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   March 31, 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) - March 31, 1998
          and December 31, 1997. . . . . . . . . . . . . . . . . . . . .2

     Statement of Operations (unaudited) - Three months
          ended March 31, 1998 and 1997. . . . . . . . . . . . . . . . .3

     Statement of Cash Flows (unaudited) -
          Three months ended March 31,1998 and 1997. . . . . . . . . . .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


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INCOME PROPERTIES-II                                                    

(A Wisconsin Limited Partnership)                                       

Balance Sheet                                                              

(Unaudited)                                                               

                                    March 31,                   December 31,   
                                      1998                           1997      

ASSETS                                                                      

                                                                               

  Current Assets:                                                              

                             $      545611.53               $         490973
Cash and cash                                                                  
equivalent                                                                   

Other assets                           3737.86                            142

Other Assets:                                                            

Investment properties, at cost                                                  

Land                                 516590.13                         516590

Buildings and improvements          4151845.85                        4151846

                                     4668435.98                        4668436

 Less accumulated depreciation       1435868.29                        1402262

                                                                           

                                     3232567.69                        3266174

                                                                               

Intangible Assets:                                                             

Debt issue costs, net of accumulated amortization                               

of $3,283 as of March 31, 1998 and                                           

$2,441 as of December 31, 1997        29296.68                          30139

                                                                             

                              $     3811214.76               $        3787428

                                                                               

LIABILITIES AND PARTNERS' CAPITAL                                              

                                                                        

Liabilities:                                                              

Accruedexpensesand other      $        1776.45               $           2869
liabilities                                                              
Tenant security deposits                 27250                          24920

Mortgage notes payable (Note 5)         544362.54                         546217

Rent received in advance                 18333.18                          12339

                                                                              

                                      591722.17                         586345

Partners' Capital (Note 3):                                         

General Partners                       40580.0315                       37336

Limited Partners                     3178912.7985                     3163747

(authorized----40,000 Interests;                                                

outstanding--20,653.69)                                                         

                                       3219492.83                      3201083

                                                                               

                                $        3811215               $        3787428

See notes to financial statements.         

                                                                               
                                                                   

                                                                         
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 NATIONAL REAL ESTATE LIMITED PARTNERSHIP                   
                                                                        
INCOME PROERTIES-II                                                       
                                                                        
(A Wisconsin Limited Partnership)                                       
                                                                        
Statement of Operations                                                  
(Unaudited)                                                             
                                       THREE MONTHS ENDED         
                                         MARCH 31,                      
                                             1998             1997  

Income:                                                                
OperatingIncome                   $     190932                166664    
                                                                        
                                      190931.87               166664 

Operating expenses:                                                     

Operating                                81006.85              88613
Administration                            28770.1              45945 
Depreciation and amortization            34448.82              34253
Interest (Note 6)                        11321.11               7090     

                                        155546.88             175901  

Income (Loss) from operations            35384.99              -9237 
                                                                          
Other income (expense):                                                   

Interest and other income                29495.64              7314 

    
 Net                                                               
Income/(Loss)                               64881              -19237       

Net Income/(Loss) attributable to                                      
GeneralPartners(5%)              $      3244.0315    $           -97.15 

Net Income/Loss attributable to                                            
LimitedPartners(95%)             $     61636.5985     $         -1825.85 

Per Limited Partnership                                                   
Interest outstanding-20,653.69   $  2.98428990171      $          -0.0884 


     See notes to financial statements.

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NATIONAL REAL ESTATE LIMITED PARTNERSHIP                              

INCOME PROPERTIES-II                                                  

(A Wisconsin Limited Partnership)                                     

Statement of Cash Flows                                               

(Unaudited)                                                           

                                       Three Months Ended             

                                          March 31,                   

                                            1998                    1997

Operating Activities:                                                 

Netincome               $               64880.63       $           -1923
(loss) forthe period                                                  
                                                                      
                                                                      

Adjustments to reconcile net income (loss) to               $   

net cash used in operating activities:               $         

Depreciation                        33605.89                           33748

Amortization of debt issue costs         842.93                          505

Changes in operating assets and                                 

liabilities:                                                  

Other assets                        -3596.86                            -409

Rents received in advance            5993.18                            5449

Accrued expenses and other liabilities       -1091.55                  -7274

Tenant security deposits                2330                            1242

                                                                      

 NET CASH PROVIDED BY                                   

 OPERATING ACTIVITIES         102964.22                           31338

                                                                      

Investment activity:                                                  

Additions to investment property 0.019999999553                            0

                                                                      

Financing activities:                                                 

Distributions to partners           -46470.8                          -46471

Payments on mortgage payable        -1854.46                           -7333

                                                                      

        NET CASH PROVIDED BY FINANCING                                

ACTIVITIES                           -48325.26                          -53804

                                                                      

INCREASE (DECREASE) IN CASH           54638.98                          -22466

                                                                      

Cash and cash equivalant at beginning of period         490973          442747
                                                                      

                                                                      

               $                     545611.98               $          420281
 CASH                                                                 
AT END                                                                
OF                                                                    
PERIOD                                                                

                                                                      

          See notes to financial statements.                          
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      NATIONAL REAL ESTATE LIMITED PARTNERSHIP INCOME PROPERTIES-II
                    (A WISCONSIN LIMITED PARTNERSHIP)
                      NOTES TO FINANCIAL STATEMENTS
                               (UNAUDITED)
                             MARCH 31, 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 March 31, 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 March 31, 1998 
 Partners' Equity, beginning of quarter  $3,163,747     $37,336    $3,201,083 
 Distributions            (46,471)      - -       (46,471)
 Net Income (Loss)                  61,637       3,244      64,881 
 Partners' Equity, end of quarter       $3,178,913      $40,580    $3,219,493 
 
 Quarter Ended March 31, 1997
 Partners' Equity, beginning of quarter  $3,324,425     $36,009    $3,360,434 
 Distributions                 (46,471)        - -         (46,471)   
 Net Income (Loss)                  (1,826)      (97)        (1,923) 
 Partners' Equity, end of quarter       $3,276,128      $35,912    $3,312,040 


4.   National Realty Management, Inc. (NRMI): The Partnership incurred
property management fees of
     $10,093 under an agreement with NRMI for the three month period ended
March 31, 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
                             MARCH 31, 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 is located in a wooded setting and is conveniently located near
shopping, bike paths and
businesses, and offers superior amenities.

Amberwood's occupancy rate for the first quarter of 1998 was 95.83%. Cave
Creek Lock-It Lockers'
occupancy during the same period was 93.28% based on net rentable square
footage. During the comparable
period in 1997 occupancy rates were 80.06% for Amberwood and 94.99% for Cave
Creek Lock-It Lockers.
Amberwood's higher occupancy can be partially attributed to increased
marketing efforts to rent the property
and reduced rental rates.

Partnership net income increased $66,804 from the $1,923 loss for the quarter
ended March 31, 1997, to
$64,881 of net income for the quarter ended March 31, 1998. The increase is
attributed to an increase in
operating income of $24,268, a decrease of operating expenses of $20,354, and
an increase in interest and
other income of $22,182.

The increase of $24,268 in operating income is primarily attributed to the
reduced vacancies at Amberwood
during the first quarter of 1998 as compared to the first quarter of 1997.
During these periods, occupancy
improved from 80.06% to 95.83%.

Operating expenses decreased $20,354 primarily due to reduced administrative
expenses. Specifically, the
timing of audit fees incurred and the reduction of computer related expenses
accounted for the majority of
the reduction.

The significant increase in other income was primarily attributable to a
positive settlement in favor of the
partnership related to the Cave Creek Lock-It Lockers.

Distributions were $2.25 per share, totaling $46,471 for the first quarter of
1998 as compared to $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 March 31, 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        /May 15, 1998                               /S/        John
Vishnevsky      
                                                       
                                           John Vishnevsky
                                      President and Chief Operating and
                                                 Executive Officer
                                      National Development and Investment, Inc.
                                           Corporate General Partner


Date       /S/May 15, 1998                                   /S/        John
Vishnevsky                                                                     
                                            John Vishnevsky
                                      Chief Financial and Accounting Officer



Date       /S/May 15, 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        May 15, 1998                                                 
                                                John Vishnevsky
                                           President and Chief Operating and
                                                   Executive Officer
                                      National Development and Investment, Inc.
                                      Corporate General Partner



Date        May 15, 1998                                                 
                                           John Vishnevsky
                                      Chief Financial and Accounting Officer



Date        May 15, 1998                                                 
                                           Stephen P. Kotecki
                                                President 
                                                  EC Corp
                                                Corporate General Partner














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