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, 1997               

          (     )   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        

<PAGE>
     NATIONAL REAL ESTATE LIMITED PARTNERSHIP INCOME PROPERTIES-II




                                 INDEX




                                                                   Page

 PART I. FINANCIAL INFORMATION

     Balance Sheet (unaudited) - September 30, 1997
          and December 31, 1996. . . . . . . . . . . . . . . . . . . .2

     Statement of Operations (unaudited) - Three and nine months
          ended September 30, 1997 and 1996. . . . . . . . . . . . . .3

     Statement of Cash Flows (unaudited) -
          Nine months ended September 30,1997 and 1996 . . . . . . . .4

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

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


PART II. OTHER INFORMATION AND SIGNATURES. . . . . . . . . . . . . .8-9

<PAGE>
     NATIONAL REAL ESTATE LIMITED PARTNERSHIP                    
INCOME PROPERTIES-II                    
(A Wisconsin Limited Partnership)                 
Balance Sheet                 
(Unaudited)                   
          September 30,       December 31,
          1997      1996
ASSETS                   
                    
  Current Assets:                  
     Cash $    460,491   $    442,747
     Escrow and other deposits (Note 5)      12,157         0
     Accounts receivable and other assets         3,682          5,600
  Other Assets:                    
     Investment properties, at cost                    
        Land        516,590        516,590
        Buildings and improvements      4,151,846      4,151,846
                    
          4,668,436      4,668,436
        Less accumulated depreciation        1,369,035      1,267,441
                    
          3,299,401      3,400,995
                    
  Intangible Assets:                    
   Debt issue costs, net of accumulated amortization                  
        of $1606 as of September 30, 1997 and                    
        $9760 as of December 31, 1996        30,946         337
                    
     $    3,806,676 $    3,849,679
                    
LIABILITIES AND PARTNERS' CAPITAL                 
                    
Liabilities:                  
     Accrued expenses and other liabilities  $    26,019    $    5,128
     Tenant security deposits      28,450         22,380
     Mortgage notes payable (Note 6)         547,253        448,021
     Rent received in advance      17,508         13,716
                    
          619,231        489,245
Partners' Capital (Note 3):                  
     General Partners (deficit)         34,331         36,009
     Limited Partners                   
     (authorized----40,000 Interests;        3,153,114      3,324,425
     outstanding--20,653.69)                 
          3,187,445      3,360,434
                    
     $    3,806,676 $    3,849,679
     See notes to financial statements.                
                     
<PAGE>
 NATIONAL REAL ESTATE LIMITED PARTNERSHIP                        
                                   
INCOME PROERTIES-II                                              
          
(A Wisconsin Limited Partnership)                                          
               
Statement of Operations                                               
          
(Unaudited)                                                           
          THREE MONTHS ENDED                 NINE MONTHS ENDED   
                         
          SEPTEMBER 30, 1997                 SEPTEMBER 30, 1997  
                         
            1997         1996      1997      1996                
Income:                                                          
     Operating Income    $    198,376   $    175,431   $    546,081   $
     531,991                  347,705
                                                            
          198,376        175,431        546,081        531,991   
               347,705
Operating expenses:                                                   
     
     Operating      136,884        86,398         356,409        260,525
                    219,525
     Administration      27,793         29,731         107,010        97,503
                    79,217
     Depreciation and amortization      34,907         35,808         103,537
          107,423                  68,630
 Interest (Note 6)        11,516         12,273         31,148         36,769
                    19,632
                                                            
          211,099        164,210        598,103        502,220   
               387,004
                                                            
Income (Loss) from operations      (12,723)       11,221         (52,023)
          29,771                   (39,298)
                                                            
Other income (expense):                                               
          
Interest and other income          4,705     7,980    18,445    20,416
                    13,740
                                                            
        Net Income/(Loss)     $    (8,019)   $    19,201         (33,578)  
     50,186                   (25,559)
                                                            
Net Income/(Loss) attributable to                                          
               
     General Partners (5%)    $   (401)    $   960      (1,679)       2,509     
               (1,278)
Net Income/Loss attributable to                                            
               
     Limited Partners (95%)   $    (7,617)   $    18,241         (31,899)  
     47,676                   (24,281)
     Per Limited Partnership                                               
          
       Interest outstanding-20,653.69   $   (0.37)   $   0.88   (1.54)   2.31 
               (1.81)
                                                            
     See notes to financial statements.                                    
                    
                                                            
                                                            
<PAGE>
NATIONAL REAL ESTATE LIMITED PARTNERSHIP                    
INCOME PROPERTIES-II                    
(A Wisconsin Limited Partnership)                 
Statement of Cash Flows                           
(Unaudited)                   
          Nine months ended        
          September 30, 1997       
          1997      1996
Operating Activities:                   
         Net income (loss) for the period    $    (33,578)  $    50,186
      Adjustments to reconcile net loss to                  
       net cash used in operating activities:                    
          Depreciation and amortization      101,594        105,908
          Amortization of debt issue costs        1,943          1,515
          Gain on retirement of personal property      0         0
      Changes in operating assets and                  
        liabilities:                    
          Escrow deposits and other assets        (10,238)       (7,418)
          Rents received in advance          3,792          6,140
          Accrued expenses and other liabilities       20,891         (15,971)
          Tenant security deposits      6,070          390
          Accrued real estate taxes                    0                   0
                    
               NET CASH PROVIDED BY (USED IN)                    
                 OPERATING ACTIVITIES        90,474         140,750
                    
Investment activity:                    
          Additions to investment property        0         (1,786)
                    
Financing activities:                   
          Distributions to partners          (139,412)      (139,412)
          Proceeds from mortgage note payable          109,313        0
          Payments on mortgage payable       (10,080)       (32,312)
          Debt Issue Costs         (32,552)       0
                    
        NET CASH PROVIDED BY FINANCING                 
        ACTIVITIES       (72,731)       (171,725)
                    
        INCREASE (DECREASE) IN CASH          17,744         (32,760)
                    
        Cash at beginning of period          442,747        478,326
                    
        CASH AT END OF PERIOD $    460,491   $    445,566
                    
          See notes to financial statements.                
<PAGE>
     NATIONAL REAL ESTATE LIMITED PARTNERSHIP INCOME PROPERTIES-II
                   (A Wisconsin Limited Partnership)
                     Notes to Financial Statements
                              (Unaudited)
                          September 30, 1997

1.  In the opinion of the General Partners, the accompanying unaudited
financial statements contain all adjustments (consisting of normal recurring
accruals) which are necessary for a fair representation. 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, 1996. 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, 1997 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 had authorized 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 September 30, 1997 
Partners' Equity, beginning of quarter   $3,207,203    $34,732    $3,241,935 
Distributions                            (46,471)        - -      (46,471)
Net Income (Loss)                         32,905         1,732     34,637 
Partners' Equity, end of quarter         $3,193,637    $36,464    $3,230,101 
 
Quarter Ended September 30, 1996
Partners' Equity, beginning of quarter   $3,476,549    $23,634    $3,500,183 
Distributions                             (30,981)        - -     (30,981)   
Net Income (Loss)                          32,274        1,699     33,973 
Partners' Equity, end of quarter         $3,477,842    $25,333    $3,503,175 


4.   National Realty Management, Inc. (NRMI): The Partnership incurred
property management fees of $29,995 under an agreement with NRMI for the
nine month period ended September 30, 1997.

5.   The mortgage note payable is secured by Amberwood Apartments. The loan
of $550,000 originated on April 16, 1997, and has a 10 year maturity with
payments based on a 25 year amortization. The loan has an interest rate of
8.4%, fixed for the first five years, then adjustable to a new fixed rate for
the remaining five years. Maturities of the mortgages for 1997 and 1998 are
$452,463 and $7,145, respectively.

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 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
cumulative return of 20% on its investment. After that, NRELP VI will receive
60% of the net sales price above $57,500 per unit.


<PAGE>
     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, 1997

The Partnership owns and operates two investment properties: a portion of
Cave Creek Lock-It Lockers,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 is located in a wooded setting and is conveniently located near
shopping, bike paths and businesses, and offers superior amenities, such as
fireplaces and attached garages.

Amberwood's occupancy rate for the third quarter of 1997 was 97.71%. Cave
Creek Lock-It Lockers' occupancy during the same period was 94.63% based on
net rentable square footage. During the comparable period in 1996 occupancy
rates were 80.14% for Amberwood and 94.51% for Cave Creek Lock-It Lockers.
Amberwood's lower occupancy during the first and second quarters can be
partially attributed to increased competition from new townhouses built in
the area. These new units are in direct competition to Amberwood's three
bedroom units. To remain competitive, the rental rate for three bedroom units
was lowered about $50.

Total operating revenues for Cave Creek Lock-It Lockers in 1997 are in line
with the comparable period of 1996. Total operating revenue year to date for
Amberwood Apartments decreased due to higher vacancies. Operating expenses
have increased over 1996 due to increased personnel and advertising expense
at Amberwood Apartments. Interest expense remained in line with 1996.

The distributions have remained $2.25 per share per quarter and totaled
$46,470.80 for the second quarter. These distributions are required to be
allocated 100% to the Limited Partners, as outlined in the prospectus.


<PAGE>
                      PART II. OTHER INFORMATION



Item 6(b). Reports on Form 8-K
There were no reports on Form 8-K for the quarter ended September 30, 1997.<PAGE>
 
                        SIGNATURES



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



                               National Real Estate Limited Partnership
                                    Income Properties-II               
                                               (Registrant)




Date        /November 13, 1997     /S/       John Vishnevsky              
                                             John Vishnevsky
                                             President and Chief Operating and
                                             Executive Officer
                                     National Development and Investment, Inc.
                                             Corporate General Partner


Date       /S/November 13, 1997    /S/        John Vishnevsky              
                                              John Vishnevsky
                                        Chief Financial and Accounting Officer



Date       /S/November 13, 1997               Stephen P. Kotecki            
                                              Stephen P. Kotecki
                                                 President 
                                                  EC Corp
                                              Corporate General Partner





<PAGE>
                              SIGNATURES



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



                                  National Real Estate Limited Partnership
                                      Income Properties II             
                                            (Registrant)




Date        November 13, 1997                  
                                           John Vishnevsky
                                           President and Chief Operating and
                                           Executive Officer
                                           National Development and
                                           Investment, Inc.
                                           Corporate General Partner



Date        November 13, 1997                                
                                           John Vishnevsky
                                           Chief Financial and Accounting
                                           Officer



Date        November 13, 1997                             
                                      Stephen P. Kotecki
                                      President 
                                      EC Corp
                                      Corporate General Partner







                  






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