UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                      Washington, D.C. 20549

                            FORM 10-Q

   X      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
------          SECURITIES EXCHANGE ACT OF 1934

                      For the quarter ended
                        September 30, 1998
                              OR

          TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF 
------           THE SECURITIES EXCHANGE ACT OF 1934

                      Commission File Number
                             0-14548
                             -------
              RAL-YIELD EQUITIES II LIMITED PARTNERSHIP
              -----------------------------------------
       (Exact name of registrant as specified in its charter)

          Wisconsin                             39-1494302
-------------------------------       ---------------------------
(State or other jurisdiction of              (I.R.S. Employer
 incorporation or organization)            Identification Number)

   20875 Crossroads Circle
         Suite 800
     Waukesha, Wisconsin                          53186
-------------------------------        --------------------------
   (Address of principal                       (Zip Code)
     executive offices)

Registrant's telephone number, including area code (414) 798-0900
                                                   --------------
     Securities registered pursuant to Section 12(b) of the Act:
                               None
                              ------
     Securities registered pursuant to Section 12(g) of the Act:
                  LIMITED PARTNERSHIP INTERESTS
                  -----------------------------
                         (Title of Class)

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
               -------                        -------
                      RAL-YIELD EQUITIES II
                       LIMITED PARTNERSHIP
                            FORM 10-Q

                        TABLE OF CONTENTS

                                                          PAGES
PART I    FINANCIAL INFORMATION       

          Item 1.   Financial Statements                    I-1

          Item 2.   Management's Discussion and
                    Analysis of Financial Condition and
                    Results of Operations                   I-7

PART II   OTHER INFORMATION

          Item 6.   Exhibits and Reports on Form 8-K (None)

Signatures



































<TABLE>
                      RAL-YIELD EQUITIES II
                       LIMITED PARTNERSHIP
                         BALANCE SHEETS
          September 30, 1998 and December 31, 1997
<CAPTION>
                                        UNAUDITED       AUDITED 
                                      SEPTEMBER 30,   DECEMBER 31,
         ASSETS                             1998          1997  
-------------------------------------   -----------   -----------
<S>                                     <C>            <C>
INVESTMENT PROPERTY, less accumulated
depreciation of $1,743,308 in 1998
and $1,631,493 in 1997                   3,327,781      3,399,801

PROPERTY HELD FOR SALE OR RELEASE          500,000        500,000

CASH AND CASH EQUIVALENTS                  165,827        358,191

RENT AND OTHER RECEIVABLES                   8,457          7,777

DEFERRED CHARGES, less accumulated
amortization of $10,719 in 1998
and $9,594 in 1997                          82,415         19,791

NOTE RECEIVABLE                            205,512        217,258

OTHER ASSETS                                 8,381          4,403
                                        ----------     ----------
TOTAL ASSETS                             4,298,373      4,507,221
                                        ==========     ==========

LIABILITIES AND PARTNERS' CAPITAL
---------------------------------

ACCOUNTS PAYABLE AND ACCRUED EXPENSES      140,636        153,439
TENANT SECURITY DEPOSITS                    32,808         32,078
                                        ----------     ----------
                                           173,444        185,517

LIMITED PARTNERS' CAPITAL                4,059,820      4,259,936
GENERAL PARTNERS' CAPITAL                   65,109         61,768
                                        ----------     ----------
PARTNERS' CAPITAL                        4,124,929      4,321,704
                                        ----------     ----------
TOTAL LIABILITIES AND PARTNERS' CAPITAL  4,298,373      4,507,221
                                        ==========     ==========

<FN>
     The accompanying notes are an integral part of these
     statements.
</FN>
</TABLE>
                              I-1
<TABLE>
                       RAL-YIELD EQUITIES II
                        LIMITED PARTNERSHIP

                      Statement of Operations
 For three months and nine months ended September 30, 1998 and 1997

                                   UNAUDITED
<CAPTION>

                      3 MONTHS  9 MONTHS  3 MONTHS    9 MONTHS
                       ended     ended     ended       ended
                     SEPT. 30,  SEPT. 30, SEPT. 30,   SEPT. 30,
                       1998       1998      1997        1997
                     --------  ---------  ---------   ---------

<S>
REVENUE:              <C>        <C>       <C>        <C>
 Rental income         186,515    564,274   198,952    612,296
 Restaurant sales      202,785    575,922   219,534    631,850
 Interest & other       15,140     45,516    19,195     55,520
                      --------   --------  --------   --------
                       404,440  1,185,712   437,681  1,299,666

OPERATING EXPENSES:
 Restaurant operating
  expenses             167,905    469,575   165,927    463,099
 Management fees        13,293     38,985    14,120     40,614
 Mobile home park
  operating and
  administrative exp.   72,064    230,090    74,693    229,729
 Depreciation and
  amortization          37,647    112,941    41,750    125,122
                      --------   --------  --------   --------
                       290,909    851,591   296,490    858,564
                       --------   -------- --------   --------
NET INCOME (LOSS)      113,531    334,121   141,191    441,102
                      ========   ========  ========   ========


<FN>
   The accompanying notes are an integral part of these
   statements.
</FN>
</TABLE>








                                  I-2


<TABLE>
                          RAL-YIELD EQUITIES II
                           LIMITED PARTNERSHIP

                Statements of Changes in Partners' Capital
            For the nine months ended September 30, 1998 and
                  for the year ended December 31, 1997

                                      UNAUDITED
<CAPTION>
                        General         Limited                 
                        Partners        Partners
                     (1% ownership)  (99% ownership)    Total    

                     --------------  --------------  -----------
<S>                       <C>          <C>            <C>
BALANCE, Jan. 1, 1997      56,528       4,544,766      4,601,294
                       ----------     -----------    -----------

NET INCOME                  5,240         518,755        523,995

CASH DISTRIBUTIONS              0        (803,585)      (803,585)
                       ----------     -----------    -----------

BALANCE, Dec. 31, 1997     61,768       4,259,936      4,321,704

NET INCOME                  3,341         330,780        334,121

CASH DISTRIBUTIONS              0        (530,896)      (530,896)
                       ----------     -----------    -----------
BALANCE,
  September 30, 1998       65,109       4,059,820      4,124,929
                       ==========     ===========    ===========

<FN>
The accompanying notes are an integral part of these statements.
</FN>
</TABLE>











                                  I-3




 <TABLE>
                        RAL-YIELD EQUITIES II
                         LIMITED PARTNERSHIP

                       Statements of Cash Flows
    For the nine months ended September 30, 1998 and 1997

                                          UNAUDITED
<CAPTION>
                                 SEPT. 30,          SEPT. 30,
                                    1998               1997
                                -------------     -------------
<S>                                 <C>                <C>
CASH FLOWS FROM
 OPERATING ACTIVITIES:
Net income (loss)                    334,121            441,102
Adjustments to reconcile net
 income to net cash provided
 by operating activities:
     Depreciation and
     amortization expense            112,941            125,122
     Gain on sale of equipment             0                  0
Change in assets and
 liabilities:
     Rent and Receivables               (680)             8,972
     Other Assets                    (67,727)              (968)
     Accounts payable and
      accrued expenses               (12,803)           (28,160)
     Tenants' security
      deposits                           730                644
                                  -----------        -----------
Net Cash provided by
 operating activities:               366,582            546,712

Cash flows from investing
 activities:
     Proceeds from sale of
       equipment                           0                  0
     Additions to investment
      properties                     (39,796)            (9,755)
                                  -----------       -----------
Net Cash provided by
 (used in) investing
 activities                          (39,796)            (9,755)






                                     I-4



                                    
Cash flows from financing
 activities:
     Note Receivable                  11,746             10,694
     Cash distributions paid        (530,896)          (602,689)
                                  -----------        -----------
Net Cash used in
 financing activities               (519,150)          (591,995)
                                  -----------        -----------
Net increase (decrease)
 in cash                            (192,364)           (55,038)

Cash at beginning of period          358,191            428,615
                                  -----------        -----------
Cash at end of period                165,827            373,577
                                  ===========        =========== 



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




























                                     I-5
     
                             

                        RAL YIELD EQUITIES II
                         LIMITED PARTNERSHIP

                    NOTES TO FINANCIAL STATEMENTS

Pursuant to Rule 10-01(a)(5) of Regulation S-X (17 CFR Part 210)
RAL-Yield Equities II Limited Partnership is omitting its
footnote disclosure.  The Registrant has presumed that users of
the interim financial information have read or have access to the
audited financial statements for the preceding fiscal year.  The
disclosure is being omitted since it substantially duplicates the
disclosure contained in the most recent annual report to security
holders, Form 10-K for the fiscal year ended December 31, 1997.

In the opinion of management, the unaudited interim financial
statements presented herein reflect all adjustments necessary to
a fair statement of the results for the interim periods
presented.

































                                      I-6     


     MANAGEMENT'S DISCUSSIONS AND ANALYSIS OF FINANCIAL         
           CONDITION AND RESULTS OF OPERATIONS

RAL-YIELD EQUITIES II LIMITED PARTNERSHIP (the "Registrant" or
"Partnership") is a Wisconsin Limited Partnership formed on March
30, 1984, under the Wisconsin Revised Uniform Limited Partnership
Act.  The Registrant was organized to acquire real estate
including mobile home communities and other commercial
properties.  The Partnership sold $8,301,500 in Limited
Partnership Interests (8,301.5 Interests at $1,000 per unit) from
March 30, 1984, through June 30, 1985.  After deducting offering
costs, the Partnership had approximately $6,641,200 with which to
make investments in income producing residential and commercial
properties, to pay legal fees and other costs related to such
investments and for working capital reserves.  The Partnership
utilized the net offering proceeds to purchase real property
investments.

Liquidity and Capital Resources:

Properties acquired by the Partnership were purchased for cash.
Therefore, liquidity is not reduced by debt service payments.

During the Properties' holding periods, the investment strategy
is to maintain (on the "triple net lease" restaurant properties)
and improve (on Spacious Acres Mobile Home Park) occupancy rates
through the application of professional property management
(including selective capital improvements).  The Partnership also
accumulates cash reserves for normal repairs, replacements, working
capital, and contingencies.

Net cash flow provided by operating activities for the nine
months ended September 30 was $366,582 in 1998 and $546,712 in
1997, primarily from earnings and depreciation.

As of September 30, 1998, the Partnership had cash and cash
equivalents of $165,827 representing undistributed cash flow,
working capital reserves, repair and improvement reserves, and
tenant security deposits.  












                               I-7



The Partnership has one vacant restaurant property in West Allis,
Wisconsin.  The property was leased to a Hardee's Restaurant
franchisee who vacated the premises in December 1996.  The
Partnership received $57,300 in 1997 as a buyout of the lease.  The
property has been reclassified in the Partnership Financial
Statements as property held for sale or re-lease as of September
30, 1998.  Home Depot has cut off the drive-thru ingress-egress, as
well as the cross easement parking in violation of the existing
cross easement agreement; the Partnership has filed a lawsuit
against Home Depot to regain access.  The tenant of the property in
Racine, Wisconsin has been notified that they are one month behind
in their rent. The total amount owed is $6,752.  They continue to
pay regularly and it is hoped that they will catch up entirely in
the near future.

A distribution totaling approximately $165,000 was made to the
Limited Partners in August, 1998.

Results of Operations:

Gross rental revenues of $564,274 for the period ended September
30, 1998 has declined from gross rental revenues of $612,296
for the first nine months of 1997.  This is primarily due to the
vacant restaurant in West Allis, Wisconsin.

Rental property operating and administrative expenses were
$230,090 for the period ended September 30, 1998 and $229,729 for
the period ended September 30, 1997.

Restaurant operations reported net income for the first three
quarters of 1998 of $73,222 on sales of $575,922.  In the first
three quarters of 1997, restaurant operations reported net income
of $135,389 on sales of $631,851.  The decrease in revenue from
the restaurant is a result of increased competition in the area.

Net income for the period ended September 30, 1998 was $334,121
compared to net income of $441,102 for the period ended September
30, 1997.  The decrease in net income is due primarily to decreased
profitability of the restaurant and the vacant restaurant property.












                                   I-8


<TABLE>
The following is a listing of the approximate average physical
occupancy rates for the Partnership's investment in Spacious
Acres Mobile Home Park during the period covered by this report.
<CAPTION>
                                 Occupancy Rate
                                   Nine months
                            ended September 30, 1998   1997
                               --------------------    ----
     <S>                               <C>              <C>
     Spacious Acres MHP               100%               98%

</TABLE>


Inflation:

Due to the comparatively low level of inflation in the
Partnership's last three fiscal years, the effect of inflation on
the Partnership has not been material.  Should the rate of
inflation increase substantially over the life of the
Partnership, it is likely to moderately influence ongoing
operations, in particular, the operating expenses of the
Partnership.  The commercial leases generally contain clauses
permitting pass-through of certain increased operating costs.
Residential leases are typically of one year or less in duration;
this allows the Partnership to react quickly (through rental
increases) to changes in the level of inflation.  These factors
should serve to reduce any impact of rising costs on the
Partnership.


Subsequent Event:

On October 26, 1998, the Partnership sold all of its properties for
$6,334,000.  The Partnership intends to distribute the net proceeds
from the sale and dissolve the Partnership by December 31, 1998.

















                                      I-9

       
                          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.


                  RAL-YIELD EQUITIES II LIMITED PARTNERSHIP
                               (Registrant)


Date:  November 10, 1998              Robert A. Long
                                      -------------------------
                                      Robert A. Long
                                      General Partner