FORM 10-Q
                                
               SECURITIES AND EXCHANGE COMMISSION
                      Washington, DC  20549
                                
                                
        Quarterly Report Under Section 13 or 15(d) of the
                 Securities Exchange Act of 1934
                                
                                
              For Quarter Ended September 30, 1996
                                
                Commission File Number:  2-94509
                                
                                
                               LIF
     (Exact name of registrant as specified in its governing
                          instruments)
                                

       California                                  94-2969720
(State or other jurisdiction of                 (I.R.S. Employer
incorporation or organization)               Identification Number)


            P. O. Box 130, Carbondale, Colorado 81623
            (Address of principal executive offices)
                                
                                
                         (303) 963-8007
      (Registrant's telephone number, including area code)
                                
                                
Indicate  by check mark whether the registrant (1) has filed  all
reports  required  to be filed by Sections 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>

<TABLE>
                      PART I.  FINANCIAL INFORMATION

                      ITEM 1.  FINANCIAL STATEMENTS

                               LIF
                                
CONSOLIDATED BALANCE SHEETS, SEPTEMBER 30, 1996 AND DECEMBER 31,
                              1995
                           (Unaudited)
                         (In thousands)
                                
<CAPTION>
                                           September 30, December 31,
                                                1996        1995
<S>                                          <C>           <C>
ASSETS
INVESTMENTS IN REAL ESTATE:
Rental properties                            $ 10,918      $10,267
Accumulated depreciation                       (2,208)      (2,010)
Rental properties - net                         8,710        8,257

CASH AND CASH EQUIVALENTS (including 
 interest bearing deposits of $257 in
 1996 and $548 in 1995)                           262          556


OTHER ASSETS:
Short-term investment                               0           99
Accounts receivable                                24           15
Prepaid expenses and deposits                     121           17
Notes Receivable                                   54            0
Deferred organization costs and 
 loan costs (net of accumulated amortization
 of $130 in 1996 and $135 in 1995)                112          132
Total other assets                                311          263

TOTAL                                         $ 9,283      $ 9,076

LIABILITIES AND PARTNERS' EQUITY
LIABILITIES:
Notes payable                                 $ 7,217      $ 6,897
Accounts payable                                   60           80
Other liabilities                                 234          170
Total liabilities                               7,511        7,147

PARTNERS' EQUITY                                1,772        1,929

TOTAL                                         $ 9,283      $ 9,076

<FN>
See Financial Notes.

</TABLE>
<PAGE>

<TABLE>
                               LIF
                                
              CONSOLIDATED STATEMENTS OF OPERATIONS
                           (Unaudited)
             (In thousands except per unit amounts)
<CAPTION>                                
                             Three Months Ended    Nine Months Ended
                                 September 30        September 30
                                  1996    1995        1996    1995
<S>                              <C>     <C>         <C>     <C>
REVENUE:
Rental                           $393    $ 382       $1,141  $1,159
Interest                            6       10           27      35
Total revenue                     399      392        1,168   1,194

EXPENSE:
Interest                          160      139          481     373
Operating                         156      157          446     473
Depreciation and amortization      82       72          268     210
General and administrative         39       40          167     144
Total expense                     437      408        1,363   1,200

NET INCOME/(LOSS)
  BEFORE SALE OF REAL PROPERTY   $(38)   $ (16)      $ (195)  $  (6)

GAIN (LOSS) SALE OF REAL PROPERTY   0        0           40       0

NET INCOME (LOSS)                 (38)     (16)        (155)     (6)

NET INCOME/(LOSS) PER
  PARTNERSHIP UNIT               $ (3)    $ (1)      $  (12)  $ (.5)

<FN>
See Financial Notes.

</TABLE>
<PAGE>

<TABLE>
                               LIF
                                
     CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' EQUITY
        FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND
                THE YEAR ENDED DECEMBER 31, 1995
                           (Unaudited)
                     (Dollars in thousands)
<CAPTION>                                
                       ..LIMITED PARTNERS..
                            NUMBER OF              GENERAL   TOTAL
                           PARTNERSHIP             PARTNER   PARTNERS'
                              UNITS       AMOUNT   AMOUNT    DEFICIT
<S>                          <C>          <C>       <C>       <C>
BALANCE, JANUARY 1, 1995     12,820       $2,524    $(122)    $2,402
Net loss - 1995                              (52)       0        (52)
Distributions - 1995                        (385)     (41)      (426)
Contributions - 1994                           0        5          5

BALANCE, DECEMBER 31, 1995   12,820       (2,087)    (158)     1,929
Net loss                                    (155)       0       (155)

BALANCE, SEPTEMBER 30, 1996  12,820       $1,932    $(158)    $1,772

<FN>
See Financial Notes.

</TABLE>
<PAGE>

<TABLE>
                               LIF
                                
              CONSOLIDATED STATEMENTS OF CASH FLOWS
      FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
                           (Unaudited)
                          (In thousands)
<CAPTION>
                                                    1996        1995
<S>                                               <C>          <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)                                 $(194)        $  (6)
Adjustments to reconcile net income to net cash
 provided by operating activities:
Depreciation and amortization                       268           198

Change in operating assets and liabilities:
Increase in accounts receivable                      (9)          (16)
Increase in prepaid expenses                       (104)          (35)
Increase in deferred expenses                        20          (101)
(Increase) Decrease in accounts payable             (21)           59
Increase in other liabilities                        64            37
Net cash provided by operating activities            24           136

CASH FLOWS FROM INVESTING ACTIVITIES:
Increase in notes receivable                        (54)            0
Short-term investments                                0           198
Capital expenditures                               (914)         (509)
Sale of investment property                         233             0
Net investor distributions                           (6)         (214)
Partner's Contributions                               3             5
Net cash used in investing activities              (738)         (520)

CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from financing                         990         1,311
Payment on notes payable                           (670)          (62)
Net cash provided (used) by financing activities    320         1,249

Increase (decrease) in cash and cash equivalents   (394)          865

Cash and cash equivalents at beginning of period    655           228

Cash and cash equivalents at end of period       $  262        $1,093

<FN>
See Financial Notes.

</TABLE>
<PAGE>

                               LIF
                         FINANCIAL NOTES
                      (Dollars in thousands)
                                
1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

  The  accompanying unaudited financial statements should be read
  in  conjunction  with  the Partnership's  1995  Annual  Report.
  These  statements  have been prepared in  accordance  with  the
  instructions to the Securities and Exchange Commission Form 10-
  Q  and  do  not  include all of the information  and  footnotes
  required  by  generally  accepted  accounting  principles   for
  complete financial statements.

  In   the  opinion  of  the  general  partner,  all  adjustments
  (consisting of normal recurring accruals) considered  necessary
  for  a  fair  presentation have been included.  The results  of
  operations  for the nine months ended September  30,  1996  and
  1995,  are not necessarily indicative of the results  that  may
  be expected for the year ending December 31, 1996.

  For  purposes  of the statement of cash flows, the  Partnership
  considers  all  highly liquid investments with  a  maturity  of
  three  months  or  less  at the time of  purchase  to  be  cash
  equivalent.   The Partnership paid interest of  $481  and  $373
  for  the  nine  months  ended  September  30,  1996  and  1995,
  respectively.

<PAGE>

ITEM 2.   MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF   FINANCIAL
          CONDITION AND RESULTS OF OPERATIONS

INTRODUCTION

LIF  (the  "Partnership")  is a California  limited  partnership.
Operations commenced in November 1985.

The  Partnership currently has an investment in Landsing  Private
Fund-21  ("LPF-21") which owns one multi-family rental  property;
Cattle Creek Development Partners ("CCDP"), which owns two retail
rental  properties; and, Alpine Center Partners,  which  has  one
retail  building  under redevelopment.  For  financial  reporting
purposes,  the  Partnership's  investments  are  presented  on  a
consolidated basis.

LIQUIDITY AND CAPITAL RESOURCES

As  of  September  30, 1996, the Partnership's consolidated  cash
balance   totaled  $262,000.   Cash  not  required  for   current
operations  is placed in federally insured financial  instruments
and money market funds which can be liquidated as needed.  It  is
the  Partnership's intention to maintain adequate  cash  reserves
for its operations.

During the first nine months of 1996, the Partnership experienced
a  net decrease in cash of $295,000.  During the same period, the
Partnership  experienced a net decrease in short-term investments
of  $99,000.   As  of  September 30, 1996, cash  plus  short-term
investments  totaled  $262,000 versus a balance  of  $655,000  at
December  31, 1995 for a net decrease of $394,000.  Primary  uses
of  cash  included  capital expenditures of  $914,000,  principal
payments  on  notes payable of $670,000, while  sources  of  cash
included  proceeds  from  financing  of  $990,000.   The  General
Partner  expects Partnership operations to remain stable for  the
remainder of the year.

RESULTS OF OPERATIONS

The  Results of Operations for 1996 are not comparable  to  1995.
The different number of properties operated cause comparisons  of
overall  operations to be misleading.  It is meaningful, however,
to  compare  the operations of the property operated continuously
during the first nine months of 1996 and 1995.

The following represents the operations of the property, Whistler
Point Luxury Apartments, held continuously during the first  nine
months of 1996 and 1995:
<TABLE>
<CAPTION>
                                     1996      1995   % Change
     <S>                           <C>       <C>         <C>
     Rental Revenue                $  946    $  999      - 5%
     Operating Expense                402       414      - 3%
     Net Operating Income             544       585      - 7%

     Interest Expense              $  325    $  272       +19%

</TABLE>
<PAGE>

Overall revenues decreased 5% for the nine months ended September
30,  1996 relative to the same period in 1995.  This decrease was
due to more competition in the Boise, Idaho apartment market.

Property  operating  expenses decreased 3% for  the  nine  months
ended  September  30, 1996 relative to the same period  in  1995.
Interest  expense  increased  from  1995  to  1996,  due  to  the
refinance of the first mortgage.

OCCUPANCY

As  of  September  30, 1996 the Whistler Point Luxury  Apartments
were  95%  leased.   Occupancy is expected to  remain  stable  to
slightly lower due to the increase in new available units in  the
Boise market.

As  of  September  30,  1996, Cattle Creek Development  Partners'
commercial properties of Valley View Business Park and 701 Cooper
Avenue Building were 83% and 100% leased, respectively.

The   Alpine  Center  retail  building  is  currently  under  re-
development with the initial lease-up scheduled to begin  in  the
first quarter of 1997.

PROPERTY STATUS

The  three residential properties owned by Prince Creek  Partners
were sold during the third quarter.  The sale of these properties
resulted in net gain to the Partnership of $34,000.

DISTRIBUTIONS

The  Partnership has a policy of semi-annual distributions.   The
General  Partner has declared a distribution of $15.00 per  unit,
payable to unit holders of record as of September 30, 1996.

INFLATION

The  effects  of  inflation on the Partnership's operations  have
been  no  greater  than the effect on the  economy  as  a  whole.
Because of competitive conditions, market rate rents may increase
or  decrease  disproportionately with  inflation  while  property
operating   costs   continue  to  follow   inflationary   trends.
Inflationary  conditions are not expected to have a major  impact
on the Partnership during 1996.
                                
                   PART II.  OTHER INFORMATION
                                
                                
Item 1.   Legal Proceedings
           None.

Item 2.   Changes in Securities
           None.

Item 3.   Defaults Upon Senior Securities
           None.

Item 4.   Submission of Matters to a Vote of Security Holders
           None

Item 5.   Other Information
           None

Item 6.   Exhibits and Reports on Form 8-K
          (a)  None
          (b)  The Partnership filed no reports on Form 8-K during the
               quarter ended September 30, 1996.
     
                           SIGNATURES


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

                              LIF

Date: November 15, 1996   /s/ Gary K. Barr
                          Gary K. Barr, President
                           The Landsing Corporation, Sole Shareholder
                             of Landsing Equities Corporation
                             Managing  Partner of the General Partner,
                             Partners '85