SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 2O549
                                    FORM 1O-K

(Mark One)
/ x /Annual  Report  Pursuant  to  Section  13 or 15 (d) of the  Securities  and
Exchange Act of 1934 [Fee Required] for the fiscal year ended December 31, 1997.
or /  /Transition  report  pursuant  to  section  13 or 15(d) of the  Securities
Exchange  Act  of  1934  [No  Fee  Required]  for  the  transition  period  from
____________ to ______________.

Commission File No. 2-96364.

 DSI REALTY INCOME FUND IX, a California Limited Partnership
(Exact name of registrant as specified in governing instruments)

_________California___________________________33-0103189_____
(State of other jurisdiction of               (I.R.S. Employer
incorporation or organization                 identification
                                              number

         37O1 Long Beach Boulevard, Long Beach, California 9O8O7
         (Address of principal executive offices)     (Zip Code)

Registrants telephone number, including area code-(562)493-8881

Securities registered pursuant to Section 12(b) of the Act: none.

Securities registered pursuant to Section 12(g) of the Act:

                     Units of Limited Partnership Interests
                        (Class of Securities Registered)

     Indicate by check mark,  whether the  registrant  (l) 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 9O days. Yes_X____. No______.

     Indicate by check mark if disclosure of delinquent  filers pursuant to Item
405 of Regulation S-K (Section 229.405 of this chapter) is not contained herein,
and will not be contained,  to the best of registrant's knowledge, in definitive
proxy or information  statements  incorporated  by reference in Part III of this
Form 10-K or any amendment to this Form 10-K. /x/

     The Registrant is a limited  partnership and there is no voting stock.  All
units of limited  partnership  sold to date are owned by  non-affiliates  of the
registrant. All such units were sold at $5OO.OO per unit.

<PAGE>

                       DOCUMENTS INCORPORATED BY REFERENCE

Item 8. Registrant's Financial Statements for its fiscal year ended December 31,
     1997, incorporated by reference to Form 10-K, Part II.

Item 11.  Registrant's  Financial  Statements for its fiscal year ended December
     31, 1997, incorporated by reference to Form 10-K, Part III.

Item 12.  Registration  Statement  on  Form  S-11,  previously  filed  with  the
     Securities and Exchange  Commission  pursuant to Securities Act of 1933, as
     amended, incorporated by reference to Form 10-K Part III.

Item 13.  Registrant's  Financial  Statements for its fiscal year ended December
     31, 1997, incorporated by reference to Form 10-K, Part III.

                                     PART I

Item l.  BUSINESS

     Registrant,   DSI  Realty   Income  Fund  IX  (the   "Partnership")   is  a
publicly-held limited partnership organized under the California Uniform Limited
Partnership Act pursuant to a Certificate  and Agreement of Limited  Partnership
(hereinafter  referred to as  "Agreement")  dated March 6, 1985,  as amended and
restated to November 1, 1985. The General  Partners are DSI Properties,  Inc., a
California  corporation,  Robert J. Conway and Joseph W. Conway,  brothers.  The
General Partners are affiliates of Diversified Securities,  Inc., a wholly-owned
subsidiary of DSI Financial,  Inc. The General Partners provide similar services
to other partnerships. Through its public offering of Limited Partnership Units,
Registrant  sold thirty  thousand  six hundred  ninety-three  (30,693)  units of
limited  partnership   interests   aggregating  Fifteen  Million  Three  Hundred
Forty-Six Thousand Five Hundred Dollars  ($15,346,500) The General Partners have
retained a one percent (l%)  interest in all profits,  losses and  distributions
(subject to certain conditions)  without making any capital  contribution to the
Partnership.  The  General  Partners  are  not  required  to  make  any  capital
contributions  to the  Partnership  in the future.  Registrant is engaged in the
business of investing in and operating mini-storage  facilities with the primary
objectives of generating,  for its partners,  cash flow, capital appreciation of
its properties,  and obtaining  federal income tax deductions so that during the
early years of operations,  all or a portion of such  distributable cash may not
represent  taxable income to its partners.  Funds obtained by Registrant  during
the public offering  period of its units were used to acquire five  mini-storage
facilities,  as well as a joint venture interest with an affiliated  Partnership
(DSI Realty  Income Fund VIII, a California  Limited  Partnership)  in which the
Partnership  has a 70% interest in a  mini-storage  facility  located in Aurora,
Colorado.  Registrant  does not intend to sell  additional  limited  partnership
units.  The term of the  Partnership is fifty years but it is  anticipated  that
Registrant will sell and/or refinance its properties prior to the termination of
the Partnership.  The Partnership is intended to be  self-liquidating  and it is
not  intended  that  proceeds  from the  sale or  refinancing  of its  operating
properties will be reinvested.  Registrant has no full time employees but shares
one or more employees with other publicly-held limited partnerships sponsored by
the General  Partners.  The General Partners are vested with authority as to the
general  management  and  supervision of the business and affairs of Registrant.
Limited  Partners have no right to  participate  in the management or conduct of
such business and affairs.  An independent  management company has been retained
to  provide  day-to-day   management   services  with  respect  to  all  of  the
Partnership's investment properties.

     Average occupancy levels for each of the  Partnership's  properties for the
years ended December 31, 1997 and December 31, 1996 are as follows:

Location of Property                Average Occupancy         Average Occupancy
                                    Level for the              Level for the
                                    Year Ended                 Year Ended
                                    Dec. 31, 1997              Dec. 31, 1996

Azusa, CA                                83%                        82%

Elgin, IL                                81%                        83%

Everett, WA                              90%                        84%

Monterey Park, CA                        90%                        91%

Romeoville, IL                           78%                        82%

Aurora, CO*                              88%                        82%

*The Partnership owns a 70% interest in this facility.

     The  business in which the  Partnership  is engaged is highly  competitive.
Each of its  mini-storage  facilities  is located in or near a major urban area,
and  accordingly,   competes  with  a  significant  number  of  individuals  and
organizations  with respect to both the purchase and sale of its  properties and
for rentals.  Generally,  Registrant's business is not affected by the change in
seasons.

<PAGE>

Item 2.  PROPERTIES

     Registrant owns a fee interest in five mini-storage facilities,  as well as
a 70% interest in a joint  venture with an  affiliated  partnership  (DSI Realty
Income Fund VIII, a California  Limited  Partnership) which joint venture owns a
mini-storage facility, none of which are subject to long-term indebtedness.  The
following  table  sets forth  information  as of  December  31,  1997  regarding
properties owned by the Partnership.

Location          Size of     Net Rentable     No. of            Completion
                  Parcel      Area             Rental Units      Date

Azusa, CA         2.94 acres  71,059           664                6/11/86

Elgin, IL         4.99 acres  48,363           441                9/29/86

Everett, WA       2.71 acres  50,572           488               12/01/85

Monterey Park,
CA                 .95 acres  31,654           392                8/23/86

Romeoville, IL   3.956 acres  65,941           690               11/24/86

Aurora, CO(1)      4.6 acres  86,676           887                9/05/85

(1)  The Partnership has a 70% fee interest in this facility.  DSI Realty Income
     Fund VIII, a California  Limited  Partnership  (an affiliated  partnership)
     owns a 30% fee interest in this facility.

Item 3.  LEGAL PROCEEDINGS

     Registrant is not a party to any material pending legal proceedings.

Item 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

     None.

                                     PART II

Item 5.  MARKET FOR THE REGISTRANT'S COMMON EQUITY AND
                  RELATED STOCKHOLDER MATTERS

     Registrant,  a  publicly-held  limited  partnership,  sold  30,693  limited
partnership  units during its offering and currently has 1,257 limited  partners
of record.  There is no intention to sell additional  limited  partnership units
nor is there a market for these units.

     Average  cash  distributions  of $11.32 per  Limited  Partnership Unit were
declared  and paid each  quarter for the year ended December 31, 1997 and $11.25
per Limited Partnership Unit for the year ended December 31, 1996 and $9.06 per
Limited Partnership Unit for the year ended  December  31, 1995.  It is
Registrant's  expectations  that  distributions  will continue to be paid in the
future.

Item 6.  SELECTED FINANCIAL DATA
         FIVE YEARS ENDED DECEMBER 31, 1997
         --------------------------------------------------------------------
                   1997         1996         1995          1994          1993
                   ----         ----         ----          ----          ----

REVENUES       $ 2,624,488  $ 2,468,108  $ 2,484,242  $ 2,312,201   $ 2,315,457

COSTS AND
EXPENSES         1,674,192    1,620,477    1,563,848    1,520,382     1,552,502

MINORITY
INTEREST
IN EARNINGS OF
REAL ESTATE
JOINT
VENTURE            (93,305)     (82,729)    (116,421)     (93,634)     (88,765)
               -----------  -----------  -----------  ------------  ------------

NET
INCOME         $   856,991  $   764,902  $   803,973  $   698,185  $   674,190 
               ===========  ===========  ===========  ============  ============

TOTAL
ASSETS         $ 7,396,927  $ 8,011,698  $ 8,677,898  $ 9,031,055  $ 9,525,832
               ===========  ===========  ===========  ============  ============

NET CASH
PROVIDED BY
OPERATING
ACTIVITIES     $ 1,494,901  $ 1,468,741  $ 1,488,619  $ 1,331,083  $ 1,213,385
               ===========  ===========  ===========  ============  ============

NET INCOME
PER LIMITED
PARTNERSHIP
UNIT           $     45.27  $     45.00  $     36.25  $     35.00  $     35.00
               ===========  ===========  ===========  ============  ============

CASH
DISTRIBUTION
PER $500
LIMITED
PARTNERSHIP
UNIT           $     27.64  $     24.67  $     25.93  $     22.52  $     21.75  
               ===========  ===========  ===========  ============  ============

<PAGE>

Item 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                  CONDITION AND RESULTS OF OPERATIONS.

                              RESULTS OF OPERATIONS

1997 COMPARED TO 1996

     Total revenues increased from $2,468,108 in 1996 to $2,624,488 in 1997,
total expenses increased from $1,620,477 to $1,674,192 and minority interest
in income of the real estate joint venture increased from $82,729 to $93,305.
As a result of these fluctuations, net income increased from $764,902 in 1996
to $856,991 in 1997.  The increase in rental revenues can be attributed to a
combination of higher occupancy and unit rental rates.  Average occupancy
levels for the Partnership's six mini-storage facilities increased from 84.0%
for the year ended December 31, 1996, to 84.9% for the year ended December 31,
1997.  The Partnership continued to adjust rental rates where market conditions
made such adjustments feasible.  The Partnership is continuing its marketing
efforts to attract and keep new tenants in its various mini-storage facilities.
The increase in operating expenses of approximately $59,300 (9.3%) was
primarily due to increases in miscellaneous advertising costs, maintenance and
repair, salaries and wages and workman'S compensation insurance expense
partially offset by decreases in real estate tax expense.  General and
administrative expenses increased approximately $4,600 (2.8%) as a result of
relatively insignificant fluctuations in various expense accounts.  General
Partners' incentive management fees remained constant.  Property management
fees, which are based on rental revenue, increased as a result of the increase
in rental revenue.  The amount of income from the Partnership's real estate
joint venture allocated to the minority partner increased due to the increased
profitability of the joint venture.

1996 COMPARED TO 1995

     Total revenues decreased from $2,484,242 in 1995 to $2,468,108 in 1996, 
total expenses increased from $1,563,848 to $1,620,477 and minority interest
in income of the real estate joint venture decreased from $116,421 to $82,729.
As a result of these fluctuations, net income decreased from $803,973 in 1995
to $764,902 in 1996.  The decrease in rental revenues can be attributed to a
combination of lower occupancy and unit rental rates. Average occupancy levels
for the Partnership's six mini-storage facilities decreased from 85.2% for the
year ended December 31, 1995, to 84% for the year ended December 31, 1996.  The
Partnership continued to adjust rental rates where market conditions made such
adjustments feasible.  The Partnership is continuing its marketing  efforts to
attract and keep new tenants in its various mini-storage  facilities.  The
increase in operating expenses of approximately $36,700 (6.1%) was primarily
due to increases in yellow pages advertising costs, real estate tax expense and
salaries and wages partially offset by decreases in maintenance and repair
expense.  General  and  administrative  expenses  decreased  $14,500  (8.1%)
primarily due to a decrease in office expenses.  General Partners' incentive
management fees increased approximately $24,400 (24.1%).  These fees which 
are based on cash distributions to limited partners, increased as a result 
of  an  increase  in  these distributions.  The amount of income from the 
Partnership's real estate joint venture allocated to the minority partner
decreased due to the decreased profitability of the joint venture.



                         LIQUIDITY AND CAPITAL RESOURCES

     Net cash provided by operating activities increased  approximately $26,200
(1.8%) in 1997  compared to 1996  primarily  as a result of the increase in net
income partially offset by decreases in depreciation and customer deposits
and other liabilities and an increase in other assets. Net cash provided by
operating activities decreased approximately $19,900 (1.3%) in 1996 compared to
1995 primarily as a result of the decrease in net income partially offset by an
increase in customer deposits and other liabilities.  

     Cash used in financing  activities,  as set forth in the statements of cash
flows, has been used for  distributions to partners and the minority interest in
the  Partnership's  real estate joint venture.  The General Partners  determined
that  effective  with the fourth  quarter 1995  distribution,  which was paid on
January 15, 1996, distributions to the limited partners would be increased to an
amount  which  yields an 8%  annual  return on the  capital  contributed  by the
limited partners from annual return of 7% paid in the prior year.  In addition,
a special distribution of 1% was declared and paid on December 15, 1996 and
1997.

     Cash used in investing  activities,  as set forth in the statements of cash
flows, consists of acquisitions of equipment for the Partnership's  mini-storage
facilities in 1995 and 1996. The  Partnership  has no material  commitments  for
capital expenditures.

     The  General  Partners  plan  to  continue  their  policy  of  funding  the
continuing  improvement  and  maintenance  of Partnership  properties  with cash
generated from operations.  The Partnership's resources appear to be adequate to
meet its needs for the next twelve months.

     The General  Partners  are not aware of any  environmental  problems  which
could  have a  material  adverse  effect  upon  the  financial  position  of the
Partnership.

<PAGE>

Item 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

     Attached hereto as Exhibit l is the information required to be set forth as
Item 8, Part II hereof.

Item 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
                  ACCOUNTING AND FINANCIAL DISCLOSURE.

     None.

                                    PART III

Item 10.  DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT'S
                  GENERAL PARTNER

     The General Partners of Registrant are the same as when the Partnership was
formed, i.e., DSI Properties,  Inc., a California corporation,  Robert J. Conway
and Joseph W.  Conway,  brothers.  As of December 31,  1997,  Messrs.  Robert J.
Conway and Joseph W. Conway, each of whom own approximately 45.43% of the issued
and outstanding capital stock of DSI Financial,  Inc., a California corporation,
together  with Mr.  Joseph W.  Stok,  currently  comprise  the  entire  Board of
Directors of DSI Properties, Inc.

     Mr. Robert J. Conway is 64 years of age and is a licensed  California  real
estate  broker,  and since 1965 has been  President and a member of the Board of
Directors of  Diversified  Securities,  Inc.,  and since 1973  President,  Chief
Financial Officer and a member of the Board of Directors of DSI Properties, Inc.
Mr. Conway received a Bachelor of Science Degree from Marquette  University with
majors in Corporate Finance and Real Estate.

     Mr.  Joseph W.  Conway  is age 68 and has been  Executive  Vice  President,
Treasurer and a member of the Board of Directors of Diversified Securities, Inc.
since 1965 and since 1973 the Vice President,  Treasurer and member of the Board
of Directors of DSI  Properties,  Inc.  Mr.  Conway  received a Bachelor of Arts
Degree from Loras College with a major in Accounting.

     Mr.  Joseph  W.  Stok is age 74 and  has  been a  member  of the  Board  of
Directors of DSI  Properties,  Inc.  since 1994, a Vice President of Diversified
Securities,   Inc.  since  1973,  and  an  Account  Executive  with  Diversified
Securities, Inc. since 1967.

Item 11.  EXECUTIVE COMPENSATION (MANAGEMENT REMUNERATION AND
                  TRANSACTIONS)

     The  information  required  to be  furnished  in  Item  11 of  Part  III is
contained  in  Registrant's  Financial  Statements  for its  fiscal  year  ended
December 31, 1997,  which together with the report of its independent  auditors,
Deloitte & Touche LLP, is attached hereto as Exhibit 1 and  incorporated  herein
by this reference. In addition to such information:

     (a)  No annuity,  pension or retirement benefits are proposed to be paid by
          Registrant  to any of  the  General  Partners  or to  any  officer  or
          director of the corporate General Partner;

     (b)  No  standard or other  arrangement  exists by which  directors  of the
          Registrant are compensated;

     (c)  The  Registrant  has not  granted  any option to  purchase  any of its
          securities; and

     (d)  The Registrant has no plan, nor does the Registrant  presently propose
          a plan,  which  will  result  in any  remuneration  being  paid to any
          officer or director upon termination of employment.

Item 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
                  MANAGEMENT

     As of  December  31, 1997 no person of  record  owned  more than 5% of the
limited partnership units of Registrant,  nor was any person known by Registrant
to own of record and beneficially,  or beneficially  only, more than 5% thereof.
The balance of the  information  required to be furnished in Item 12 of Part III
is contained in  Registrant's  Registration  Statement on Form S-11,  previously
filed  pursuant  to the  Securities  Act of  1933,  as  amended,  and  which  is
incorporated  herein  by this  reference.  The only  change  to the  information
contained in said  Registration  Statement on Form S-11 is the fact that Messrs.
Benes and Blakley have retired and Messrs. Robert J. Conway and Joseph W. Conway
equity  interest in DSI Financial,  Inc.,  parent of DSI  Properties,  Inc., has
increased. Please see information contained in Item 10 hereinabove.

<PAGE>

Item 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

     The  information  required  to be  furnished  in  Item  13 of  Part  III is
contained  in  Registrant's  Financial  Statements  for its  fiscal  year  ended
December 31, 1997,  attached hereto as Exhibit l and incorporated herein by this
reference.

                                     PART IV

Item 14  EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON
                  FORM 8-K

     (a)(l) Attached hereto and incorporated herein by this reference as Exhibit
          l are Registrant's  Financial Statements and Supplemental Schedule for
          its fiscal year ended December 31, 1997,  together with the reports of
          its independent  auditors,  Deloitte & Touche.  See Index to Financial
          Statements and Supplemental Schedule.

     (a)(2) Attached hereto and incorporated herein by this reference as Exhibit
          2 is Registrant's  letter to its Limited Partners regarding its Annual
          Report for its fiscal year ended December 31, 1997.

     (b)  No reports on Form 8K were filed during the fiscal year ended December
          31, 1997.

                                   SIGNATURES

     Pursuant  to the  requirements  of Section  13 or 15 (d) 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.

DSI REALTY INCOME FUND IX
by:  DSI Properties, Inc., a
California corporation, as
General Partner



By_____________________________     Dated:  March 27, 1998
  ROBERT J. CONWAY, President
  (Chief Executive Officer, Chief
  Financial Officer, and Director)



By____________________________      Dated:  March 27, 1998
  JOSEPH W. CONWAY (Executive
  Vice President and Director)

     Pursuant to the  requirements of the Securities  Exchange Act of 1934, this
report has been signed by the following  persons on behalf of the registrant and
in the capacities and on the date indicated.

DSI REALTY INCOME FUND IX
by:  DSI Properties, Inc., a
California corporation, as
General Partner



By:__________________________               Dated:  March 27, 1998
  ROBERT J. CONWAY, President,
  Chief Executive Officer, Chief
  Financial Officer, and Director



By___________________________               Dated:  March 27, 1998
  JOSEPH W. CONWAY
  (Executive Vice President
  and Director)

<PAGE>

                            DSI REALTY INCOME FUND IX

                              CROSS REFERENCE SHEET

                        FORM 1O-K ITEMS TO ANNUAL REPORT


PART I, Item 3. There are no legal proceedings pending or threatened.

PART I, Item 4.  Not applicable.

PART II, Item 5.  Not applicable.

PART II, Item 6. The information required is contained in Registrant's Financial
Statements for its fiscal year ended December 31, 1997, attached as Exhibit l to
Form 10-K.

PART II, Item 8. See Exhibit l to Form 10-K filed herewith.

PART II, Item 9.  Not applicable.

<PAGE>

                                    EXHIBIT l
DSI REALTY INCOME FUND IX
(A California Real Estate Limited Partnership)

SELECTED FINANCIAL DATA
FIVE YEARS ENDED DECEMBER 31, 1997
--------------------------------------------------------------------------------

                         1997        1996        1995        1994        1993

REVENUES              $2,424,488  $2,468,108  $2,484,242  $2,312,201  $2,315,457

COSTS AND EXPENSES     1,674,192   1,620,477   1,563,848   1,520,382   1,552,502

MINORITY INTEREST
 IN EARNINGS OF
 REAL ESTATE
 JOINT VENTURE           (93,305)    (82,729)   (116,421)    (93,634)   (88,765)
                      ----------  ----------  ----------  ----------  ----------
NET INCOME            $  856,991  $  764,902  $  803,973  $  698,185  $  674,190
                      ==========  ==========  ==========  ==========  ==========
TOTAL ASSETS          $7,396,927  $8,011,698  $8,677,898  $9,031,055  $9,525,832
                      ==========  ==========  ==========  ==========  ==========
NET CASH PROVIDED BY
OPERATING ACTIVITIES  $1,494,901  $1,468,741  $1,488,619  $1,331,083  $1,213,385
                      ==========  ==========  ==========  ==========  ==========
NET INCOME PER
LIMITED
PARTNERSHIP UNIT      $    27.64  $    24.67  $    25.93  $    22.52  $    21.75
                      ==========  ==========  ==========  ==========  ==========
CASH DISTRIBUTIONS 
PER $500 LIMITED
PARTNERSHIP UNIT      $    45.27  $    45.00  $    36.25  $    35.00  $    35.00
                      ==========  ==========  ==========  ==========  ==========
The following are  reconciliations  between the operating  results and partners'
equity per the financial  statements and the Partnership's income tax return for
the year ended December 31, 1997.


                                                          Net        Partners'
                                                        Income        Equity

Per financial statements                             $   856,991    $ 6,353,584
Capitalization of property 
   acquisition costs                                                    466,135
Deferred rental revenues                                                 56,021
Excess financial statement
   depreciation                                            6,098        135,905
Excess tax return income from 
real estate joint venture                                 35,372        445,555 
Accrued incentive management fee                                        314,602
Accrued property taxes                                                  (75,000)
Accrued distributions                                                   310,030
Taxes paid - Buckley Road                                 (8,479)
                                                     -----------    -----------
Per Partnership income tax return                    $   889,982    $ 8,006,832
                                                     ===========    ===========
Taxable income per $500 limited
partnership unit                                     $     29.00
                                                     ===========
<PAGE>

DSI REALTY INCOME FUND IX
(A California Real Estate Limited Partnership)


INDEX TO FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULE

                                                                            Page

FINANCIAL STATEMENTS:

    Independent Auditors' Report                                             F-1

    Consolidated Balance Sheets at December 31, 1997 and 1996                F-2

    Consolidated Statements of Income for the Three
        Years Ended December 31, 1997                                        F-3

    Consolidated Statements of Changes in Partners' Equity for
        the Three Years Ended December 31, 1997                              F-4

    Consolidated Statements of Cash Flows for the Three Years                   
        Ended December 31, 1997                                              F-5

    Notes to Consolidated Financial Statements                               F-6


SUPPLEMENTAL SCHEDULE:

    Independent Auditors' Report                                             F-8

    Schedule XI - Real Estate and Accumulated Depreciation                   F-9


SCHEDULES OMITTED:

Financial  statements and schedules not listed above are omitted  because of the
     absence  of  conditions  under  which  they are  required  or  because  the
     information is included in the financial  statements named above, or in the
     notes thereto.

<PAGE>

INDEPENDENT AUDITORS' REPORT
To the Partners of
DSI Realty Income Fund IX:

We have audited the accompanying  balance sheets of DSI Realty Income Fund IX, a
California Real Estate Limited  Partnership (the  "Partnership")  as of December
31, 1997 and 1996,  and the related  consolidated statements of income, changes
in partners' equity (deficit), and cash flows for each of the three years in the
period ended December 31, 1997.  These  financial  statements  are  the
responsibility of the Partnership's management. Our responsibility is to express
an  opinion on these  financial statements based on our audits.

We  conducted  our  audits  in  accordance  with  generally   accepted  auditing
standards.  Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement.  An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An audit also includes
assessing the  accounting  principles  used and  significant  estimates  made by
management,  as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In our  opinion,  such  consolidated financial  statements  present fairly, in 
all material respects,  the  financial  position of DSI Realty Income Fund IX
at December 31, 1997 and 1996,  and the results of its operations and its cash
flows for each of the three  years in the  period  ended  December  31,  1997 
in  conformity  with generally accepted accounting principles.


February 3, 1998

DELOITTE & TOUCHE LLP
LONG BEACH, CALIFORNIA

<PAGE>
DSI REALTY INCOME FUND IX
(A California Real Estate Limited Partnership)

CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 1997 AND 1996
--------------------------------------------------------------------------------


ASSETS                                                  1997             1996

CASH AND CASH EQUIVALENTS                           $   496,565      $   549,578

PROPERTY, net (Notes 1, 2 and 3)                      6,832,913        7,420,663

OTHER ASSETS                                             67,449           41,457
                                                    -----------      -----------
TOTAL                                               $ 7,396,927      $ 8,011,698
                                                    ===========      ===========

LIABILITIES AND PARTNERS' EQUITY

LIABILITIES:
Distribution due partners(Note 4)                  $   310,030      $    310,030
Incentive management fee payable to
general partners (Note 4)                              314,604           314,604
Property management fees payable (Note 1)                8,206             7,193
Customer deposits and other liabilities                 94,657           112,823
                                                    -----------      -----------
Total liabilities                                      727,497           744,650
                                                    -----------      -----------
MINORITY INTERST IN REAL ESTATE
JOINT VENTURE (Notes 1 and 2)                          315,846           366,841

PARTNERS' EQUITY (Notes 1 and 4):
General partners                                       (73,905)         (68,439)
Limited partners (30,693 limited
partnership units outstanding
at December 31, 1997 and 1996)                        6,427,489        6,968,646
                                                   ------------      -----------
Total partners' equity                                6,353,584        6,900,207
                                                   ------------      -----------
TOTAL                                               $ 7,396,927      $ 8,011,698
                                                   ============      ===========

See accompanying notes to financial statements.

<PAGE>

DSI REALTY INCOME FUND IX
(A California Real Estate Limited Partnership)

CONSOLIDATED STATEMENTS OF INCOME
THREE YEARS ENDED DECEMBER 31, 1997
--------------------------------------------------------------------------------


                                               1997         1996         1995

REVENUES:
Rental revenues                             $2,610,080   $2,450,664   $2,470,543
Interest income                                 14,408       17,444       13,699
                                            ----------   ----------   ----------
Total revenues                               2,624,488    2,468,108    2,484,242
                                            ----------   ----------   ----------
EXPENSES:
 Depreciation (Note 2)                         587,750      604,057      597,673
 Operating expenses (Note 1)                   695,086      635,736      643,374
 General and administrative                    168,243      163,624      142,793
 General partners' incentive
  management fee (Note 4)                      125,563      125,563      101,148
 Property management fee (Note 1)               97,550       91,497       87,860
                                            ----------   ----------   ----------
Total expenses                               1,674,192    1,620,477    1,563,848
                                            ----------   ----------   ----------

INCOME BEFORE MINORITY INTEREST IN
INCOME OF REAL ESTATE JOINT VENTURE            950,296      847,631      920,394

MINORITY INTEREST IN INCOME OF REAL
ESTATE JOINT VENTURE (NOTES 1 and 2)          (93,305)      (82,729)   (116,421)
                                            ----------   ----------   ----------
NET INCOME                                  $  856,991   $  764,902   $  803,973
                                            ==========   ==========   ==========
AGGREGATE NET INCOME ALLOCATED
TO (Note 4):
Limited partners                            $  848,421   $  757,253   $  795,933
General partners                                 8,570        7,649        8,040
                                            ----------   ----------   ----------
TOTAL                                       $  856,991   $  764,902   $  803,973
                                            ==========   ==========   ==========
NET INCOME PER LIMITED PARTNERSHIP
UNIT (Notes 2 and 4)                        $    27.64   $    24.67   $    25.93
                                            ==========   ==========   ==========

See accompanying notes to financial statements.

<PAGE>

DSI REALTY INCOME FUND IX
(A California Real Estate Limited Partnership)

CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' EQUITY
THREE YEARS ENDED DECEMBER 31, 1997
--------------------------------------------------------------------------------


                                         General       Limited
                                        Partners       Partners         Total

BALANCE AT JANUARY 1, 1995             $(58,938)     $7,909,264      $7,850,326

 Net income                               8,040         795,933         803,973

 Distributions (Note 4)                 (11,239)     (1,112,620)     (1,123,859)
                                        -------     -----------     -----------
BALANCE AT DECEMBER 31, 1995            (62,137)    $ 7,592,577     $ 7,530,440

 Net income                               7,649         757,253         764,902

 Distributions (Note 4)                 (13,951)     (1,381,184)     (1,395,135)
                                        -------     -----------     -----------
BALANCE AT DECEMBER 31, 1996           $(68,439)    $ 6,968,646     $ 6,900,207

 Net income                               8,570         848,421         856,991

 Distributions                          (14,036)     (1,389,578)     (1,403,614)
                                        =======     ===========     ===========
BALANCE AT DECEMBER 31, 1997           $(73,905)    $ 6,427,489     $ 6,353,584



See accompanying notes to financial statements.

<PAGE>

DSI REALTY INCOME FUND IX
(A California Real Estate Limited Partnership)

CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE YEARS ENDED DECEMBER 31, 1997
--------------------------------------------------------------------------------


                                            1997          1996          1995

CASH FLOWS FROM OPERATING ACTIVITIES:
 Net income                             $   856,991   $   764,902   $   803,973
 Adjustments to reconcile net
  income to net cash provided
  by operating activities:
  Depreciation                              587,750       604,057       597,673
  Minority interest in income
   of real estate joint venture              93,305        82,729       116,421
  Changes in assets and liabilities:
   Other assets                             (25,992)                     (6,002)
   Property management fees payable           1,013           333       (14,071)
   Customer deposits and
    other liabilities                       (18,166)       16,720        (9,375)
                                        -----------   -----------   ------------
  Net cash provided by operating
  activities                              1,494,901     1,468,741     1,488,619

CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions paid to minority interest
 in real estate joint venture              (144,300)     (135,749)     (165,000)
Distributions to partners                (1,403,614)   (1,395,135)   (1,085,106)
                                        ____________   ___________   __________
  Net cash used in financing             
  activities                             (1,547,914)   (1,530,884)   (1,250,106)
                                        ------------   -----------   ----------
                              
CASH FLOWS FROM INVESTING ACTIVITIES -
Additions to property                                      (6,230)      (41,878)
                                        -----------   -----------    ----------
NET (DECREASE)INCREASE IN CASH AND
CASH EQUIVALENTS                            (53,013)      (68,373)      196,635

CASH AND CASH EQUIVALENTS,
AT BEGINNING OF YEAR                        549,578       617,951       421,316
                                        -----------   -----------   ------------
CASH AND CASH EQUIVALENTS,
AT END OF YEAR                          $   496,565   $   549,578   $   617,951
                                        ===========   ===========   ============

See accompanying notes to consolidated financial statements.


<PAGE>                 
DSI REALTY INCOME FUND IX
(A California Real Estate Limited Partnership)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
THREE YEARS ENDED DECEMBER 31, 1997

1.   GENERAL
              
     DSI Realty Income Fund IX, a California Real Estate Limited Partnership 
     (the "Partnership"), has three general partners (DSI Properties, Inc., 
     Robert J. Conway and Joseph W. Conway) and limited partners owning 30,693
     limited partnership units which were purchased for $500 a unit.  The 
     general partners have made no contribution to the Partnership and are not
     required to make any capital contribution in the future.  The Partnership
     has a maximum  life of 50 years and was formed on April 12, 1985 under the
     California  Uniform  Limited  Partnership  Act for the  primary  purpose of
     acquiring and operating real estate.

     The  Partnership has acquired five mini-storage  facilities  located in
     Monterey Park and Azusa, California; Everett, Washington;and Romeoville and
     Elgin, Illinois.  The Partnership also entered into a joint venture with 
     DSI Realty Income Fund VIII through which the Partnership has a 70% 
     interest in a mini-storage facility in Aurora, Colorado. The  facilities  
     were acquired from Dahn Corporation ("Dahn").  Dahn is not affiliated with 
     the Partnership.  Dahn is  affiliated  with  other  partnerships  in which 
     DSI Properties, Inc., Robert J. Conway and Joseph W. Conway are the general
     partners.  The  mini-storage  facilities are operated for the Partnership  
     by Dahn under various  agreements  which are subject to renewal annually.  
     Under  the  terms of the  agreements,  the Partnership  is required to pay 
     Dahn a property  management fee equal to 5% of gross revenue from 
     operations, as defined.

2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     Principles of Consolidation - The consolidated financial statements 
     include the accounts of DSI Realty Income Fund IX and its 70% owned real 
     estate joint venture.  All significant intercompany accounts and trans-
     actions have been eliminated in consolidation.
     
     Cash and Cash  Equivalents  - The  Partnership  classifies  its  short-term
     investments  purchased with an original maturity of three months or less as
     cash equivalents.

     Property and  Depreciation  - Property is recorded at cost and is composed
     primarily of  mini-storage  facilities.  Depreciation is provided for using
     the straight-line  method over an estimated useful life ranging from 15 to
     20 years for the facilities.  Improvements are depreciated over a five-year
     period.

     Income  Taxes  - No  provision  has  been  made  for  income  taxes  in the
     accompanying  financial  statements.  The  taxable  income  or  loss of the
     Partnership  is allocated to each partner in  accordance  with the terms of
     the Agreement of Limited  Partnership.  Each partner's tax status, in turn,
     determines  the  appropriate  income  tax for its  allocated  share  of the
     Partnership's taxable income or loss.  The net difference between the bases
     of the Partnership's assets and liabilities for federal income tax purposes
     as as reported for financial statement purposes is $1,653,248.

     Revenues - Rental revenue is recognized using the accrual method based on
     contractual  amounts  provided for  in  the  lease  agreements,  which 
     approximates recognition on a straight-line basis.  The term of the lease
     agreements is usually less than one year.

     Net  Income  per  Limited  Partnership  Unit - Net  income  per  limited 
     partnership unit is computed by dividing the net income allocated to the 
     limited  partners by the  weighted average number of limited partnership 
     units outstanding during each year (30,693 in 1997, 1996 and 1995).
 
     Estimates - The  preparation  of financial  statements in conformity with
     generally  accepted  accounting  principles  requires  the  Partnership's 
     management to  make  estimates and  assumptions  that affect the reported  
     amounts of assets and liabilities at the date of the financial statements
     and the  reported  amounts of revenues  and expenses during the reporting  
     period.  Actual  results  could  differ  from  those  estimates.

     Impairment of Long-Lived Assets - The Company regularly reviews long-
     lived assets for impairment whenever events or changes in circumstances
     indicate that the carrying amount of the asset may not be recoverable.
     If the sum of the expected future cash flow is less than the carrying
     amount of the asset, the Company recognizes an impairment.  No impairment
     losses were required in 1997, 1996 or 1995.

3.   PROPERTY

     As of December 31, 1997 and 1996,  the total cost of property and the 
     accumulated depreciation are as follows:

                                                  1997                1996
       Land                                   $ 2,729,790        $ 2,729,790
       Buildings and improvements              10,975,897         10,975,897
                                              -----------        -----------

       Total                                   13,705,687         13,705,687
       Accumulated depreciation                (6,872,774)        (6,285,024)
                                              -----------         ----------

       Property, net                          $ 6,832,913        $ 7,420,663
                                              ===========        ===========

4.   ALLOCATION OF PROFITS AND LOSSES

     Under the Agreement of Limited Partnership,  the general partners are to be
     allocated 1% of the net profits or losses from  operations  and the limited
     partners are to be allocated  the balance of the net profits or losses from
     operations  in  proportion  to their  limited  partnership  interests.  The
     general  partners  are also  entitled to receive a  percentage,  based on a
     predetermined  formula,  of any  cash  distribution  from the  sale,  other
     disposition, or refinancing of the project.

     In addition, the general partners are entitled to an incentive management  
     fee for supervising the operations of the Partnership. The fee is to be 
     paid in an amount equal to 9% per annum of Partnership distributions made 
     from cash available for distribution from operations, as defined. 

<PAGE>

INDEPENDENT AUDITORS' REPORT
To the Partners of
DSI Realty Income Fund IX:

We have  audited  the  financial  statements  of DSI Realty  Income Fund IX (the
"Partnership") as of December 31, 1997 and 1996, and for each of the three years
in the period ended  December 31, 1997, and have issued our report thereon dated
February 3, 1998;  such report is included  elsewhere  in this Form 10-K.  Our
audits also included the financial statements schedule of DSI Realty Income Fund
IX, listed in Item 14. This financial statement  schedule is the responsibility
of the  Partnership's  management. Our  responsibility is to express an opinion
based on our audits. In our opinion,  such financial statement  schedule,  when
considered  in  relation  to the basic  financial  statements  taken as a whole,
presents fairly in all material respects, the information set forth therein.


February 3, 1998

DELOITTE & TOUCHE LLP
LONG BEACH, CALIFORNIA

<PAGE>

DSI REALTY INCOME FUND IX
(A California Real Estate Limited Partnership)

REAL ESTATE AND ACCUMULATED DEPRECIATION
--------------------------------------------------------------------------------


<TABLE>
<CAPTION>

                                                    Costs Capitalized
                                 Initial Cost to      Subsequent to    Gross Amount at Which Carried
                                   Partnership         Acquisition           at Close of Period
                               -------------------  -----------------  -----------------------------
                                        Buildings                               Buildings                         Date  
                                           and       Improve- Carrying             and                    Accum.   of   Date
Description       Encumbrances   Land  Improvements    ments   Costs     Land   Improvements   Total     Deprec.  Const. Acq. Life

MINI-U-STORAGE
<S>                   <C>     <C>       <C>         <C>            <C>         <C>        <C>         <C>         <C>   <C>   <C>

Monterey Park, CA     None    $420,200  $1,409,050   $ 6,123         $420,200  $1,415,173  $1,835,373   $797,132  08/86 12/85 20 Yrs
Azusa, CA             None     696,000   2,095,965     9,188          696,000   2,105,153   2,801,153  1,210,250  06/86 01/86 20 Yrs
Everett, WA           None     352,350   1,252,536     7,091          352,350   1,259,627   1,611,977    758,487  11/85 06/85 20 Yrs
Romeoville, IL        None     298,740   2,180,802    18,598          298,740   2,199,400   2,498,180  1,215,871  01/87 05/86 20 Yrs
Elgin, IL             None     376,000   1,424,577     6,521          376,000   1,431,098   1,807,098    793,501  09/86 03/86 20 Yrs
Aurora, CO            None     586,500   2,544,046    21,400          586,500   2,565,446   3,151,946  2,097,533  02/85 09/85 15 Yrs
                              --------  ----------   -------         --------  ----------  ---------- ----------
                            $2,729,790 $10,906,976  $ 68,921       $2,729,790 $10,975,897 $13,705,687*$6,872,774
                            ==========  ==========  ========       ==========  ========== =========== ==========
</TABLE>

                                                     Real Estate     Accumulated
                                                        at Cost     Depreciation

               Balance at January 1, 1995              13,657,579      5,083,294
                 Additions                                 41,878        597,673
                                                      -----------     ----------
               Balance at December 31, 1996            13,699,457      5,680,967
                 Additions                                  6,230        604,057
                                                      -----------     ----------
               Balance at December 31, 1996           $13,705,687     $6,285,024
                 Additions                                               587,750
                                                      -----------     ----------
               Balance at December 31, 1997           $13,705,687     $6,872,774
                                                      ===========     ==========


<PAGE>

                                    EXHIBIT 2
                                 March 28, 1997

                      ANNUAL REPORT TO LIMITED PARTNERS OF

                            DSI REALTY INCOME FUND IX

Dear Limited Partner:

     This report  contains the  Partnership's  balance sheets as of December 31,
1997 and 1996, and the related statements of income, changes in partners' equity
and cash flows for each of the three years in the period ended December 31, 1997
accompanied  by an  independent  auditors'  report.  The  Partnership  owns five
mini-storage facilities and a 70% interest in a sixth mini-storage facility on a
joint venture basis with an affiliated Partnership, DSI Realty Income Fund VIII.
The Partnership's  properties were each purchased for all cash and funded solely
from subscriptions for limited partnership interests without the use of mortgage
financing.

     Your attention is directed to the section entitled Management's  Discussion
and Analysis of Financial  Condition and Results of  Operations  for the General
Partners'  discussion and analysis of the financial statements and operations of
the Partnership.

     Average  occupancy levels for each of the  Partnership's six properties for
the years ended December 31, 1997 and December 31, 1996 were as follows:

Location of Property               Average Occupancy          Average Occupancy
                                   Levels for the             Levels for the
                                   Year Ended                 Year Ended
                                   Dec. 31, 1997              Dec. 31, 1996

Azusa, CA                            83%                         82%

Elgin, IL                            81%                         83%

Everett, WA                          90%                         84%

Monterey Park, CA                    90%                         91%

Romeoville, IL                       78%                         82%

Aurora, CO*                          88%                         82%
----------
*The Partnership owns a 70% interest in this facility.

     We will keep you informed of the activities of DSI Realty Income Fund IX as
they develop.  If you have any questions,  please contact us at your convenience
at (562) 493-3022.

     If you would like a copy of the  Partnership's  Annual  Report on Form 10-K
for the year ended  December  31, 1997 which was filed with the  Securities  and
Exchange  Commission (which report includes the enclosed Financial  Statements),
we will forward a copy of the report to you upon written request.

                                                     Very truly yours,

                                                     DSI REALTY INCOME FUND IX
                                                     By:  DSI Properties, Inc.



                                                   By___________________________
                                                     ROBERT J. CONWAY, President