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, 2002

(     )	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

Statement of Net Assets in Liquidation (Unaudited) -
	June 30, 2002, and December 31, 2001.....
..............................................2

Statement of Changes in Net Assets in Liquidation
 (Unaudited) -
	Three and six months ended June 30, 2002..
......................................... ...3

Statement of Operations (Unaudited) -
	Three and six months ended June 30, 2001..
.............................................4

Statement of Changes in Partners' Capital (Deficit)
(Unaudited) -
Six months ended June 30, 2001	5

Statement of Cash Flows (Unaudited) -
Six months ended June 30, 2001	6

Notes to Financial Statements (Unaudited)	7-8

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


PART II. OTHER INFORMATION AND SIGNATURES

Item 1. Legal Proceedings	10-11

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)
Statement of Net Assets in Liquidation
(Liquidation Basis)
(Unaudited)














               June 30,
                      2002


       December 31,                       2001


ASSETS

















Investment properties, at estimated liquidation value


$1,771,013


$4,080,179


      Buildings, improvements, and land




Cash and cash equivalents


2,233,523


296,983


Escrow deposits and other assets


11,069


36,458



                      Total Assets


4,015,605


4,413,620


















LIABILITIES











Tenant security deposits


3,259


4,223


Accrued expenses and other liabilities


23,277


116,862


Deferred rent


7,905


39,803

Accrued interest payable to individual General Partner


121,633


108,639


Note payable to individual General Partner (Note 5)


271,020


271,020
Reserve for plaintiffs' attorney fees


77,199


77,199
Reserve for future liquidation expenses


119,126


159,924












                    Total Liabilities


623,419


777,670



                    Net assets in liquidation


$3,392,186


$3,635,950





















See notes to financial statements.










NATIONAL REAL ESTATE LIMITED PARTNERSHIP INCOME
PROPERTIES
(A Wisconsin Limited Partnership)
Statement of Changes in Net Assets in Liquidation
(Liquidation basis)
(Unaudited)







                Three Months Ended
       Six Months Ended

                                      June 30,
                                     June 30,







2002



2002


INCOME








            Operating


$159,636



$349,992


            Total income


159,636



349,992











OPERATING EXPENSES








            Operating


121,869



201,096


            Administrative


63,038



142,597







            Interest


6,552



12,995


            Total operating expenses


191,459



356,688











(Loss) from operations


(31,823)



(6,696)


Other income








            Interest income


2,071



3,513











            Net (loss)


(29,752)



(3,183)











Net assets in liquidation at beginning of period



3,435,828



3,635,950



Adjustments to liquidation basis




 (13,890)



(240,581)


Net assets in liquidation at June 30, 2002



$3,392,186



$3,392,186
$





See notes to financial statements.



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







                 Three Months Ended
           Six Months Ended
                                      June 30,

                               June 30,






2001



2001


INCOME








            Operating



$203,225


$404,157


            Total income



203,225



404,157











OPERATING EXPENSES








            Operating



112,124



189,838


            Administrative



66,353



107,205

            Depreciation


35,916



71,831


            Interest



8,525



17,999


            Total operating expenses



222,918



386,873











Income (loss) from operations



(19,693)



17,284


Other income








            Interest income



3,109



7,298

















            Net income (loss)



$(16,584)



$24,582











Net income (loss) attributable to
            General Partners (3%)



$(498)


$737


Net income (loss) attributable to
            Limited Partners (97%)



$(16,086)



$23,845







Per Limited Partnership
            Interests outstanding--9,004.15



$(1.79)



$2.65
$




See notes to financial statements.


NATIONAL REAL ESTATE LIMITED PARTNERSHIP INCOME
PROPERTIES
(A Wisconsin Limited Partnership)
Statement of Changes in Partners' Capital
 (Deficit)
(Going Concern Basis)
(Unaudited)
Six Months Ended June 30, 2001







         Limited
         Partners


         General
          Partners


Interests Held in
    Treasury



Total

Partners' capital (deficit), January 1, 2001

     $2,790,762

$(161,919)

$(21,671)

     $2,607,172

Distributions

(135,062)

(4,177)



  (139,239)

Net income for the period

           23,845

                737



          24,582

Partners' capital (deficit), June 30, 2001


 $2,679,545

$(165,359)

$(21,671)

$2,492,515
See notes to financial statements.




NATIONAL REAL ESTATE LIMITED PARTNERSHIP
INCOME PROPERTIES
(A Wisconsin Limited Partnership)
Statement of Cash Flows
(Going Concern Basis)
(Unaudited)
Six Months Ended June 30, 2001
















Operating Activities:






            Net income



$24,582


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






                         Depreciation



71,831









             Changes in operating assets and
 liabilities:






                         Escrow deposits and other
 assets



21,592


                         Deferred rent



3,128


                         Accrued expenses, other
 liabilities, and accrued
                         Interest



(27,003)


                         Tenant security deposits



523









          NET CASH PROVIDED BY OPERATING ACTIVITIES



94,653









Investing Activities:



0










Financing Activities:






           Distributions to partners



(139,239)









          DECREASE IN CASH



(44,586)









           Cash and cash equivalents at beginning
of period



245,403









          CASH AND CASH EQUIVALENTS AT END OF
 PERIOD



$200,817









See notes to financial statements.





NATIONAL REAL ESTATE LIMITED PARTNERSHIP
INCOME PROPERTIES
(A Wisconsin Limited Partnership)
Notes to Financial Statements
(Unaudited)
June 30, 2002

 1.	In the opinion of the General Partners,
the accompanying unaudited financial statements
 contain all adjustments (consisting of normal
 recurring accruals, and liquidation basis
adjustments) 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, 2001 (please refer to the footnotes of those
statements for additional details of the Partnership's
financial condition). The operating results for the
period ended June 30, 2002 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
 $20,830 under an agreement with NRMI for the two
quarters ended June 30, 2002. The Partnership also
incurred $132,336 in the first two quarters of 2002
for the reimbursement of accounting, administrative,
 and property selling 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 two quarters of 2002,
 the Partnership incurred lease fees totaling $7,600 which
 represents the Partnership's prorated portion, based upon
 space occupied, of NRMI's monthly rental obligation.

4. National Development and Investment, Inc. (NDII):
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 June 30, 2002, interest totaling
 $121,633 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
June 30, 2002

The Partnership owned and operated three investment
 properties during the first quarter of 2002: 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.
  On April 26, 2002, the Partnership sold Cave Creek
Lock-it Lockers Phase I for a gross sale price of $319,904,
its portion of the total gross sale price of $2,080,000
 for Phases I, II and III. On June 18, 2002, the Partnership
sold Tucson Lock-it Lockers for a gross sale price of
 $1,850,000.  There is an outstanding sale contract for
the Phoenix Lock-it Lockers dated May 23, 2002.

National Real Estate Limited Partnership Income Properties
 II ("NRELPIP-II") owned 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 six months of 2002 averaged 85.44% for Phoenix
Lock-It Lockers.  This compares to an average of 91.10%
during the same period in 2001.

Three  and Six Months Ended June 30, 2002 and 2001
As described in Part II, Item 1, Legal Proceedings,
the Partnership reached a settlement agreement on
February 11, 2002 that will result in liquidation of
the Partnership's net assets. Accordingly, on December
 31, 2001 the Partnership revalued its assets and liabilities
 to the amounts expected to be collected and paid during

 the liquidation (please refer to the financial statement
footnotes to the Partnership's annual report for the year
 ended December 31, 2001 for additional details). As a
result, operations for the three and six months ended June
 30, 2002, are reported on the Statement of Changes in Net
 Assets in Liquidation, while operations for the three and
six months ended June 30, 2001, are reported on a going
concern basis on the Statement of Operations. The Statement
 of Changes in Net Assets in Liquidation differs from the
Statement of Operations in that the Partnership no longer
depreciates investment properties, and has recognized certain
 Liquidation Basis Adjustments.  As a result of these
 differences, the results of the three and six months ended
June 30, 2002 are not comparable to the results of the three
 and six months ended June 30, 2001.

Net assets in liquidation decreased $243,764 from $3,635,950
on December 31, 2001, to $3,392,186 on June 30, 2002. This
decrease was due to the net effect of a $(3,183) net loss
 for the period, and $(240,581) in adjustments to the
 liquidation basis estimate during the period.

The $240,581 in adjustments to the liquidation basis
 estimate consisted of a $260,000 price reduction to the
 Phoenix Lock-it Lockers sales contract, additions to
estimated selling costs for the Phoenix, Tucson, and Cave
 Creek Phase I Lock-it Lockers properties at June 30, 2002,
as well as adjustments to the estimated reserve for future
liquidation expenses.





PART II. OTHER INFORMATION AND SIGNATURES
Item 1.  Legal Proceedings

On May 25, 1999, the general partners, the property
management company (NRMI), and other entities and individuals
 were named as defendants in a lawsuit (the "Vishnevsky
 Defendants").  The plaintiffs sought to have this action
certified as a class action lawsuit.  In the complaint,
the plaintiffs alleged wrongdoing against the Vishnevsky
Defendants in connection with two basic areas.  First,
 various vote solicitations allegations were made by the
plaintiffs to be an effort to perpetuate the Partnership
 and avoid liquidation.  Second, allegations were made
 regarding 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 ("2000 Settlement").
The 2000 Settlement provided for the appointment of an
 independent marketing agent (the "Partnerships'
 Representative") to market and sell the Partnership
 investment property.  However, no offer to purchase
 the property was to be accepted without first obtaining
approval from a majority interest of the limited partners.
 Final distribution of the net proceeds received from a
 sale of the Partnership's investment property was to be
 made in accordance with the terms of the Partnership's
limited partnership agreement and prospectus, and upon
 providing 20-day notice to the plaintiffs' attorney.
 Net proceeds were first to be applied to pay plaintiffs'
 counsel's legal fees, expenses and costs, with interest
 thereon.  The actual terms for distribution were finalized
 in the February 11, 2002 Arbitration Stipulation, described
hereinafter.

Pursuant to the 2000 Settlement, the Partnership and its
property continued to be managed by NRMI and the general
 partners under the existing contracts until such time as
 the Partnership and its property were liquidated.  The
Arbitration Stipulation states that the existing employees
 of NRMI will continue to be compensated based on their current
 employment arrangements, notwithstanding provisions set forth
 in the 2000 Settlement.

The 2000 Settlement further provided that any legal expenses
 incurred in connection with the arbitration process could
not be advanced or paid by the Partnership.  The following
legal expenses could be paid by the Partnership: 1) legal
expenses incurred in drafting the 2000 Settlement, or
obtaining preliminary or final approval of the 2000 Settlement,
 2) legal expenses incurred in the sales process for
marketing or selling the investment property, and 3)
other legal expenses properly incurred in the business
of the Partnership unrelated to this lawsuit or the
arbitration process.  Certain legal expenses were
charged to the Partnership in 2001.  This matter was
 resolved in the Arbitration Stipulation signed February
11, 2002.  The 2000 Settlement also provided that the
 plaintiffs' claims made against NRMI, the general
partners, and other related parties for excessive charging
 of expenses to the partnerships named as nominal
 defendants in the class action lawsuit, including
 the Partnership, were to be resolved through binding
arbitration.  Any such expenses disallowed through arbitration
 would be reimbursed to the partnerships.  This matter was
 also settled in the Arbitration Stipulation.

As part of the litigation, the plaintiffs' attorneys were
also seeking payment of their fees from the assets of the
Partnership and the other nominal defendant entities.
 The plaintiffs' attorneys requested that they be paid
 33% of the net proceeds derived from the sale of the
property, which exceeded an aggregate secondary market
 value of all Partnership shares.  Net proceeds include
 an offset of partnership liabilities and selling costs.
Independent appraisals of the Partnership's secondary
market value were obtained by both the plaintiffs' attorneys
 and by Partnership management.  The court gave preliminary
approval to the 33% reimbursement, and the secondary market
 value amount was agreed upon in the Arbitration Stipulation.

On April 27, 2000 the Circuit Court of Waukesha County
 held a hearing and certified the lawsuit as a non-opt
out class action, in which all limited partners of the
Partnership were required to be included in the settlement
 of this litigation.  Furthermore, the Court ruled that
plaintiffs' attorney fees would be equal to one-third of
 the difference between the secondary market value of the
 Partnership interest and the total funds available for
distribution to the limited partners after payment of all
 Partnership obligations, as described above.

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 against the
Vishnevsky Defendants 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 determination of the secondary
market value for computing the plaintiffs' attorney fees
 until the arbitration proceedings were completed and the
Partnerships' properties were sold.

On August 2, 2000, the Vishnevsky Defendants filed an
appeal on the portion of the judgement, which determined
the method for computing the plaintiffs' attorney fees.
 On October 10, 2000 the Vishnevsky Defendants and their
counsel 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 2000 Settlement
agreement
 based upon the lower court's erroneous view of the effective
date of that agreement.

The arbitration panel was selected in 2001.  The arbitration
 was tentatively set for hearing the weeks of February 11,
and 18, 2002.  On February 11, 2002 the parties settled the
 arbitration issue (the "Arbitration Stipulation").  The
 Arbitration Stipulation provides in part that Mr. Vishnevsky
will pay into a Settlement Fund an amount equal to the cash
distribution he receives from each Partnership for his general
 and unencumbered limited partnership interests, together
 with an amount equal to the amount he receives from the
 repayment of all loans, deferred management fees, and interest
 due him from the Partnerships minus the sum of $1,300,000 to
 cover Mr. Vishnevsky's tax liability generated by the sale of
 the Properties and other expenses.  Mr. Vishnevsky will also
receive the commissions due to NRMI and the return of the
sanctions money.  The Arbitration Stipulation also established
the secondary market value to be used in the calculation of the
 plaintiffs' attorney fees to be paid, as described  above.

The remaining cash in the settlement fund, as described above,
will be allocated and distributed to the limited partners in
this partnership and the other partnerships participating in
this litigation, based upon a court approved allocation formula.
 The portion of the Settlement Fund allocable to the limited
 partners of this partnership is estimated to be $243,073.
Upon completion of all litigation matters, these funds will
be disbursed to the limited partners directly from the
Settlement Fund.  These funds are not the property of the
 Partnership entity and, accordingly, are not reflected as
 an asset in the accompanying financial statements and will
 not flow through the partnership's books.

The timing of distributions to limited partners will be
largely dependent on the amount of time necessary to resolve
all issues.  Once the partnership's property is sold and the
 sales proceeds distributed, the partnership will be
 terminated. The monetary impact of these matters has
 been estimated, and is presented in the statement of
net assets in liquidation as estimated obligation for
plaintiffs' attorney fees, and estimated obligation for
future liquidation expense.  The final outcome of these
estimates is not presently determinable, and the resulting
 changes could be material to the financial statements.
Upon termination, the amount of the reserves shown for such
attorney fees and liquidation expenses will be transferred
 to a non-interest bearing liquidating trust fund.  If any
amount remains in the trust fund after payment of all
liquidation expenses and attorney fees, it will be added
to the Settlement Fund.




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

The sale of the partnership property Cave Creek
 Lock-it Lockers Phase I was reported on Form 8-K
filed on May 10, 2002.


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







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