FORM 10-Q
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

(Mark One)
             [X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                For the quarterly period ended    MARCH 31, 1997

                                       OR
             [ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                  For the transition period from            to

                     Commission file number        0-24594

                          WEST COAST REALTY INVESTORS, INC.
             (Exact name of registrant as specified in its charter)

               DELAWARE                                   95-4246740
          (State or other Jurisdiction of     (I.R.S. Employer
          incorporation or organization)         Identification No.)

                       5933 W. CENTURY BLVD., 9TH, FLOOR
                          LOS ANGELES, CALIFORNIA  90045
                    (Address of principal executive offices)
                                   (Zip Code)

                                 (310) 670-0800
              (Registrant's telephone number, including area code)

   (Former name, former address and former fiscal year, if changed since last
                                    report)

     Indicate by check  mark whether the  registrant (1) has  filed all  reports
required to be filed by Section  13 or 15(d) of  the Securities Exchange Act  of
1934 during  the  preceding 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


                     APPLICABLE ONLY TO CORPORATE ISSUERS:
     INDICATE THE NUMBER OF SHARES OUTSTANDING  OF EACH OF THE ISSUER'S  CLASSES
OF  COMMON  STOCK,  AS  OF  THE  LATEST  PRACTICABLE  DATE.    1,815,579  SHARES
OUTSTANDING AS OF MAY 13, 1997.

<PAGE>

ITEM 1.  FINANCIAL STATEMENTS

In the  opinion of  the Management  of West  Coast Realty  Investors, Inc.  (the
"Company"), all adjustments necessary for a  fair presentation of the  Company's
results for the three months ended  March 31, 1997 and  1996, have been made  in
the following financial statements which are normal recurring entries in nature.
However, such financial statements are unaudited and are subject to any year-end
adjustments that may be necessary.
<TABLE>
                       WEST COAST REALTY INVESTORS, INC.
                                 BALANCE SHEETS
                MARCH 31, 1997 (UNAUDITED) AND DECEMBER 31, 1996

<CAPTION>
                                         MARCH 31, 1997    December 31, 1996
<S>                                                <C>              <C>
ASSETS
Rental real estate, less accumulated
   depreciation (Note 2)                    $25,909,334          $21,118,203
Cash and cash equivalents                       522,061            2,017,194
Accounts receivable                             337,992              247,948
Loan origination fees, net of accumulated
amortization of $43,293 and $40,248              99,578              102,622
Other assets                                     77,570               85,871

TOTAL ASSETS                                $26,946,535          $23,571,838


LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
   Accounts payable                             $58,904              $13,922
   Due to related party (Note 5(e))              50,700               46,285
   Dividends payable (Note 8)                   325,669              302,760
   Security deposits and prepaid rent           242,892              124,734
   Other liabilities                             70,826              100,453
   Notes payable (Note 6)                    12,325,239           10,078,793

TOTAL LIABILITIES                            13,074,230           10,666,947

COMMITMENTS

STOCKHOLDERS' EQUITY
Common stock, $.01 par-shares
authorized, 5,000,000 shares issued,
1,671,442 and 1,550,607 outstanding in
1997 and 1996                                    16,714               15,506
 Additional paid-in capital                  14,949,137           13,861,763
 Retained earnings                          (1,093,546)            (972,378)

TOTAL STOCKHOLDERS' EQUITY                   13,872,305           12,904,891

TOTAL LIABILITIES AND STOCKHOLDERS'         $26,946,535          $23,571,838
EQUITY
</TABLE>
[FN]
                  See accompanying notes to financial statements.
<PAGE>
<TABLE>
                       WEST COAST REALTY INVESTORS, INC.

                       STATEMENTS OF STOCKHOLDERS' EQUITY
                       THREE MONTHS ENDED MARCH 31, 1997
                                  (UNAUDITED)
<CAPTION>
                                                         ADDITIONAL
                                    COMMON     STOCK        PAID
                                    SHARES    AMOUNT       CAPITAL        DEFICIT
<S>                                   <C>        <C>           <C>           <C>
BALANCE AT DECEMBER 31, 1996       1,550,607   $15,506     $13,861,763    $(972,378)

Issuance of stock, net               120,835     1,208       1,061,331           ---

Equity contribution by
Affiliates through expense
reimbursements                           ---       ---          26,043           ---

Net income                               ---       ---             ---       204,738

Dividends declared (Note 8)              ---       ---             ---     (325,906)

BALANCE AT MARCH 31, 1997          1,671,442   $16,714     $14,949,137  $(1,093,546)

<CAPTION>
                       THREE MONTHS ENDED MARCH 31, 1996
                                  (UNAUDITED)

                                                         ADDITIONAL
                                    COMMON     STOCK        PAID
                                    SHARES    AMOUNT       CAPITAL        DEFICIT
<S>                                   <C>         <C>        <C>            <C>
BALANCE AT DECEMBER 31, 1995       1,322,404   $13,224     $11,771,030    $(549,417)

Issuance of stock, net                91,260       913         883,375           ---

Net income                               ---       ---             ---       210,831

Dividends declared (Note 8)              ---       ---             ---     (245,932)

BALANCE AT MARCH 31, 1996          1,413,664   $14,137     $12,654,405    $(584,518)


</TABLE>
[FN]
                See accompanying notes to financial statements.
<PAGE>
<TABLE>

                       WEST COAST REALTY INVESTORS, INC.

                              STATEMENTS OF INCOME
                   THREE MONTHS ENDED MARCH 31, 1997 AND 1996
                                  (UNAUDITED)
<CAPTION>
                                    Three Months   Three Months
                                        Ended          Ended
                                   March 31, 1997  March 31, 1996
<S>                                        <C>            <C>
Revenues
   Rental (Notes 2 and 3)                $729,886       $589,604
   Interest                                10,375         22,713

                                          740,261        612,317

Costs and expenses
   Operating                               36,256         30,317
   Property taxes                          27,722         19,140
   Property management fees (Note 5(e))    29,489         27,964
   Interest expense                       244,147        210,161
   General and administrative              78,444         19,168
   Depreciation and amortization          119,465         94,736

                                          535,523        401,486

Net income                               $204,738       $210,831

Net income per share (Note 8)                $.13           $.15
</TABLE>
[FN]
                See accompanying notes to financial statements.
<PAGE>
<TABLE>
                       WEST COAST REALTY INVESTORS, INC.
                            STATEMENTS OF CASH FLOWS
             THREE MONTHS ENDED MARCH 31, 1997 AND 1996 (UNAUDITED)

<CAPTION>

                                               Three Months  Three Months
                                                   Ended         Ended
INCREASE (DECREASE) IN CASH AND CASH               March         March
EQUIVALENTS                                       31,1997       31,1996

<S>                                                  <C>           <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income                                          $204,738      $210,831
Adjustments to reconcile net income to net
cash provided by operating activities:
    Depreciation and amortization                    119,465        94,736
    Interest expense on amortization of loan
    origination fees                                   3,045         6,953
Increase (decrease) from changes in:
    Accounts receivable                             (90,044)      (30,326)
    Other assets                                       8,300        10,745
    Accounts payable                                  44,982       (8,621)
    Due to related party                             (4,415)           ---
    Security deposits and prepaid rent               118,158           ---
    Other liabilities                               (29,627)           ---

NET CASH PROVIDED BY OPERATING ACTIVITIES            374,602       284,318

CASH FLOWS FROM INVESTING ACTIVITIES
  Additions to rental real estate                (4,907,441)           ---
NET CASH (USED IN) INVESTING ACTIVITIES          (4,907,441)           ---

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock, net        1,045,305       794,236
Equity contribution by Affiliates through
expense reimbursements                                26,043           ---
Dividends declared and paid                        (280,088)     (226,886)
Increase in notes payable                          2,300,000           ---
Payments on notes payable                           (53,554)      (41,505)

NET CASH PROVIDED BY FINANCING ACTIVITIES          3,037,706       525,845

NET INCREASE (DECREASE) IN CASH AND CASH         (1,495,133)       810,163
EQUIVALENTS

CASH AND CASH EQUIVALENTS, BEGINNING OF            2,017,194     1,450,022
PERIOD

CASH AND CASH EQUIVALENTS,  END OF PERIOD           $522,061    $2,260,185
</TABLE>
[FN]
                See accompanying notes to financial statements.
<PAGE>
                       WEST COAST REALTY INVESTORS, INC.

                         SUMMARY OF ACCOUNTING POLICIES


BASIS OF PRESENTATION
The accompanying balance sheet as of  March 31, 1997, the income statements  and
statements of cash flow for  the three month periods  ended March 31, 1997,  and
1996 are unaudited, but  in the opinion of  management include all  adjustments,
consisting only of normal recurring accruals, necessary for a fair  presentation
of the financial position and results  of operations for the periods  presented.
The results of operations for the three  month period ended March 31, 1997,  are
not necessarily indicative of results to be expected for the year ended December
31, 1997.


BUSINESS
West Coast Realty Investors,  Inc. (the "Company"), is  a corporation formed  on
October 26, 1989 under the laws of the State of Delaware.  The Company exists as
a Real  Estate  Investment Trust  ("REIT")  under Sections  856  to 860  of  the
Internal Revenue Service Code.  The  Company has complied with all  requirements
imposed on REIT's for the 1996,  1995 and 1994 tax years; however  qualification
as a REIT for future years is  dependent upon future operations of the  Company.
The Company was organized to acquire interests in income-producing  residential,
industrial, retail or commercial properties located primarily in California  and
the west coast of the  United States.  The  Company intends to acquire  property
for cash on a  moderately leveraged basis  with aggregate mortgage  indebtedness
not to  exceed fifty  percent of  the  purchase price  of  all properties  on  a
combined basis, or eighty  percent individually and intends  to own and  operate
such properties for investment over an anticipated holding period of five to ten
years.


RENTAL  PROPERTIES AND DEPRECIATION
Assets are stated at lower of cost net realizable value.  Depreciation is
computed using the straight-line method over their estimated useful lives of
31.5 to 39 years for financial and income tax reporting purposes.

In the event that facts and circumstances indicate that the cost of an asset may
be impaired, an evaluation of recoverability would be performed.  If an
evaluation is required, the estimated future undiscounted cash flows associated
with the asset would be compared to the carrying amount to determine if a write-
down to market value is required.


LOAN ORIGINATION FEES
Loan origination fees are capitalized and amortized over the life of the loan.


<PAGE>

                       WEST COAST REALTY INVESTORS, INC.

                         SUMMARY OF ACCOUNTING POLICIES
                                  (Continued)


RENTAL INCOME
Rental revenue is recognized on a straight-line basis to the extent that rental
revenue is deemed collectible.  Where there is uncertainty of collecting higher
scheduled rental amounts, due to the tendency of tenants to renegotiate their
leases at lower amounts, rental income is recognized as the amounts are
collected.


CASH AND CASH EQUIVALENTS
The Company  considers cash  in the  bank, liquid  money market  funds, and  all
highly liquid certificates of deposit, with original maturities of three  months
or less, to be cash and cash equivalents.


USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.


RECLASSIFICATIONS
For comparative purposes, certain prior year  amounts have been reclassified  to
conform to the current year presentation.


NEW ACCOUNTING PRONOUCEMENTS
Statement of Financial Accounting Standards  No. 125, "Accounting for  Transfers
and Servicing of Financial Assets and Extinguishments of Liabilities" (SFAS  No.
125) issued by the Financial Accounting Standards Board (FASB) is effective  for
transfers and servicing of financial  assets and extinguishments of  liabilities
occurring after December 31, 1996, and is to be applied prospectively.   Earlier
or retroactive  application  is  not  permitted.    The  new  standard  provides
accounting and  reporting standards  for transfers  and servicing  of  financial
assets and extinguishments of liabilities.  The Company does not expect adoption
to have a material effect on its financial position or results of operations.

<PAGE>

                       WEST COAST REALTY INVESTORS, INC.

                         NOTES TO FINANCIAL STATEMENTS
  THREE MONTHS ENDED MARCH 31, 1997 AND 1996 (UNAUDITED) AND DECEMBER 31, 1996


NOTE 1 - GENERAL

On October 30, 1989, West Coast Realty Advisors, Inc. (the "Advisor"), purchased
1,000 shares of the Company's common stock for $10,000.  On August 30, 1990, the
Company reached its minimum initial offering funding level of $1,000,000.  As of
March 31, 1997 the Company has raised $16,687,616 in capital.

Sales commissions and wholesaling  fees, representing 8%  of the gross  proceeds
from the  sale  of common  shares,  were  paid to  Associated  Securities  Corp.
("ASC"), a  member  of the  National  Association of  Securities  Dealers,  Inc.
("NASD") and an affiliate of the Advisor.

Dividends are  declared  and  accrued  based  approximately  upon  the  previous
quarter's income from operations before depreciation and amortization.

NOTE 2 - RENTAL PROPERTIES

The Company owns the following income-producing properties

                                                                ORIGINAL
LOCATION (PROPERTY NAME)        DATE PURCHASED               ACQUISITION
                                                                    COST

Huntington Beach,
California (Blockbuster)       February 26, 1991              $ 1,676,210
Fresno, California               May 14, 1993                   1,414,893
Huntington Beach, California
(OPTO-22)                     September 15, 1993                2,500,001
Brea, California                March 4, 1994                   2,248,343
Riverside, California         November 29, 1994                 3,655,500
Tustin, California
(Safeguard)                      May 22, 1995                   4,862,094
Fremont, California
(Technology Drive)             October 31, 1995                 3,747,611
Sacramento, California
(Java City)                     August 2, 1996                  1,828,500
Irvine, California (Tycom)     January 17, 1997                 4,907,441

<PAGE>

                       WEST COAST REALTY INVESTORS, INC.

                         NOTES TO FINANCIAL STATEMENTS
  THREE MONTHS ENDED MARCH 31, 1997 AND 1996 (UNAUDITED) AND DECEMBER 31, 1996


NOTE 2 - RENTAL PROPERTIES (CONTINUED)

The major categories of property are:

                                   MARCH 31, 1997      DECEMBER 31, 1996

Land                                 $  8,971,126           $  7,401,126
Buildings and improvements             17,869,466             14,532,025

                                       26,840,592             21,933,151
Less accumulated depreciation             931,258                814,948

Net rental properties               $  25,909,334          $  21,118,203


A significant portion of  the Company's rental revenue  was earned from  tenants
whose individual  rents  represented more  than  10% of  total  rental  revenue.
Specifically:

     Five tenants accounted for 28%, 22%, 20%, 19% and 10% in 1997;
     Five tenants accounted for 23%, 19%, 18%, 12% and 10% in 1996;
     Four tenants accounted for 24%, 20%, 15% and 10% in 1995;

NOTE 3 - OTHER ASSETS

      Other assets consists of the following:

                                    MARCH 31, 1997     DECEMBER 31, 1996

Deposits and prepaid expenses             $78,449           $86,640
Organization costs                         14,330            14,330

                                           92,779           100,970
Less accumulated amortization              15,209            15,099

Net other assets                          $77,570           $85,871

<PAGE>

                       WEST COAST REALTY INVESTORS, INC.

                         NOTES TO FINANCIAL STATEMENTS
THREE MONTHS ENDED MARCH 31, 1997 AND 1996 (UNAUDITED) AND DECEMBER 31, 1996


NOTE 4 - FUTURE MINIMUM RENTAL INCOME

As of March 31, 1997 and December  31, 1996, future minimum rental income  under
the existing leases  that have remaining  noncancelable terms in  excess of  one
year are as follows:
                                      MARCH 31, 1997   DECEMBER 31,1996

      1997 ............................$1,729,798        $2,123,959
      1998 .............................2,485,224         2,037,591
      1999 .............................2,424,297         1,976,664
      2000 .............................2,312,357         1,864,724
      2001 .............................2,218,845         1,771,212
      Thereafter ..................... 17,941,509        15,255,711

      Total                           $29,112,030       $25,029,861

Future minimum rental income does not include lease renewals or new leases  that
may result after a noncancelable-lease expires.

NOTE 5 - RELATED PARTY TRANSACTIONS

The Advisor has an agreement with  the Company to provide advice on  investments
and to administer the day-to-day operations of the Company.  Property management
services for  the  Company's  properties  are  provided  by  West  Coast  Realty
Management, Inc. ("WCRM"), an affiliate of the Advisor.

<PAGE>

                       WEST COAST REALTY INVESTORS, INC.

                         NOTES TO FINANCIAL STATEMENTS
 THREE MONTHS ENDED MARCH 31, 1997 AND 1996 (UNAUDITED) AND DECEMBER 31, 1996


During the  periods  presented, the  Company  had the  following  related  party
transactions:

     (a)  In accordance with the advisory agreement, compensation earned by,  or
     services reimbursed  or  reimbursable  to the  advisor,  consisted  of  the
     following:

                                THREE MONTHS ENDED     FOR THE YEAR
                                  MARCH 31, 1997           ENDED
                                                     DECEMBER 31, 1996

           Syndication fees          $150,000              $82,864
           Acquisition fees           270,384               78,177
           Overhead expenses            6,000               12,000

                                     $426,384             $173,041


     (b)  At  March 31, 1997  and December 31,  1996, the  Advisor owned  22,556
shares of the issued and outstanding shares of the Company.

     (c)  Sales commissions paid in accordance with the selling agreement to ASC
totaled $100,778 for the three months ended  March 31, 1997 and $63,741 for  the
three months ended March 31, 1996.

     (d)  Property management  fees earned by WCRM  totaled $29,489 and  $27,964
for the three months ended March 31, 1997 and 1996, respectively.

     (e)  The Corporation had related party accounts payable as follows:

                                       MARCH 31, 1997     DECEMBER 31, 1996

  Associated Securities Corp.                $  1,210             $     396
  West Coast Realty Management                 29,490                24,839
  West Coast Realty Advisors                   20,000                21,050

                                              $50,700               $46,285

<PAGE>

                       WEST COAST REALTY INVESTORS, INC.

                         NOTES TO FINANCIAL STATEMENTS
  THREE MONTHS ENDED MARCH 31, 1997 AND 1996 (UNAUDITED) AND DECEMBER 31, 1996
                                  (Continued)


NOTE 6 - NOTES PAYABLE

Notes payable are made up of the following:
                                                      MARCH 31,   DECEMBER 31,
                                                         1997          1996

8.25% promissory note secured by a Deed of Trust
on the Fresno Property, monthly principal and interest
payments are $5,244 due August 1, 2003 ................$ 625,069  $ 628,471

Variable rate promissory note secured by a Deed
of Trust on the OPTO-22 property, interest rate
adjustments are monthly and are based on the 11th
District cost of funds rate plus 3% (7.835% at
December 31, 1996), and may never go below 6.5%
or above 11.0%, monthly principal and interest
payments are $12,723, due October 1, 2003 .............1,703,640  1,708,362

8.25% promissory note secured by a Deed of Trust on
the Blockbuster property, interest rate adjusts
to the 5-year Treasury rate plus 350 basis points
on February 1, 1999, monthly principal and interest
payments are $4,934, due February 1, 2004 ..............566,047     569,132

9.25% promissory note secured by a Deed of Trust
on the Riverside property, monthly principal and
interest payments are $9,988, due November 8, 2004 ...1,174,294   1,177,055

Variable rate promissory note secured by a Deed of Trust
on the Brea property, interest rate is 9.5% until March 1,
2000 (and each succeeding March 1st) when interest rate
adjusts to the Moody's corporate bond index daily rate
plus 0.125%, monthly principal and interest payments
vary depending upon interest rates and are currently
$8,737, due March 1, 2020 ...............................978,411    981,338

<PAGE>

                       WEST COAST REALTY INVESTORS, INC.

                         NOTES TO FINANCIAL STATEMENTS
  THREE MONTHS ENDED MARCH 31, 1997 AND 1996 (UNAUDITED) AND DECEMBER 31, 1996


NOTE 6 - NOTES PAYABLE (CONT.)

                                                       MARCH 31,  DECEMBER 31,
                                                          1997        1996

9.625% promissory note secured by a Deed of Trust
on the Safeguard property, monthly principal and
interest payments are $24,191, due February 1,
2005 ................................................$2,134,704  $2,155,575

8.24% promissory note secured by a Deed of Trust
on the Fremont property, interest rate equaled the 20-year
Treasury rate plus 1.65% at loan closing, monthly principal
and interest payments are currently $18,898, due
August 1, 2015 .......................................2,127,634  2,140,311

10% promissory note secured by a Deed of Trust on the
Java City property, monthly principal and interest payments
are $3,413, due November 1, 2001........................334,427    336,272

8% promissory note secured by a Deed of Trust on the
Java City property, monthly principal and interest payments
are $3,126, due June 1, 2018............................381,013    382,277

9.25% promissory note secured by a Deed of Trust on the
Tycom property, monthly payments of interest only are
approximately $17,000, due January 8, 1998            2,300,000        ---

                                                    $12,325,239  $10,078,793

The above carrying amounts with the exception of the note on the Fresno property
are reasonable  estimates of  fair  values of  notes  payable based  on  current
lending rates  in  the  industry  for mortgage  loans  with  similar  terms  and
maturities.   The  fair value  of  the  Fresno note  is  approximately  $580,000
calculated by discounting the expected future  cash outflows on the note to  the
present based  on  a current  lending  rate of  10%,  which is  the  approximate
industry lending rate on properties of this type in this location.

<PAGE>

                       WEST COAST REALTY INVESTORS, INC.

                         NOTES TO FINANCIAL STATEMENTS
  THREE MONTHS ENDED MARCH 31, 1997 AND 1996 (UNAUDITED) AND DECEMBER 31, 1996


NOTE 6 - NOTES PAYABLE (CONT.)

The aggregate annual future maturities at  March 31, 1997 and December 31, 1996
are as follows:

    PERIOD ENDING                           MARCH 31, 1997   DECEMBER 31, 1996

     1997 ..................................    $156,768         $  210,322
     1998 ..................................   2,528,391            228,391
     1999 ..................................     248,287            248,287
     2000 ..................................     269,435            269,435
     2001 ..................................     582,090            582,090
     Thereafter ............................   8,540,268          8,540,268

     Total                                   $12,325,239        $10,078,793


NOTE 7 - DIVIDEND REINVESTMENT PLAN

The Company has established  a Dividend Reinvestment  Plan (the "Plan")  whereby
cash dividends will,  upon election  of the  shareholders, be  used to  purchase
additional shares of the Company.   The shareholders' participation in the  Plan
may be terminated at any time.

NOTE 8 - NET INCOME AND DIVIDENDS PER SHARE

Net Income Per  Share for the  three months ended  March 31, 1997  and 1996  was
computed using the weighted  average number of  outstanding shares of  1,641,233
and 1,378,132, respectively.

Dividends declared during the first quarter 1997 and 1996 were as follows:

                     OUTSTANDING          AMOUNT             TOTAL
RECORD DATE            SHARES           PER SHARE          DIVIDEND

January 1, 1997         1,550,607        $0.0666            $103,270
February 1, 1997        1,671,442         0.0666             111,318
March 1, 1997           1,671,442         0.0666             111,318

TOTAL                                                       $325,906

January 1, 1996       1,325,404           0.060             $79,524
February 1, 1996      1,371,794           0.060              82,308
March  1, 1996        1,401,664           0.060              84,100

TOTAL                                                      $245,932

<PAGE>

                       WEST COAST REALTY INVESTORS, INC.

                         NOTES TO FINANCIAL STATEMENTS
  THREE MONTHS ENDED MARCH 31, 1997 AND 1996 (UNAUDITED) AND DECEMBER 31, 1996
                                  (Continued)


NOTE 9 - NEW ACCOUNTING PRONOUNCEMENTS

Statement of Financial Accounting Standards  No. 125, "Accounting for  Transfers
and Servicing of Financial Assets and Extinguishments of Liabilities" (SFAS  No.
125) issued by the Financial Accounting Standards Board (FASB) is effective  for
transfers and servicing of financial  assets and extinguishments of  liabilities
occurring after December 31, 1996, and is to be applied prospectively.   Earlier
or retroactive  application  is  not  permitted.    The  new  standard  provides
accounting and  reporting standards  for transfers  and servicing  of  financial
assets and extinguishments of liabilities.  The Company does not expect adoption
to have a material effect on its financial position or results of operations.

NOTE 10 - SUBSEQUENT EVENT

(a)  In April  1997, the Company paid  dividends totaling $325,906 ($0.0666  per
share per period), payable to shareholders  of record on January 1, February  1,
and March 1, 1997, respectively (Note 8).

(b)  On April 1, 1997, a total of $1,402,438 in proceeds from the sale of shares
in the  Company's current  offering was  released from  an escrow  account,  and
139,422 shares were issued to investors.

<PAGE>


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
        FINANCIAL CONDITION AND RESULTS OF OPERATIONS

INTRODUCTION

     West  Coast Realty Investors,  Inc. is  a Delaware  corporation, formed  on
October 26, 1989. The Company began offering for sale shares of Common Stock  on
April 20, 1990.   On August 30,  1990, the Company  reached its minimum  initial
offering funding level of $1,000,000.  A secondary offering of shares was  begun
on May 14, 1992.  On November 30, 1992 the Company reached its minimum secondary
offering funding level of  $250,000.  A  third offering of  shares was begun  on
June 3, 1994.  On July 25, 1994, the Company reached its minimum third  offering
funding level of $250,000. A fourth offering of shares began on May 6, 1996.  As
of March 31, 1997, the Company had raised $16,687,616 in gross proceeds from all
four offerings.

The Company was organized for the  purpose of investing in, improving,  holding,
and managing equity interests in a  diversified number of commercial  properties
located in California  and the  West Coast, while  qualifying as  a Real  Estate
Investment Trust.   Properties  will be  acquired for  cash or  on a  moderately
leveraged basis, with aggregate indebtedness not  to exceed 50% of the  purchase
price of all properties on a combined basis.   The Company intends to hold  each
property for approximately seven to ten years.

The Company's  principal investment  objectives are  to  invest in  rental  real
estate properties which will:

  (1) Preserve and protect the Company's invested capital;
  (2) Provide shareholders with cash distributions; a portion of which will  not
      constitute taxable income.
  (3) Provide capital gains through potential appreciation; and
  (4) Provide market liquidity through transferable shares of stock.

The Company qualifies as a Real  Estate Investment Trust (REIT) for federal  and
state income tax purposes.

The ownership and operation  of any income-producing real  estate is subject  to
those risks  inherent in  all real  estate investments,  including national  and
local  economic  conditions,  the  supply  and  demand  for  similar  types   of
properties, competitive marketing conditions, zoning changes, possible  casualty
losses, increases in real estate taxes, assessments, and operating expenses,  as
well as others.

The Company has engaged West Coast Realty Advisors, Inc. ("WCRA") to act as  the
Company's advisor.   Pursuant  to  the terms  of  the advisory  agreement,  WCRA
provides investment and financial advice and conducts the day-to-day  operations
of the Company.  The Company, itself, has no employees.

<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS
         (CONTINUED)

LIQUIDITY AND CAPITAL RESOURCES

During the quarter ended March 31, 1997 the Company declared dividends  totaling
$325,906 compared to  the quarter  ended March  31, 1996,  the Company  declared
dividends totaling $245,932.   Dividends are determined  by management based  on
cash flows and the liquidity position  of the Company.   It is the intention  of
management to  declare  dividends,  subject to  the  maintenance  of  reasonable
reserves.

During the  quarter  ended March  31,  1997  the Company  raised  an  additional
$1,045,305 in net proceeds as the result of  the sale of shares from its  fourth
public offering.   The  Company has  used  the net  proceeds from  offerings  to
purchase additional income-producing properties and to  add to the cash  reserve
balances of the Company  as is prudent  given the amount  of property now  under
ownership.

Management uses cash  as its primary  measure of the  Company's liquidity.   The
amount of cash that represents adequate  liquidity for a real estate  investment
company, is dependent on several factors. Among them are:

  1.  Relative risk of the Company's operations;
  2.  Condition of the Company's properties;
  3.  Stage in the Company's operating cycle (e.g., money-raising,  acquisition,
      operating or disposition phase); and
  4.  Shareholders dividends.

The Company is adequately liquid and  management believes it has the ability  to
generate sufficient cash to meet both  short-term and long-term liquidity  need,
based upon the above four points.

The first point refers to  the risk of the  Company's investments. At March  31,
1997, the Company's  excess funds  were invested  in a  short-term money  market
fund.  The  purchase of rental  properties have been  made either entirely  with
cash or the use of moderate leverage.  During the quarter ended March 31,  1997,
notes payable  pertaining  to property  acquisitions  by the  Company  increased
$2,300,000 due to  the purchase of  an additional  income-producing property  in
January 1997, while cash used in principal repayments of notes totaled  $53,554.
Although most of the notes are set  up on an amortization schedule allowing  for
the repayment of principal over time, most of the principal on the notes is  due
in balloon payments that come due in the  years 1998 through 2005.  The  Company
is aware that prior to the time that these large payments come due,  refinancing
of the loans  or the sale  of the property(ies)  will be necessary  in order  to
protect the interests of the

<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS
         (CONTINUED)


Company's shareholders.    Furthermore,  most of  the  properties'  tenants  are
nationally known retailers or well-established business under long-term  leases,
which makes the properties easier to sell of refinance.

As to the second point, the  Company's properties are in good condition  without
significant deferred maintenance obligations and are leased through "triple-net"
leases, which reduces the Company's risk pertaining to excessive maintenance and
operating costs.
As to  the third  point, the  Company was  liquid at  March 31,  1997 since  the
Company is still operating  in the "money-raising" stage.   Virtually all  funds
raised were invested in a short-term money market  fund.  As of March 31,  1997,
the Company has allocated approximately $500,000 towards a "reserve" fund (3% of
gross funds raised, as disclosed in the Company's latest prospectus),   $325,000
of cash held pending distribution to investors, $120,000 of cash to be used  for
current mortgage and accounts payable  commitments, $150,000 in tenant  security
deposits, and the balance of --<$573,000>-- expected to be received from  future
sales of Company  shares.  The  Company's operations generated  $321,049 in  net
operating cash  flow  in the  quarter  ended March  31,  1997 (net  income  plus
depreciation expense).  Thus, the Company  is generating significant amounts  of
cash flow currently and could choose to withhold payment of all or a portion  of
dividends, if necessary, in order to rebuild cash balances.

Fourth, the amount of dividends to  shareholders was made at a level  consistent
with the amount  of net  income available after  application of  expenses.   The
Advisor is careful not to make distributions in excess of the income  available.
The Advisor expects to increase the  level of dividends as additional funds  are
raised, and overhead expenses are spread over a large base of investors' funds.

Inflation and changing prices  have not had a  material effect on the  Company's
operations.

The Company currently  has no external  sources of liquidity,  other than  funds
that potentially could be received from the sale of additional shares.

The Company currently has no material capital commitments.

The Tax Reform Acts of 1986 and 1987 and the Revenue Reconciliation Acts of 1990
and 1993 did not have a material impact on the Company's operations.

<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS
         (CONTINUED)


CASH FLOWS - MARCH 31, 1997 VS. MARCH 31, 1996

Cash resources decreased $1,495,133 during the three months ended March 31, 1997
compared to a  $810,163 increase in  cash resources for  the three months  ended
March 31, 1996.   Cash provided  by operating activities  increased by  $374,602
with the largest  contributor being $324,203  in cash basis  net income for  the
three months ended March 31, 1997.   In contrast,  the three months ended  March
31, 1996 provided $284,318  in cash from operating  activities due primarily  to
$305,567 in cash basis net income.  The sole use of cash in investing activities
for the  three months  ended March  31,  1997 was  $4,907,441 expended  for  the
acquisition of  an additional  property  located in  Irvine,  California.     In
contrast, the  three months  ended March  31, 1996  did not  have any  investing
activities.  For  the three months  ended March 31,  1997, financing  activities
provided an  additional $3,037,706  via the  sale of  additional shares  in  the
Company ($1,045,305 in net  proceeds), and $2,300,000  in financing obtained  in
connection with the acquisition of the additional property, less dividends  paid
and payable  of  $280,088  and repayments  on  notes  payable of  $53,554.    In
contrast, the three months ended March  31, 1996, financing activities  provided
an additional  $525,845  via  the  sale of  additional  shares  in  the  Company
($794,236 in net  proceeds), less  dividends paid  and payable  of $226,886  and
repayments of notes payable of $41,505.


NEW ACCOUNTING PRONOUNCEMENTS
Statement of Financial Accounting Standards  No. 125, "Accounting for  Transfers
and Servicing of Financial Assets and Extinguishments of Liabilities" (SFAS  No.
125) issued by the Financial Accounting Standards Board (FASB) is effective  for
transfers and servicing of financial  assets and extinguishments of  liabilities
occurring after December 31, 1996, and is to be applied prospectively.   Earlier
or retroactive  application  is  not  permitted.    The  new  standard  provides
accounting and  reporting standards  for transfers  and servicing  of  financial
assets and extinguishments of liabilities.  The Company does not expect adoption
to have a material effect on its financial position or results of operations.

<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS
         (CONTINUED)

RESULTS OF OPERATIONS

Operations for the quarter  ended March 31, 1997  represented a full quarter  of
rental operations for all  properties except Tycom which  was owned for two  and
one-half months.

The  net  income  for  the  quarter  ended  March  31,  1997  continued  to   be
significantly larger  than the  prior quarter's  amount due  to the  raising  of
additional funds and  investment of such  funds in  additional income  producing
properties.  The  Company did  not have  any adverse  events that  significantly
impacted net income during the quarter ended March 31, 1997, and all  properties
that have been purchased by the Company have operated at levels equal to current
expectations.  All tenants were current on their lease obligations.

Rental revenue increased $140,282 (24%) due  to a full quarter ownership of  the
Java City  property  and two  and  one-half months  of  the Tycom  property  (as
compared to no ownership of these properties during the quarter ended March  31,
1996).  Interest income   decreased $12,338  (54%) due to  a new escrow  release
procedure on the current offering where new investor funds come into the Company
quarterly rather than daily, thus lowering  the amount of excess cash  available
for investment.

Operating expenses  increased $5,939  (20%) as  a reflection  of the  additional
properties owned during the quarter.   Interest expense increased $33,986  (16%)
as a reflection of  the additional debt taken  on in connection with  additional
property acquisition  and  refinancing  activities.    Despite  the  large  debt
amounts, the Company  is still  below the  maximum 50%  debt a  maximum that  is
allowed by the Company's by-laws (debt was  46% of property cost (as defined  in
the by-laws) at  March 31, 1997).   General and  administrative costs  increased
$59,276 (309%) due to  higher accounting, taxes,  and general insurance  expense
and overhead costs related  to the Company.   General and administrative   costs
increased as a percentage of revenue going from 3% in 1996 to 11% in 1997.  Much
of this increase is due to $41,043 that the Advisor was paid during the  quarter
ended March 31, 1997 due to the revised provisions of the Advisor agreement.  No
advisor fees were earned during the quarter ended March 31, 1996.   Depreciation
and amortization expense increased $24,729 (26%) as the result of the  ownership
of additional  properties  during 1997  as  compared to  1996.   Net  income  of
$204,738 for the quarter  ended March 31,  1997 was $6,093  (3%) lower than  the
three months ended March 31, 1996.

<PAGE>


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS
         (CONTINUED)

The average number of shares outstanding during 1997 was 1,641,233 vs. 1,378,132
in 1996.  Partly because  of the greater number  of shares outstanding, the  net
income per share decreased from $.15 in 1996 to $.13 in 1997.  If this figure is
analyzed using flow of funds  - that is net  income plus depreciation expense  -
then the amount in 1997 was $.20 per share vs. $.22 per share in 1996.

During the quarter ended March 31, 1997, the Company declared dividends totaling
$325,906, compared to dividends of $245,932 declared for the quarter ended March
31, 1996.  Cash basis income for the quarter ended March 31, 1996 was  $324,203.
This was derived by adding depreciation and amortization expense to net  income.
Thus, cash distributions this  quarter were $1,703 greater  than cash basis  net
income.  In  comparison, distributions in  the first quarter  1996 were  $59,635
less than cash basis income of $305,567.  In either event, the Company continued
to qualify as  a REIT  in 1997, and  liquidity of  the Company  continues to  be
strong.

In summary then, the operating performance  of the Company continued to  improve
as additional  funds were  raised, additional  property  was acquired,  and  all
properties were operated profitably.

<PAGE>


                       WEST COAST REALTY INVESTORS, INC.


                                    PART II


                       O T H E R    I N F O R M A T I O N



ITEM 1.  LEGAL PROCEEDINGS

         None


ITEM 2.  CHANGES IN SECURITIES

         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.  EXHIBIT AND REPORTS ON FORM 8-K

      (a) Information  required under  this  section has  been included  in  the
          financial  statements.

      (b) Reports on Form 8-K
          -  8-K filed on March 18, 1997 resulting from the purchase of the
          Irvine, California property on January 17, 1997.

<PAGE>

                       WEST COAST REALTY INVESTORS, INC.



                              S I G N A T U R E S

     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.

                       WEST COAST REALTY INVESTORS, INC.
                                (Registrant)



May 14, 1997                       By:  WEST COAST REALTY ADVISORS, INC.
                                            A California Corporation,
                                                    Advisor


                                         Neal E. Nakagiri
                          Director and Executive Vice President / Secretary



May 14, 1997
                                         Michael G. Clark
                                     Vice President / Treasurer