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 September 30, 2001

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

For the transition period from
           to
Commission File Number: 01-14453


                            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         53702-3703
	(Address of principal executive offices)

	(262) 695-1400
	(Issuer's telephone number, including area code)

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 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) - September 30, 2001,
and December 31, 2000	2

Statement of Operations (Unaudited) - Three and nine months
ended September 30, 2001, and 2000	3

Statement of Changes in Partners' Capital (Deficit)(Unaudited) -
Nine months ended September 30, 2001, and 2000	4

Statement of Cash Flows (Unaudited) -
Nine months ended September 30, 2001, and 2000	5

Notes to Financial Statements (Unaudited)	6-7

 	Management's Discussion and Analysis of Financial
Condition and Results of Operations	8-9


PART II. OTHER INFORMATION AND SIGNATURES

Item 1. Legal Proceedings	9-11

Item 2. Changes in Securities and Use of Proceeds	12

Item 3. Defaults Upon Senior Securities	12

Item 4. Submission of Matters to a Vote of Security Holders	12

Item 5. Other Information	12

Item 6. Exhibits and Reports on Form 8-K	12



PART I. FINANCIAL INFORMATION
NATIONAL REAL ESTATE LIMITED PARTNERSHIP INCOME PROPERTIES




(A Wisconsin Limited Partnership)
BALANCE SHEET
(Unaudited)














September 30,
2001


December 31, 2000


ASSETS

















Cash and cash equivalents


$277,264


$245,403


Escrow deposits and other  assets


69,978


91,248


Investment properties, at cost








            Land


568,848


568,848


            Buildings and improvements


4,324,905


4,324,905














4,893,753


4,893,753











            Less accumulated depreciation


2,245,527


2,137,780














2,648,226


2,755,973














$2,995,468


$3,092,624












LIABILITIES AND PARTNERS' CAPITAL

















Liabilities:








            Accrued expenses and other liabilities


$84,518


$101,996


            Tenant security deposits


5,010


4,823


            Deferred rent


34,145


31,963


            Accrued interest payable to individual General Partner


101,608


75,650


            Note payable to individual General Partner (Note 5)


271,020


271,020














496,301


485,452









Partners' Capital (Deficit):








            General Partners


 (165,159)


(161,919)


            Limited Partners
                  (authorized - 10,000 Interests; issued - 9,034.01
                   Interests)


2,685,997


2,790,762


       Less cost of 29.86 Limited Partner Interests held in Treasury


(21,671)


(21,671)





2,499,167


2,607,172









$2,995,468


$3,092,624
See notes to financial statements.








NATIONAL REAL ESTATE LIMITED PARTNERSHIP INCOME PROPERTIES
(A Wisconsin Limited Partnership)
Statement of Operations
(Unaudited)







Three Months Ended
            September 30,



Nine Months Ended
              September 30,






2001


2000

2001


2000


INCOME










            Operating income


$187,410


$198,668

$591,567

$603,854


            Total income


187,410


198,668

591,567

603,854













OPERATING EXPENSES










            Operating expenses


88,041


100,333

277,879

262,746


            Administrative expense

52,432


65,362

159,637

170,434

            Depreciation


35,916

35,954

107,747

107,861


            Interest expense


7,959


9,503

25,958

26,753


            Total expenses


184,348


211,152

571,221

567,794













Income (Loss) from Operations


3,062


(12,484)

20,346

36,060


Other Income:










            Interest income


3,590


6,713

10,888

24,085













            Net Income (Loss)


$6,652


$(5,771)

$31,234

$60,145













Net Income (Loss) attributable to
            General Partners (3%)


$200


$(173)

$937

$1,804


Net Income (Loss) attributable to
            Limited Partners (97%)

$6,452


$(5,598)

$30,297

$58,341


Per Limited Partnership
            Interests outstanding--9,004.15


$.72


$(.62)

              $3.36

$6.48
$





See notes to financial statements.

NATIONAL REAL ESTATE LIMITED PARTNERSHIP INCOME PROPERTIES
(A Wisconsin Limited Partnership)
Statement of Changes in Partners' Capital (Deficit)
(Unaudited)
Nine Months Ended September 30,







Limited
Partners


General
Partners


Interests Held in
Treasury



Total

September 30, 2001







Partners' Capital (Deficit), beginning of period

$2,790,762

$(161,919)

($21,671)

$2,607,172

Distributions

        (135,062)

 (4,177)



(139,239)

Net Income for the period

          30,297

             937



31,234


Partners' Capital (Deficit), end of period

$2,685,997

$(165,159)

$(21,671)

$2,499,167




September 30, 2000








Partners' Capital (Deficit), beginning of period

$3,472,815

$(140,824)

$(21,671)

     $3,310,320

Distributions

(621,288)

(19,215)



  (640,503)

Net Income for the period

           58,341

           1,804



          60,145

Partners' Capital (Deficit), end of period


$2,909,868

$(158,235)

$(21,671)

$2,729,962
See notes to financial statements.




NATIONAL REAL ESTATE LIMITED PARTNERSHIP
INCOME PROPERTIES
(A Wisconsin Limited Partnership)
Statement of Cash Flows
(Unaudited)
Nine Months Ended September 30














2001


2000


Operating Activities








            Net income  for the period


$31,234


$60,145


        Adjustments to reconcile net income to net cash provided by
                     operating activities:








                         Depreciation


107,747


107,861











             Changes in operating assets and liabilities:








                         Escrow deposits and other assets


21,270


(79,729)


                         Deferred rent


2,182


(1,819)


                    Accrued expenses, other liabilities, and accrued
                                              interest


8,480


19,501


                         Tenant security deposits


187


420











          NET CASH PROVIDED BY OPERATING ACTIVITIES


171,100


106,379











Investing Activity:


0


0












Financing Activities:








           Distributions to partners

(139,239)


(640,503)











          INCREASE/DECREASE IN CASH


31,861


(534,124)











           Cash and cash equivalents at beginning of period


245,403


806,382











          CASH AND CASH EQUIVALENTS AT END OF PERIOD


$277,264


$272,258











See notes to financial statements.







NATIONAL REAL ESTATE LIMITED PARTNERSHIP INCOME PROPERTIES
(A Wisconsin Limited Partnership)
Notes to Financial Statements
(Unaudited)
September 30, 2001

 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. These statements, which do not include all of the
     information and footnotes required by accounting principles
      generally accepted in the United States of America 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, 2000
          (please refer to the footnotes of those statements for
           additional details of the Partnership's financial
            condition). The operating results for the period ended
             September 30, 2001 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 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 $34,969 under an agreement
  with NRMI for the nine month period ended September 30, 2001.
   The Partnership also incurred $27,280 in the first nine months
    of 2001 for the reimbursement of accounting and administrative
     expenses incurred by NRMI on behalf of the Partnership.

The Partnership subleases a portion of common area office space from
 NRMI under terms of a lease, which expires on August 31, 2002.
  During the first nine months of 2001, the Partnership incurred
   lease fees totaling $8,305 which represents the Partnership's
    prorated portion, based upon space occupied, of NRMI's monthly
     rental obligation.

4. National Development and Investment, Inc. (NDII): The Partnership
 incurred $113,119 for the reimbursement of administrative expenses
  incurred by NDII on behalf of the Partnership for the first nine
   months of 2001.  Effective October 1, 2001, all expenses
    previously incurred by NDII on behalf of the Partnership will
     be incurred by NRMI, due to the dissolution of NDII as of that
      date.

5.	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 funds or 12%,
        whichever is lower.  As of September 30, 2001, interest
         totaling $101,608 had accrued.

NATIONAL REAL ESTATE LIMITED PARTNERSHIP INCOME PROPERTIES
(A Wisconsin Limited Partnership)
Management's Discussion and Analysis of
Financial Condition and Results of Operations
September 30, 2001

The Partnership currently owns and operates three investment
 properties; Tucson Lock-It Lockers, a 49,865 net rentable square
  foot mini warehouse complex in Tucson, Arizona; Phoenix Lock-It
   Lockers, a 62,016 net rentable square foot mini warehouse
    complex in Phoenix, Arizona; and a portion of Cave Creek Lock-It
     Lockers containing 7,604 of 46,283 net rentable square feet in
      Phoenix, Arizona.

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 first nine
 months of 2001 averaged 91.45% for Tucson Lock-It Lockers; 88.52%
  for Phoenix Lock-It Lockers; and 88.94% for Cave Creek Lock-It
   Lockers.  This compares to an average of 91.0% for Tucson Lock-It
    Lockers; 90.68% for Phoenix Lock-It Lockers; and 90.55% for Cave
     Creek Lock-It Lockers during the same period in 2000.

Nine Months Ended September 30, 2001 and 2000
Net income decreased $28,911 from $60,145 for the nine months ended
 September 30, 2000 to $31,234 for the nine months ended September
  30, 2001, due to, in part, a $15,133 increase in operating
   expenses, and a $13,197 decrease in interest income.

The $15,133 increase in operating expenses is due to increased
 personnel costs and increased real estate taxes for Phoenix Lock-it
  Lockers.

The $13,197 decrease in interest income is due to a decrease in
 interest earned on the money market account, attributable to reduced
  interest rates and large cash distributions paid which reduced
   the account balance.

The increase in cash during the first nine months of 2001 was
 $31,861, compared to the decrease in cash during the first nine
  months of 2000 of $534,124. This variance was due to a decrease
   of $501,264 in cash distributed in 2001 as compared to 2000,
    and a $100,999 increase in cash provided by escrow deposits
     and other assets, netted with a $11,021 decrease in cash
      provided by accrued expenses, other liabilities and accrued
       interest, and a $28,911 decrease in net income from 2000 to
        2001.

The $100,999 increase in cash provided by escrow deposits and other
 assets is due to reductions in the salary escrow account for
  severance salaries paid in 2001, and funds subsequently released
   from escrow.

The $11,021 decrease in cash provided by accrued expenses, other
 liabilities and accrued interest is due to accrued liabilities
  existing at December 31, 2000, paid in 2001.

Three Months Ended September 30, 2001 and 2000
Net income increased $12,423 from $(5,771) for the three months
 ended September 30, 2000 to $6,652 for the three months ended
  September 30, 2001, due to, in part, a $12,930 decrease in
   administrative expenses, and a $12,292 decrease in operating
    expenses, netted with a $11,258 decrease in operating income.

The $12,930 decrease in administrative expenses is primarily due
 to a decrease in legal expenses.

The $12,292 decrease in operating expenses is primarily due to
 the timing of payments for advertising services.

The $11,258 decrease in operating income is attributable to
 increased tenant abatements/concessions at all three Lockers
  properties.


PART II. OTHER INFORMATION AND SIGNATURES

Item 1.  Legal Proceedings

On May 25, 1999, the general partners for National Real Estate
 Investments 78-II Limited Partnership, National Real Estate
  Investments 78-IV Limited Partnership, National Real Estate
   Investments 79-I Limited Partnership, National Real Estate
    Investments 79-II Limited Partnership, National Real Estate
     Investments 79-III Limited Partnership, National Real Estate
      Investments 81-I Limited Partnership, National Real Estate
       Investments 82-I Limited Partnership, National Real Estate
        Investments 16 Limited Partnership, National Real Estate
         Investments 17 Limited Partnership, National Real Estate
          Limited Partnership Income Properties, National Real
           Estate Limited Partnership Income Properties-II, National
            Select Placement - XVI Limited Partnership, National
             Select Placement - XVIII Limited Partnership and
              National Select Placement - XX Limited Partnership
               (the "General Partners"), NDII, NRMI, EC, and other
                entities and individuals were named as defendants
                 in a lawsuit in Waukesha County Circuit Court
                  captioned as Paustenbach, et al. v. Vishnevsky,
                   et al., Case No. 99-CV-1034 (the
 "Lawsuit"). The partnerships listed above in this paragraph (the
  "Partnerships") were not included in the original Lawsuit but were
   later added to the action as nominal defendants.  The plaintiffs
    sought to have this action certified as a class action lawsuit.
         In the complaint, the plaintiffs alleged wrongdoing against
          the General Partners and their affiliates including NDII,
           NRMI and EC in connection with two basic areas.  First,
            allegations involving various vote solicitations alleged
             by the plaintiffs to be an effort to perpetuate the
              Partnerships and avoid liquidation.  Second,
               allegations involving the taking and use of
                Partnership funds and property, including excessive
                 fees and unauthorized expenses.  On March 14, 2000,
                  the parties to the litigation, with the exception
                   of the defendant Wolf & Company, entered into a
                    Stipulation of Settlement.

Based upon the Stipulation, on April 27, 2000, the Circuit Court of
 Waukesha County held a hearing which certified the case as a class
  action and approved terms of a settlement.  The more significant
   terms of the Stipulation of Settlement are as follows:

An independent marketing agent (the "Partnerships' Representative")
 was appointed to market and sell the Partnerships' investment
  properties (the "Properties").  However, no offer to purchase
   any of the Properties will be accepted without first obtaining
    approval from a majority interest of the limited partners of
     the selling Partnership.  Final distributions of the net
      proceeds received from sales of the Properties will be made
       in accordance with the terms of the limited partnership
        agreements and prospectuses, and upon providing 20-day
         notice to the plaintiffs' attorney.  Net proceeds will
          first be applied to pay plaintiffs' counsels' legal fees,
           expenses and costs, with interest thereon.  The
            Partnerships' Representative prepared Offering
             Memorandums for marketing the Properties. Letters of
              Intent have been signed by potential buyers on all of
               the Properties. In most cases, Purchase and Sale
                Agreements have been executed.

Interim distributions to limited partners will continue to be made
 in accordance with each of the limited partnership agreements.
  However, upon final approval of the Settlement, distributions were
   increased to the extent that sufficient reserves were established
    to support normal partnership operations and the wind-up of
      each Partnership's affairs upon the sale of its investment
       property.  Any such additional distributions were made within
        30 days of the final approval of the Settlement.

NRMI and the General Partners will continue to provide management
 and consulting services to the Partnerships and the Properties on
  the same terms and conditions currently provided under existing
   contracts until the Properties are sold and the Partnership
    entities are dissolved.  NRMI will also be the listing broker
     for the sale of the Partnerships' Properties.

The plaintiffs' claims made against NRMI, the General Partners,
 and other related parties for excessive charging of expenses to
  the Partnerships will be settled through binding arbitration.
   Any such expenses disallowed through arbitration will be
    reimbursed to the Partnerships.

At the April 27, 2000 hearing, the lawsuit was certified as a
 non-opt out class action, in which all limited partners of the
  Partnerships (except the defendants) are required to be included
   in the settlement of this litigation.  Furthermore, the Court
    ruled that plaintiffs' counsels' attorney fees would be equal
     to one-third of the difference between the secondary market
      value of the Partnerships interests and the total funds
       available for distribution to the limited partners after
        payment of all of the Partnerships' obligations.  The Court
         allowed the defendants sixty days thereafter to present
          their evidence regarding secondary market value.

On June 20, 2000, the Court entered a judgment based upon its April
 27th decision.  Thereafter, on July 21, 2000, the Court held a
  hearing on the plaintiffs' Motion for Enforcement of the Court
   Approved Settlement and in Support of Sanctions.  The outcome of
    the hearing was that the Court granted sanctions totaling
     $437,000.00 against the defendants including NDII, NRMI, EC and
      their counsel for delaying the appointment of the
       Partnerships' Representative and the arbitrators.  The Court
        took under advisement the remaining open issue regarding the
         secondary market value for computing the plaintiffs'
          counsels' attorney fees until the arbitration proceedings
           are completed and the Properties are sold.  A Motion for
            Reconsideration of the sanctions was filed with the Court
             and was denied on September 25, 2000.  The defendants
              filed a motion with the Court to stay payment of the
               sanctions pending appeal.  That motion was also
                denied.

On August 2, 2000, the defendants, including the Corporation, filed
 an appeal from that portion of the judgment determining the method
  for computing the plaintiffs' counsels' attorney fees.  On October
   10, 2000, the defendants, including the Corporation, filed a
    second appeal from the order granting the sanctions.  A motion
     to consolidate the two appeals was granted.

On October 24, 2001, the Court of Appeals rendered its decision
 with respect to both appeals.  The Court affirmed the lower court
  ruling respecting the determination of the attorneys fees, but
   reversed the Order imposing the sanctions for delay in
    implementing the Settlement Agreement based upon the lower
     court's erroneous view of the effective date of the settlement
      stipulation

The arbitration panel has been selected. The arbitration is
 tentatively set for hearing the weeks of February 11, and 18,
  2002. A scheduling order has been set by the chief arbitrator.
   Based on the events to date, it is not possible to determine
    the final outcome of the litigation, or the amount of any
     potential monetary impact on the NDII Affiliates.






Item 2.  Changes in Securities and Use of Proceeds

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

None

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/John Vishnevsky
  	   John Vishnevsky
President and Chief Operating and
             					 	   Executive Officer

National Development and Investment, Inc.

Corporate General Partner


Date
       /S/John Vishnevsky

 John Vishnevsky
                          Chief Financial and Accounting Officer



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



Date
           	John Vishnevsky
                              Chief Financial and Accounting Officer



Date
Stephen P. Kotecki

President
       EC Corp
Corporate General Partner







1


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