerated the
Partnership's liquidation strategy. During 1996, the Partnership sold the La
Contenta, Meadow Creek, Ridgetree - Phase II, Rosehill Pointe and Seabrook
apartment complexes. Currently, the Partnership has entered into a contract to
sell the Westwood Village Apartments for $9,000,000. Additionally, the
Partnership is actively marketing the Park Colony Apartments. The Partnership
expects to sell the remaining two properties during 1997. 

The timing of the termination of the Partnership and final distribution of cash
will depend upon the nature and extent of liabilities and contingencies which
exist or may arise.  Such contingencies may include legal and other fees
stemming from litigation involving the Partnership.  In the absence of any such
contingency, the reserves will be paid within twelve months of the last
property being sold. In the event a contingency exists, reserves may be held by
the Partnership for a longer period of time.
<PAGE>
The Seabrook Apartments was owned by a joint venture consisting of the
Partnership and two affiliates. In February 1996, the joint venture sold the
property in an all cash sale for $5,915,000. From the proceeds of the sale, the
joint venture paid $5,081,898 to the third party mortgage holder in full
satisfaction of the first mortgage loan, and paid $190,517 in selling costs.
The net proceeds of the sale were $642,585, of which $538,815 was the
Partnership's share. Pursuant to the terms of the sale, the joint venture was
required to holdback $250,000 of the proceeds until August 1996. The full
amount of the holdback was released in August 1996. The remainder of the
proceeds received by the Partnership were used to repay a portion of the
General Partner loan. See Note 4 of Notes to Financial Statements for
additional information.

In April 1996, the Partnership sold the La Contenta Apartments in an all cash
sale for $11,300,000. From the proceeds of the sale, the Partnership paid
$6,970,559 to the third party mortgage holder in full satisfaction of the first
mortgage loan, paid $236,400 in selling costs and paid $69,765 of prepayment
penalties. The remainder of the proceeds were used to repay a portion of the
General Partner loan. See Note 4 of Notes to Financial Statements for
additional information.

In May 1996, the Partnership sold the Meadow Creek Apartments in an all cash
sale for $11,100,000. From the proceeds of the sale, the Partnership paid
$5,076,321 to the third party mortgage holder in full satisfaction of the first
mortgage loan, paid $365,650 in selling costs and paid $101,896 of prepayment
penalties. The remainder of the proceeds were used to repay the remaining
balance of the General Partner loan and to make a special distribution to the
Limited Partners in July 1996. See Note 4 of Notes to Financial Statements for
additional information.

In June 1996, the Partnership sold the Ridgetree Apartments - Phase II in an
all cash sale for $9,200,000. From the proceeds of the sale, the Partnership
paid $7,798,124 to the third party mortgage holder in full satisfaction of the
first and second mortgage loans, and paid $107,000 in selling costs. Pursuant
to the terms of the sale, the Partnership was required to holdback $500,000 of
the proceeds until October 1996.  The full amount of the holdback was released
in October 1996. The remainder of the proceeds were distributed as special
distributions to the Limited Partners in July and October 1996. See Note 4 of
Notes to Financial Statements for additional information.

The Rosehill Pointe Apartments was owned by a joint venture consisting of the
Partnership and an affiliate. In June 1996, the joint venture sold the property
in an all cash sale for $20,700,000. From the proceeds of the sale, the joint
venture paid $15,537,677 to the third party mortgage holders in full
satisfaction of the first and second mortgage loans, and paid $170,250 in
selling costs. The net proceeds of the sale were $4,992,073, of which
$3,076,115 was the Partnership's share. Pursuant to the terms of the sale, the
joint venture was required to holdback $500,000 of the proceeds until October
1996. The full amount of the holdback was released in October 1996. A portion
of the remaining proceeds received by the Partnership were distributed as
special distributions to the Limited Partners in July and October 1996, while
the remainder has been retained for working capital purposes. See Note 4 of
Notes to Financial Statements for additional information.
<PAGE>
Each of the Partnership's remaining properties is owned through the use of
third-party mortgage loan financing and, therefore, the Partnership is subject
to the financial obligations required by such loans. As a result of the General
Partner's efforts to refinance certain of the existing loans with new lenders,
the Partnership has no third-party, first mortgage financing which matures
prior to April 1998.

In October 1996, the Partnership paid $870,370 ($10 per Interest) to Limited
Partners representing a special distribution of Net Cash Proceeds received in
connection with the sales of the Ridgetree - Phase II and Rosehill Pointe
apartment complexes. Including the October 1996 distribution, Limited Partners
have received distributions of Net Cash Proceeds totaling $58 per $1,000
Interest, as well as certain tax benefits. The Partnership expects to continue
making distributions from proceeds generated from future property sales,
although there can be no assurance in this regard. The General Partner,
however, does not anticipate that investors will recover a substantial portion
of their original investment. 

Inflation has several types of potentially conflicting impacts on real estate
investments. Short-term inflation can increase real estate operating costs
which may or may not be recovered through increased rents and/or sales prices
depending on general or local economic conditions. In the long-term, inflation
will increase operating costs and replacement costs and may lead to increased
rental revenues and real estate values.
<PAGE>
                     BALCOR REALTY INVESTORS 84-SERIES II,
                       A REAL ESTATE LIMITED PARTNERSHIP
                       (A Maryland Limited Partnership)

                          PART II - OTHER INFORMATION

Item 1.  Legal Proceedings
--------------------------

Proposed class action
----------------------

On August 30, 1996, a proposed class action complaint was filed, Lenore Klein
vs. Lehman Brothers, Inc., et al., Superior Court of New Jersey, Law Division,
Union County, Docket No. Unn-L-5162-96).  The Partnership, additional limited
partnerships which were sponsored by The Balcor Company (together with the
Partnership, the "Affiliated Partnerships"), American Express Company, Lehman
Brothers, Inc., additional limited partnerships sponsored by the predecessor of
Lehman Brothers, Inc. (together with the Partnership and the Affiliated
Partnerships, the "Defendant Partnerships") and Smith Barney Holdings, Inc. are
the named defendants in the action. The complaint was amended on October 18,
1996 to add additional plaintiffs.  The amended complaint alleges, among other
things, common law fraud and deceit, negligent misrepresentation, breach of
contract, breach of fiduciary duty and violation of certain New Jersey statutes
relating to the disclosure of information in the offering of limited
partnership interests in the Defendant Partnerships.  The amended complaint
seeks judgment for compensatory damages equal to the amount invested in the
Defendant Partnerships by the proposed class plus interest accrued thereon;
general damages for injuries arising from the defendants' actions; punitive
damage; equitable relief, including rescission, on certain counts; punitive
damages; treble damages on certain counts; recovery from the defendants of all
profits received by them as a result of their actions relating to the Defendant
Partnerships; attorneys' fees and other costs.

The defendants intend to vigorously contest this action.  No class has been
certified as of this date. Management of each of the defendants believes they
have meritorious defenses to contest the claims.  It is not determinable at
this time whether or not an unfavorable decision in this action would have a
material adverse impact on the Partnership.

Item 5.  Other Information
--------------------------

Westwood Village Apartments
---------------------------

As previously reported,  the Partnership  contracted to  sell Westwood  Village
Apartments, Irving, Texas, to an unaffiliated party, Alliance Holdings, L.L.C.,
an Illinois limited  liability company,  for a  sale price  of $9,000,000.  The
Partnership and  the purchaser  have agreed  to extend  the closing  date  from
November 1,  1996  to  December  30,  1996.  The  purchaser  has  deposited  an
additional $75,000 as earnest money,  which amount is non-refundable except  in
the event of a Partnership default under the agreement of sale, for a total  of
$165,000.
<PAGE>
Item 6.  Exhibits and Reports on Form 8-K
-----------------------------------------

(a) Exhibits:

(4) Form of Subscription Agreement set forth as Exhibit 4.1 to Amendment No. 2
of the Registrant's Registration Statement on Form S-11 dated May 16, 1984
(Registration No. 2-89319), and Form of Confirmation regarding Interests in the
Registrant set forth as Exhibit 4.2 to the Registrant's Report on Form 10-Q for
the quarter ended June 30, 1992 (Commission File No. 0-13334) are incorporated
herein by reference.

(10) (a) (i)  Agreement of Sale and attachment thereto relating to the sale of
Ridgetree Apartments, Phase II, previously filed as Exhibit 2(a) to the
Registrant's Current Report on Form 8-K dated April 23, 1996, are incorporated
herein by reference.

(ii) Master Amendment and Agreement dated May 22, 1996 relating to the sale of
Ridgetree Apartments, Phase II and Rosehill Pointe Apartments, previously filed
as Exhibit 2(a)(i) to the Registrant's Current Report on Form 8-K dated May 31,
1996, is incorporated herein by reference.

(iii) Master Amendment and Agreement #2 dated May 22, 1996 relating to the sale
of Ridgetree Apartments, Phase II and Rosehill Pointe Apartments, previously
filed as Exhibit 2(a)(ii) to the Registrant's Current Report on Form 8-K dated
May 31, 1996, is incorporated herein by reference.

(b)  Agreement of Sale and attachment thereto relating to the sale of Rosehill
Pointe Apartments, previously filed as Exhibit 2(b) to the Registrant's Current
Report on Form 8-K dated April 23, 1996, are incorporated herein by reference.

(c)(i) Agreement of Sale and attachment thereto relating to the sale of
Westwood Village Apartments, previously filed as Exhibit (2) to the
Registrant's Current Report on Form 8-K dated September 4, 1996, are
incorporated herein by reference.

(ii) Modification Agreement relating to the sale of Westwood Village Apartments
is attached hereto.

(iii) Letter Agreement relating to the sale of Westwood Village Apartments is
attached hereto.

(27) Financial Data Schedule of the Registrant for the nine month period ended
September 30, 1996 is attached hereto.

(b) Reports on Form 8-K:  A Current Report on Form 8-K dated September 4, 1996
was filed reporting the contract to sell the Westwood Village Apartments in
Irving, Texas.
<PAGE>
SIGNATURES


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


                            BALCOR REALTY INVESTORS 84-SERIES II,
                            A REAL ESTATE LIMITED PARTNERSHIP



                            By:  /s/ Thomas E. Meador                          
                                --------------------------------
                                Thomas E. Meador
                                President and Chief Executive Officer
                                (Principal Executive Officer) of Balcor
                                Partners-84 II, Inc., the General Partner



                            By:  /s/ Jayne A. Kosik                        
                                ---------------------------------
                                Jayne A. Kosik
                                Vice President, and Chief
                                Financial Officer (Principal Accounting        
                                Officer) of Balcor Partners-84 
                                II, Inc., the General Partner



Date:  November 12, 1996                      
      ---------------------------
<PAGE>