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   March 31, 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
     (State or other jurisdiction of incorporation or
     organization)
     
     39-1503893
     (I.R.S. Employer 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) - March 31, 1997
     and December 31, 1996 . . . . . . . . . . . . . .2
     
     Statement of Operations (unaudited) -
     Three months ended 
     March 31, 1997 and 1996 . . . . . . . . . . . . .3
     
     Statements of Cash Flows (unaudited) -
     Three months ended March 31, 1997  and 1996 . . .4
     
     Notes to Financial Statements (unaudited) . . .5-6
     
     Management's Discussion and Analysis of
     Financial Condition and Results of Operation. . .7
     
     
     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)
     
                              March 31       December 31,
                              1997                1996
     ASSETS
     
     Current Assets
     Cash           $         805,589        $    769,494
     Escrow deposits and other assets (Note 4)
                              12,157              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
                              2,179,430           2,127,959
     
                              4,363,345           4,417,269
     
                         $    5,181,091      $    5,202,355
     
     LIABILITIES AND PARTNERS' CAPITAL
     
     Liabilities:
     Tenant security deposits
                         $    5,384          $    5,454
     Rents received in advance
                              31,987              26,624
     Accrued interest payable to Individual General Partner
                              529,615             509,444
     Accrued expenses and other liabilities
                              91,230              87,861
     Note payable to Individual General
     Partner (Note 6)         271,020             271,020
     
                              929,235             900,403
     
     Partners' Capital (deficiency) (Note 5):
     General Partners    $    (112,579)      $    (111,076)
     Limited Partners (authorized--10,000
     Interests; outstanding--9,034.01 Interests)
                              4,386,106           4,434,699
     Less 29.86 Interests held in Treasury
                              (21,671)            (21,671)
     
                              4,251,856           4,301,952
     
                         $    5,181,091      $    5,202,355
     
     See notes to financial statements.
     
     
     
          <PAGE>
NATIONAL REAL ESTATE LIMITED PARTNERSHIP - IP
     (A Wisconsin Limited Partnership)
     Statement of Operations
     (Unaudited)
                                        Three months ended
                                             March 31,
                                        1997      1996
     INCOME
     Operating income              $    211,716   $246,843
     Other income                       25,069    12,307
     
     Total Income                       236,785   259,150
     
     OPERATING EXPENSES
     Property operating expenses        119,293   118,274
     
     Depreciation and amortization      51,471    51,177
     
     Interest expense                   20,171    18,359
     Administrative expense             62,389    48,597
     
     Total Expenses                     253,324   236,407
     
     Income(Loss) from operations       (16,539)  22,743
     Other Income (expenses)
     Interest income                    12,856    10,767
     
     Net Income (Loss)                  (3,683)   33,510
     Net Income (Loss) attributable to
     General Partners (3%)              (110)     1,005
     Net Income (Loss) attributable to
     Limited Partners (97%)             (3,571)   32,505
     Per Limited Partnership Interest
     Outstanding--9,004.15 Interests
                                   $    (0.40)    3.61
     
     See notes to financial statements.
     
     
          <PAGE>
NATIONAL REAL ESTATE LIMITED PARTNERSHIP - IP
     (A Wisconsin Limited Partnership)
     Statement of Cash Flows
     (Unaudited)
                              Three Months Ended
                                   March 31,
                              1997           1996
     Operating Activities
     Net income (loss) for the period
               $              (3,683)   $    33,510
     Adjustments to reconcile net loss to
     net cash used in operating activities:
     Depreciation             51,471         51,177
     
     
     Changes in operating assets and
     liabilities:
     Escrow deposits & other assets
                              3,435          6,637
     Tenant security deposits
                              (70)                0
     Rents received in advance
                              5,363          (928)
     Accrued expenses and other liabilities
                              23,540         20,251
     
     
     NET CASH PROVIDED BY (USED IN)
                              80,056         110,648
     OPERATING ACTIVITIES
     
     
     Investing activities:
     Additions to investment property
                              2,453          (0)
     
     Financing activities:
     Distributions to partners
                              (46,413)       (46,413)
     
     INCREASE (DECREASE) IN CASH
                              36,096         64,235
     
     Cash at beginning of period
                              785,086        409,508
     
     CASH AT END OF PERIOD
               $              821,182   $    473,743
     
     See notes to financial statements. 
     
     
     
     
     
          <PAGE>
NATIONAL REAL ESTATE LIMITED PARTNERSHIP
     INCOME PROPERTIES
     (A Wisconsin Limited Partnership)
     Notes to Financial Statements
     (Unaudited)
     March 31, 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
               March 31, 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
               $12,990 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 PARTNERS
     Quarter Ended March 31, 1997
     Partner's Equity, beginning of quarter  $5,214,749
     Distributions                           (45,021)
     Net Income (Loss)                       3,571
     Partners' Equity, end of quarter        $5,173,299
     
     Limited Partner's equity is net of 29.86 interests held
     in treasury of ($21,671).
     
     Quarter Ended March 31, 1996
     Partner's Equity, beginning of quarter  $5,298,976
     Distributions                           (45,021)
     Net Income (Loss)                       32,505
     Partners' Equity, end of quarter        $5,286,460
     
     Limited Partner's equity is net of 29.86 interests held
     in treasury of ($21,671).
     
     
     GENERAL PARTNERS
     Quarter Ended March 31, 1997
     Partner's Equity, beginning of quarter  $(86,951)
     Distributions                           (1,392)
     Net Income (Loss)                       110
     Partners' Equity, end of quarter        $(88,233)
     
     Quarter Ended March 31, 1996
     Partner's Equity, beginning of quarter  $(83,678)
     Distributions                           (1,392)
     Net Income (Loss)                       1,005
     Partners' Equity, end of quarter        $(84,065)
     
     
     TOTAL
     Quarter Ended March 31, 1997
     Partner's Equity, beginning of quarter  $5,139,872
     Distributions                           (46,413)
     Net Income (Loss)                       3,683
     Partners' Equity, end of quarter        $5,085,066
     
     Quarter Ended March 31, 1996
     Partner's Equity, beginning of quarter  $5,215,298
     Distributions                           (46,413)
     Net Income (Loss)                       33,510
     Partners' Equity, end of quarter        $5,202,395
     
     
     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 March 31, 1997, interest
               totaling $543,351 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
     March 31, 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
     first quarter averaged 95.03% for Tucson Lock-It
     Lockers; 96.03% for Phoenix Lock-It Lockers; 67.19% for
     Northridge Commons; and 94.12% 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 installed by CellularOne has 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 May 1, 1997. The five year lease
     has an early termination option after three years if
     the Partnership will amortize over three years, a
     broker fee and tenant improvements totalling $125,552.
     
     During the first quarter of 1997 rental revenue for
     Cave Creek Lock-It Lockers  increased compared to the
     first quarter of 1996 due to increased rental rates.
     Rental revenues decreased in the first quarter of 1997
     for Tucson Lock-It Lockers and Cave Creek Lock-It
     Lockers compared to the same quarter of 1996 due to
     increased competition. Northridge Commons rental
     revenues also decreased for the same period due to a
     loss of the anchor tenant.
     
     Operating expenses during the first 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 Cave Creek Lock-It Lockers. 
     
     The Partnership continued cash distributions to its
     partners with distributions totaling $46,413 for the
     first 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
     March 31, 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        April 18, 1997            
     
     /S/        John Vishnevsky              
     ________________________________
     John Vishnevsky
     President and Chief Operating and
     Executive Officer
     National Development and Investment, Inc.
     Corporate General Partner
     
     
     Date       /S/April 18, 1997            
     /S/        John Vishnevsky 
     __________________________________
     John Vishnevsky
     Chief Financial and Accounting Officer
     
     Date       /S/April 18, 1997            
     Stephen P. Kotecki            
     __________________________________
     Stephen P. Kotecki
     President 
     EC Corp
     Corporate General Partner
     
     
     
     
     
     
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