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
June 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 June 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 -
                  June 30, 1996 and December 31, 1995                      3

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

            Statements of Operations -
                  Six Months Ended June 30, 1996 and 1995                  5

            Statements of Cash Flows -
                  Six Months Ended June 30, 1996 and 1995                  6

            Statements of Partners' (Deficit) -
                  Six Months Ended June 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
                       June 30, 1996 and December 31, 1995
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                             June 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                          4,873,310        4,677,511
                                                         ------------     ------------
          Property, net                                     5,300,846        5,496,645

Cash                                                             --             30,524
Cash - security deposits                                       35,725           35,350
Escrow deposits                                               212,812          283,000
Accounts receivable, net of allowance for doubtful
     accounts of $144,060 and $113,510, respectively            1,751            7,411
Accounts receivable - affiliates                              181,288          146,238
Mortgage costs, net of accumulated
     amortization of $84,262 and $80,065                      258,134          262,331
Other assets                                                   13,570           44,619
                                                         ------------     ------------

             Total Assets                                $  6,004,126     $  6,306,118
                                                         ============     ============

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

Liabilities:
     Cash overdraft                                      $     41,301     $       --
     Mortgages payable                                      5,588,705        5,649,616
     Accounts payable and accrued expenses                    445,950          513,354
     Accrued interest                                          48,846           48,846
     Security deposits and prepaid rents                       94,592           78,654
                                                         ------------     ------------
             Total Liabilities                              6,219,394        6,290,470
                                                         ------------     ------------

Losses of unconsolidated joint ventures
     in excess of investment                                  895,551          864,503
                                                         ------------     ------------

Minority interest in consolidated
     joint venture                                            330,439          386,062
                                                         ------------     ------------

Partners' (Deficit):
     General partners                                        (203,993)        (197,803)
     Limited partners                                      (1,237,264)      (1,037,114)
                                                         ------------     ------------
            Total Partners' (Deficit)                      (1,441,257)      (1,234,917)
                                                         ------------     ------------

            Total Liabilities and Partners' (Deficit)    $  6,004,126     $  6,306,118
                                                         ============     ============
</TABLE>
                        See notes to financial statements

                                       -3-

<PAGE>

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

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

Income:
     Rental                                            $ 411,373      $ 463,262
     Interest and other income                            20,758         23,347
                                                       ---------      ---------
     Total income                                        432,131        486,609
                                                       ---------      ---------

Expenses:
     Property operations                                 193,618        288,731
     Interest                                            131,970        148,727
     Depreciation and amortization                       101,165        101,889
     Administrative:
          Paid to affiliates                              52,424         42,118
          Other                                           70,642         49,944
                                                       ---------      ---------
     Total expenses                                      549,819        631,409
                                                       ---------      ---------

Loss before allocated loss from joint venture
     and loss allocated to minority interest            (117,688)      (144,800)

Allocated loss from joint venture                        (10,274)        (1,351)

Loss allocated to minority interest                       41,341          1,931
                                                       ---------      ---------

Net loss                                               $ (86,621)     $(144,220)
                                                       =========      =========

Loss per limited partnership unit                      $   (8.40)     $  (13.99)
                                                       =========      =========

Distributions per limited partnership unit             $    --        $    1.65
                                                       =========      =========

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
                     Six Months Ended June 30, 1996 and 1995
                                   (Unaudited)

                                                    Six Months        Six Months
                                                      Ended              Ended
                                                     June 30,          June 30,
                                                       1996              1995
                                                       ----              ----
Income:
     Rental                                         $   849,979     $   966,879
     Interest and other income                           47,206          37,722
                                                    -----------     -----------
     Total income                                       897,185       1,004,601
                                                    -----------     -----------

Expenses:
     Property operations                                471,439         558,391
     Interest                                           260,189         324,325
     Depreciation and amortization                      199,996         203,781
     Administrative:
          Paid to affiliates                             76,431         103,281
          Other                                         120,046          85,262
                                                    -----------     -----------
     Total expenses                                   1,128,101       1,275,040
                                                    -----------     -----------

Loss before allocated loss from joint venture
     and loss allocated to minority interest           (230,916)       (270,439)

Allocated loss from joint venture                       (31,048)         (5,912)

Loss allocated to minority interest                      55,623           4,238
                                                    -----------     -----------

Net loss                                            $  (206,340)    $  (272,113)
                                                    ===========     ===========

Loss per limited partnership unit                   $    (20.02)    $    (26.39)
                                                    ===========     ===========

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
                     Six Months Ended June 30, 1996 and 1995
                                   (Unaudited)

                                                         Six Months   Six Months
                                                           Ended         Ended
                                                          June 30,     June 30,
                                                            1996         1995
                                                            ----         ----
Cash flow from operating activities:
     Net loss                                           $(206,340)    $(272,113)

Adjustments to reconcile net loss to net cash
  provided by (used in) operating  activities:
     Depreciation and amortization                        199,996       203,781
     Loss from joint venture                               31,048         5,912
     Minority interest share of net loss                  (55,623)       (4,238)
Changes in operating assets and liabilities:
     Cash - security deposits                                (375)         (215)
     Escrow deposits                                       70,188        75,526
     Accounts receivable                                    5,660       (14,542)
     Other assets                                          31,049      (113,983)
     Accounts payable and accrued expenses                (67,404)       64,318
     Accrued interest                                        --            --
     Security deposits                                     15,938         7,089
                                                        ---------     ---------
Net cash provided by (used in) operating activities        24,136       (48,465)
                                                        ---------     ---------

Cash flow from investing activities:
     Accounts receivable - affiliates                     (35,050)       (9,968)
     Capital expenditures                                    --            --
     Payments on note receivable                           28,812
     Distributions from joint venture                        --            --
                                                        ---------     ---------
Net cash (used in) provided by investing activities       (35,050)       18,844
                                                        ---------     ---------

Cash flows from financing activities:
     Cash overdraft                                        41,301          --
     Principal payments on mortgages and notes            (60,911)      (26,297)
     Distributions to partners                               --         (34,020)
                                                        ---------     ---------
Net cash (used in) financing activities                   (19,610)      (60,317)
                                                        ---------     ---------

Increase (decrease) in cash                               (30,524)      (89,938)

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

Cash - end of period                                    $    --       $ 169,923
                                                        =========     =========

Supplemental Disclosure of Cash Flow Information:
     Cash paid for interest                             $ 260,189     $ 309,327
                                                        =========     =========
                        See notes to financial statements
                                       -6-

<PAGE>


               REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP II
                        STATEMENTS OF PARTNERS' (DEFICIT)
                     Six Months Ended June 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                                (8,163)            --          (263,950)
                                   -----------      -----------     -----------

Balance, June 30, 1995             $  (183,011)          10,000     $  (558,816)
                                   ===========      ===========     ===========


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

Distributions to partners                 --               --              --

Net loss                                (6,190)            --          (200,150)
                                   -----------      -----------     -----------

Balance, June 30, 1996             $  (203,993)          10,000     $(1,237,264)
                                   ===========      ===========     ===========



















                        See notes to financial statements

                                       -7-

<PAGE>

               REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP II
                          NOTES TO FINANCIAL STATEMENTS
                     Six Months Ended June 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 six months  ended  June 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,
     revenues or expenses for the six month period ended June 30, 1996.

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





































                                      -12-

<PAGE>

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

Cash and cash equivalents                                      $   212,588     $    92,150
Property, net of accumulated depreciation                        2,222,042       2,439,455
Accounts receivable - affiliates                                   313,582         322,212
Other assets                                                       418,475         461,237
                                                               -----------     -----------

                   Total Assets                                $ 3,166,687     $ 3,315,054
                                                               ===========     ===========


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

Liabilities:
     Notes payable                                             $ 5,035,874     $ 5,073,225
     Accounts payable and accrued expenses                         120,744         169,665
                                                               -----------     -----------
                   Total Liabilities                             5,156,618       5,242,890
                                                               -----------     -----------

Partners' (Deficit):
     General partners                                             (895,551)       (864,503)
     Other investors                                            (1,094,381)     (1,063,333)
                                                               -----------     -----------
                  Total Partners' (Deficit)                     (1,989,931)     (1,927,836)
                                                               -----------     -----------

                  Total Liabilities and Partners' (Deficit)    $ 3,166,687     $ 3,315,054
                                                               ===========     ===========
</TABLE>

























                                      -13-

<PAGE>

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

                                                    Six Months       Six Months
                                                      Ended             Ended
                                                     June 30,          June 30,
                                                       1996              1995
                                                       ----              ----
Income:
     Rental                                         $ 506,807         $ 542,901
     Interest and other income                            380               145
                                                    ---------         ---------
     Total income                                     507,187           543,046
                                                    ---------         ---------

Expenses:
     Property operations                               66,756            51,901
     Interest                                         218,250           221,193
     Depreciation and amortization                    255,315           253,832
     Administrative                                    28,961            27,944
                                                    ---------         ---------
     Total expenses                                   569,282           554,870
                                                    ---------         ---------

Net loss                                            $ (62,095)        $ (11,824)
                                                    =========         =========


Allocation of net loss:
     The Partnership                                $ (31,048)        $  (5,912)
     RPILP II                                         (31,048)           (5,912)
                                                    ---------         ---------

                                                    $ (62,095)        $ (11,824)
                                                    =========         =========


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

Investment in Joint Venture at beginning of period $ (864,503)
Allocated loss                                        (31,048)
                                                   ----------

Investment in Joint Venture at end of period       $ (895,551)
                                                   ==========








                                      -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 June 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                                   ( 55,623)
                                                      ---------
      Balance, June 30, 1996                          $ 330,439
                                                      =========  

6.   MORTGAGES PAYABLE

     Northwind Office Park
     ---------------------

     A mortgage  with a balance of  $706,262  and  $787,000 at June 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  $331,619  and  $389,667 at June 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 $4,542,292 and $4,568,484 at June 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  $33,000
     and $47,343 for the six months ended June 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 six months ended June 30, 1996
     and 1995.

     Accounts  receivable  -  affiliates  amounted to $181,288 at June 30, 1996.
     This balance is in the process of being 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  $2,280 for both the six months ended June 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 six month  periods  ended June 30,
     1996 and 1995 as reported in the statements of operations,  and as would be
     reported for tax purposes respectively, is as follows:

                                                   June 30,           June 30,
                                                    1996                1995
                                                    ----                ----
      Net loss -
           Statement of operations              $  (206,340)        $ (272,113)
      (Add to)  deduct from:
           Difference in depreciation              ( 31,366)          ( 66,220)
           Difference in amortization of
           loan discount                              1,110             14,997
           Allowance for doubtful accounts           11,000              5,688
           Difference in depreciation -
           Joint Ventures                            96,592             29,640
                                                -----------         ----------  
      Net (loss) for tax purposes               $ ( 129,004)        $ (288,008)
                                                ===========         ========== 

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

                                               June 30,            December 31,
                                                1996                   1995
                                                ----                   ----

      Partner's (Deficit) - balance sheet  $ (1,441,257)          $ (1,234,917)
       Add to (deduct from):
            Accumulated difference in
            depreciation                     (3,779,605)            (3,748,239)
            Accumulated amortization
            of discounts on mortgage
            payables                          1,209,534              1,208,424
            Syndication fees                  1,133,176              1,133,176
            Gain on sale of property         (  561,147)            (  561,147)
            Allowance for doubtful
             accounts                            96,451                 85,451
            Other                            (   47,606)            (   47,606)
            Difference in Investment
            in Joint Venture                    559,504                462,912
                                           ------------           ------------
    
       Partner's (Deficit) - tax return    $ (2,830,950)          $ (2,701,946)
                                           ============           ============ 








                                        -18-

<PAGE>

9.   SUBSEQUENT EVENTS

     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
-------------------------------

Although the Partnership  continues to operate with a net loss for the six month
period ended June 30, 1996,  there are signs of  improvement  as compared to the
same  six  month  period  in  the  previous  year.  Rental  income  has  dropped
significantly  from the six month  period ended June 30, 1996 as compared to the
same period in 1995, however management has implemented successful controls over
expenses,  such as closer monitoring of payroll and other operating expenses, to
balance the loss of revenues.  Fox Hunt Apartments and Research  Triangle Office
Complex  continue to have stable  occupancies,  while  Northwind  Office Park is
struggling  with lower than expected  occupancies.  The General Partner has been
sending out packages to lenders to refinance the  Northwind  property at a lower
interest rate than is currently being paid, but with the low occupancy, there is
no guaranty  that they will be  successful.  Management  continues  to undertake
activities to stabilize  occupancies,  increase rents, and otherwise enhance the
value of the portfolio in  anticipation  of the possible  refinancing or sale of
properties.

The Partnership made no distributions during the six month period ended June 30,
1996, and the General Partner does not anticipate making any distributions until
the cash flow from the properties improves and necessary capital improvements to
the properties  have been  completed.  The General Partner has a signed contract
for the sale of the Fox Hunt  Apartments,  although a firm  closing date has not
been established.

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

For the quarter ended June 30, 1996, the  Partnership's  net loss was $86,621 or
$8.40 per limited partnership unit. Net loss for the quarter ended June 30, 1995
amounted to $144,220 or $13.99 per unit. For the six month period ended June 30,
1996,  the net loss was  $206,340  or $20.02  per  limited  partnership  unit as
compared to $272,113  or $26.39 per limited  partnership  unit for the six month
period ended June 30, 1995.

Partnership  revenue for the quarter  ended March 31, 1996 totaled  $432,131,  a
decrease of approximately $55,000 from the 1995 amount of $486,609. Total rental
revenue  dropped  almost  $52,000,  which makes up most of the decrease in total
revenue.  The  majority of the decrease can be  attributed  to falling  economic
occupancy  levels at  Northwind  Office  Complex.  Compared  to the prior  year,
physical   occupancy   dropped,   while  rental  concessions  and  delinquencies
increased. Management continues to offer rental concessions and other promotions
in an attempt to increase the occupancies.



                                      -20-

<PAGE>

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

For the quarter ended June 30, 1996,  Partnership expenses amounted to $549,819,
decreasing  by almost  $82,000 from the 1995 quarter  amount.  For the six month
period ended June 30, 1996, Partnership expenses decreased by over $146,000 from
the same period in 1995. A large  decrease in property  operations  expenditures
should  be  noted;  in this  area,  specifically,  a  decrease  in  payroll  and
associated  costs and appliance and equipment  replacement  costs related to Fox
Hunt,  and a decrease in payroll and  associated  costs and  contracted  service
costs at Northwind are  responsible for the decrease.  Repairs and  maintenance,
utility costs, and insurance expenses all remained fairly stable between the six
month periods ended June 30, 1996 and 1995.

The Research  Triangle  Industrial Park Joint Venture generated a total net loss
of $62,095 for the six month  period  ended June 30, 1996 with 50% or $31,048 of
the loss  allocated to each joint  venturer.  The joint venture  generated a net
loss of  $11,824  for the six month  period  ended  June 30,  1995  with  $5,912
allocated to each  venturer.  The loss has increased  primarily due to increased
operations  costs in the area of  contracted  services for grounds work and roof
repairs.

For the six months ended June 30, 1996, the Partnership  generated a tax loss of
$129,004 or $12.51 per limited  partnership unit. The tax loss for the first six
months of 1995 totaled $288,008 or $27.94 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
-----------------------------------------

Item  7 (c) -  Financial  Statements  and  Exhibits  -  Contract  between  the
Partnership  and  Partnership  Equities,  Inc.  dated July 16, 1996  attached.

Exhibit 27 - Financial Data Schedule (Electronic filing only)

Form 8-K was filed July 31, 1996.





















                                      -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