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, 1998                        

(     )   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)

                       1155 Quail Court, Pewaukee, Wisconsin  53072-3703 
                (Address of principal executive offices)

                             (414) 695-1400                              
                       (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        




       NATIONAL REAL ESTATE LIMITED PARTNERSHIP INCOME PROPERTIES




                                  INDEX




                                                                     PAGE

 PART I. FINANCIAL INFORMATION

     Balance Sheet (unaudited) - June 30, 1998
          and December 31, 1997. . . . . . . . . . . . . . . . . . . . .2

     Statement of Operations (unaudited) -
          Three and Six months ended 
          June 30, 1998 and 1997 . . . . . . . . . . . . . . . . . . . .3

     Statements of Cash Flows (unaudited) -
          Six months ended June 30, 1998  and 1997 . . . . . . . . . . .4

     Notes to Financial Statements (unaudited) . . . . . . . . . . . .5-6

     Management's Discussion and Analysis of
          Financial Condition and Results of Operation . . . . . . . .7-8


PART II. OTHER INFORMATION AND SIGNATURES. . . . . . . . . . . . . . 9-10


<TABLE>
<S>                                              <C><C>     <C><C>
              PART I.  FINANCIAL INFORMATION                   

                                                               

    NATIONAL REAL ESTATE LIMITED PARTNERSHIP - IP              

    (A Wisconsin Limited Partnership)                          

   BALANCE SHEET                                               

     (Unaudited)                                               

                                                               

                                                    JUNE 30,    DECEMBER 31,
                                                                 

                                                        1998        1997

ASSETS                                                         

                                                             
CURRENT ASSETS                                                 

     Cash                                        $ 860,893    $  790,168

     Other assets                                     21,389      14,271

OTHER ASSETS                                                   

     Investment properties, at cost                            

        Land                                       1,047,695   1,047,695

        Buildings and improvements                 5,649,885   5,649,885

                                                               

                                                   6,697,580   6,697,580

                                                               

        Less accumulated depreciation              2,447,936   2,343,748

                                                               

                                                   4,249,644   4,353,832

                                                               

                                                  $5,131,926  $5,158,271

                                                               

LIABILITIES AND PARTNERS' CAPITAL                              

                                                               

LIABILITIES:                                                   

     Tenant security deposits                    $ 6,791      $    5,530

     Rents received in advance                    36,281          29,501

     Accrued interest payable
     to Individual GeneralPartner                641,454          594,982
                                                               

     Accrued expenses and other liabilities       77,280           80,144

     Note payable to Individual General                        

        Partner (Note 5)                             271,020     271,020

                                                               

                                                   1,032,826     981,177

                                                               

PARTNERS' CAPITAL (DEFICIENCY) (NOTE 5):                       

    General Partners                             $ (117,159)  $(114,820)

     Limited Partners (authorized--10,000                      

       Interests; outstanding--9,034.01 Interests) 4,237,930   4,313,585

     Less 29.86 Interests held in Treasury          (21,671)    (21,671)

                                                               

                                                   4,099,100   4,177,094

                                                               

                                                  $5,131,926  $5,158,271

                                                               

     See notes to financial statements.                        

                                                               
</TABLE>

<TABLE>
<S>            <C><C>    <C><C>     <C>       <C><C>     <C><C>     <C><C>
  NATIONAL REAL ESTATE LIMITED PARTNERSHIP - IP
                                          THREE MONTHS ENDED SIX MONTHS ENDED

                                           JUNE 30,           JUNE 30, 
                                     

                                        1998       1997      1998       1997 
               1ST QT
                                                             
INCOME                                                                    
    Operating income               $  224,770  $ 215,666   456,593    427,383

     Other income                      21,790     21,271    48,468     46,340
                                                                              

        Total Income                  246,560    236,937   505,061    473,723
                                                                              


OPERATING EXPENSES                                                             

     Property operating expenses      113,114     99,530   211,473    218,823

     Depreciation                      52,095     51,471   104,189    102,941

     Interest expense                  23,539     20,692    46,471     40,863

     Administrative expense            55,715     41,631   100,464    104,022

                                                                            
        Total Expenses                244,463    213,324   462,597    466,649
                                                                               

INCOME(LOSS) FROM OPERATIONS            2,097      3,442    42,464      7,074

OTHER INCOME (EXPENSES)                                                        

        Interest income                13,323     13,589    18,780     23,316
                                                                               

        NET INCOME (LOSS)          $   15,420  $  37,202    61,244     30,390

Net Income (Loss) attributable to                                              

        General Partners (3%)      $      463  $     511     1,837        912

Net Income (Loss) attributable to                                             

        Limited Partners (97%)      $   14,957  $  36,086    59,407    29,478
      Per Limited Partnership Interest                                         

    Outstanding--9,004.15 Interests $     1.66  $    4.01      6.60$     3.27
                                                                             
</TABLE>

<TABLE>
<S>                                              <C><C>    <C><C>
                                                              

NATIONAL REAL ESTATE LIMITED PARTNERSHIP - IP                 

      (A Wisconsin Limited Partnership)                       

           STATEMENT OF CASH FLOWS                            

(Unaudited)                                                   

                                                   SIX MONTHS ENDED

                                                   JUNE 30,   

                                                       1998       1997

OPERATING ACTIVITIES                                          

        Net income (loss) for the period         $  61,244   $ 30,390

        Adjustments to reconcile net income                   
(loss) to net cash used in operating activities:              

          Depreciation                              104,189    102,941

                                                              

                                                              

        Changes in operating assets and                       

          liabilities:                                        

          Escrow deposits & other assets            (7,118)    (3,988)

          Tenant security deposits                    1,259       (65)

          Rents received in advance                   6,780     11,104

          Accrued expenses and other liabilities     43,609     21,269

                                                              

                                                              

               NET CASH PROVIDED BY                 209,963    161,651

               OPERATING ACTIVITIES                           

                                                              

                                                              

     INVESTING ACTIVITIES:                                    

          Additions to investment property                0      2,453

                                                              

     FINANCING ACTIVITIES:                                    

          Distributions to partners                (139,239)    (92,826)
                                                              

                                                              

               INCREASE IN CASH                      70,724     71,278

                                                              

               CASH AT BEGINNING OF PERIOD          790,168    785,086

                                                              

                CASH AT END OF PERIOD            $ 860,892   $856,364

                                                              

See notes to financial statements.                            

                                                              
</TABLE>

       NATIONAL REAL ESTATE LIMITED PARTNERSHIP INCOME PROPERTIES
                    (A WISCONSIN LIMITED PARTNERSHIP)
                      NOTES TO FINANCIAL STATEMENTS
                               (UNAUDITED)
                              JUNE 30, 1998


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, 1997. 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, 1998, 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 authorizes 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
     $26,195 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 $5,274,
     $2,184, $433, and $757, respectively. 

5.   Changes in Partners' Equity:            Limited  General
                                            Partners  Partners   Total     
     Quarter Ended June 30, 1998
 Partner's Equity, beginning of quarter  $4,291,343 $(114,837)$4,176,506 
 Distributions                            ( 90,041)   ( 2,785)  ( 92,826)
 Net Income (Loss)                          14,957        463     15,420 
 Partners' Equity, end of quarter       $4,216,259  $(117,159)$4,099,100 

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

 Quarter Ended June 30, 1997
 Partner's Equity, beginning of quarter  $4,364,435 $(112,579)$4,301,952 
 Distributions                           (   45,021)  ( 1,392) (  46,413)
 Net Income (Loss)                       (   20,479)       91  (  30,391)
 Partners' Equity, end of quarter        $4,339,893 $(113,059)$4,285,930 

     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, 1998, interest
totaling $641,454 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.



       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, 1998 

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.

National Real Estate Limited Partnership Income Properties-II ("NRELPIP-II")
owns the remaining portion
of Cave Creek Lock-It-Lockers. NRELPIP-II is a Wisconsin limited partnership,
affiliated with the General
partners.

Occupancy based upon net rentable square feet for the second quarter averaged
96.37% for Tucson Lock-It
Lockers; 94.88% for Phoenix Lock-It Lockers; 85.10% for Northridge Commons;
and 94.45% for Cave
Creek Lock-It Lockers. This compares to an average of 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
during the same period of 1997.

The Competition Study and information gathered from the Arizona Mini-Storage
Association show the
greater Tucson area occupancy of just slightly over 95% occupied for Tucson
Lock-It Lockers area and 91%
to 92% occupied for the Phoenix Lock-It Lockers and Cave Creek Lock-It Lockers
area. The market
continues to soften in the Phoenix area due to the over-building of self
storage facilities within a 5-mile radius
of the properties.

Rental rates for the second quarter of 1998 for Phoenix Lock-It Lockers range
from $31.00 to $235.00. The
market rental rates have remained the same since the second quarter of 1997.
Rental incentives are offered
on selected locker sizes.

Cave Creek rental rates currently range from $13.00 to $135.00 for the second
quarter of 1998. The rates
remain the same  as the second quarter of 1997.

Current rental rates for the second quarter of 1998 for Tucson Lock-It Lockers
range from $25.00 to
$155.00. These rates are the same as reported in the second quarter of 1997.
Rent increases are scheduled
(for selected sizes) to go into effect during the 3rd quarter of 1998. It is
anticipated that rates could increase
10% on smaller lockers and 5% on the larger lockers. This will increase the
market rent range for the 3rd
quarter of 1998 to $27.50 to $162.75. This increase will not be applied to
every size locker.

Northridge Commons is being marketed at $12 per square foot compared to the
median for the market of $8.

Northridge Commons recently signed a three year lease on the 2,000 square foot
space which was vacated
on March 31, 1998. The 2,500 square foot space remains on the market (750
square feet of this space is
occupied).

Six Months Ended June 30, 1998 and 1997

Net income increased $30,854 from $30,390 for the six months ended June 30,
1997, to $61,244 for the six
months ended June 30, 1998. This increase was due to an increase in total
income of $31,338 and a decrease
in total expenses of $4,052, offset by a decrease in interest income of $4,536.

The increase in total income of $31,338 for the six months ended June 30,
1998, as compared to the same
period a year ago was due to an increase in operating income of $29,210.
Operating income increased due
to reduced vacancies, mainly at Northridge Commons where occupancy improved
from 64.17% to 88.32%
for the six months ended June 30, 1997, and June 30, 1998, respectively. Other
income increased $2,128 over
the same period, accounting for the remainder of the increase in total income.

Three Months Ended June 30, 1998, and 1997

Net income decreased $21,782 from $37,202 for the quarter ended June 30, 1997,
to $15,420 for the quarter
ended June 30, 1998. This decrease was due to an increase in operating
expenses of $31,139 and a decrease
in interest income of $266, offset by an increase in total income of $9,623.

The increase in total income of $9,623 was due to an increase of operating
income of $9,104 and an increase
in other income of $519. The increase in operating income was the result of
reduced vacancies and reduced
rent abatements at Northridge Commons.

The increase in operating expenses of $31,139 was due to an increase in
property operating expenses of
$13,584, an increase in administrative expenses of $14,084, an increase in
depreciation of $624, and an
increase in interest expense of $2,847.

The increase in property operating expenses of $13,584 was primarily due to
the timing of incurred
advertising expenses. The increase in administrative expenses of $14,084 was
the result of increased
partnership related personnel and legal expenses.

Cash distributions for the quarter ended June 30, 1998, and June 30, 1997,
were $92,826 and $46,413,
respectively. These distributions were allocated, as required, 97% to the
Limited partners and 3% to the
General Partners.

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, 1998.

                               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/July 30, 1998                     /S/        John Vishnevsky
                         John Vishnevsky
                     President and Chief Operating and
                         Executive Officer
                     National Development and Investment, Inc.
                     Corporate General Partner


Date       /S/July 30, 1998                      /S/        John Vishnevsky 
                        John Vishnevsky
                          Chief Financial and Accounting Officer



Date       /S/July 30, 1998                                Stephen P. Kotecki
                       Stephen P. Kotecki
                    President 
                     EC Corp
                     Corporate General Partner

                               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        July 30, 1998                                                
                                       John Vishnevsky
                          President and Chief Operating and
                                   Executive Officer
                         National Development and Investment, Inc.
                              Corporate General Partner



Date        July 30, 1998                                                
                                    John Vishnevsky
                         Chief Financial and Accounting Officer



Date        July 30, 1998                                                
                     Stephen P. Kotecki
                                    President 
                                    EC Corp
                              Corporate General Partner











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