U. S. Securities and Exchange Commission

Washington, DC 20549

FORM 10-QSB
(Mark One)

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

For the quarterly period ended  June 30, 1997

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

For the transition period from                      to 
          Commission File Number: 0-14453


                            National Real Estate Limited Partnership Income 
Properties                       
(Exact name of small business issuer as specified in its charter)

           
Wisconsin                                                                       
        39-1503893        
(State or other jurisdiction of                                          
(I.R.S. Employer 
incorporation or organization)                                   
Identification Number)

                       9800 West Bluemound Road, Wauwatosa, Wisconsin  
53226-4353                     (Address of principal executive offices)

(414) 453-6764
(Issuer's telephone number)

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - N/A - - - - - 
- - - - - - - - - - - - - - - - - - - - - - -
(Former name, former address and former fiscal year, if changed since last 
report)

Check whether the issuer (1) filed all reports required to be filed by 
Sections 13 or 15(d) of the Exchange Act during the past 12 months (or for 
such shorter period that the registrant was required to file such reports), 
and (2) has been subject to such filing requirements for the past 90 days.
Yes     X          No           



<PAGE>NATIONAL REAL ESTATE LIMITED PARTNERSHIP INCOME PROPERTIES




INDEX




Page

 PART I. FINANCIAL INFORMATION

     Balance Sheet (unaudited) - June 30, 1997
          and December 31, 19962

     Statement of Operations (unaudited) -
          Three months and six months ended 
          June 30, 1997 and 19963

     Statements of Cash Flows (unaudited) -
          Six months ended June 30, 1997  and 19964

     Notes to Financial Statements (unaudited)5-6

     Management's Discussion and Analysis of
          Financial Condition and Results of Operation7


PART II. OTHER INFORMATION AND SIGNATURES8-9

<PAGE>
          PART I.  FINANCIAL INFORMATION                    
                    
    NATIONAL REAL ESTATE LIMITED PARTNERSHIP - IP               
    (A Wisconsin Limited Partnership)                    
   Balance Sheet                    
     (Unaudited)                    
                    
          June 30,          December 31,
          1997          1996
ASSETS                    
                    
Current Assets                    
     Cash     $     840,773     $     769,494
     Escrow deposits and other assets (Note 4)          19,580          15,592
Other Assets                    
     Investment properties, at cost                    
        Land          1,047,695          1,047,695
        Buildings and improvements          5,495,080          5,497,533
                    
          6,542,775          6,545,228
                    
        Less accumulated depreciation          2,230,900          2,127,959
                    
          4,311,875          4,417,269
                    
     $     5,172,228     $     5,202,355
                    
LIABILITIES AND PARTNERS' CAPITAL                    
                    
Liabilities:                    
     Tenant security deposits     $     5,389     $     5,454
     Rents received in advance          37,728          26,624
     Accrued interest payable to Individual General Partner     
550,307          509,444
     Accrued expenses and other liabilities          68,267          87,861
     Note payable to Individual General                    
        Partner (Note 6)          271,020          271,020
                    
          932,711          900,403
                    
Partners' Capital (deficiency) (Note 5):                    
    General Partners     $     (112,949)     $     (111,076)
     Limited Partners (authorized--10,000                    
       Interests; outstanding--9,034.01 Interests)     4,374,135          
4,434,699
     Less 29.86 Interests held in Treasury          (21,671)          (21,671)
                    
          4,239,515          4,301,952
                    
     $     5,172,227     $     5,202,355
                    
     See notes to financial statements.                    
                    <PAGE>                    
NATIONAL REAL ESTATE LIMITED PARTNERSHIP - IP                    
      (A Wisconsin Limited Partnership)                    
           Statement of Cash Flows                             
(Unaudited)                    
          Three Months Ended
          June 30,          
          1997          1996
Operating Activities                    
        Net income (loss) for the period     $     30,390     $     54,945
        Adjustments to reconcile net loss to                    
          net cash used in operating activities:                    
          Depreciation          102,941          102,354
                    
                    
        Changes in operating assets and                    
          liabilities:                    
          Escrow deposits & other assets          (3,988)          5,572
          Tenant security deposits          (65)          0
          Rents received in advance          11,104          3,827
          Accrued expenses and other liabilities          21,269          
34,886
                    
                    
               NET CASH PROVIDED BY (USED IN)          161,651          
201,585
                 OPERATING ACTIVITIES                    
                    
                    
     Investing activities:                    
          Additions to investment property          2,453          (0)
                    
     Financing activities:                    
          Distributions to partners          (92,826)          (92,826)
                    
               INCREASE (DECREASE) IN CASH          71,278          108,759
                    
               Cash at beginning of period           785,086          409,508
                    
                CASH AT END OF PERIOD     $     856,364     $     518,267
                    
See notes to financial statements.                    
                    <PAGE>NATIONAL REAL ESTATE LIMITED PARTNERSHIP - 
IP                                        
(A WISCONSIN LIMITED PARTNERSHIP)                                        
 Statement of Operations                                                 
 (Unaudited)                                        
          Three months ended          Six  Months Ended
          June 30,                    June 30,          
          1997          1996          1997          1996
INCOME                                        
     Operating income     $     215,666     $     188,352          
427,383          435,195
     Other income          21,270          57,937          46,340          
70,244
                                        
        Total Income          236,937          246,289          
473,723          505,439
                                        
OPERATING EXPENSES                                        
     Property operating expenses          99,530          119,117          
218,823          237,392
     Depreciation and amortization          51,470          51,177          
102,941          102,353
     Interest expense          40,863          18,684          40,863          
37,043
     Administrative expense          41,633          41,768          
104,022          90,364
                                        
        Total Expenses          233,495          230,746          
466,649          467,153
                                        
Income(Loss) from operations          3,442          15,543          
7,074          38,286
Other Income (expenses)                                        
        Interest income          13,589          5,892          
23,316          16,660
                                        
        Net Income (Loss)     $     17,031     $     21,434          
30,390          54,946
Net Income (Loss) attributable to                                        
        General Partners (3%)     $     511     $     643          
912          1,648
Net Income (Loss) attributable to                                        
        Limited Partners (97%)     $     16,520     $     20,792          
29,478          53,298
        Per Limited Partnership 
Interest                                        
          Outstanding--9,004.15 Interests     $     1.83     $     2.31     
$     3.27     $     5.92
                                        
See notes to financial statements
<PAGE>NATIONAL REAL ESTATE LIMITED PARTNERSHIP INCOME PROPERTIES
(A Wisconsin Limited Partnership)
Notes to Financial Statements
(Unaudited)
June 30, 1997


1.In the opinion of the General Partners, the accompanying unaudited financial 
statements contain all adjustments (consisting of normal recurring accruals) 
which are necessary for a fair presentation. The statements, which do not 
include all of the information and footnotes required by generally accepted 
accounting principles for complete financial statements, should be read in 
conjunction with the National Real Estate Limited Partnership Income 
Properties annual report for the year ended December 31, 1996. Refer to the 
footnotes of those statements for additional details on the Partnership's 
financial condition. The operating results for the period ended June 30,  
1997, may not be indicative of the operating results for the entire year.

2.National Real Estate Limited Partnership Income Properties (the 
"Partnership") was organized under the Wisconsin Uniform Limited Partnership 
Act pursuant to a Certificate of Limited Partnership dated December 18, 1984, 
for the purpose of investing in residential, commercial, and industrial real 
properties. John Vishnevsky and National Development and Investment, Inc., 
contributed the sum of $6,000 to the Partnership as General Partners. The 
Limited Partnership Agreement had authorized the issuance of 10,000 Limited 
Partnership Interests (the "Interests") at $1,000 per Interest with the 
offering period commencing January 31, 1985. Upon conclusion of the offering 
in December 1986, the Partnership had raised $9,024,556 in capital 
representing 9,034.01 Interests.

3.National Realty Management, Inc. (NRMI): The Partnership incurred property 
management fees of $26,565 under an agreement with NRMI for the period 
presented.

4.Real estate taxes are charged to operations based on actual taxes paid for 
the prior year and are adjusted for normal annual increases. Taxes for Tucson 
Lock-It Lockers, Phoenix Lock-It Lockers, Cave Creek Lock-It Lockers, and 
Northridge Commons are being accrued monthly at $4,869, $2,115, $434, and 
$2,753, respectively. 

5.Changes in Partners' Equity:               Limited     General
                                            Partners        Partners        
Total     
     Quarter Ended June 30, 1997
     Partner's Equity, beginning of quarter               $5,173,299      
$(88,233)     $5,085,066 
     Distributions                                   (   45,021)     ( 
1,392)     (  46,413)
     Net Income (Loss)                                    29,479            
912          30,391 
     Partners' Equity, end of quarter                    $5,157,757      
$(88,713)     $5,069,044 

Limited Partner's equity is net of 29.86 interests held in treasury of 
($21,671).
<PAGE>     Quarter Ended June 30, 1996
     Partner's Equity, beginning of quarter               $5,238,997      
$(86,951)     $5,125,795 
     Distributions                                   (   45,021)     ( 
1,392)     (  46,413)
     Net Income (Loss)                                    20,792               
643            33,510 
     Partners' Equity, end of quarter                    $5,214,768      
$(86,951)     $5,139,892 

Limited Partner's equity is net of 29.86 interests held in treasury of 
($21,671).

6.As outlined in the prospectus, the General Partners agreed to make loans to 
the Partnership up to an aggregate of 3% of the gross proceeds of the offering 
to the extent necessary to provide distributions to the limited partners at 
annualized rates equal to 8% in 1985, 8.25% in 1986, and 8.5% in 1987. The 
loan will be repaid solely from sales proceeds, with compounding interest 
equal to the cost of their funds or 12%, whichever is lower. As of June 30, 
1997, interest totaling $557,322 has accrued.

7.Northridge Commons' tenants pay monthly fixed rent payments plus estimated 
charges for taxes, costs of insurance premiums, administrative costs, and 
operating expenses with respect to common areas.

8.In accordance with FASB Statement No. 121, "Accounting for the Impairment of 
Long-Lived Assets and for Long-Lived Assets to be Disposed Of," the 
Partnership records impairment losses on long-lived assets used in operations 
when events and circumstances indicate that the assets might be impaired and 
the undiscounted cash flows estimated to be generated by those assets are less 
than the carrying amounts of those assets. During 1996, the Partnership 
determined that an impairment to the asset value of a retail shopping center 
known as Northridge Commons had occurred, resulting from the loss of a 
significant anchor tenant and deteriorating market conditions caused by an 
economically depressed area where the property is located. Based on these 
factors, the Partnership wrote down assets with a carrying value of 
approximately $1,880,000 by $785,000 to their estimated fair value. Fair value 
was based on estimated future cash flows to be generated from the property, 
discounted at a market rate of interest.


<PAGE>NATIONAL REAL ESTATE LIMITED PARTNERSHIP INCOME PROPERTIES
(A Wisconsin Limited Partnership)
Management's Discussion and Analysis of
Financial Condition and Results of Operations
June 30, 1997 

The Partnership currently owns and operates four investment properties; Tucson 
Lock-It Lockers, a 49,885 net rentable square foot mini warehouse complex in 
Tucson, Arizona; Phoenix Lock-It Lockers, a 58,766 net rentable square foot 
mini warehouse complex in Phoenix, Arizona; a portion of Cave Creek Lock-It 
Lockers containing 8,236 of 46,028 net rentable square feet in Phoenix, 
Arizona; and Northridge Commons, a 20,700 net rentable square foot community 
shopping center in Milwaukee, Wisconsin.

Occupancy based upon net rentable square feet for the second quarter averaged 
98.74% for Tucson Lock-It Lockers; 97.19% for Phoenix Lock-It Lockers; 55.11% 
for Northridge Commons; and 94.51% for Cave Creek Lock-It Lockers. This 
compares to an average of 98.4% for Tucson Lock-It Lockers; 97.5% for Phoenix 
Lock-It Lockers; 100% for Northridge Commons; and 92.3% for Cave Creek Lock-It 
Lockers during the same period of 1996.


There is a considerable amount of vacant retail space in strip malls in the 
area. Northridge Commons does have advantages over some of the competing 
space. The new pylon sign given the property greater visibility and all 
tenants have seen an increase in business due to this signage. Northridge 
Commons tenants also have direct street access. The 6,792 square foot unit 
vacated by Talbots in the fourth quarter of 1996 has been rented to GCO, a 
franchiser of wholesale carpet and flooring, with an additional 2,000 square 
feet effective August 1, 1997. An additional 2,500 square foot unit became 
vacant on June 1, 1997, and is presently being marketed at $13.88/sq.ft.

During the second quarter of 1997 rental revenue for Cave Creek Lock-It 
Lockers  increased compared to the second quarter of 1996 due to increased 
rental rates. Rental revenues also increased in the second quarter of 1997 for 
Tucson Lock-It Lockers and Phoenix Lock-It Lockers compared to the same 
quarter of 1996. Northridge Commons rental revenues also decreased for the 
same period due to a loss of the anchor tenant.

Operating expenses during the second quarter of 1997 decreased compared to the 
operating expenses during the same quarter in 1996 due to lower maintenance 
costs at Tucson Lock-It and Northridge Commons. Tucson Lock-It Lockers and 
Cave Creek Lock-It Lockers upgraded their computer systems this year.

The Partnership continued cash distributions to its partners with 
distributions totaling $46,413 for the second quarter of 1997. These 
distributions are required to be allocated 97% to Limited Partners ($45,021) 
and 3% to the General Partners ($1,392). 

<PAGE>PART II. OTHER INFORMATION



Item 6(b). Reports on Form 8-K

There were no reports on Form 8-K for the quarter ended June 30, 1997.
<PAGE>SIGNATURES



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



  National Real Estate Limited Partnership
             Income Properties             
                                                     (Registrant)     




Date        /S/August 1, 1997                    /S/        John 
Vishnevsky              
                                                       John Vishnevsky
                                             President and Chief Operating and
                                                      Executive Officer
                                       National Development and Investment, 
Inc.
                                                 Corporate General Partner


Date       /S/August 1, 1997                /S/        John 
Vishnevsky              
                                                   John Vishnevsky
                                          Chief Financial and Accounting 
Officer



Date       /S/August 1, 1997                               Stephen P. 
Kotecki            
                                                  Stephen P. Kotecki
                                                        President 
                                                   EC Corp
                                            Corporate General Partner
<PAGE>SIGNATURES



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



  National Real Estate Limited Partnership
                  Income Properties                
                                                   (Registrant)




Date        August 1, 
1997                                                                            
     
                                                           John Vishnevsky
                                             President and Chief Operating and
                                                        Executive Officer
                                       National Development and Investment, 
Inc.
                                                   Corporate General Partner



Date        August 1, 
1997                                                                            
      
                                                             John Vishnevsky
                                          Chief Financial and Accounting 
Officer



Date        August 1, 
1997                                                                            
      
                                             Stephen P. Kotecki
                                                         President 
                                                          EC Corp
                                                 Corporate General Partner











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