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 March 31, 1999
                  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)

                         (970) 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:  [  ]        

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PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

LIF
CONSOLIDATED BALANCE SHEETS, MARCH 31, 1999 AND DECEMBER 31, 1998 
(Unaudited) (Dollars in thousands)
<CAPTION>
                                             March 31,     December 31,
                                                1999           1998
<S>                                          <C>              <C>
ASSETS
INVESTMENTS IN REAL ESTATE:
Rental properties                            $  1,959         $ 10,370
Accumulated depreciation                         (230)          (2,958)
Rental properties - net                         1,729            7,412

CASH AND CASH EQUIVALENTS (including
  Interest bearing deposits of $4200
  in 1999 and $263 in 1998)                     4,221              566

OTHER ASSETS:
Accounts receivable-net                            67               84
Prepaid expenses and deposits                       2               23
Deferred organization costs and loan costs
  (net of accumulated amortization of $148 
   in 1999 and $242 in 1998)                      28               72
Notes receivable                                1,801            1,793
Total other assets                              1,898            1,972

TOTAL                                        $  7,848          $ 9,950

LIABILITIES AND PARTNERS' EQUITY LIABILITIES:
Notes payable                                $  3,257          $ 8,470
Accounts payable                                    4               24
Liability for future improvement                   74               83
Deferred gain on sale of real estate                0                0
Other liabilities                                  25              267
Total liabilities                               3,360            8,844

PARTNERS' EQUITY 
    Limited Partners                            4,663            1,281
    General Partners                             (175)            (175)

TOTAL                                        $  7,848          $ 9,950

Equity Units Authorized  - Limited Partners    12,820           12,820
                         - General Partners         0                0

Equity Units Outstanding - Limited Partners    12,820           12,820
                         - General Partners         0                0

The accompanying notes are an integral part of the consolidated
financial statements.

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<TABLE>

LIF
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND 1998
(Unaudited) (In thousands except per share amounts)
<CAPTION>

                                                1999               1998
<S>                                           <C>                <C>   
REVENUE:
Rental                                        $  266             $  429
Interest                                          16                  6
Gain on sale                                   3,365                  0
Total revenue                                  3,647                435

EXPENSE:
Interest                                          67                150
Operating                                        118                157
Depreciation and amortization                     22                 95
General and administrative                        58                 48
Total expense                                    265                450

NET INCOME (LOSS)                             $3,382             $  (15)
Net income (loss) - Limited Partners           3,382                (15)
Net income (loss) - General Partners               0                  0

NET INCOME (LOSS) PER PARTNERSHIP UNIT:
                    Limited Partners             264                 (1)
                    General Partners               0                  0
                                                 264                 (1)

The accompanying notes are an integral part of the consolidated
financial statements.

</TABLE>
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<TABLE>

LIF
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' EQUITY
FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND 
THE YEAR ENDED DECEMBER 31, 1998 
(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, 1998    12,820      $1,632    $ (153)     $1,479
Net Loss - 1998                           (159)        0        (159)

DISTRIBUTION                              (192)      (22)       (214)

BALANCE, DECEMBER 31, 1998  12,820      $1,281    $ (175)     $1,106
Net loss                                 3,382         0       3,382

BALANCE, MARCH 31, 1999     12,820      $4,663    $ (175)     $4,488

The accompanying notes are an integral part of the consolidated
financial statements.

</TABLE>
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<TABLE>

LIF
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND 1998 
(Unaudited) (Dollars in thousands)
<CAPTION>
                                                1999               1998
<S>                                           <C>                 <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)                             $3,382              $ (15)
Gain on sale of property                      (3,365)                 0
Adjustments to reconcile net increase to net 
   cash provided by operating activities:
Depreciation and amortization                     16                 95

Change in operating assets and liabilities:
Increase (decrease) in other liabilities        (245)               (34)
Increase in accounts payable                     (19)                10
Increase in accounts receivable                   18                (46)
Decrease in deferred expenses                     44                  0 
Increase in prepaid expenses                      20                (33)
Estimated cost to complete                        (8)                 0
Net cash used in operating activities           (157)               (23)

CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures                               0                (19)
Sale of investment property-net                9,031                  0
Increase in notes receivable                      (7)                 0
Net cash provided (used) in
   investing activities                        9,024                (19)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Financing                            0                  0
Payment on notes payable                      (5,212)               (42)
Net (distribution) contribution                    0               (192)
Net cash used by financing activities         (5,212)              (234)

Increase (decrease) in cash and 
   cash equivalents                            3,655               (276)
Cash and cash equivalents at beginning
   of period                                     566                570
Cash and cash equivalents at end of period    $4,221              $ 294

The accompanying notes are an integral part of the consolidated
financial statements.

</TABLE>
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LIF
FINANCIAL NOTES
(Dollars in thousands)

The accompanying unaudited financial statements should be read in
conjunction with the Partnership's 1998 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 
three months ended March 31, 1999 and 1998 are not necessarily 
indicative of the results that may be expected for the year ending 
December 31, 1999.

Organization - LIF (the "Partnership") is a limited partnership 
organized under the laws of the state of California for the purpose 
of investing in income properties and making short-term loan and 
capital contributions to operating entities formed to acquire or 
develop and operate one or more income producing real properties.  
The General Partner is Partners '85 (the "General Partner"), a 
California limited partnership, whose General Partner is Landsing 
Equities Corporation.  LIF was formed in June 1984, and shall 
continue until December 31, 2034, unless sooner terminated.

Investment In Real Estate Partnership - At December 31, 1998 and
1997, the Partnership was invested in Landsing Private Fund 
("P-21"), a 99%-owned real estate partnership.  In 1997, Cattle 
Creek Development Partners (CCDP) was liquidated into the 
Partnership.  CCDP was originally formed in 1994.  During 1996, 
the Partnership invested into 95% of a new entity - Alpine Center
Partners ("ACP").  ACP acquired rental real estate in Colorado 
in 1996.  The real estate was sold in 1997 and 1998.

Consolidation of Investment in Real Estate Partnerships - For 
financial reporting purposes, the Partnership consolidates the 
operations of it's investment in real estate partnerships with that 
of the Partnership.  All significant intercompany transactions, 
including notes payable/receivable and short-term loans/receivables, 
and balances have been eliminated.  

Rental Property - Rental property is stated at cost.  Depreciation is 
computed by the straight-line method over estimated useful lives 
ranging from five to forty years.  Major additions and betterments 
are capitalized at cost, while maintenance and repairs which do not 
improve or extend the life of the respective assets are expensed 
currently.  When assets are retired or otherwise disposed of, the 
costs and related accumulated depreciation are removed from the 
accounts, and any gain or loss on disposal is included in the 
results of operations.

Deferred Loan Costs - Loan fees are deferred and amortized over the 
life of the related note payable.  

Cash and Cash Equivalents - The Partnership considers all highly 
liquid investments with a maturity of three months or less at the 
time of purchase to be cash equivalents.

Short-Term Investments - The Partnership invests in short-term 
federally insured certificates of deposits which mature on a date 
in excess of three months from the date of purchase.  The cost of 
these investments approximate market value.

Income Taxes - No provision for federal or state income taxes has
been made in the consolidated financial statements because these 
taxes are the obligation of the partners.
 
Net Income (Loss) Per Partnership Unit - Net Income (Loss) per 
partnership unit is based on weighted average units outstanding of
12,820 in 1999 and 1998, after giving effect to net income
(loss) allocated to the General Partner.  Cash distributions of $15
per unit were paid to limited partnership unit holders in 1998. 
A distribution has been declared to unit holders of record as
of February 28, 1999 in the amount of $250 per unit. 

Concentrations of Credit Risk - The Partnership's financial 
instruments that are exposed to concentrations of credit risk
consist primarily of its cash and cash equivalents, and note
receivables.  The Partnership's cash and cash equivalents are
maintained in various accounts in FDIC insured institutions.  This
investment policy limits the Partnership's exposure to concentrations
of credit risk.  The note receivables outstanding are held by two
related parties (see note 4).  Due to the related party nature of
the receivables and the intention of the related parties to obtain
permanent financing from a bank within the next six months, credit
risk is considered minimal.

Use of Estimates - The preparation of financial statements in 
conformity with generally accepted accounting principles requires 
management to make estimates and assumptions that affect certain 
reported amounts and disclosures.  Accordingly, actual results 
could differ from those estimates.

Impairment of Long-Lived Assets - The Partnership adopted Statement 
of Financial Accounting Standards (SFAS) No. 121,  "Accounting for 
the Impairment of Long-lived Assets and for Long-lived Assets to be 
Disposed Of" during 1996.  SFAS No. 121 requires that long-lived 
assets and certain identifiable intangibles to be held and used 
or disposed of by an entity be reviewed for impairment whenever 
events or changes in circumstances indicate that the carrying amount 
of an asset may not be recoverable.  During 1999 and 1998, the 
Partnership determined that no impairment loss need be recognized 
for applicable assets of continuing operations.

Accounting Pronouncements - In June 1996, the Financial Accounting 
Standards Board issued Statement No. 125, "Accounting for Transfers 
and Servicing of Financial Assets and Extinguishment of Liabilities" 
(SFAS No.125).  This Statement is effective for transactions 
occurring after December 31, 1996.  However, transactions such as 
securities lending, repurchase agreements, dollar rolls, and similar 
secured financing arrangements are not subject to the provisions of 
SFAS No. 125 until January 1, 1998.  The standard provides that, 
following a transfer of financial assets, an entity is to recognize 
the financial and servicing assets it controls and the liabilities 
it has incurred, derecognize financial assets when control has been 
surrendered and derecognize liabilities when extinguished.  The 
adoption of SFAS No. 125 had no impact on the Partnership's 
consolidated financial statements.  The impact of the delayed 
provisions is also not expected to be material.

Effective January 1, 1998, the Partnership adopted SFAS No. 130, 
"Reporting Comprehensive Income." SFAS No. 130 requires that an
enterprise (a) classify items of other comprehensive income by their
nature in a financial statement and (b) display the accumulated 
balance of other comprehensive income separately from retained 
earnings and additional paid-in capital in the equity section of a
statement of financial condition.  However, the Partnership had no
items of comprehensive income at March 31, 1999.

Effective January 1, 1998, the Partnership adopted SFAS No. 131, 
"Disclosures About Segments of an Enterprise and Related Information." 
However, the Partnership does not have any reportable segments at
March 31, 1999.  

Year 2000 - The Partnership is aware of the Year 2000 conversion issue.
It is management's assertion that the current accounting system
utilized by the Partnership has the capability to accommodate the Year
2000 issue.  Management has also considered outside parties the
Partnership conducts business with.  It is their belief that these
outside parties are already Year 2000 compliant or will be by mid-1999.
Management does not believe there will be a significant impact on the
Partnership's operations.

Fair Value of Financial Instruments - The fair value of certain
financial assets carried at cost, including cash and cash equivalents
and accounts receivable, are considered to approximate their 
respective fair value. The fair value of accrued liabilities is 
considered to approximate their respective book values due to their
short-term nature.  The valuation of notes receivables and notes 
payable with floating rates is estimated to be the same as carrying 
value.  Fair value of notes payable with fixed rates is estimated 
based on quoted market prices for similar issues.  At March 31, 1999
and December 31, 1998, fair value of notes payable approximate 
carrying value.

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

INTRODUCTION

The Partnership was organized to acquire real properties, including 
commercial, residential and agricultural properties, located primarily 
within the western portion of the United States, and to make 
short-term loans and capital contributions to other limited 
partnerships formed to acquire or develop and operate one or more 
income-producing real properties.  

The Partnership currently has a 99% investment in Landsing Private 
Fund-21 ("P-21") which sold its one multi-family rental property on
February 28, 1999.  The Partnership currently owns a 95% investment 
in Alpine Center Partners ("ACP") which does not own any real 
property.  The partnership also owns two retail rental properties, 
which were formerly owned by CCDP.  For financial reporting purposes 
the Partnership's investments are presented on a consolidated basis.  

LIQUIDITY AND CAPITAL RESOURCES

As of March 31, 1999, the Partnership's consolidated cash balance 
totaled $4,221,000.  Cash not required for current operations is placed
in federally insured financial instruments, certificates of deposit, 
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 quarter of 1999, the Partnership experienced a net 
increase in cash and cash equivalents of $3,655,000. As of March 31, 
1999, cash and cash equivalents totaled $4,221,000 versus $294,000 
at December 31, 1998.

On June 3, 1996, the Partnership made a Short-Term Loan in the 
principal amount of $550,000 to Alpine Center Partners, a Colorado 
limited partnership ("ACP").  ACP was organized to acquire one 
commercial property located in Carbondale, Colorado.  The 
Partnership also made a capital contribution to ACP in the amount 
of $10,000 and became a Co-General Partner of ACP.  

On September 30, 1997, the Partnership's investment in ACP sold 
40.20% of the Alpine Center Building to Gary K. Barr (GKB).  GKB is 
the president of the General Partner of LIF.  This sale resulted in 
cash to ACP of $370,000.  On September 30, 1997, ACP also sold 45.90% 
of the Alpine Center Building to Open World Investors (OWI), of which 
Gary K. Barr is a General Partner.  This sale generated cash to ACP 
of $420,000.  ACP deferred a gain on sale from these two transactions 
of $69,000.  ACP provided seller financing to GKB and OWI in the 
amounts of $864,300 and $986,850 respectively.  The partnership's 
investment in ACP owned 1.96% of the Alpine Center Building on 
December 31, 1997.  ACP reduced its short-term note payable to LIF 
by $358,000.  The balance of the note payable at December 31, 1997 
was $227,000, which was purchased by Gary K. Barr in 1998.  ACP's 
share of the note payable was eliminated in the consolidation of 
the Partnership's financial statements.  

For financial reporting purposes, results of operations for P21 
and ACP have been shown on a consolidated basis.  

RESULTS OF OPERATIONS

Rental revenues were $266,000 for the quarter ended March 31, 1999,
a decrease of $163,000 compared to the first quarter of 1998.  The 
decline in rental revenues in 1999 versus 1998 was the result of 
the sale of the Whistler Point Apartment Building and a reduction 
in rent for 701 Cooper over the same period last year.

Operating expenses were $118,000 for the quarter ended March 31,
1999, a decrease of $39,000 compared to the first quarter of 1998, 
which was the result of the sale of the Whistler Point Apartment 
Building.

Net operating income of properties (rental revenue less operating 
expenses) was $148,000 in 1999, a decrease of $124,000 from 1998.
Management believes net operating income is the best indication of 
the properties' performance.  

Interest income increased from $6,000 in 1998 to $16,000 in 1999.  
The increase was due to the sale of Whistler Point Apartment Building
in February, 1999 with the proceeds in short-term investments until
distribution to unit holders.  

On February 26, 1999, the Partnership sold the Whistler Point
Apartments for a cash sales price of $9,600 to an unrealted third
party.  As part of this sale, debt of $5,207 was retired and a gain
of approximately $3,365 was recognized.

Interest expense decreased by $83,000 for the first quarter 1999,
compared to the first quarter 1998, due to the sale of Whistler
Point Apartment Building and the repayment of the associated debt.  

Interest income and interest expense on loans by and between LIF 
and its investments were eliminated in the consolidation of the 
Company's financial statements.  

Entity level general and administrative expenses, exclusive of 
that at the property level, increased $11,000 in 1999 compared 
to 1998.  Portfolio management fees remained unchanged, due to 
activity associated with the sale of Whistler Point Apartments.

OCCUPANCY

Occupancy at the two Partnership's properties remain stable during
the first quarter 1999.  Occupancy at Valley View was 79.4% at
the end of the first quarter 1999.  701 Cooper remained vacant.   
Both properties are for sale.  701 Cooper is not being actively  
marketed to lease to tenants to allow owner/user prospects to  
participant in the sale process.  

DISTRIBUTIONS

In March 1998, the Partnership paid a cash distribution of $15 
per unit to unit holders of record on February 28, 1998.  A 
distribution of $250 per unit was declared to unit holders of
record as of February 28, 1999.  This distribution will be paid
in June, 1999.

INFLATION

The effect 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 
1999.

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PART II. OTHER INFORMATION

All items in Part II have been omitted since they are inapplicable or 
the answer is negative.

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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.

                                 L I F

Date: May 15, 1999               /s/ Gary K. Barr      
                                 Gary K. Barr, President & Director
                                 Landsing Equities Corporation 
                                 Managing Partner of the General Partner,
                                 Partners '85