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 June 30, 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 June 30, 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>

                                                           June 30,           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                                        2,103               1,924
Note receivable, net                                                --                 270
Accounts receivable                                                 16                  16
Deferred financing costs and other fees, net of
    accumulated  amortization of $52
    and $50 at June 30, 1998 and
    December 31, 1997, respectively                                 24                  26
Other assets                                                        11                   6
                                                        --------------      --------------
           Total assets                                 $        3,959      $        4,047
                                                        ==============      ==============
Liabilities and Partners' Equity (Deficit)
------------------------------------------
Liabilities:
    Note payable                                        $        1,772      $        1,791
    Accounts payable and other liabilities                          41                  66
                                                        --------------      ---------------
       Total liabilities                                         1,813               1,857
                                                        --------------      --------------
Partners' Equity (Deficit):
    General partners                                               (36)                (35)
    Limited partners, 18,346 limited partnership
      units outstanding at June 30, 1998 and
      December 31, 1997                                          2,182               2,225
                                                         -------------      ---------------
           Total partners' equity                                2,146               2,190
                                                         -------------      ---------------
              Total liabilities and partners' equity    $        3,959      $        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)
<TABLE>
<CAPTION>

                                                           Three months ended              Six months ended
                                                               June 30,                         June 30,
                                                           ------------------              -----------------
                                                        1998             1997             1998              1997
                                                    ----------         ----------      ----------        -----------
<S>                                                 <C>                <C>              <C>              <C>
Revenues:
 Rental income                                      $      102         $      137       $     194        $      267
 Interest and other income                                  25                 22              50                23
                                                    ----------         ----------       ---------        -----------
        Total revenue                                      127                159             244               290
                                                    ----------         ----------       ---------        -----------
Expenses:
 Operating                                                  47                 55              85               114
 Interest                                                   42                 45              86                89
 Amortization                                               --                  6              --                 7
 Provision for impairment of investments
    in real estate                                          --                215              --               215
 General and administrative                                 66                 57             108               116
 Expenses associated with undeveloped land                   2                 21               9                33
                                                    ----------         ----------       ----------       -----------
        Total expenses                                     157                399             288               574
                                                    ----------         ----------       ----------       -----------
Net loss                                            $      (30)        $     (240)      $     (44)        $    (284)
                                                    ===========        ===========      ==========       ===========
Net loss per limited partnership unit               $    (1.63)        $   (12.81)      $   (2.39)        $  (15.15)
                                                    ===========        ===========      ==========       ===========
Weighted average number of limited partnership
  units outstanding during the period used to
  compute net loss per limited partnership unit         18,346             18,346          18,346             18,346
                                                    ===========        ===========      ===========       ===========
</TABLE>








                 See accompanying notes to financial statements.




                                  Page 3 of 11

<PAGE>




                              RANCON REALTY FUND I,
                        A CALIFORNIA LIMITED PARTNERSHIP

                    Statements of Partners' Equity (Deficit)
                 For the six months ended June 30, 1998 and 1997
                                 (in thousands)
                                   (Unaudited)



                                     General         Limited
                                     Partners       Partners         Total


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

Net loss                                     (1)            (43)           (44)
                                  --------------   -------------  --------------
Balance at June 30, 1998          $         (36)   $      2,182  $       2,146
                                  ==============   ============= ===============


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

Net loss                                     (6)           (278)          (284)
                                  --------------   ------------- ---------------
Balance at June 30, 1997          $         (25)   $      2,731  $       2,706
                                  ==============   ============= ===============














                 See accompanying notes to financial statements.


                                  Page 4 of 11

<PAGE>



                              RANCON REALTY FUND I,

                        A CALIFORNIA LIMITED PARTNERSHIP

                            Statements of Cash Flows
                                 (in thousands)
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                             Six months ended
                                                                 June 30,
                                                             ----------------
                                                              1998        1997
                                                          ----------    --------
<S>                                                         <C>         <C>
Cash flows from operating activities:
  Net loss                                                  $    (44)   $  (284)
Adjustments to reconcile net loss to net cash
 used for operating activities:
    Amortization                                                  --          7
    Amortization of loan fees, included in
      interest expense                                             2          2
    Provision for impairment of investments in
      real estate                                                 --        215
Changes in certain assets and liabilities:
    Deferred financing costs and other fees                       --         (7)
    Other assets                                                  (5)         6
    Accounts payable and other liabilities                       (25)       (20)
                                                             --------    -------
       Net cash used for operating activities                    (72)       (81)
                                                             --------    -------
    Cash flows from investing activities:
    Additions to real estate                                      --        (17)
    Collection of note receivable                                270         --
                                                             --------    -------
    Net cash provided by (used for) investing activites          270        (17)
                                                             --------    -------
Cash flows from financing activities:
    Note payable principal payments                              (19)       (15)
                                                             --------    -------
Net increase (decrease) in cash and cash equivalents             179       (113)

Cash and cash equivalents at beginning of period               1,924        467
                                                             -------     -------
Cash and cash equivalents at end of period                  $  2,103    $   354
                                                             =======    ========
Supplemental disclosure of cash flow information:
  Cash paid for interest                                    $    100    $    94
                                                             =======    ========
</TABLE>


                 See accompanying notes to financial statements.




                                  Page 5 of 11
<PAGE>



                              RANCON REALTY FUND I,

                        A CALIFORNIA LIMITED PARTNERSHIP

                          Notes to Financial Statements

                                  June 30, 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 June  30,  1998 and
December 31, 1997, and the related  statements of operations,  for the three and
six months  ended June 30, 1998 and 1997,  and the changes in  partners'  equity
(deficit) and cash flows for the six months ended June 30, 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  rental  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  June 30, 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 June 30,  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 and Preferred Partnership  Services,  Inc. ("PPS"), a
California  Corporation  unaffiliated with the Parnership,  contracted to assume
these 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

                                  Page 6 of 11
<PAGE>


to obtain a majority vote of the limited  partners to  substitute  itself as 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.

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 to an unaffiliated  third party
for $270,000. Accordingly, the Partnership recorded a provision to impairment of
the note receivable of $30,000 as of December 31, 1997.

Note 4.           INVESTMENTS IN REAL ESTATE
                  --------------------------
The  Partnership  has  entered  into a  purchase  and  sale  agreement  with  an
unaffiliated third party for the sale of Mountain View Plaza Shopping Center and
the adjacent  land.  The sale is expected to be completed  prior to December 31,
1998 at a sale price of $1,920,000,  but there can be no assurance that the sale
will actually be completed.  If the sale is  completed,  after  accruing for all
unpaid  liabilities,  the  Partnership  will  make a final  distribution  to the
partners and the Partnership will be liquidated.







                                  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 June
30, 1998 and its results of  operations  for the six months  ended June 30, 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 offering of limited partnership units (Units) in the amount
of $15,981,000 (net of selling and  organization  expenses) in July, 1983. As of
June 30, 1998,  the  Partnership  had cash of  $2,103,000.  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 June 30, 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  rental  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  June 30,  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 June 30, 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.

The  Partnership  has  entered  into a  purchase  and  sale  agreement  with  an
unaffiliated third party for the sale of the Mountain View Plaza Shopping Center
and the adjacent  land.  The sale is expected to be completed  prior to December
31, 1998 at a sales price of $1,920,000,  but there can be no assurance that the
sale will actually be completed.  If the sale is completed,  after  accruing for
all unpaid  liabilities,  the Partnership will make a final  distribution to the
partners and the Partnership will be liquidated. If this asset cannot be sold by
year-end the Partnership will abandon this asset and terminate the Partnership.

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 as of December 31, 1997.


                                  Page 8 of 11
<PAGE>


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 and six months ended June 30, 1998 decreased $35,000
and $73,000,  respectively,  compared to the three and six months ended June 30,
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 June 30, 1998 and June 30, 1997 were 65% and 92%, respectively.

Interest and other income increased $27,000 during the six months ended June 30,
1998 compared to the same period in 1997 due to interest earned on invested cash
balances.

The decrease in  operating  expenses of $8,000 and $29,000 for the three and six
months ended June 30, 1998, respectively,  compared to the same periods in 1997,
is primarily due to the sale of the Rancon Commerce Center Auto Service Center.

At  June  30,  1997,  management  concluded  that  the  carrying  value  of  the
Partnership's  investment  in Mountain View Plaza  Shopping  Center and adjacent
lots was in excess of their  estimated fair value and a provision for impairment
of the investment in the amount of $215,000 was recorded.

General and  administrative  expenses  decreased $8,000 or 7% for the six months
ended June 30,  1998  compared  to the six months  ended June 30,  1997 due to a
reduction in data processing costs and miscellaneous expenses.

The decrease in expenses associated with undeveloped land of $19,000 and $24,000
for the three and six months ended June 30, 1998, respectively,  compared to the
same periods in 1997, 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: August 14, 1998      By:_______________________________
                              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 Partnership













                                 Page 11 of 11