U. S. SECURITIES AND EXCHANGE COMMISSION

                          WASHINGTON, DC 20549

                               FORM 10-QSB
(Mark One)

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

     For the quarterly period ended   June 30, 1998                      

(     )   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  53072-3703      
                                                                         
(Address of principal executive offices)

                             (414) 695-1400                              
                       (Issuer's telephone number)

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - N/A - - - - -
- - - - - - - - - - - - - - - - - - - - - - -
(Former name, former address and former fiscal year, if changed since
 last report)

Check whether the issuer (1) filed all reports required to be filed by
Sections 13 or 15(d) of the Exchange
Act during the past 12 months (or for such shorter period that the registrant
was required to file such
reports), and (2) has been subject to such filing requirements for the
 past 90 days.
Yes     X      No        


      NATIONAL REAL ESTATE LIMITED PARTNERSHIP INCOME PROPERTIES-II




                                  INDEX




                                                                     PAGE

 PART I. FINANCIAL INFORMATION

     Balance Sheet (unaudited) - June 30, 1998
          and December 31, 1997. . . . . . . . . . . . . . . . . . . . .2

     Statement of Operations (unaudited) - Three and Six months
          ended June 30, 1998 and 1997 . . . . . . . . . . . . . . . . .3

     Statement of Cash Flows (unaudited) -
          Six months ended June 30,1998 and 1997 . . . . . . . . . . . .4

     Notes to Financial Statements (unaudited) . . . . . . . . . . . .5-6

     Management's Discussion and Analysis of
          Financial Condition and Results of Operation . . . . . . . .7-8


PART II. OTHER INFORMATION AND SIGNATURES. . . . . . . . . . . . . . 9-10


<TABLE>
<S>                                        <C><C>    <C><C>    <C>
                                                               

INCOME PROPERTIES-II                                           

(A Wisconsin Limited Partnership)                              

BALANCE SHEET                                                  

(Unaudited)                                                    

                                             JUNE 30,    DECEMB
                                                         ER 31,

                                                 1998      1997

ASSETS                                                         

                                                               

  CURRENT ASSETS:                                              

    Cash and cash equivalent               $  578,703 $ 490,973

    Other assets                                  509       142

  OTHER ASSETS:                                                

     Investment properties, at cost                            

        Land                                  516,590   516,590

        Buildings and improvements           4,151,84       64,151,84       6
                                                               

                                                               

                                             4,668,43       64,668,43       6
                                                               

        Less accumulated depreciation        1,469,47       41,402,26       2
                                                               

                                                               

                                             3,198,96       23,266,17       4
                                                               

                                                               

  INTANGIBLE ASSETS:                                           

   Debt issue costs, net of accumulated                        
amortization                                                   

        of $4092 as of June 30, 1998 and                       

        $2,441 as of December 31, 1997         28,488    30,139

                                                               

                                            $3,806,66       2 $3,787,42       8
                                                               

                                                               

LIABILITIES AND PARTNERS' CAPITAL                              

                                                               

LIABILITIES:                                                   

     Accrued expenses and other            $   19,977 $   2,869
liabilities                                                    

     Tenant security deposits                  26,957    24,920

     Mortgage notes payable (Note 5)          542,878   546,217

     Rent received in advance                  15,176    12,339

                                                               

                                              604,988   586,345

PARTNERS' CAPITAL (NOTE 3):                                    

     General Partners                          42,271    37,336

     Limited Partners                        3,159,40       33,163,74       7
                                                               

     (authorized----40,000 Interests;                          

     outstanding--20,653.69)                                   

                                             3,201,67       43,201,08       3
                                                               

                                                               

                                            $3,806,66       2 $3,787,42       8
                                                               

     See notes to financial statements.                        

                                                               

                                                               

                                                               
</TABLE>

<TABLE>
<S>         <C><C>    <C><C>    <C><C>    <C><C>     <C><C>     <C><C>
 NATIONAL REAL ESTATE LIMITED PARTNERSHIP                             

INCOME PROERTIES-II                                                      

(A Wisconsin Limited Partnership)                                          

STATEMENT OF OPERATIONS                                                   

(Unaudited)                                                            

                                       THREE MONTHS ENDED        SIX MONTHS  
                                                                              
                                          JUNE 30,                JUNE 30,     
                                                                               

                                    1998      1997      1998       1997    
INCOME:                                                                       

     Operating Income          $  195,625 $ 181,041 $ 386,557 $  347,705       

                                                                            

                                195,625   181,041   386,557    347,705      

OPERATING EXPENSES:                                                      

     Operating                  87,444   130,910   168,451    219,525          

   Administration              35,377    33,272    64,147     79,217            

     Depreciation and amortization 34,415    34,415    68,864     68,630       

     Interest (Note 6)           11,691    12,542    23,012     19,632         

                                                                              
                                 168,927   211,139   324,474    387,004        

                                                                                

INCOME (LOSS) FROM OPERATIONS    26,698  (30,098)    62,083     39,298  
          

                                                                    

OTHER INCOME (EXPENSE): 
                                              

     Interest and other income  7,117     8,008    36,613     13,740            
                                                                          

        NET INCOME LOSS     $   33,815 $(22,090) $  98,696 $ (25,559)           

                                                                                

Net Income/(Loss) attributable to                                           

     General Partners (5%)  $    1,691 $ (1,105) $   4,935 $  (1,278)           

Net Income/Loss attributable to                                            

     Limited Partners (95%) $   32,124 $(20,985) $  93,761 $ (24,281)         

     Per Limited Partnership                                             

    Interest outstanding-20,653.69 $     1.56 $  (1.02) $    4.54 $   (1.18)
            

                                                                            

     See notes to financial statements.                                   

                                                                              

                                                                            

                                                                          
</TABLE>

<TABLE>
<S>                                        <C><C>    <C><C>
NATIONAL REAL ESTATE LIMITED PARTNERSHIP               

INCOME PROPERTIES-II                                   

(A Wisconsin Limited Partnership)                      

STATEMENT OF CASH FLOWS                                

(Unaudited)                                            

                                             THREE MONTHSENDED
                                                       

                                             JUNE 30,  

                                             1998      1997

OPERATING ACTIVITIES:                                  

      Net income (loss) for the period     $  98,696  $(25,559)

      Adjustments to reconcile net income              
(loss) to                                              

       net cash used in operating activities:          

          Depreciation                         67,212    67,494

          Amortization of debt issue costs      1,652  (31,388)

      Changes in operating assets and                  

        liabilities:                                   

          Other assets                          (368)  (8,027)

          Rents received in advance             2,836     1,615

          Accrued expenses and other liabilities  17,109  14,185

          Tenant security deposits              2,037     6,775

                                                       

               NET CASH PROVIDED BY                    

                OPERATING ACTIVITIES          189,174    25,095

                                                       

INVESTMENT ACTIVITY:                                   

          Additions to investment property          0         0

                                                       

FINANCING ACTIVITIES:                                  

          Distributions to partners          (98,105)  (92,942)

          Payments on mortgage payable        (3,339)   100,892

                                                       

        NET CASH PROVIDED BY FINANCING                 

        ACTIVITIES                           (101,444       )   7,950
                                                       

                                                       

        INCREASE (DECREASE) IN CASH            87,730    33,046

                                                       

        CASH AND CASH EQUIVALANT AT           490,973   448,347
BEGINNING OF                                           
PERIOD                                                 

                                                       

        CASH AT END OF PERIOD              $ 578,703  $ 481,393

                                                       

          See notes to financial statements.           
</TABLE>

      NATIONAL REAL ESTATE LIMITED PARTNERSHIP INCOME PROPERTIES-II
                    (A WISCONSIN LIMITED PARTNERSHIP)
                      NOTES TO FINANCIAL STATEMENTS
                               (UNAUDITED)
                              JUNE 30, 1998

 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, 1997. Refer to the footnotes of those statements for
additional details of the
     Partnership's financial condition. The operating results for the period
ended June 30, 1998 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., have
contributed the sum of
     $1,000 to the Partnership as General Partners. The Limited Partnership
Agreement authorizes the
     issuance of 40,000 Limited Partnership Interests (the "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 its offering and capital contributions totaled
$5,163,031 for 20,653.69 Limited
     Partnership Interests.

     Pursuant to the Escrow Agreement with the 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,
     was released to the Partnership.

 3.  Changes in Partners' Equity:
                                           Limited           General
                                             Partners     Partners        
Total   
     Quarter Ended June 30, 1998 
 Partners' Equity, beginning of quarter  $3,178,913     $40,580    $3,219,493 
 Distributions                             (51,634)      - -       (51,634)
 Net Income (Loss)                          32,124       1,691      33,815 
 Partners' Equity, end of quarter         $3,159,403      $42,271    $3,201,674 
 
 Quarter Ended June 30, 1997
 Partners' Equity, beginning of quarter  $3,274,659     $35,477    $3,310,496 
 Distributions                           (46,471)        - -         (46,471)   
 Net Income (Loss)                          (20,985)     (1,105)      (22,096) 
 Partners' Equity, end of quarter        $3,207,203      $34,732    $3,241,935 


4.   National Realty Management, Inc. (NRMI): The Partnership incurred
property management fees of
     $29,287 under an agreement with NRMI for the six month period ended June
30, 1998.

5.   The mortgage note payable is secured by 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 from 1998 to 2002 are: $7,100, $7,700, $8,400, $9,100,
and $9,900 respectively.
     Maturities from 2003 and thereafter are $504,000.

6.   In 1992, the Partnership purchased 12 units of Amberwood Condominiums
from National Real Estate
     Limited Partnershipship is contingently liable
     to pay NRELPVI proceeds from a future sale of Amberwood Condominiums as
set forth in a Future
     Interest Proceeds Agreement. Upon the future sale of Amberwood
Condominiums, NRELPVI 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 cumulative return of 20% on its investment.
After that, NRELPVI will
     receive 60% of the net sales price above $57,500 per unit.



      NATIONAL REAL ESTATE LIMITED PARTNERSHIP INCOME PROPERTIES-II
                    (A WISCONSIN LIMITED PARTNERSHIP)
                 MANAGEMENT'S DISCUSSION AND ANALYSIS OF
              FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                              JUNE 30, 1998

The Partnership owns and operates two investment properties: a portion of Cave
Creek Lock-It Lockers,
containing 37,792 of 46,028 net rentable square feet, located in Phoenix,
Arizona, and the 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 average occupancy rate for the second quarter of 1998 was 97.2%. 
Cave Creek Lock-It
Lockers' occupancy during the same period was 94.45% based on net rentable
square footage.  During the
comparable period in 1997 occupancy rates were 80.14% for Amberwood and
94.5128% for Cave Creek
Lock-It Lockers.  Amberwood's higher occupancy rate can be partially
attributed to increased marketing
efforts and incentives.

The Competition Study and information gathered from the Arizona Mini-Storage
Association show
occupancy rates of 91% to 92% occupied for the Cave Creek Lock-It Lockers
area. The market continues
to soften in the Phoenix area due to the over-building of self storage
facilities within a 5-mile radius of the
properties.

Cave Creek rental rates currently range from $13.00 to $135.00 for the second
quarter of 1998. The rates
remain the same  as the second quarter of 1997.

Rental rates for Amberwood's three bedroom apartments are $740, and $620-test
the market. Two bedroom units are increasing $15 in July.

Amberwood advertised in the Holland Sentinel, Select Living (apartment guide),
and the yellow pages, both
Ameritech and TDI. Periodic mailings are made to area real estate agents and
brokers, and the leasing
consultants keep in close contact with the Human Resource Departments of area
businesses and industry.
Lease expiration dates have been staggered to avoid leases expiring during
slower periods. Current residents
and real estate brokers can receive a $50 rent credit or referral fee for new
rentals. Extra effort has been given
to having the property in A+ condition due to all of the new property
 competition.

Six Months Ended June 30, 1998, and 1997
Net income improved $124,255 from a loss of $25,559 for the six months ended
June 30, 1997, to a profit
of $98,696 for the six months ended June 30, 1998. This increase was due to an
increase in operating income
of $38,852, a decrease in operating expenses of $62,530, and an income in
interest and other income of
$22,873.

The increase in operating income of $38,852 was due to improved occupancy at
the Amberwood apartments.
Occupancy improved from 80.14% for the six months ended June 30, 1997, to
96.52% for the six months
ended June 30, 1998.
Property operating expenses decreased mainly due to reduced carpeting
purchases, advertising, building
maintenance, utilities, and personnel expenses for the six months ended June
30, 1998, as compared to the
same period of the prior year.

The $22,873 increase in interest and other income was primarily attributed to
a positive settlement in favor
of the partnership related to the Cave Creek Lock-It Lockers.

Three Months Ended June 30, 1998, and 1997
Net income increased $55,905 from a loss of $22,090 for the three months ended
June 30, 1997, to a profit
of $33,815 for the three months ended June 30, 1998. This increase was due to
an increase in operating
income of $14,584, a decrease of operating expenses of $42,212, slightly
offset by a decrease in other income
of $891.

Operating income improved $14,584 primarily due to reduced vacancies at the
Amberwood apartments.
Vacancy rates decreased from 10.68% for the three months ended June 30, 1997,
to 2.8% for the three
months ended June 30, 1998, due mainly to increased efforts to rent apartments
and improved market
conditions.

Total operating expenses decreased $42,212 due to decreased property operating
expenses of $43,466 and
decreased interest expenses of $851, slightly offset by an increase in
administrative expenses of $2,105.
Property operating expenses decreased due to reduced personnel, building
maintenance,  groundskeeping,
and resident unit expenses.

Distributions were $2.50 per share, totaling $51,634 for the second quarter of
1998 as compared to $2.25 per share
or $46,471 for the same quarter a year ago.  These distributions are required
to be allocated 100% to the Limited
Partners, as outlined in the prospectus.

                       PART II. OTHER INFORMATION



ITEM 6(B). REPORTS ON FORM 8-K
 There were no reports on Form 8-K for the quarter ended June 30, 1998.
                               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        /August 1, 1998                                  /S/        John
Vishnevsky                                                                
                                           John Vishnevsky
                                      President and Chief Operating and
                                                 Executive Officer
                                      National Development and Investment, Inc.
                                           Corporate General Partner


Date       /S/August 1, 1998                                 /S/        John
Vishnevsky                                                             
                                            John Vishnevsky
                                      Chief Financial and Accounting Officer



Date       /S/August 1, 1998                                            
Stephen P. Kotecki                                                             
                                           Stephen P. Kotecki
                                                President 
                                                            EC Corp
                                                     Corporate General Partner






                               SIGNATURES



   Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused
this report to be signed on its behalf by the undersigned thereunto duly
 authorized.



                                      National Real Estate Limited Partnership
                                                  Income Properties II   
                                            (Registrant)




Date        August 1, 1998                                               
                                                John Vishnevsky
                                           President and Chief Operating and
                                                   Executive Officer
                                      National Development and Investment, Inc.
                                      Corporate General Partner



Date        August 1, 1998                                               
                                           John Vishnevsky
                                      Chief Financial and Accounting Officer



Date        August 1, 1998                                               
                                           Stephen P. Kotecki
                                                President 
                                                  EC Corp
                                                Corporate General Partner














J:\WPDOCS\LETTERS\Nip2