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

                                    FORM 10-Q

         [X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                  OF THE SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended March 31, 1998

                                       OR

         [ ]       TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                  OF THE SECURITIES EXCHANGE ACT OF 1934

           For the transition period from __________ to ______________


                         Commission File Number: 0-10363


                              RANCON REALTY FUND I,
                        A CALIFORNIA LIMITED PARTNERSHIP.
             (Exact name of registrant as specified in its charter)

                      California                        95-3523265
                      ----------                        ----------
            (State or other jurisdiction of          (I.R.S. Employer
            incorporation or organization)          Identification No.)

         400 South El Camino Real, Suite 1100
                 San Mateo, California                    94402-1708
                 ---------------------                    ----------
       (Address of principal executive offices)           (Zip Code)

                                 (650) 343-9300
                                 --------------
                         (Registrant's telephone number)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.

                                    Yes X   No
                                       ---


         Total number of units outstanding as of March 31, 1998: 18,346


                                  Page 1 of 11
<PAGE>


Part I.           FINANCIAL INFORMATION


Item 1.           Financial Statements.

                              RANCON REALTY FUND I,
                        A CALIFORNIA LIMITED PARTNERSHIP

                                 Balance Sheets
                    (in thousands, except units outstanding)
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                           March 31,       December 31,
                                                              1998             1997
                                                        --------------     --------------
<S>                                                     <C>                <C>
Assets
Investments in real estate:
    Rental property held for sale                       $        1,439     $        1,439
    Land held for sale                                             366                366
                                                        --------------     --------------
           Net real estate investments                           1,805              1,805

Cash and cash equivalents                                        2,148              1,924
Note receivable, net                                                --                270
Accounts receivable                                                 23                 16
Deferred financing costs and other fees, 
    net of accumulated  amortization of $51
    and $50 at March 31, 1998 and December 31,
    1997, respectively                                              25                 26
Other assets                                                         7                  6
                                                        --------------    ---------------

           Total assets                                 $        4,008     $        4,047
                                                        ==============     ==============

Liabilities and Partners' Equity (Deficit)
Liabilities:
    Note payable                                        $        1,783     $        1,791
    Accounts payable and accrued expenses                           23                 40
    Interest payable                                                14                 14
    Other liabilities                                               12                 12
                                                        --------------     --------------

       Total liabilities                                         1,832              1,857
                                                        --------------     --------------

Partners' Equity (Deficit):
    General partners                                               (35)               (35)
    Limited partners, 18,346 limited partnership
      units outstanding at March 31, 1998 and
      December 31, 1997                                          2,211              2,225
                                                        --------------     --------------

           Total partners' equity                                2,176              2,190
                                                        --------------     --------------

            Total liabilities and partners' equity      $        4,008     $        4,047
                                                        ==============     ==============
</TABLE>


                  See accompanying notes to financial Statements.



                                  Page 2 of 11
<PAGE>


                              RANCON REALTY FUND I,
                        A CALIFORNIA LIMITED PARTNERSHIP

                            Statements of Operations
          (in thousands, except units outstanding and per unit amounts)
                                   (Unaudited)

                                                        Three months ended
                                                            March 31,
                                                      ----------------------
                                                         1998         1997
                                                      ----------------------
Revenue:
    Rental income                                      $     92     $    130
    Interest and other income                                25            1
                                                       --------     --------

        Total revenue                                       117          131
                                                       --------     --------

Expenses:
    Operating                                                38           59
    Interest                                                 44           44
    Depreciation and amortization                            --            1
    General and administrative                               42           59
    Expenses associated with undeveloped land                 7           12
                                                       --------     --------

        Total expenses                                      131          175
                                                       --------     --------

Net loss                                               $    (14)    $    (44)
                                                       ========     ========

Net loss per limited partnership unit                  $  (0.76)    $  (2.34)
                                                       =========    =========

Weighted average number of limited partnership
   units outstanding during the period used to
   compute net loss per limited partnership unit         18,346       18,346
                                                       ========     ========












                 See accompanying notes to financialstatements.



                                  Page 3 of 11
<PAGE>



                              RANCON REALTY FUND I,
                        A CALIFORNIA LIMITED PARTNERSHIP

                    Statements  of  Partners'  Equity  (Deficit)
                For the  three months ended March 31, 1998 and 1997
                                 (in thousands)
                                   (Unaudited)



                                  General         Limited
                                  Partners       Partners           Total
                               --------------    -----------    -------------

Balance at December 31, 1997   $         (35)   $      2,225    $       2,190

Net loss                                  --             (14)             (14)
                               -------------    ------------    -------------

Balance at March 31, 1998      $         (35)   $      2,211    $       2,176
                               =============    ============    =============



Balance at December 31, 1996   $         (19)   $      3,009    $       2,990

Net loss                                  (1)            (43)             (44)
                               -------------    ------------    -------------

Balance at March 31, 1997      $         (20)   $      2,966    $       2,946
                               =============    ============    =============















                 See accompanying notes to financialstatements.


                                  Page 4 of 11
<PAGE>


                              RANCON REALTY FUND I,

                        A CALIFORNIA LIMITED PARTNERSHIP

                            Statements of Cash Flows
                                 (in thousands)
                                   (Unaudited)
                                                            Three months ended
                                                                 March 31,
                                                           ---------------------
                                                             1998          1997
                                                           ---------------------
Cash flows from operating activities:
  Net loss                                                 $  (14)       $  (44)
Adjustments to reconcile net loss to net cash
 used for operating activities:
    Depreciation and amortization                              --             1
    Amortization of loan fees, included in
     interest expense                                           1             1
Changes in certain assets and liabilities:
    Accounts receivable                                        (7)
    Other assets                                               (1)            4
    Accounts payable and accrued expenses                     (17)           (1)
                                                           -------        ------

       Net cash used for operating activities                  38)          (39)
                                                           -------        ------
Cash flows from investing activities:
    Additions to real estate                                   --            (2)
    Collection of note receivable                             270            --
                                                           -------       -------
     Net cash provided by (used for)  investing activitieS    270            (2)
                                                           -------       -------

Cash flows from financing activities:
    Note payable principal payments                            (8)           (8)
                                                           -------       -------

       Net cash used for financing activities                  (8)           (8)
                                                           -------       -------

Net increase (decrease) in cash and cash equivalents          224           (49)

Cash and cash equivalents at beginning of period            1,924           467
                                                           -------       -------

Cash and cash equivalents at end of period                  2,148           418
                                                           =======       =======

Supplemental disclosure of cash flow information:
  Cash paid for interest                                   $   43        $   49
                                                           =======       =======




                 See accompanying notes to financialstatements.



                                  Page 5 of 11
<PAGE>




                              RANCON REALTY FUND I,

                        A CALIFORNIA LIMITED PARTNERSHIP

                          Notes to Financial Statements

                                 March 31, 1998
                                   (Unaudited)



Note 1.           THE PARTNERSHIP AND ITS SIGNIFICANT ACCOUNTING POLICIES
                  -------------------------------------------------------

In the opinion of Rancon Financial  Corporation  (RFC) and Daniel Lee Stephenson
(the Sponsors) and Glenborough Corporation (successor by merger with Glenborough
Inland Realty Corporation) ("Glenborough"), the accompanying unaudited financial
statements  contain  all  adjustments   (consisting  of  only  normal  accruals)
necessary to present  fairly the  financial  position of Rancon Realty Fund I, a
California  Limited  Partnership,  (the  Partnership)  as of March 31,  1998 and
December  31,  1997,  and the  related  statements  of  operations,  changes  in
partners'  equity  (deficit) and cash flows for the three months ended March 31,
1998 and 1997.

Allocation of profits,  losses,  cash  distributions  from  operations  and cash
distributions  from sales or  financing  are made  pursuant  to the terms of the
Partnership  Agreement which  generally  allocates such items 98% to the limited
partners and 2% to the general partners.

On February 12, 1997, the general partners adopted a plan of orderly liquidation
of the  Partnership's  assets.  During  1997,  the  Partnership  sold one rental
property and approximately 13.9 acres of land. The remaining investments in real
estate  consist  of one  rented  property  and  the  adjacent  lots  (comprising
approximately 8.9 acres).  These investments are classified as property and land
held for sale on the Partnership's  March 31, 1998 and December 31, 1997 balance
sheets and are recorded at the estimated fair value of the respective asset. The
carrying  value of the  investments  in real  estate at March 31,  1998 does not
purport to represent the ultimate sales price the Partnership  will realize from
the  disposition  of  these  assets  nor  are  the  amounts   reflected  in  the
accompanying  financial  statements intended to represent the ultimate amount to
be distributed to partners.

Effective  January 1, 1995,  RFC  entered  into an  agreement  with  Glenborough
whereby  RFC  sold to  Glenborough  the  contract  to  perform  the  rights  and
responsibilities  under RFC's  agreement with the  Partnership and other related
Partnerships  (collectively,  the Rancon Partnerships) to perform or contract on
the Partnership's behalf for financial, accounting, data processing,  marketing,
legal,  investor  relations,  asset and  development  management  and consulting
services for the  Partnership for a period of ten years or until the liquidation
of the  Partnership,  whichever  comes  first.  Effective  January 1, 1998,  the
agreement was amended to eliminate  Glenborough's  responsibility  for providing
investor relation services.  According to the contract, the Partnership will pay
Glenborough for its services as follows:  (i) a specified  asset  administration
fee which is fixed for five years subject to reduction in the year following the
sale of assets;  currently $126,000 per year, (ii) sales fees of 2% for improved
properties and 4% for land;  (iii) a refinancing fee of 2% and (iv) a management
fee of 5% of gross rental receipts. As part of this agreement,  Glenborough will
perform  certain   responsibilities  for  the  general  partner  of  the  Rancon
Partnerships and RFC agreed to cooperate with  Glenborough,  should  Glenborough
attempt to obtain a majority vote of



                                  Page 6 of 11
<PAGE>


                            RANCON REALTY FUND I,

                        A CALIFORNIA LIMITED PARTNERSHIP

                          Notes to Financial Statements

                                 March 31, 1998
                                   (Unaudited)


the limited  partners  to  substitute  itselfas  the Sponsor for the Rancon
Partnerships. Glenborough is not an affiliate of RFC or the Partnership.

Basis of Accounting - The accompanying  financial  statements have been prepared
on the  accrual  basis of  accounting  in  accordance  with  generally  accepted
accounting  principles  under the presumption that the Partnership will continue
as a going  concern.  As discussed  above,  on February  12,  1997,  the general
partners  adopted a plan of orderly  liquidation  of the  Partnership's  assets.
However,  the  liquidation  proceeds  and the timing  thereof are not  currently
estimable.  Once  such  liquidation  proceeds  and the  cost and  timing  of the
liquidation become determinable,  the Partnership will commence reporting on the
liquidation  basis of accounting  whereby  remaining assets will be presented at
the estimated realizable value and remaining liabilities,  including a provision
for the  estimated  costs  of the  plan,  will  be  presented  at the  estimated
settlement  value.  Accordingly,  the accompanying  financial  statements do not
provide  for any  adjustments  relating  to the  aforementioned  plan of orderly
liquidation.  Effective January 1, 1997, the Partnership ceased  depreciation of
the rental properties held for sale.

Reclassification  - Certain 1997 balances have been reclassified to conform with
the current period presentation.

Note 2.           REFERENCE TO 1997 AUDITED FINANCIAL STATEMENTS
                  ----------------------------------------------

These  unaudited  financial  statements  should be read in conjunction  with the
Notes to Financial Statements included in the 1997 audited financial statements.

Note 3.           NOTE RECEIVABLE
                  ---------------

At December 31, 1997, the Partnership held a $300,000 Promissory Note secured by
three Rancon Commerce Center lots totaling  approximately 5.07 acres of land. On
January 16, 1998 the  Partnership  sold this note  receivable to an unaffiliated
third party for $270,000.  Accordingly,  the Partnership recorded a provision to
impairment of the note  receivable of $30,000 on the  accompanying  December 31,
1997 statement of operations.





                                  Page 7 of 11
<PAGE>

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

INTRODUCTION
------------
The following  discussion  addresses the  Partnership's  financial  condition at
March 31, 1998 and its results of  operations  for the three  months ended March
31,  1998 and 1997.  This  information  should be read in  conjunction  with the
Partnership's audited December 31, 1997 Financial Statements,  notes thereto and
other information contained elsewhere in this report.

LIQUIDITY AND CAPITAL RESOURCES
-------------------------------
Rancon  Realty  Fund I, a  California  Limited  Partnership,  (the  Partnership)
completed  its public  offerings  of limited  partnership  units  (Units) in the
amount of $15,981,000 (net of selling and organization  expenses) in July, 1983.
As of March 31, 1998, the Partnership  had cash of $2,148,000.  The remainder of
the  Partnership's  assets consist  primarily of its investments in real estate,
all held for sale, which totaled approximately $1,805,000 at March 31, 1998.

On February 12, 1997, the General Partners adopted a plan of orderly liquidation
of the  Partnership's  assets.  During  1997,  the  Partnership  sold one rental
property and approximately 13.9 acres of land. The remaining investments in real
estate  consist  of one  rented  property  and  the  adjacent  lots  (comprising
approximately  8.9 acres).  These  investments are classified as rental property
and land held for sale on the accompanying  March 31, 1998 and December 31, 1997
balance  sheets and are recorded at the estimated  fair value of the  respective
assets.  The carrying value of the  investments in real estate at March 31, 1998
does not purport to represent  the  ultimate  sales price the  Partnership  will
realize from the  disposition  of these assets nor are the amounts  reflected in
the accompanying  financial statements intended to represent the ultimate amount
to be distributed to partners.

The Partnership's sources of funds have included mortgage indebtedness, property
operations,  and property sales. Funds from property  operations consist of cash
generated from rental  activities  reduced by related rental  expenses and costs
associated with obtaining tenants.  Net cash generated by property operations as
well as the  Partnership's  cash reserves and interest  income thereon have been
used to pay expenses related to the Partnership's administrative operations.

At December 31, 1997, the Partnership held a $300,000 Promissory Note secured by
three Rancon Commerce Center lots totaling  approximately 5.07 acres of land. On
January 16, 1998 the  Partnership  sold this note  receivable to an unaffiliated
third party for $270,000.  Accordingly,  the Partnership recorded a provision to
impairment of the note  receivable of $30,000 on the  accompanying  December 31,
1997 statement of operations.

The Partnership has a single note payable,  in the amount of $1,783,000 which is
secured by  Mountain  View Plaza  Shopping  Center and  matures on June 1, 2002.
Meanwhile,  as of April 1998, the  Partnership has  discontinued  the payment of
debt  service  on the  loan  although,  as of  the  date  of  this  filing,  the
Partnership has not received a Notice of Default or a Notice of Foreclosure from
the secured lender. The Partnership is currently  negotiating with a third party
buyer for the sale of the Mountain View Plaza  Shopping  Center and the adjacent
lots. The



                                  Page 8 of 11
<PAGE>


Partnership  plans to pay-off the loan if a purchase and sale  agreement  can be
reached with the third party buyer and the sale closes.  If this asset cannot be
sold by year-end we will abandon this asset and terminate the partnership.

Management believes that the Partnership's  available cash will be sufficient to
finance the cash requirements of the Partnership until an orderly liquidation is
completed.

RESULTS OF OPERATIONS

Rental income for the three months ended March 31, 1998  decreased  $38,000,  or
29%, compared to the three months ended March 31, 1997 primarily due to the sale
of the Rancon Commerce  Center Auto Service Center on August 1, 1997.  Occupancy
rates at Mountain View Plaza Shopping  Center as of March 31, 1998 and March 31,
1997 were 93% and 90%, respectively.

Interest and other income increased  $24,000 during the three months ended March
31, 1998 compared to the same period in 1997 due to interest  earned on invested
cash balances.

The  decrease in operating  expenses of $21,000 or 36% is  primarily  due to the
sale of the Rancon Commerce Center Auto Service Center.

General  and  administrative  expenses  decreased  $17,000  or 29% for the three
months  ended March 31, 1998  compared to the three  months ended March 31, 1997
due to a reduction in administrative overhead costs of $8,000 as a result of the
sale of Rancon Commerce Center Auto Service, a decrease of $3,000 for a one-time
data  processing  charge,  a decrease of $3,000 in  professional  services and a
$3,000 decrease in miscellaneous expenses.

The decrease in expenses  associated with  undeveloped  land of $7,000 or 42% is
primarily due to the 1997 sales of the Rancon Commerce Center lots.












                                  Page 9 of 11
<PAGE>


Part II. OTHER INFORMATION


Item 1.  Legal Proceedings

                  None.

Item 2.  Changes in Securities

                  Not applicable.

Item 3.  Defaults Upon Senior Securities

                  Not applicable.

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

                  (a) Exhibits:

                  #27 - Financial data schedule.

                  (b) Reports on Form 8-K:

                  None.













                                 Page 10 of 11
<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.


                              RANCON REALTY FUND I,
                                    a California Limited Partnership
                                    (Registrant)



Date: May 14, 1998                  By:  /s/ Daniel L. Stephenson
                                        -------------------------
                                    Daniel L. Stephenson,
                                    General Partner and Director,
                                    President, Chief Executive Officer
                                    and Chief Financial Officer of
                                    Rancon Financial Corporation,
                                    General Partner of
                                    Rancon Realty Fund I,
                                    a California Limited Partner











                                 Page 11 of 11
<PAGE>