FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                Quarterly Report Pursuant to Section 13 or 15 (d)
                     of the Securities Exchange Act of 1934

For the Quarter Ended                                Commission File Number
September 30, 1996                                          0-11909


               REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP II
             (Exact Name of Registrant as specified in its Charter)

Delaware                                      16-1212761
--------------------                          --------------------------------
(State of Formation)                          (IRS Employer Identification No.)


2350 North Forest Road
Suite 12-A
Getzville, New York  14068
(Address of Principal Executive Office)

Registrant's Telephone Number:      (716) 636-0280


Indicate  by a 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
                                                ---     ---
  
Indicate by a check mark if disclosure of delinquent  filers  pursuant to Item
405 of Regulation S-K is not contained herein,  and will not be contained,  to
the best of the  registrant's  knowledge,  in definitive  proxy or information
statements  incorporated  by  reference  in part III of this  Form 10-Q or any
amendment to this Form 10-Q.   (X)

As of  September  30, 1996,  the issuer had 10,000 units of limited  partnership
interest outstanding.



<PAGE>



               REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP II
               --------------------------------------------------

                                      INDEX
                                      -----



                                                                        PAGE NO.
                                                                        --------
PART I:     FINANCIAL INFORMATION
-------     ---------------------

            Balance Sheets -
                  September 30, 1996 and December 31, 1995                3

            Statements of Operations -
                  Three Months Ended September 30, 1996 and 1995          4

            Statements of Operations -
                  Nine Months Ended September 30, 1996 and 1995           5

            Statements of Cash Flows -
                  Nine Months Ended September 30, 1996 and 1995           6

            Statements of Partners' (Deficit) -
                  Nine Months Ended September 30, 1996 and 1995           7

            Notes to Financial Statements                               8 - 19


PART II:    MANAGEMENT'S DISCUSSION AND ANALYSIS OF
--------    FINANCIAL CONDITION AND RESULTS OF OPERATIONS              20 - 21
            ---------------------------------------------



















                                       -2-

<PAGE>

               REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP II
                                 BALANCE SHEETS
                    September 30, 1996 and December 31, 1995
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                       September 30,     December 31,
                                                            1996             1995
                                                           ----             ----
<S>                                                     <C>              <C>  
ASSETS
------

Property, at cost:
     Land                                               $    848,015     $    848,015
     Buildings and improvements                            8,901,141        8,901,141
     Furniture and fixtures                                  425,000          425,000
                                                        ------------     ------------
                                                          10,174,156       10,174,156
     Less accumulated depreciation                         4,972,376        4,677,511
                                                        ------------     ------------
          Property, net                                    5,201,780        5,496,645

Cash                                                            --             30,524
Cash - security deposits                                      36,427           35,350
Escrow deposits                                              268,794          283,000
Accounts receivable, net of allowance for doubtful
     accounts of $143,715 and $113,510, respectively          14,048            7,411
Accounts receivable - affiliates                             137,805          146,238
Mortgage costs, net of accumulated
     amortization of $86,360 and $80,065                     256,035          262,331
Other assets                                                   7,787           44,619
                                                        ------------     ------------

            Total Assets                                $  5,922,676     $  6,306,118
                                                        ============     ============

LIABILITIES AND PARTNERS' (DEFICIT)
-----------------------------------

Liabilities:
     Cash overdraft                                     $     86,617     $       --
     Mortgages payable                                     5,559,378        5,649,616
     Accounts payable and accrued expenses                   525,388          513,354
     Accrued interest                                         42,469           48,846
     Security deposits and prepaid rents                      97,314           78,654
                                                        ------------     ------------
            Total Liabilities                              6,311,166        6,290,470
                                                        ------------     ------------

Losses of unconsolidated joint ventures
     in excess of investment                                 909,635          864,503
                                                        ------------     ------------

Minority interest in consolidated
     joint venture                                           241,247          386,062
                                                        ------------     ------------

Partners' (Deficit):
     General partners                                       (206,937)        (197,803)
     Limited partners                                     (1,332,435)      (1,037,114)
                                                        ------------     ------------
           Total Partners' (Deficit)                      (1,539,372)      (1,234,917)
                                                        ------------     ------------

           Total Liabilities and Partners' (Deficit)    $  5,922,676     $  6,306,118
                                                        ============     ============
</TABLE>
                        See notes to financial statements

                                       -3-

<PAGE>

               REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP II
                            STATEMENTS OF OPERATIONS
                 Three Months Ended September 30, 1996 and 1995
                                   (Unaudited)

                                                     Three Months  Three Months
                                                         Ended         Ended
                                                     September 30, September 30,
                                                          1996          1995
                                                          ----          ----

Income:
     Rental                                            $ 446,511      $ 452,041
     Interest and other income                             4,503         25,295
                                                       ---------      ---------
     Total income                                        451,014        477,336
                                                       ---------      ---------

Expenses:
     Property operations                                 315,271        354,745
     Interest                                            130,321        116,127
     Depreciation and amortization                       101,165        101,485
     Administrative:
          Paid to affiliates                              57,890        150,871
          Other                                           19,589         26,992
                                                       ---------      ---------
     Total expenses                                      624,236        750,220
                                                       ---------      ---------

Loss before allocated loss from joint venture
     and loss allocated to minority interest            (173,222)      (272,884)

Allocated loss from joint venture                        (14,085)        (1,070)

Loss allocated to minority interest                       89,192         16,682
                                                       ---------      ---------

Net loss                                               $ (98,115)     $(257,272)
                                                       =========      =========

Loss per limited partnership unit                      $   (9.52)     $  (24.96)
                                                       =========      =========

Distributions per limited partnership unit             $    --        $    --
                                                       =========      =========

Weighted average number of
     limited partnership units
     outstanding                                          10,000         10,000
                                                       =========      =========




                        See notes to financial statements

                                       -4-

<PAGE>

               REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP II
                            STATEMENTS OF OPERATIONS
                  Nine Months Ended September 30, 1996 and 1995
                                   (Unaudited)

                                                     Nine Months    Nine Months
                                                        Ended          Ended
                                                    September 30,  September 30,
                                                        1996            1995
                                                        ----            ----

Income:
     Rental                                         $ 1,296,490     $ 1,418,920
     Interest and other income                           51,709          63,017
                                                    -----------     -----------
     Total income                                     1,348,199       1,481,937
                                                    -----------     -----------

Expenses:
     Property operations                                786,710         913,136
     Interest                                           390,510         440,452
     Depreciation and amortization                      301,161         305,266
     Administrative:
          Paid to affiliates                            134,321         254,152
          Other                                         139,635         112,254
                                                    -----------     -----------
     Total expenses                                   1,752,337       2,025,260
                                                    -----------     -----------

Loss before allocated loss from joint venture
     and loss allocated to minority interest           (404,138)       (543,323)

Allocated loss from joint venture                       (45,132)         (6,982)

Loss allocated to minority interest                     144,815          20,920
                                                    -----------     -----------

Net loss                                            $  (304,455)    $  (529,385)
                                                    ===========     ===========

Loss per limited partnership unit                   $    (29.53)    $    (51.35)
                                                    ===========     ===========

Distributions per limited partnership unit          $      --       $      3.30
                                                    ===========     ===========

Weighted average number of
     limited partnership units
     outstanding                                         10,000          10,000
                                                    ===========     ===========






                        See notes to financial statements

                                       -5-

<PAGE>
               REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP II
                            STATEMENTS OF CASH FLOWS
                  Nine Months Ended September 30, 1996 and 1995
                                   (Unaudited)
                                                      Nine Months   Nine Months
                                                         Ended         Ended
                                                     September 30, September 30,
                                                         1996           1995
                                                         ----           ----
Cash flow from operating activities:
     Net loss                                           $(304,455)    $(529,385)

Adjustments to reconcile net loss to net cash
 (used in) provided by operating activities:
     Depreciation and amortization                        301,161       305,266
     Loss from joint venture                               45,132         6,982
     Minority interest share of net loss                 (144,815)      (20,920)
Changes in operating assets and liabilities:
     Cash - security deposits                              (1,077)         (215)
     Escrow deposits                                       14,206         1,950
     Accounts receivable                                   (6,637)      (14,542)
     Other assets                                          36,832        32,273
     Accounts payable and accrued expenses                 12,034       247,505
     Accrued interest                                      (6,377)         --
     Security deposits                                     18,660         2,009
                                                        ---------     ---------
Net cash (used in) provided by operating activities       (35,336)       30,923
                                                        ---------     ---------

Cash flow from investing activities:
     Accounts receivable - affiliates                       8,433        36,509
     Capital expenditures                                    --            --
     Payments on note receivable                             --        (140,507)
     Distributions from joint venture                        --            --
                                                        ---------     ---------
Net cash provided by (used in) investing activities         8,433      (103,998)
                                                        ---------     ---------

Cash flows from financing activities:
     Cash overdraft                                        86,617          --
     Principal payments on mortgages and notes            (90,238)      (60,134)
     Distributions to partners                               --         (34,020)
                                                        ---------     ---------
Net cash (used in) financing activities                    (3,621)      (94,154)
                                                        ---------     ---------

Increase (decrease) in cash                               (30,524)     (167,229)

Cash - beginning of period                                 30,524       259,861
                                                        ---------     ---------

Cash - end of period                                    $    --       $  92,632
                                                        =========     =========

Supplemental Disclosure of Cash Flow Information:
     Cash paid for interest                             $ 396,887     $ 440,452
                                                        =========     =========
                        See notes to financial statements

                                       -6-

<PAGE>

               REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP II
                        STATEMENTS OF PARTNERS' (DEFICIT)
                  Nine Months Ended September 30, 1996 and 1995
                                   (Unaudited)


                                        General           Limited Partners
                                       Partners
                                        Amount           Units          Amount
                                        ------           -----          ------

Balance, January 1, 1995             $  (173,828)         10,000    $  (261,866)

Distributions to partners                 (1,020)           --          (33,000)

Net loss                                 (15,882)           --         (513,503)
                                     -----------     -----------    -----------

Balance, September 30, 1995          $  (190,730)         10,000    $  (808,369)
                                     ===========     ===========    ===========


Balance, January 1, 1996             $  (197,803)         10,000    $(1,037,114)

Distributions to partners                   --              --             --

Net loss                                  (9,134)           --         (295,321)
                                     -----------     -----------    -----------

Balance, September 30, 1996          $  (206,937)         10,000    $(1,332,435)
                                     ===========     ===========    ===========






















                        See notes to financial statements

                                       -7-

<PAGE>

               REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP II
                          NOTES TO FINANCIAL STATEMENTS
                  Nine Months Ended September 30, 1996 and 1995
                                   (Unaudited)


1.   GENERAL PARTNER'S DISCLOSURE

     In the opinion of the  General  Partners  of  Realmark  Property  Investors
     Limited Partnership II, all adjustments necessary for the fair presentation
     of the Partnership's financial position, results of operations, and changes
     in cash flows for the nine months  ended  September  30, 1996 and 1995 have
     been  made  in the  financial  statements.  The  financial  statements  are
     unaudited and subject to any year-end adjustments which may be necessary.

2.   FORMATION AND OPERATION OF PARTNERSHIP

     Realmark Property Investors Limited Partnership II (the  "Partnership"),  a
     Delaware  Limited  Partnership,  was formed March 25, 1982,  to invest in a
     diversified portfolio of income-producing real estate.

     In September 1982, the  Partnership  commenced the public offering of units
     of  limited   partnership   interest.   Other  than  matters   relating  to
     organization,  it had no  business  activities  and,  accordingly,  had not
     incurred any expenses or earned any income until the first interim  closing
     (minimum  closing) of the offering  which  occurred  January 31, 1983.  All
     items of income and expense  arose  subsequent  to this date. On August 31,
     1983,  the  offering was  concluded,  at which time 10,000 units of limited
     partnership  interest were  outstanding.  The General Partners are Realmark
     Properties,  Inc., a Delaware  corporation,  the corporate General Partner,
     and Mr. Joseph M. Jayson, the individual General Partner.  Joseph M. Jayson
     is the sole  shareholder of J.M. Jayson & Company,  Inc. (JMJ) and Realmark
     Properties,  Inc. is a  wholly-owned  subsidiary of J.M.  Jayson & Company,
     Inc.

     Under the Partnership  agreement,  the General  Partners and affiliates can
     receive  compensation for services  rendered and reimbursement for expenses
     incurred on behalf of the Partnership.

















                                       -8-

<PAGE>

     FORMATION AND OPERATION OF PARTNERSHIP  (CONTINUED)

     Net  income  or  loss  arising  from  the  sale  or  refinancing  shall  be
     distributed  first to the limited partners in an amount  equivalent to a 7%
     return on the average of their adjusted capital  contributions,  then in an
     amount  equal to their  capital  contributions,  then an amount equal to an
     additional 5% of the average of their adjusted capital  contributions after
     the general  partners receive a disposition fee, then to all partners in an
     amount equal to their respective positive capital balances, and finally, in
     the ratio of 86% to the limited partners and 14% to the general partners.

     Partnership  income or loss not arising from sale or  refinancing  shall be
     allocated 97% to the limited partners and 3% to the general partners.


3.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     Cash
     ----

     For purposes of reporting  cash flows,  cash includes the following  items:
     cash on hand; cash in checking; and money market savings.

     Cash - security deposits
     ------------------------

     Cash - security  deposits  represents  cash on deposit in  accordance  with
     terms  of  a  U.S.  Department  of  Housing  and  Urban  Development  (HUD)
     regulatory  agreement  for  multi-family  housing  projects  under  Section
     223(f).

     Property and depreciation
     -------------------------

     Depreciation is provided using the straight-line  method over the estimated
     useful lives of the respective  assets.  Expenditures  for  maintenance and
     repairs are expensed as incurred,  and major renewals and  betterments  are
     capitalized.  The  Accelerated  Cost Recovery  System are used to calculate
     depreciation expense for tax purposes.

     Minority interest in consolidated joint venture
     -----------------------------------------------

     The  minority  interest in a  consolidated  joint  venture is stated at the
     amount of capital  contributed  by the minority  investor  adjusted for its
     share of joint venture losses.









                                       -9-

<PAGE>

     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  (CONTINUED)

     Rental income
     -------------

     Rental income is recognized  under the operating  method.  The  outstanding
     leases  with  respect to rental  properties  owned are for terms of no more
     than one year for  residential  properties  and five  years for  commercial
     buildings.

     Escrow deposits
     ---------------

     Escrow  deposits  represent  cash which is  restricted  for the  payment of
     property  taxes or for  repairs and  replacements  in  accordance  with the
     mortgage agreement.


4.   ACQUISITION AND DISPOSITION OF RENTAL PROPERTY

     In  January  1984 the  Partnership  acquired a 120 unit  apartment  complex
     (Colony of Kettering)  located in Kettering,  Ohio for a purchase  price of
     $2,769,650,  which included  $197,032 in acquisition fees. The property was
     sold in December 1986 for $3,850,000  which  generated a total net gain for
     financial  statement purposes of $1,482,290.  For income tax purposes,  the
     gain is being recognized under the installment method.

     In February  1984 the  Partnership  acquired a 250 unit  complex  (Foxhunt)
     located in Dayton, Ohio for a purchase price of $5,702,520,  which included
     $455,637 in acquisition fees.

     In December 1983 the  Partnership  acquired an office  complex  (Northwind)
     located in East  Lansing,  Michigan  for a purchase  of  $3,876,410,  which
     included $123,950 in acquisition fees.

5.   INVESTMENT IN JOINT VENTURES

     In December  1983 the  Partnership  entered into an  agreement  with Adaron
     Group (Adaron) and formed Research Triangle Industrial Park West Associates
     Joint  Venture  (Joint  Venture),  the  primary  purpose  of  which  was to
     construct  office/warehouse  buildings as income producing property.  Under
     the terms of the agreement,  the Partnership was to provide the majority of
     the capital  required for the purchase of land and  completion of the Joint
     Venture's development,  while Adaron was to provide development supervision
     and management services.










                                      -10-

<PAGE>

     INVESTMENT IN JOINT VENTURES  (CONTINUED)

     The initial phase of development, which was sold in June 1987, consisted of
     two  buildings:  a 101,000 square foot  office/distribution  building and a
     42,000 square foot office  building.  The purchaser of the property was not
     affiliated  with either joint venture  partner.  The  Partnership  received
     approximately  $2,300,000 in proceeds from the sale, and in July 1987 these
     proceeds were distributed to the limited partners.

     On August 20, 1992 Realmark  Property  Investors  Limited  Partnership VI-A
     (RPILP  VI-A)  purchased   Adaron's  Joint  Venture   interest,   acquiring
     substantially all of the rights previously held by Adaron. Ownership of the
     Joint  Venture is now divided  equally  between the  Partnership  and RPILP
     VI-A. The original Joint Venture agreement provided that the Partnership be
     allocated 95% of any income or loss incurred during phase I, while the most
     recent  agreement  provides for the allocation of 50% of any income or loss
     from phase II to both the Partnership and RPILP VI-A.

     Net cash flow from the Joint Venture is to be distributed as follows:

     To the  Partnership  until it has received a return of 8% (10.25%  prior to
     September  1986) per  annum on the  amount of  capital  contributed  by the
     Partnership.  To the extent such return is not received  from year to year,
     it will accrue and be paid from the next  available cash flow; to the Joint
     Venturer up to an amount equal to that paid to the  Partnership.  No amount
     will be accrued in favor of the other investor;  any remaining amounts will
     be distributed 60% to the Joint Venturer and 40% to the Partnership.

     To the extent there are net proceeds  from any sale or  refinancing  of the
     subject  property,  said proceeds will be paid first to the  Partnership to
     the extent the 8% (10.25% prior to September  1986) per annum return on its
     invested capital is unpaid.  Any additional net proceeds will be payable to
     the  Partnership  until it has  received  an  amount  equal to its  capital
     contributions,  reduced by any prior  distribution  of sale or  refinancing
     proceeds. Thereafter, any remaining net proceeds will be divided 50% to the
     Partnership and 50% to the other Joint Venturer.
















                                        -11-

<PAGE>

     INVESTMENT IN JOINT VENTURES  (CONTINUED)

     On August 20, 1992, the  Partnership  entered into an agreement with Adaron
     Group to form the Research Triangle Land Joint Venture. The primary purpose
     of this joint venture is to develop land on the site of Research  Triangle.
     The ownership of the joint venture is 50%  attributable to Adaron Group and
     50% to the  Partnership.  The  value  allocated  to the land in this  joint
     venture is shown at cost of $412,500.  This joint venture had no operations
     for the nine month period ended September 30, 1996.

     A summary  of the  combined  assets,  liabilities  and  equity of the joint
     venture as of September 30, 1996 and December 31, 1995,  and the results of
     its operations for the nine month periods ended September 30, 1996 and 1995
     are as follows:







































                                        -12-

<PAGE>

                RESEARCH TRIANGLE INDUSTRIAL PARK JOINT VENTURES
                                 BALANCE SHEETS
                    September 30, 1996 and December 31, 1995
<TABLE>
<CAPTION>
                                                               September 30,   December 31,
                                                                    1996           1995
                                                                    ----           ----
<S>                                                            <C>             <C>    
ASSETS
------

Cash and cash equivalents                                      $   366,754     $    92,150
Property, net of accumulated depreciation                        2,113,337       2,439,455
Accounts receivable - affiliates                                   317,287         322,212
Other assets                                                       373,411         461,237
                                                               -----------     -----------

                   Total Assets                                $ 3,170,789     $ 3,315,054
                                                               ===========     ===========


LIABILITIES AND PARTNERS' (DEFICIT)
-----------------------------------

Liabilities:
     Notes payable                                             $ 5,023,109     $ 5,073,225
     Accounts payable and accrued expenses                         165,781         169,665
                                                               -----------     -----------
                   Total Liabilities                             5,188,890       5,242,890
                                                               -----------     -----------

Partners' (Deficit):
     General partners                                             (909,635)       (864,503)
     Other investors                                            (1,108,465)     (1,063,333)
                                                               -----------     -----------
                  Total Partners' (Deficit)                     (2,018,100)     (1,927,836)
                                                               -----------     -----------

                  Total Liabilities and Partners' (Deficit)    $ 3,170,789     $ 3,315,054
                                                               ===========     ===========
                                                                                      
</TABLE>






















                                      -13-

<PAGE>

                RESEARCH TRIANGLE INDUSTRIAL PARK JOINT VENTURES
                            STATEMENTS OF OPERATIONS
                  Nine Months Ended September 30, 1996 and 1995

                                                     Nine Months    Nine Months
                                                         Ended          Ended
                                                    September 30,  September 30,
                                                          1996           1995
                                                          ----           ----

Income:
     Rental                                             $ 769,709     $ 817,949
     Interest and other income                                518           157
                                                        ---------     ---------
     Total income                                         770,227       818,106
                                                        ---------     ---------

Expenses:
     Property operations                                   95,835        43,962
     Interest                                             342,560       367,908
     Depreciation and amortization                        378,093       380,748
     Administrative                                        44,005        39,452
                                                        ---------     ---------
     Total expenses                                       860,491       832,070
                                                        ---------     ---------

Net loss                                                $ (90,264)    $ (13,964)
                                                        =========     =========


Allocation of net loss:
     The Partnership                                    $ (45,132)    $  (6,982)
     RPILP II                                             (45,132)       (6,982)
                                                        ---------     ---------

                                                        $ (90,264)    $ (13,964)
                                                        =========     =========


A reconciliation of the investments in Research  Triangle  Industrial Park Joint
Ventures:

Investment in Joint Venture at beginning of period      $(864,503)
Allocated loss                                            (45,132)
                                                        ---------

Investment in Joint Venture at end of period            $(909,635)
                                                        =========








                                      -14-

<PAGE>

     INVESTMENT IN JOINT VENTURES  (CONTINUED)

     On September 27, 1991 the  Partnership  entered into an agreement to form a
     joint venture with Realmark  Property  Investors  Limited  Partnership VI-A
     (RPILP VI-A) and  Realmark  Property  Investors  Limited  Partnership  VI-B
     (RPILP VI-B). The joint venture was formed for the purpose of operating the
     Foxhunt Apartment complex owned by the Partnership.  Under the terms of the
     agreement, RPILP VI-A contributed $390,000 and RPILP VI-B $1,041,568 to buy
     out the promissory note on the property.  The  Partnership  contributed the
     property net of the first mortgage.

     The original joint venture agreement provided that any income,  loss, gain,
     cash flow, or sale proceeds be allocated 63.14% to the Partnership,  10.04%
     to RPILP  VI-A  and  26.82%  to RPILP  VI-B.  On April 1,  1992,  utilizing
     proceeds  from a mortgage  refinancing,  the  Partnership  bought out RPILP
     VI-A's interest and decreased RPILP VI-B's ownership interest to 11.5%. The
     net loss of the joint venture from the date of inception  through September
     30, 1996 has been  allocated to the minority  interests in accordance  with
     the  agreements  and has been  recorded  as a  reduction  of their  capital
     contributions.

     A  reconciliation  of the  minority  interests  share in the Foxhunt  Joint
     Venture is as follows:

      Balance, January 1, 1996                        $  386,062
      Allocated loss                                    (144,815)
                                                      ----------
      Balance, September 30, 1996                     $  241,247
                                                      ==========


6.   MORTGAGES PAYABLE

     Northwind Office Park

     A mortgage  with a balance of $693,382 and  $778,985 at September  30, 1996
     and 1995,  respectively,  bearing interest at 9.75%. The mortgage  provides
     for annual  principal and interest  payments of $147,660,  payable in equal
     monthly installments with the remaining balance due December 2002.

     A mortgage  with a balance of $322,096 and  $363,614 at September  30, 1996
     and 1995,  respectively,  bearing interest at 9.00%. The mortgage  provides
     for annual  principal  and interest  payments of $57,936,  payable in equal
     monthly  installments with the remaining  balance  originally due September
     1995. The Partnership has been granted an extension as it continues to seek
     replacement financing.








                                      -15-

<PAGE>

     MORTGAGES PAYABLE  (CONTINUED)

     Foxhunt Apartments
     ------------------

     A mortgage  with a balance of  $4,535,369  and  $4,562,362 at September 30,
     1996 and 1995,  respectively,  bearing interest at 9.00%.  Annual principal
     and  interest  payments of $436,296 are due in equal  monthly  installments
     until maturity in March 2027.

     The  aggregate  maturities of the mortgages for each of the next five years
     and thereafter are as follows:

             Year                         Amount
             ----                         ------

             1996                         $    457,765
             1997                              116,735
             1998                              128,394
             1999                              141,220
             2000                              155,328
             Thereafter                      4,650,174
                                          ------------

             TOTAL                        $  5,649,616
                                          ============


7.   RELATED PARTY TRANSACTIONS

     Management fees for the management of Partnership properties are paid to an
     affiliate of the General Partner.  The management agreement provides for 5%
     of gross  monthly  rental  receipts  of the  complex to be paid as fees for
     administering  the operations of the property.  These fees totaled  $66,729
     and  $77,713  for the nine  months  ended  September  30,  1996  and  1995,
     respectively.

     According to the terms of the Partnership  agreement,  the general partners
     are  entitled to receive a  Partnership  management  fee equal to 7% of net
     cash  flow  (as  defined  in the  Partnership  agreement),  2% of  which is
     subordinated to the limited  partners having received an annual cash return
     equal to 7% of their adjusted capital  contributions.  No such fee has been
     paid or accrued by the  Partnership for the nine months ended September 30,
     1996 and 1995.

     Accounts  receivable  - affiliates  amounted to $137,805 at  September  30,
     1996. As of December 31, 1996, this balance has been fully reimbursed.









                                      -16-

<PAGE>

     RELATED PARTY TRANSACTIONS  (CONTINUED)

     Computer  service  charges  for the  Partnership  are paid or accrued to an
     affiliate  of the  General  Partner.  The fee is based  upon the  number of
     apartment units and totaled $3,420 for both the nine months ended September
     30, 1996 and 1995, respectively.

     The general partners are also allowed to collect a property disposition fee
     upon the sale of acquired properties.  This fee is not to exceed the lesser
     of 50% of amounts  customarily  charged  in  arm's-length  transactions  by
     others rendering  similar  services for comparable  properties or 3% of the
     sales price. The property disposition fee is subordinate to payments to the
     limited partners of a cumulative annual return (not compounded) equal to 7%
     of their average  adjusted capital balances and to repayment to the limited
     partners of an amount equal to their original capital  contributions.  Fees
     earned  on the  sale  of  Colony  of  Kettering  and  Research  Phase I are
     approximately $115,500 and $315,000,  respectively.  These amounts will not
     be recorded as Partnership  liabilities  until such time as payment becomes
     probable.

8.   INCOME TAXES

     No provision has been made for income taxes since the income or loss of the
     Partnership  is to be  included  in  the  tax  returns  of  the  individual
     partners.

     The tax returns of the  Partnership  are subject to  examination by federal
     and state  taxing  authorities.  Under  federal and state  income tax laws,
     regulations  and rulings,  certain  types of  transactions  may be accorded
     varying  interpretations  and,  accordingly,  reported  Partnership amounts
     could be changed as a result of any such examination.

























                                      -17-

<PAGE>

     INCOME TAXES (CONTINUED)

     The  reconciliation  of net loss for the nine month periods ended September
     30, 1996 and 1995 as reported in the statements of operations, and as would
     be reported for tax purposes respectively, is as follows:

                                                September 30,      September 30,
                                                     1996                1995
                                                     ----                ----
      Net loss -
           Statement of operations              $  (304,455)         $ (529,385)
      (Add to)  deduct from:
           Difference in depreciation              ( 47,049)          (  99,330)
           Difference in amortization of
           loan discount                              1,665              36,124
           Allowance for doubtful accounts           16,500              11,447
           Difference in depreciation -
           Joint Ventures                           144,888              44,460
                                                -----------          ----------
      Net (loss) for tax purposes               $  (188,451)         $ (536,684)
                                                ===========          ========== 





































                                      -18-

<PAGE>

     INCOME TAXES (CONTINUED)

     The  reconciliation  of  partner's  (deficit)  at  September  30,  1996 and
     December  31, 1995 as reported in the balance  sheets,  and as reported for
     tax purposes, is as follows:

                                            September 30,          December 31,
                                                1996                    1995
                                                ----                    ----

      Partner's (Deficit) - balance sheet $  (1,539,372)         $  (1,234,917)
       Add to (deduct from):
            Accumulated difference in
            depreciation                      (3,795,288)           (3,748,239)
            Accumulated amortization
            of discounts on mortgage
            payables                           1,210,089             1,208,424
            Syndication fees                   1,133,176             1,133,176
            Gain on sale of property          (  561,147)           (  561,147)
            Allowance for doubtful
             accounts                            101,951                85,451
            Other                             (   47,606)           (   47,606)
            Difference in Investment
            in Joint Venture                     607,800               462,912
                                           -------------         -------------
 
       Partner's (Deficit) - tax return    $  (2,890,397)        $  (2,701,946)
                                           =============         ============= 


9.    PENDING SALES

     On July 16, 1996 the Corporate  General  Partner entered into a contract on
     behalf of the Partnership to sell the Fox Hunt Apartments for a sales price
     of $7,400,000. The contract is subject to a number of contingencies as were
     described in Form 8-K filed on July 31,  1996.  No firm closing date on the
     sale has been established to date.
















                                      -19-

<PAGE>

PART II:    MANAGEMENT'S DISCUSSION AND ANALYSIS OF
            FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Liquidity and Capital Resources
-------------------------------

The  Partnership  struggled  this quarter with  continued  low  occupancy at the
Northwind Office Complex.  Occupancy at this property has been a problem through
all of 1996.  Management is putting  together an aggressive  marketing  campaign
which will focus on heavier advertising and incentives to local brokers. Foxhunt
Apartments  seems to be on an upward swing with  economic  occupancy  increasing
from an average of 80.3% for the  quarter  ended June 30,  1996 to an average of
88.9% for the quarter ended September 30, 1996.  Occupancy at Research  Triangle
(a joint  venture)  continues  to be very  strong.  Although  operating  revenue
decreased  approximately  8.6% from the same nine month  period in the  previous
year,  total  expenses  decreased a  significant  amount  resulting  in a better
financial  position  than  during the same nine  months of 1995.  Management  is
optimistic  that the decrease in expenses will continue as more control is being
exercised  over  expenditures;  with more  control  over  spending now in place,
management is focusing on ways to increase operating revenue.

There were no  distributions  during the nine month period ended  September  30,
1996,  unlike the same period in 1995 in which there was a distribution of $3.30
per limited  partnership  unit. The  Partnership  has been utilizing its cash to
fund capital  improvements;  management expects to continue making  improvements
(e.g. painting, carpet and appliance replacements, etc.) to the properties in an
effort to increase  occupancies.  At this point,  management does not anticipate
making any distributions during 1996.

Management  continues  to work  hard  to  close  the  pending  sale  of  Foxhunt
Apartments which was entered into in July of 1996.


Results of Operations:
----------------------

For the quarter ended September 30, 1996, the Partnership's net loss was $98,115
or $9.52 per limited  partnership unit. Net loss for the quarter ended September
30, 1995  amounted to  $257,272  or $24.96 per unit.  For the nine month  period
ended  September  30,  1996,  the net loss was  $304,455  or $29.53 per  limited
partnership unit as compared to $529,385 or $51.35 per limited  partnership unit
for the nine month period ended September 30, 1995.










                                      -20-

<PAGE>

Results of Operations  (continued):
-----------------------------------

Partnership revenue for the quarter ended September 30, 1996 totaled $451,014, a
decrease of approximately $26,000 from the 1995 amount of $477,336. Total rental
revenue  dropped  slightly  over $5,500,  which can be  attributed  to continued
occupancy  problems at the Northwind  Office  Complex.  Management  continues to
offer  rental  concessions  and other  promotions  in an attempt to increase the
occupancies;  additionally, management is focusing extra attention on collection
efforts to avoid delinquencies.

For the quarter  ended  September  30, 1996,  Partnership  expenses  amounted to
$624,236,  continuing  the pattern which has been noted for the entire 1996 thus
far.  Expenses  dropped  almost  $126,000 from the same quarter in 1995. For the
nine month period ended September 30, 1996,  Partnership expenses decreased just
under  $273,000  from the same period in 1995.  Management  continues to monitor
closely payroll and associated  costs,  replacement  expenditures and contracted
services  costs in an  attempt  to keep  property  operations  costs down in the
Partnership.  There has also been a fairly  significant  drop in  administrative
expenses  paid to related  parties  primarily  due to a drop in  accounting  and
portfolio management fees.

The Research  Triangle  Industrial Park Joint Venture generated a total net loss
of $90,264 for the nine month period ended  September 30, 1996;  50% of the loss
(i.e. $45,132) is allocated to each joint venturer.  The joint venture generated
a significantly higher net loss during the first nine months of 1996 as compared
to that for the nine month period ended  September 30, 1995,  which was $13,964.
The loss has increased  primarily due to increased  operations costs in the area
of contracted services for grounds work and roof repairs.

For the nine months ended  September 30, 1996, the  Partnership  generated a tax
loss of $188,451 or $18.28 per limited  partnership  unit.  The tax loss for the
first nine months of 1995 totaled $536,684 or $52.06 per unit.





















                                      -21-

<PAGE>


               REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP II
               --------------------------------------------------


                                     PART II
                                     -------

                                OTHER INFORMATION
                                -----------------


Item 1 - Legal Proceedings
--------------------------

The Partnership is not a party to, nor are any of the  Partnership's  properties
subject to any material pending legal proceedings  other than ordinary,  routine
litigation incidental to the Partnership's business.

Items 2, 3, 4 and 5
-------------------

Not applicable.

Item 6 - Exhibits and reports on Form 8-K
-----------------------------------------

Exhibit 27 - Financial Data Schedule (Electronic filing only)

Reports on Form 8-K - None.






















                                      -22-

<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.


REALMARK PROPERTY INVESTORS
LIMITED PARTNERSHIP II



By:   /s/Joseph M. Jayson                       January 2, 1997 
      ------------------------------            ------------------------
      Joseph M. Jayson,                         Date
      Individual General Partner



Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed by the following  persons on behalf of the registrant and in the
capacities and on the dates indicated.


By:   REALMARK PROPERTIES, INC.
      Corporate General Partner

      /s/Joseph M. Jayson                       January 2, 1997  
      ------------------------------            ------------------------
      Joseph M. Jayson,                         Date
      President and Director



      /s/Michael J. Colmerauer                  January 2, 1997  
      ------------------------------            ------------------------
      Michael J. Colmerauer                     Date
      Secretary