U. S. Securities and Exchange Commission

                              Washington, DC 20549

                                   FORM 10-QSB
(Mark One)

(  X )	QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
            EXCHANGE ACT OF 1934

            For the quarterly period ended   September 30, 2000

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

For the transition period from 				 to
         Commission File Number: 01-16874


         National Real Estate Limited Partnership Income Properties II
       (Exact name of small business issuer as specified in its charter)

       Wisconsin	                                         39-1553195
(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 II


	                            INDEX


                                                                  	Page

 PART I. FINANCIAL INFORMATION

Balance Sheet (unaudited) September 30, 2000,
      and December 31, 1999	 . . . . . . . . . . . . . . . . . . . . . . .2

Statement of Operations (unaudited) - Three and Nine months
      ended September 30, 2000, and 1999	. . . . . . . . . . . . . . . . .3

Statement of Changes in Partners= Capital (unaudited) -
      Nine months ended September 30, 2000, and 1999 . . . . . . . . . . .4

Statement of Cash Flows (unaudited) -
      Nine months ended September 30, 2000, and 1999 . . . . . . . . . . .5

Notes to Financial Statements (unaudited)	   . . . . . . . . . . . . . .6-7

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


PART II. OTHER INFORMATION AND SIGNATURES

Item 1. Legal Proceedings  . . . . . . . . . . . . . . . . . . . . . .10-11

Item 2. Changes in Securities and Use of Proceeds  . . . . . . . . . . . 11

Item 3. Defaults Upon Senior Securities  . . . . . . . . . . . . . . . . 11

Item 4. Submission of Matters to a Vote of Security Holders  . . . . . . 11

Item 5. Other Information  . . . . . . . . . . . . . . . . . . . . . . . 11

Item 6. Exhibits and Reports on Form 8-K	. . . . . . . . . . . . . . . . 11


                              							1














PART I. FINANCIAL INFORMATION
         NATIONAL REAL ESTATE LIMITED PARTNERSHIP INCOME PROPERTIES II
                      (A Wisconsin Limited Partnership)
                              BALANCE SHEET
                               (Unaudited)


                                          September 30,    December 31,
				    		                                    2000            1999
                              						      -------------    ------------
ASSETS

  Cash and cash equivalent                  $192,142         $599,280
  Other assets                                61,114           16,215
  Investment properties, at cost
     Land                                    516,590          516,590
     Buildings and improvements            4,154,507        4,154,507
                                   							 ---------        ---------
                                   							 4,671,097        4,671,097

     Less accumulated depreciation         1,771,281        1,670,451
                                           ---------        ---------
                                   							 2,899,816        3,000,646
							                                    ---------        ---------
Intangible Assets:

Debt issue costs, net of accumulated
amortization of $11,430 as of
September 30, 2000 and $8,999 as of
December 31, 1999					                        21,124           23,581
                                  	 						 ---------         --------
                                          $3,174,196       $3,639,722
                                   							==========       ==========

LIABILITIES AND PARTNERS' CAPITAL

Liabilities:
  Accrued expenses and other liabilities       8,991           38,657
  Tenant security deposits                    27,849           27,991
  Mortgage notes payable (Note 5)            527,165          532,234
  Rent received in advance                    15,553           15,918
                                  						 	----------       	---------
                                             579,558          614,800
                                   							----------      		---------
Partners' Capital:
  General Partners                    				    52,710           48,923
  Limited Partners
    (authorized,40,000 Interests;
     outstanding, 20,653.69 Interests)     2,541,928        2,975,999
                                  							 ----------	      	---------
                                           2,594,638        3,024,922
                                   							----------	     	---------
                                  								$3,174,196	     $3,639,722
See notes to financial statements.        ==========       ==========

                       					        2

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



                                Three Months Ended		     Nine Months Ended
                                   September 30,            September 30,
                     				     	   2000       1999          2000      1999
                          					   ----       ----          ----      ----
INCOME

   Operating income            $194,097   $188,964        $573,225   $551,143
                         					 --------   --------        --------   --------
   Total income			             $194,097   $188,964        $573,225   $551,143


OPERATING EXPENSES

   Operating expenses            99,485     84,809         251,232    278,202
   Administrative expenses       44,566     27,388         122,996     97,091
   Depreciation and amortization 34,427     34,514         103,287    103,543

   Interest expense              14,102     11,594          37,769     34,567
                           				--------  --------	        --------   --------
   Total expenses               192,580    158,305         515,284    513,403
                           			 --------  ---------	       --------   --------

Income (Loss) from Operations     1,517     30,659          57,941     37,740
                           				--------  ---------	       --------   --------

Other Income (Expenses):
   Interest income                4,766      7,726          17,790     23,304
                          					--------  ---------	       --------   --------

   Net Income (Loss)             $6,283    $38,385         $75,731    $61,044
                 			            ========  ========	        ========   =======

Net Income (Loss)
   attributable to
   General Partners (5%)		         $314     $1,919          $3,787     $3,052

Net Income (Loss)
   attributable to
   Limited Partners (95%)        $5,969    $36,466         $71,944    $57,992

Per Limited Partnership
   Interests outstanding-
   20,653.69                      $0.29      $1.77           $3.48      $2.81
                         					    =====      =====           =====      =====


See notes to financial statements.
         						                      3

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



                                         Limited  	  General
                                         Partners   	Partners   Total
September 30, 2000
------------------
Partners' Capital, beginning of period  $2,975,999 	$48,923	   $3,024,922
Distributions                            (506,015)               (506,015)
Net Income 	                               71,944  	  3,787        75,731
                                 							---------  	-------	   ----------
Partners' Capital, end of period        $2,541,928	 $52,710    $2,594,638
                             						     ==========  =======    ==========


September 30, 1999
------------------
Partners' Capital, beginning of period  $3,085,230 	$43,802   	$3,129,032
Distributions                             (154,903)              (154,903)
Net Income	                                 57,992    3,052        61,044
                                  							--------- 	-------   	----------
Partners' Capital, end of period		      $2,988,319  $46,854    $3,035,173
                                 							========== 	=======	   ==========


See notes to financial statements.

















                               						  4





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



                                        								2000          			1999
                                        								----	          		----
Operating Activities:
   Net income for the period                   $75,731           $61,044
   Adjustments to reconcile net income to
   net cash provided by operating activities:
     	Depreciation                             100,830           101,087
     	Amortization of debt issue costs           2,457             2,456

   Changes in operating assets and liabilities:
     	Other assets                             (44,896)            4,895
     	Rents received in advance                   (365)              177
 	    Accrued expenses and other liabilities   (29,666)          (22,650)
	     Tenant security deposits                    (142)              495
						                                   	     -------	          	------
NET CASH PROVIDED BY OPERATING ACTIVITIES      103,949           147,504


Investing Activity:                                  0                 0


Financing Activities:
   Distributions to partners                  (506,015)         (154,903)
   Payments on mortgage payable                 (5,072)           (5,268)
                                   							    --------     	    --------

   NET CASH USED IN FINANCING ACTIVITIES      (511,087)         (160,171)
                                   							    --------	         --------
   INCREASE (DECREASE) IN CASH                (407,138)          (12,667)

   Cash and cash equivalents at beginning
      of period                                599,280           573,699
                                   							    --------     	    --------

   CASH AND CASH EQUIVALENTS AT END
      OF PERIOD                               $192,142          $561,032
                                   							    ========     	    ========




See notes to financial statements.


                             							5



          NATIONAL REAL ESTATE LIMITED PARTNERSHIP INCOME PROPERTIES-II
                       (A Wisconsin Limited Partnership)
                         Notes to Financial Statements
                                 (Unaudited)
                               September, 2000

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 II annual report for the
   year ended December 31, 1999 (refer to the footnotes of those statements
   for additional details of the Partnership's financial condition). The
   operating results for the period ended September 30, 2000 may not be
   indicative of the operating results for the entire year.

2.	National Real Estate Limited Partnership Income Properties-II (the
   "Partnership") was organized under the Wisconsin Uniform Limited
   Partnership Act pursuant to a Certificate of Limited Partnership dated
   June 5, 1986, to acquire primarily existing commercial and residential
   real properties and hotels. John Vishnevsky and National Development
   and Investment, Inc., contributed the sum of $1,000 to the Partnership as
   General Partners. The Limited Partnership Agreement authorized the
   issuance of 40,000 Limited interests") at $250 per Interest with the
   offering period running from August 18, 1986 through August 18, 1988.
   On August 18, 1988, the Partnership concluded it's offering and capital
   contributions totaled $5,163,031 for 20,653.69 Limited Partnership
   Interests.

   Pursuant to the Escrow Agreement with First Wisconsin Trust Company,
   Milwaukee, Wisconsin, until the minimum number of Interests (4,850) and
   investors (100) were subscribed, payments were impounded in a special
   interest-bearing escrow account. On February 2, 1987, the Partnership
   received the required minimum capital contributions and $1,332,470,
   representing 5,329.88 Interests, and the funds were released to the
   Partnership.

3.	National Realty Management, Inc. (NRMI): The Partnership incurred property
   management fees of $34,459 under an agreement with NRMI for the nine month
   period ended September 30, 2000. The Partnership also incurred $23,781 in
   the first nine months of 2000 for the reimbursement of accounting and
   administrative expenses incurred by NRMI on behalf of the Partnership.

   The Partnership subleases a portion of common area office space from NRMI
   under terms of a lease, which expires on August 31, 2002. During the
   first nine months of 2000, the Partnership incurred lease fees totaling
   $5,553, which represents the Partnership's prorated portion, based upon
   space occupied, of NRMI's monthly rental obligation.

4.	National Development and Investment, Inc. (NDII): The Partnership incurred
   NDII fees of $90,757 for administrative expenses incurred on behalf of
   the Partnership for the first nine months of 2000.

	                                						6
5.	The mortgage note payable is secured by the Amberwood Apartments. The loan
   bears interest at a variable rate of interest (based on five year treasury
   securities) plus 2.25% adjusting to 2.35% on May 1, 2002. Monthly payments
   of principal and interest are due based on a twenty five year amortization
   schedule, which also adjusts on May 1, 2002. All unpaid principal and
   interest is due on April 1, 2007. Maturities for the remainder of 2000 to
   2005 are: $1,860, $8,240, $8,970, $9,764, $10,506 and $11,561
   respectively. Maturities from 2006 and thereafter are $476,827.

6.	In 1992, the Partnership purchased 12 units of Amberwood Condominiums
   from National Real Estate Limited Partnership VI (NRELP VI), an
   affiliated partnership. The Partnership is contingently liable to pay
   NRELP VI proceeds from a future sale of the Amberwood Condominiums as set
   forth in a Future Interest Proceeds Agreement. Upon the future sale of
   Amberwood Condominiums, NRELP VI is entitled to receive 50% of the net
   sales price above $57,500 per unit (reduced by normal selling costs) until
   the Partnership earns a cummulative return of 20% on its investment. After
   that, NRELP VI will receive 60% of the net sales price above $57,500
   per unit.


                            							7


























         NATIONAL REAL ESTATE LIMITED PARTNERSHIP INCOME PROPERTIES-II
                       (A Wisconsin Limited Partnership)
                    Management's Discussion and Analysis of
                 Financial Condition and Results of Operations
                              September 30, 2000


The Partnership owns and operates two investment properties: a portion of
Cave Creek Lock-It Lockers, containing 37,800 of 46,000 net rentable square
feet, located in Phoenix, Arizona, and Amberwood Apartments, a 56-unit
apartment complex in Holland, Michigan.

National Real Estate Limited Partnership Income Properties ("NRELP-IP") owns
the remaining portion of Cave Creek Lock-It Lockers. NRELP-IP is a Wisconsin
limited partnership, affiliated with the General Partners.

Amberwood's occupancy rate for the first nine months of 2000 was 98.29%.
Cave Creek Lock-It Lockers' occupancy during the same period was 90.55%
based on net rentable square footage. During the comparable period in 1999,
occupancy rates were 100% for Amberwood and 91.76% for Cave Creek Lock-It
Lockers. Cave Creek Lock-It Lockers occupancy can be partially attributed to
increased competition in the marketplace.

Nine Months Ended September 30, 2000, and 1999
----------------------------------------------
Partnership net income increased $14,687 from the $61,044 net income for the
nine months ended September 30, 1999, to $75,731 for the nine months ended
September 30, 2000. The increase is primarily attributed to an increase in
income from operations of $20,201, offset by a decrease of $5,514 in
interest income.

The increase in Income from operations of $20,201 is primarily due to a
$22,082 increase in gross revenue and a $26,970 decrease in operating
expenses, netted with a $25,905 increase in administrative expenses.

The $22,082 increase in Gross Revenue is due to a decrease in vacancies at
Amberwood Apartments in 2000, as compared to 1999.

The $26,970 decrease in operating expenses is primarily due to a decrease in
Redi-Home expenses and a decrease in apartment painting.

The $25,905 increase in administrative expenses is due to an increase in
legal and audit fees in 2000.

The $5,514 decrease in interest income is due to large distribution pay outs
from the money market account in 2000.

Net cash used during first nine months of 2000 was $407,138, as compared to
net cash used during the first nine months of 1999 of $12,667. This
difference was primarily due to a $351,112 increase in cash distributed.
Distributions were $24.50 per share, totaling $506,015 for the first nine
months of 2000 as compared to $154,903, or $7.50 per share for the same
period in 1999. These distributions are required to be allocated 100% to the
Limited Partners, as outlined in the prospectus.

                          						     8


Three Months Ended September 30, 2000, and 1999
-----------------------------------------------
Partnership net income decreased $32,102 from the $38,385 net income for the
three months ended September 30, 1999, to $6,283 for the three months ended
September 30, 2000. This decrease is primarily attributed to an increase in
operating expenses of $14,676, and an increase in administrative expense of
$17,178.

The increase of $14,676 in operating expenses is primarily due to an $8,669
increase in advertising expense for the 3rd quarter as compared to the 3rd
quarter of 1999 for Cave Creek Lock-It Lockers, and a $4,865 increase in
resident unit refurbishments for Amberwood Apartments.

Cave Creek Lock-It Locker advertising increased due to the timing of the
payment of yellow page ads.  Amberwood's increased residential unit
refurbishments was attributed to maintenance and repair of water heater and
air conditioning, and carpet repairs/replacements.

Administrative expenses in the 3rd quarter of 2000, increased $17,178 due to
the increased cost of audit and legal services, as compared to the 3rd
quarter of 1999.







                         						    9


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 Partnership was not included in
the original lawsuit but was later added to the action as a nominal
defendant.  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,
allegations involving various vote solicitations alleged by the plaintiffs
to be an effort to perpetuate the Partnerships and avoid liquidation.
Second, allegations involving the taking and use of Partnership funds and
property, including excessive fees and unauthorized expenses.  On March 14,
2000, the parties to the litigation with the exception of the defendant
Wolf & Company entered into a Stipulation of Settlement.

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

    An independent marketing agent (the "Partnerships' Representative")
    was appointed to market and sell the Partnership investment property.
    However, no offer to purchase the property will be accepted without
    first obtaining approval from a majority interest of the limited
    partners. Final distributions of the net proceeds received from a
    sale of the Partnership's investment property will be made in
    accordance with the terms of the Partnership's limited partnership
    agreement and prospectus, and upon providing 20-day notice to the
    plaintiff's attorney.  Net proceeds will first be applied to pay
    plaintiffs' counsel's legal fees, expenses and costs, with interest
    thereon.

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

    NRMI and the general partners shall continue to provide management and
    consulting services to the Partnership on the same terms and conditions
    currently provided under existing contracts until the investment
    property is sold and assets liquidated and the Partnership entity
    dissolved.  NRMI will also be the listing broker for the sale of the
    Partnership property.

    The plaintiffs' claims made against NRMI, the general partners, and
    other related parties for excessive charging of expenses to the
    partnerships, including the Partnership, will be settled through
    binding arbitration. Any such expenses disallowed through arbitration
    shall be reimbursed to the partnerships.


                            						   10



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

On June 20, 2000, the Court entered a judgment based upon its April 27th
decision. Thereafter, on July 21, 2000, the Court held a hearing on the
plaintiffs Motion for Enforcement of the Court Approved Settlement and in
Support of Sanctions.  The outcome of the hearing was that the Court granted
sanctions totaling $437,000.00 against the 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 secondary market value for computing the plaintiffs' counsel's
attorney fees until the arbitration proceedings are completed and the
Partnerships' properties are sold.  A Motion for Reconsideration of the
sanctions was filed with the Court and was denied on September 25, 2000.
The Vishnevsky Defendants filed a motion with the Court to stay payment of
the sanctions pending appeal.  That motion was also denied.

On August 2, 2000, the Vishnevsky Defendants filed an appeal from that
portion of the judgment determining the method for computing the plaintiffs'
counsel's attorney fees.  On October 10, 2000 the Vishnevsky Defendants filed
a second appeal from the order granting the sanctions.  A motion to
consolidate the two appeals is pending. The appellate court has temporarily
stayed payment of the sanctions pending receipt of briefs on the issue.
Based on the events to date, it is not possible to determine the final
outcome of the litigation, or the amount of any potential monetary impact to
the Partnership.  Therefore, no provision for any such financial impact
arising from the lawsuit has been made in these financial statments.

Item 2.  Changes in Securities and Use of Proceeds

None

Item 3.  Defaults Upon Senior Securities

None

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

None

Item 5.  Other Information

None

Item 6.  Exhibits and Reports on Form 8-K

None



                             							11



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-II
                          						   ----------------------------------------
                                                     (Registrant)




Date        /S/November 6, 2000           /S/     John Vishnevsky
-------------------------------	   ----------------------------------------
                                               John Vishnevsky
                                       President and Chief Operating and
                                        							Executive Officer
 						                            National Development and Investment, Inc.
                    			                    Corporate General Partner


Date       /S/November 6, 2000           /S/     John Vishnevsky
------------------------------	   ----------------------------------------
                                                 John Vishnevsky
                           	 						Chief Financial and Accounting Officer



Date       /S/November 6, 2000           /S/     Stephen P. Kotecki
------------------------------     ----------------------------------------
                                                 Stephen P. Kotecki
								                                              President
                  					                                EC Corp
                                    						    Corporate General Partner







                                						12




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 II
                                    ----------------------------------------
                                                 (Registrant)




Date        November 6, 2000
----------------------------        ----------------------------------------
                                                John Vishnevsky
     						                            President and Chief Operating and
             				                              Executive Officer
                                    National Development and Investment, Inc.
                                          Corporate General Partner



Date        November 6, 2000
----------------------------       	----------------------------------------
                                                 John Vishnevsky
                             						  Chief Financial and Accounting Officer



Date        November 6, 2000
----------------------------	      	----------------------------------------
                                   							    Stephen P. Kotecki
                                         								  President
                                          								  EC Corp
                                   							 Corporate General Partner


                             						13