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

                                    FORM 10-K

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT 
OF 1934 FOR FISCAL YEAR ENDED DECEMBER 31, 1998

Commission File Number:

     2-88845-A

Exact name of Registrant as specified in its charter:

     Florida Income Fund, L.P.

State or other Jurisdiction of incorporation or organization:

     Iowa

I.R.S. Employer Identification Number:

     59-2337910

Address of Principal Executive Offices:

     12800 University Drive, Ste 260
     Fort Myers, FL 33907

Registrant's Telephone Number, including Area Code:

     (941) 481-2011

Securities registered pursuant to Section 12(b) of the Act:

     None

Securities registered pursuant to Section 12(g) of the Act:

     None

The registrant 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 has been subject to such filing requirements for the past 90 
days.


<PAGE>
<PAGE>

                            FLORIDA INCOME FUND, L.P.
                                FORM 10-K - 1998
                       CONTENTS AND CROSS REFERENCE INDEX

PART     ITEM                                                       FORM 10-K
 NO.      NO.                    DESCRIPTION                         PAGE NO.
----     ----                    -----------                        ---------

I        1       Business                                                   3

         2       Properties                                             3 - 7

         3       Legal Proceedings                                          7

         4       Submission of Matters to a Vote of
                 Security Holders                                           7

II       5       Market for Registrant's Partnership
                 Equity and Related Partner Matters                         8

         6       Selected Financial Data                                    8

         7       Management's Discussion and Analysis of
                 Financial Condition and Results of Operations         9 - 10

         8       Financial Statements and Supplementary Data          11 - 27

         9       Changes in and Disagreements with Accountants
                 on Accounting and Financial Disclosure                    28


III      10      Directors and Executive Officers of
                 the Registrant                                       28 - 30

         11      Executive Compensation                               31 - 32

         12      Security Ownership of Certain Beneficial
                 Owners and Management                                     32

         13      Certain Relationships and Related Party
                 Transactions                                              32

IV       14      Exhibits, Financial Statement Schedules
                 and Reports on Form 8-K                                   33

                 Signatures                                                34

                                       2


<PAGE>
<PAGE>


                                     PART I

ITEM 1. BUSINESS

GENERAL DEVELOPMENT OF BUSINESS - Florida Income Fund, L.P., (the Partnership)
is an Iowa Limited Partnership formed as of March 1984, for the purpose of
investing in a diversified portfolio of income-producing commercial and
residential real estate properties primarily located in Southwest Florida. The
Partnership's primary objectives are to preserve and protect the Partnership's
original capital, provide distributable cash, a portion of which may constitute
nontaxable income, obtain capital appreciation through increases in value of
Partnership properties, and realize capital gains from the sale of Partnership
properties.

There can be no assurance that these objectives will be achieved. The
achievement of these objectives depends on many factors, including principally
the ability of the Managing General Partner to select suitable properties
(completed) at favorable prices and the successful management of those
properties. The General Partners of the Partnership are Mariner Capital
Management, Inc., a Florida corporation (Managing General Partner or Mariner)
and MCD Real Estate, Inc., an Ohio corporation. The primary market is 
Southwest Florida. The partnership invested in several properties in order to 
achieve a measure of diversification. The Partnership's original intent was to 
hold these properties as long-term investments. The Managing General Partner 
has chosen to invest primarily in Southwest Florida because of its experience 
in dealing in real estate in this area. Southwest Florida offers, in 
management's opinion, a competitive but growing market in which to meet its 
performance objectives.

On March 28, 1984, a registration statement on Form S-18 for an offering of
5,000 units of limited partnership interest at $1,000 per unit became effective
with the United States Securities and Exchange Commission (File No. 2-88845-A).
McDonald and Company Securities, Inc., an affiliate of MCD Real Estate, Inc.,
one of the General Partner's, acted as the Managing Dealer for the offering,
which ended July 8, 1984, when all units were sold.

The Partnership itself has no executive officers as employees. The Managing
General Partner, which has responsibility for the management of the 
Partnership, has assigned certain individuals to devote as much time to the 
operations of the Partnership as deemed necessary. All these individuals serve 
the Partnership on a part-time basis. The Managing General Partner is also a 
General Partner in several other public and private limited partnerships 
engaged in similar activities.

ITEM 2. PROPERTIES

The Partnership acquired four properties which it held and
operated. These four properties were: (1) Edison Square Shopping Center, 
acquired on October 19, 1984; (2) Corporate Office Park, acquired April 15, 
1985; (3) Gallery Motel, acquired June 27, 1985; (4) Villas Plaza Shopping 
Center acquired December 6, 1985.

A brief description of these properties and the terms of purchase by the
Partnership is as follows:

                                       3


<PAGE>
<PAGE>


                                  EDISON SQUARE

Edison Square is a strip shopping center located in Lee County, Florida,
consisting of approximately 40,000 square feet of net leasable area situated on
3.45 acres of land. The building was completed in early 1984, and is of
contemporary design with masonry construction and glass store fronts. Edison
Square Shopping Center is located on Fowler Street, just east of Edison Mall -
the area's largest regional shopping mall. The property also has access from
Colonial Boulevard, which is a major artery from I-75 to Fort Myers. Fowler
street is a major north/south artery.

The Partnership acquired the Edison Square property on October 19, 1984. The
Partnership has capitalized the following costs associated with the purchase of
Edison Square.

       Original Purchase Price                               $3,295,000
       Acquisition Fee                                          131,800
       Less:   Seller Adjustment for not
               meeting certain leasing requirements            (100,000)
                                                             ---------- 
       Total Capitalized costs of Acquisition                $3,326,800
                                                             ----------

The terms of the purchase were $997,000 cash. A first mortgage of $1,645,000 
was also placed on the property subsequent to closing. The remaining purchase 
price was financed by a second mortgage from the seller in the amount of 
$553,000 at 11% which has subsequently been paid off.

The Partnership refinanced this loan as of September 8, 1994. The terms of this
mortgage are as follows:

         The principal amount borrowed was $1,725,000. The interest rate is
         fixed at 10.6% and the loan balloons on October 1, 2001. This loan is
         being amortized over 22 years and has a monthly principal and interest 
         payment amount of $16,894.90. The loan is non recourse and Edison 
         Square Shopping Center is the collateral. The Partnership's debt 
         increased from $1,426,000 to $1,725,000. These excess proceeds were 
         used to pay for capital improvements and for loan refinance costs.

         The loan can not be prepaid in the first year but may be prepaid after
         the second year with a prepayment amount either the greater of (a) 1%
         of the principal balance of the note being prepaid or (b) the ratio of
         the principal balance of the note being prepaid over the outstanding
         principal balance of the note on the prepayment date multiplied by the
         present value as of the prepayment date of the remaining scheduled
         payments determined by discounting such payments at the discount rate
         less the amount of the outstanding principal balance of the note on 
         the prepayment date. Borrower is also obligated to escrow funds for
         insurance, taxes and a replacement reserve.

When purchased, the property was 62.5% occupied. At December 31, 1998 and 1997
the property was 86% and 90% occupied, respectively.

                                       4


<PAGE>
<PAGE>


                                 CORPORATE PARK

The Partnership acquired Corporate Park on April 15, 1985. The property is an
office complex consisting of approximately 12,800 square feet situated on 1.13
acres of land. Corporate Park is located on Evans Avenue in Fort Myers, Lee
County, Florida. The property is a few blocks from the Metro Park Outlet Mall
and the Edison Mall. It is also enhanced by its excellent access to Colonial
Boulevard - a main thoroughfare to I-75.

The Partnership has capitalized the following costs associated with the
acquisition of Corporate Park:

       Original Purchase Price                               $1,000,000
       Acquisition Fee                                           20,000
       Brokerage Commission                                      30,000
       Appraisal                                                  2,000
                                                             ----------
       Total Capitalized Cost                                $1,052,000
                                                             ----------

The property was purchased for cash and then subsequently financed with a
$620,000 mortgage which has since been paid off with borrowings from an
affiliated partnership.

At December 31, 1996, Corporate Park was 100% occupied.

The Partnership sold Corporate Office Park to an unrelated purchaser on October 
1, 1997 at a price of $750,000 as reported in an 8-K filed October 1, 1997.  
The sale generated approximately $395,000 which was distributed to the 
partners.
 
Corporate Office Park and Villas Plaza Shopping Center were collateralized by a 
first mortgage to an affiliated partnership in the amount of $1,400,000. The 
interest rate was 12%. This loan was paid in full from the sale of these 
properties.

                         GALLERY MOTEL (NOW SEASIDE INN)

The Partnership's third acquisition was purchased on June 27, 1985. The 
property is a motel consisting of 7 buildings, which house 32 rental units 
including 10 motel, 4 efficiency and 8 one-bedroom cottages situated on 1.88 
acres of land.

The property also includes a pool, 200 feet of direct frontage on the Gulf of
Mexico and office facilities. The buildings are approximately 25 years old and
were renovated in 1995. They consist of concrete block and wood veneer
construction for some buildings and wood construction for others. All units are
elevated to prevent flooding. The Gallery Motel is located on East Gulf Drive 
on Sanibel Island, Florida, directly on the Gulf of Mexico, near the east end 
of the Island. Sanibel is located in Lee County, just off Florida's West Coast.

                                       5

<PAGE>
<PAGE>


The Partnership has capitalized the following costs associated with the
acquisition of Gallery Motel:

       Original Purchase Price                               $2,150,000
       Acquisition Fee                                          100,000
       Less:   Imputed discount on
               mortgage loan                                   (134,000)
                                                             ----------
       Total Capitalized Cost                                $2,116,000
                                                             ----------

Terms of the purchase provided for a cash down payment of $1,000,000 and a
seller mortgage at 11.7% interest rate in the amount of $1,150,000 (which was
discounted to $1,016,000). The purchase terms were negotiated with no interest
or principal payments due for the first year. This mortgage was refinanced with
a local financial institution in December, 1986 at prime plus one percent.

In January 1997, the Partnership sold the Seaside Inn (formerly the Gallery 
Motel) to an affiliate of the general partner for $6,485,000, and received net
sales proceeds of approximately $2,725,000, resulting in a gain of 
approximately $3,867,000.  Proceeds of approximately $2,725,000 were 
distributed to the partners.


                                       6


<PAGE>
<PAGE>


                                  VILLAS PLAZA

The Partnership's final property acquisition was made on December 6, 1985. The
property is a shopping center consisting of approximately 36,000 square feet
situated on 3.51 acres of land, located in Lee County, Florida. There are three
buildings with ages ranging from 15 to 30 years. The buildings consist of
masonry construction with wood trim. Villas Plaza is located directly on U.S. 
41 and Crystal Drive in Fort Myers, Florida.

The Partnership has capitalized the following costs associated with the
acquisition of Villas Plaza:

       Original Purchase Price                               $1,750,000
       Acquisition Fee                                           52,000
       Commissions and Appraisal Fees                             4,000
                                                             ----------
       Total Capitalized Cost                                $1,806,000
                                                             ----------

Terms of purchase provided for assumption of a first mortgage of $586,000, a
second mortgage from the seller for $328,000, with the balance paid in cash. 
The second mortgage was paid off and refinanced with a 10% interest only 
mortgage obtained from an affiliated partnership. The second mortgage matured 
in January 1990. In February 1990, $160,000 of this second mortgage was paid 
off from proceeds of the Gallery Motel refinancing (See Page 6). On December 
31, 1992, the Partnership borrowed $500,000 of additional cash from an 
affiliated partnership and satisfied the $150,000 second mortgage on Edison 
square. This resulted in a new loan of $1,350,000 collateralized by Villas 
Plaza and Corporate Office Park, with a 12% interest rate and that matured 
December 31, 1994. Proceeds from this refinance were used to pay off the 
original first mortgage in January 1993, the $150,000 line of credit, the 1% 
point associated with the refinance and the remainder will be used for capital 
improvements to the properties. The Partnership has obtained a new loan in the 
amount of $1,400,000 to be used to pay this loan in full and cover loan costs. 
See prior discussion under "Corporate Park".

At December 31, 1996, the property was 73% occupied.

The Partnership sold the Villas Plaza to an unrelated purchaser on March 20,
1997 at a price of $1,900,000 as reported in an 8-K filed on April 2, 1997.  
The sale generated approximately $620,000 which was available for distribution 
to the partners.


ITEM 3. LEGAL PROCEEDINGS

The Partnership is not a party to nor is any of the Partnership property the
subject of any material pending legal proceedings.


ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None except for item discussed above under "Gallery Motel" which was submitted 
on August 8, 1996.  4,950 of the 5,005 limited partnership interests voted in 
favor of selling the facility, representing a 91.7% approval.  87 partnership
interests voted against consummating the sale, or abstained, and 338 failed to
vote, which represents a 8.3% negative or abstention vote.  The consent 
document required a 66.67% affirmative vote.



                                       7


<PAGE>
<PAGE>


                                     PART II

ITEM 5. MARKET FOR REGISTRANTS'S PARTNERS' EQUITY AND RELATED PARTNER MATTERS

The Partnership units are not traded on any public market and it is not
contemplated these units will be traded on any public market in the future. As
of December 31, 1998, there were 463 Limited Partners.

The Partnership paid quarterly cash distributions to the general and limited
partners totaling $42,147, $3,931,182 and $263,421 during 1998, 1997 and 1996, 
respectively. The Partnership intends to use operating cash produced by the 
Partnership for capital improvements in 1999 and to distribute any excess cash 
to the Partners.

<TABLE>
<CAPTION>
ITEM 6. SELECTED FINANCIAL DATA

                                                                 YEARS ENDED DECEMBER 31,
                                              --------------------------------------------------------------
                                                1998          1997         1996         1995         1994
                                              ---------    ----------   ----------   ----------   ----------
<S>                                           <C>          <C>          <C>          <C>          <C>
Operating revenues (including
interest income of $59 for 1998,
$57 for 1997, $7,612 for 1996, 
$55 for 1995 and $37 for 1994                 $  461,734   $  663,470   $2,469,967   $2,210,238   $2,079,030

Net income (loss)                             $  (86,429)  $3,887,102   $ (169,012)  $  (77,025)  $   68,009

Net income (loss) per weighted
average Limited Partnership unit              $   (16.41)  $   737.81   $   (32.08)  $   (14.62)  $    12.91

Total assets                                  $2,629,769   $2,789,532   $8,318,811   $8,461,619   $8,335,671

Mortgages and notes payable                   $1,621,374   $1,650,546   $6,231,301   $6,299,697   $6,155,942

Distributions to Limited Partners             $   40,039   $3,922,227   $  250,250   $  100,100   $  225,225

Distributions per Limited
Partnership unit                              $     8.00   $   783.66   $    50.00   $    20.00   $    45.00

Partners' equity                              $  978,886   $1,107,462   $1,151,542   $1,583,975   $1,766,368

Book value per Limited
Partnership unit                              $   182.58   $   206.99   $   252.84   $   334.92   $   369.54
</TABLE>

Also, refer to Item #8 and the audited Financial Statements referred to herein.

                                       8


<PAGE>
<PAGE>


ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

LIQUIDITY - The principal sources of the Partnership's liquidity are income 
from commercial real estate purchased for the Partnership's portfolio (as 
described in Results from Operations), cash reserves, and the sale of the
Partnership's assets.

The Partnership had two loans that it extended in 1995. Corporate Park and
Villas Plaza Shopping Center were collateralized by a $1,350,000 first mortgage
from an affiliated partnership.  The interest rate was 12%. This loan was 
refinanced in the amount of $1,400,000 at an interest rate of 12% and
extended to December 31, 1997, with no prepayment penalty. The loan is 
interest only with interest paid quarterly.  See sales of property under Item 
2.

The maturity date of the Gallery Motel loan in the amount of $2,545,747 was 
extended until March 31, 1997, by a local financial institution. See
discussion to sell property under Item 2.

The Managing General Partner prepared sales packages on all of the
properties and offered all of the properties for sale. The properties were 
offered for sale above their current carrying value. A sale of most of
the properties increased cash to the Partnership, However, cash flow from
operations decreased due to the property sales. 

The Partnership obtained a $650,000 loan from an unaffiliated lender in
order to renovate the Gallery Motel. This was an interest only loan with a rate
of 12% paid quarterly. Management believed that these renovations increased the 
value of the Gallery Motel through an increase in rate and occupancy.

Partner distributions in 1998 were lower than in 1997 due to the sales of most
of the Partnership's portfolio in 1997.

Other factors that could affect liquidity are unexpected vacancies and
unanticipated capital improvements.  Other than as discussed above, Management 
is not aware of any trends or demands, commitments events or uncertainties that 
will result, or that are reasonably likely to result, in the Partnership's 
liquidity increasing or decreasing in any material way.

CAPITAL RESOURCES - As of December 31, 1998, the Partnership had $49,310 in 
cash and other interest-bearing deposits.

In connection with debt refinancing in 1995, see Section 7 under Liquidity.

Land and buildings (net of accumulated depreciation of $1,391,126) are 
carried at $2,456,659 at December 31, 1998.  Improvements to rental properties 
totaled $3,070 in 1998. The improvements were paid for out of cash from 
operating activities.  

Management does not anticipate significant capital improvement expenditures in
1999. Factors influencing this would be unexpected vacancies and general 
property conditions.

YEAR 2000 - Many existing computer programs use only two digits to identify a 
year (for example, "98" is used to represent "1998").  Such programs read 
"00" as the year 1900, and thus may not recognize dates beginning with
the year 2000, or many otherwise produce erroneous results or cease 
processing when dates after 1999 are encountered.  Such failures could 
cause disruptions in normal business operations.  

In 1998, the Partnership inventoried and assessed the critical 
information systems that impact operations and financial reporting in 
order to develop a strategy to address required computer software 
changes and upgrades relating to such operations.  A plan to test and,
as necessary, replace, upgrade or repair these systems was developed,
implemented, and completed in 1998.  Replacement and upgrades included 
release upgrades of packaged software for the Partnership financial
recordkeeping system.  The cost of the project was less than $1,000 
and expensed in accordance with appropriate accounting policies.




                                       9


<PAGE>
<PAGE>

YEAR 2000 - CONTINUED

The Partnership inventoried and assessed the Year 2000 issues that 
impact it, however it cannot identify the potential problems that may 
originate with third parties outside the Partnership's control.  

Given the fact that the Partnership assessed any Year 2000 systems and 
equipment issues and completed any required corrections, it believes all
costs to the Partnership's operations, financial condition and results
of operations have already been incurred.

RESULTS OF OPERATIONS

COMPARISON OF THE FISCAL YEARS ENDED DECEMBER 31, 1998 AND 1997

During the years ended December 31, 1998 & 1997, the Partnership's principal
sources of revenue were proceeds from sales of properties of $0 and
$9,135,000, rental income of $408,647 and $580,853 and expense reimbursements 
of $53,028 and $82,560, respectively.  The decrease in rental revenues and 
tenant reimbursements are attributable to the sales of the Gallery Motel,
Villas Plaza, and Corporate Office Park during 1997.

Property operating expenses have decreased from $322,358 to $185,063
primarily due to the sales of the properties.

Depreciation expense decreased from $155,805 to $109,921 due to property
sales.  Interest expense decreased $46,178 due to the payoff of mortgage 
balances as a result of property sales.

COMPARISON OF THE FISCAL YEARS ENDED DECEMBER 31, 1997 AND 1996

During the years ended December 31, 1997 & 1996, the Partnership's principal
sources of revenue were proceeds from sales of properties of $9,135,000 and
$0, rental income of $580,853 and $2,305,736 and expense reimbursements of
$82,560 and $157,069, respectively.  The decrease in rental revenues and 
tenant reimbursements are attributable to the sales of the Gallery Motel,
Villas Plaza, and Corporate Office Park during the year.

Property operating expenses have decreased from $1,078,297 to $322,358
primarily due to the sales of the properties.

Depreciation expense decreased from $454,860 to $155,805 due to property
sales.  Interest expense decreased $494,361 due to the payoff of mortgage 
balances as a result of property sales.

Management recognized a loss on impairment of $0 and $229,500 at December 31, 
1997 and 1996, respectively.

COMPARISON OF THE FISCAL YEARS ENDED DECEMBER 31, 1996 AND 1995

During the years ended December 31, 1996 & 1995, the Partnership's principal
sources of revenue were rental income of $2,305,736 and $2,041,407 and expense
reimbursements from tenants of $157,069 and $168,776, respectively. The 
increase in rental revenues was attributed to the following properties: 
Corporate Park increased $7,482, Edison Square increased $11,732, Villas Plaza 
decreased $5,375 and Gallery Motel increased $250,490. Corporate Park was 100% 
occupied during the entire year of 1996. Revenue increases at Edison Square and 
Corporate Park were due to higher occupancy and increased rental rates from 
CPI increases. 

The room revenue increase at the Gallery Motel was due to higher 
average daily rate in 1996 as compared to 1995. The average daily room rate 
increased more than 10.0% from $148.62 to $163.98. Additionally, there were 
2,511 more room nights available to be rented as a result of the motel 
renovations being completed.

Property operating expenses have increased from $1,048,958 to $1,078,297 
primarily due to increases in operating costs at the Gallery Motel.

Depreciation expense increased from $324,214 to $454,860 due to additional
assets being put into service in 1995. Interest expense decreased $28,515 
due to lower mortgage balances on the Edison Square and Gallery loans.  

Management recognized a loss on impairment of $229,500 and $0 at December 31, 
1996 and 1995, respectively.

                                10<PAGE>
<PAGE>


ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The Balance Sheets of the Partnership as of December 31, 1998 and 1997 and the 
Statements of Operations, Partner's Capital and Cash Flows of the Partnership 
for each of the three years in the period ended December 31, 1998, as well as 
the Notes to Financial Statements and Schedule III and the Report of 
Independent Certified Public Accountants there on, dated February 12, 1999, are
set forth herein:

                                       11


<PAGE>
<PAGE>


               REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS


To the Partners
Florida Income Fund, L.P.

In our opinion, the accompanying balance sheets and the related statements of
operations, partners' capital, and cash flows present fairly, in all material 
respects, the financial position of Florida Income Fund, L.P. (the 
"Partnership") at December 31, 1998 and 1997, and the results of its 
operations and its cash flows for each of the three years in the period
ended December 31, 1998, in conformity with generally accepted accounting
principles.   These financial statements are the responsibility of the 
Partnership's management; our responsibility is to express an opinion on 
these financial statements based on our audits.  We conducted our audits of 
these statements in accordance with generally accepted auditing standards 
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement.  An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles 
used and significant estimates made by management, and evaluating the overall
financial statement presentation.  We believe that our audits provide a 
reasonable basis for the opinion expressed above.





February 12, 1999
Tampa, Florida


                                     12


<PAGE>
<PAGE>



FLORIDA INCOME FUND, L.P.
BALANCE SHEETS
December 31, 1998 and 1997

<TABLE>
<CAPTION>
              ASSETS                                                           1998                1997
                                                                         ------------------- -------------------
<S>                                                                      <C>                 <C>
CURRENT ASSETS
   Cash and cash equivalents                                             $   49,310          $   101,791
   Accounts receivable, net                                                  29,443               27,466
   Prepaid expenses and other                                                57,170               48,826
                                                                         ------------------- -------------------
     Total current assets                                                   135,923              178,083
                                                                         ------------------- -------------------

RENTAL PROPERTIES, net                                                    2,456,659            2,563,510
                                                                         ------------------- -------------------

INTANGIBLE ASSETS
   Deferred loan costs, net                                                  37,187               47,939
                                                                         ------------------- -------------------
                   
      Total assets                                                       $2,629,769          $ 2,789,532
                                                                         =================== ===================

  LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES
   Current maturities of mortgages payable                               $   32,993          $    29,171
   Accounts payable and other                                                 5,983                7,998
   Accrued interest                                                          14,600               14,600
   Customer and security deposits                                             8,926                8,926
                                                                         ------------------- -------------------
      Total current liabilities                                          $   62,502          $    60,695
                                                                         ------------------- -------------------

MORTGAGES PAYABLE
   Mortgages payable, less current maturities                            $1,588,381          $  1,621,375
                                                                         ------------------- -------------------
      Total mortgages payable                                            $1,588,381          $  1,621,375
                                                                         ------------------- -------------------

PARTNERS' CAPITAL
   General partners capital                                              $   65,058          $    71,487 
   Limited partners, 5,005 limited partnership units authorized;
        5,005 issued and outstanding                                        913,828            1,035,975 
                                                                         ------------------- -------------------
      Total partners' capital                                            $  978,886          $ 1,107,462 
                                                                         ------------------- -------------------
      Total liabilities and partners' capital                            $2,629,769          $ 2,789,532 
                                                                         =================== ===================
</TABLE>

The accompanying notes are an integral part of these financial statements.


                                       13      

<PAGE>
<PAGE>

FLORIDA INCOME FUND, L.P.
STATEMENTS OF OPERATIONS
years ended December 31, 1998, 1997 and 1996



<TABLE>
<CAPTION>
                                                                          1998             1997               1996
                                                                  ----------------  ----------------  -----------------
<S>                                                                <C>                <C>                <C>
Revenues        
   Rental income                                                   $      408,647     $     580,853      $  2,305,736
   Tenant reimbursements                                                   53,028            82,560           157,069
   Interest income                                                             59                57             7,162
   Gain on sale of rental properties                                            0         3,999,439                 0
                                                                  ----------------  ----------------  -----------------

                                                                          461,734         4,662,909         2,469,967
                                                                  ----------------  ----------------  -----------------

Expenses
   Property operating expenses                                            185,063           322,358         1,078,297
   Interest expense                                                       184,319           176,277           556,858
   Interest expense - affiliates                                                0            54,220           168,000
   Depreciation                                                           109,921           155,805           454,860
   Property taxes                                                          52,065            67,147           143,090
   Bad debt expense                                                        16,795                 0             8,374
   Loss on impairment of asset                                                  0                 0           229,500
                                                                  ----------------  ----------------  -----------------

                                                                          548,163           775,807         2,638,979
                                                                  ----------------  ----------------  -----------------

      Net (loss) income                                            $      (86,429)    $   3,887,102      $   (169,012)
                                                                  ================  ================  =================

Net (loss) income allocated to general partner                     $       (4,321)    $     194,355      $     (8,451)
                                                                  ================  ================  ================
                                                    
Net (loss) income allocated to limited partners                    $      (82,108)    $   3,692,747      $   (160,561)
                                                                  ================  ================  =================

Net (loss) income per limited partner unit                         $       (16.41)    $      737.81      $     (32.08)
                                                                  ================  ================  =================

Distributions per limited partner unit                             $         8.00     $      783.66      $      50.00 
                                                                  ================  ================  ================
Weighted average limited partner units outstanding                          5,005             5,005             5,005
                                                                  ================  ================  ================
</TABLE>

The accompanying notes are an integral part of these financial statements.

                                       14       


<PAGE>
<PAGE>



FLORIDA INCOME FUND, L.P.
STATEMENTS OF PARTNERS' CAPITAL
years ended December 31, 1998, 1997, and 1996



<TABLE>
<CAPTION>

                                                                      GENERAL           LIMITED
                                                                      PARTNERS          PARTNERS          TOTAL
                                                                    --------------    --------------    ---------------
<S>                                                                 <C>               <C>               <C>
Balances December 31, 1995                                          $  (92,291)       $  1,676,266      $  1,583,975    

   Net loss                                                             (8,451)          (160,561)         (169,012)

   Distributions                                                       (13,171)          (250,250)         (263,421)
                                                                    ---------------   ---------------   ---------------
Balances, December 31, 1996                                           (113,913)         1,265,455          1,151,542 
 
   Net income                                                          194,355          3,692,747          3,887,102

   Distributions                                                        (8,955)        (3,922,227)        (3,931,182)
                                                                    ---------------   ---------------   ---------------
Balances December 31, 1997                                              71,487          1,035,975          1,107,462
                                                                                                                        
   Net Loss                                                             (4,321)           (82,108)           (86,429)

   Distributions                                                        (2,108)           (40,039)           (42,147)
                                                                    ---------------   ---------------   ---------------
Balances December 31, 1998                                          $   65,058        $   913,828        $   978,886
                                                                    ===============   =============      ===============
</TABLE>

The accompanying notes are an integral part of these financial statements.

                                     15      


<PAGE>
<PAGE>



FLORIDA INCOME FUND, L.P.
STATEMENTS OF CASH FLOWS
years ended December 31, 1998, 1997 and 1996

<TABLE>
<CAPTION>
                                                                        1998              1997              1996
                                                                   ----------------  ----------------  ----------------
<S>                                                                <C>               <C>               <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net (loss) income                                               $    (86,429)     $   3,887,102      $    (169,012)  
    Adjustments to reconcile net income (loss) to net cash
        (used in) provided by operating activities
      Gain on sale of rental properties                                       0         (3,999,439)                 0   
      Amortization of deferred loan costs                                10,752             22,062             49,020   
      Depreciation                                                      109,921            155,805            454,860   
      Bad debt                                                           16,795                  0              8,374   
      Loss on impairment of rental property                                   0                  0            229,500   
       (Increase) decrease in:
        Accounts receivable, net                                        (18,772)            26,829            (32,302)  
        Prepaid expenses and other                                       (8,344)            37,199            (33,942)  
       Increase (decrease) in:
        Accounts payable and other                                       (2,015)          (116,924)            19,502   
        Customer and security deposits                                        0           (132,137)            12,458   
                                                                    ----------------  ----------------  ---------------
           Net cash provided by (used in) operating activities           21,908           (119,503)           538,458   
                                                                    ----------------  ----------------  ---------------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Proceeds from sale of rental properties                                    0          8,852,820                  0   
   Improvements to rental properties                                     (3,070)           (27,850)           (42,038)  
   Rental property sale deposit                                               0           (425,883)            96,560   
                                                                    ----------------  ----------------  ---------------
           Net cash (used in) provided by operating activities           (3,070)         8,399,087             54,522   
                                                                    ----------------  ----------------  ---------------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Repayments of borrowings on mortgages payable                        (29,172)        (3,180,755)           (68,394)  
   Repayment of borrowings from affiliates                                    0         (1,400,000)                 0   
   Partner distributions paid                                           (42,147)        (3,931,182)          (263,421)  
                                                                    ----------------  ----------------  ---------------
           Net cash used in financing activities                        (71,319)        (8,511,937)          (331,815)  
                                                                    ----------------  ----------------  ---------------
Net (decrease) increase in cash and cash equivalents                    (52,481)          (232,353)           261,165   

Cash and cash equivalents at beginning of year                          101,791            334,144             72,979   
                                                                   ----------------  ----------------   ---------------
Cash and cash equivalents at end of year                           $     49,310      $     101,791      $     334,144   
                                                                   ================  ================   ===============
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
   Cash paid during the year for:
      Interest on borrowings--affiliates                           $          0      $      96,220      $     126,000   
       Interest on borrowings--other                                    173,567            176,277            507,838   
                                                                   ----------------- ----------------   ---------------
                                                                   $    173,567      $     272,497      $     633,838   
                                                                   ================= =================  ===============
</TABLE>

NONCASH INVESTING AND FINANCING ACTIVITIES:
  During 1997, approximately $267,000 of selling expenses were deducted from 
  the proceeds of the Seaside Inn, Villas Plaza and Corporate Park sales.

The accompanying notes are an integral part of these financial statements.

             

                                   16       



<PAGE>
<PAGE>

FLORIDA INCOME FUND, L.P.
NOTES TO FINANCIAL STATEMENTS


1.     ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

       ORGANIZATION

          Florida Income Fund, L.P. (the Partnership) was formed on November
          7, 1983, by the filing of a Certificate and Agreement of Limited
          Partnership (Partnership Agreement) under the laws of the State of
          Iowa. The General Partners, MCD Real Estate, Inc. (MCD) and Mariner
          Capital Management, Inc. (MCM), also the Managing General Partner,
          contributed $10,000 and the Initial Limited Partner contributed
          $5,000 in the initial capitalization of the Partnership. The
          Partnership was formed for the purpose of investing in a diversified
          portfolio of income-producing commercial and residential real estate
          properties located in Florida. The Partnership originally purchased
          Edison Square and Villas Plaza (two retail shopping centers), 
          Corporate Park (an office complex) and the Gallery Motel.  The 
          Partnership sold the Gallery Motel in January, 1997, Villas Plaza in
          March 1997, and Corporate Park in October 1997 (see Note 6).

       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

          A summary of the significant accounting policies of the Partnership
          follows:

          RENTAL INCOME: The Partnership leases space in its retail centers.
          These leases range from one to four years and include provisions
          for minimum rent increases at stated amounts or the Consumer Price
          Index.

          ALLOCATION OF NET INCOME (LOSS): In accordance with the Partnership
          Agreement, net income (loss), prior to recoupment of the Partners'
          original capital investment, is allocated five percent (5%) to the
          General Partners and ninety-five percent (95%) to the Limited
          Partners as a class. Subsequent to recoupment, income (loss) is
          allocated twenty percent (20%) to the General Partners and eighty
          percent (80%) to the Limited Partners as a class.












                                     17       


<PAGE>
<PAGE>


NOTES TO FINANCIAL STATEMENTS, CONTINUED


1.     ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

          RENTAL PROPERTIES
          
          Rental properties are carried at cost, less accumulated depreciation.
          Depreciation is computed principally under the straight-line method 
          over the estimated useful lives (40 years) of the assets.  Repairs 
          and maintenance are included in operating expenses and major 
          improvements are capitalized.

          Upon the sale or retirement of depreciable assets, the cost and
          related accumulated depreciation are removed from the accounts and
          the difference between the carrying value and any proceeds realized
          on sale is included in the determination of net income.

          Statement of Financial Accounting Standards No. 121, "Accounting for
          the Impairment of Long-Lived Assets to be Disposed of" (SFAS 121).  
          requires that long-lived assets and certain identifiable intangibles 
          to be held and used be reviewed for impairment whenever events or 
          changes in circumstances indicate that their carrying amount may not 
          be recoverable.  In assessing recoverability, estimates of future 
          cash flows expected to result from the use of the asset and its 
          eventual disposition should be used.  If the sum of the expected 
          future cash flows (undiscounted and without interest charges) is less 
          than the carrying amount of the asset, an impairment loss should be 
          recognized based on the value of the asset.  Management reviews the 
          Partnership's property holdings on a periodic basis and believed that 
          an impairment of the Corporate Park property exists.  A loss of 
          $229,500 on impairment of the Corporate Park property was recognized 
          in the year ended December 31, 1996.

          TENANT REIMBURSEMENTS: Common area maintenance, property tax and
          utilities expenses for the rental properties are reimbursed to the
          fund through tenant assessments. These costs are included in
          property operating expenses and property tax expense.

          DEFERRED LOAN COSTS: Loan costs incurred from financing and
          refinancing the various property acquisitions have been capitalized
          at cost and are being amortized over the lives of the related loans.  
          Amortization of loan costs is included with interest expense in the 
          income statement.

          INCOME TAXES: The accompanying financial statements do not show a
          provision or liability for federal or state income taxes because the
          Partners are taxed individually on their share of Partnership
          earnings.

          WEIGHTED AVERAGE NUMBER OF LIMITED PARTNER UNITS OUTSTANDING:  Net 
          income (loss) and distributions per limited partner unit are 
          calculated based upon the weighted average number of units of limited 
          partnership interest outstanding for the years ended December 31, 
          1998, 1997 and 1996.

          CASH EQUIVALENTS: For purposes of the statement of cash flows, the
          Partnership considers all highly liquid investments with a maturity
          of three months or less when purchased to be cash equivalents.

          FAIR VALUE OF FINANCIAL INSTRUMENTS:  The recorded value for cash and 
          cash equivalents approximates fair value because of the short 
          maturity of these instruments. The fair value of the Partnership's 
          short and long-term notes and mortgages payable at December 31, 1998, 
          based upon market rates, approximates the amounts disclosed in 
          Note 4.

          RECLASSIFICATIONS:  Certain amounts in the 1996 financial statements 
          have been reclassified to conform to the current year presentation.  
          These reclassifications have no effect on the net income or partners' 
          capital previously reported. 

                                     18      

<PAGE>
<PAGE>

NOTES TO FINANCIAL STATEMENTS, CONTINUED


1.     ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

          MANAGEMENT'S USE OF ESTIMATES: The preparation of financial
          statements in conformity with generally accepted accounting
          principles requires management to make estimates and assumptions
          that affect the reported amounts of assets and liabilities and
          disclosure of contingent assets and liabilities at the date of the
          financial statements and the reported amounts of revenues and
          expenses during the reporting period. Actual results could differ 
          from those estimates.

2.     ACCOUNTS RECEIVABLE:

       Accounts receivable consisted of the following at December 31:

<TABLE>
<CAPTION>
                                                                             1998            1997
                                                                        --------------  ---------------
        <S>                                                             <C>             <C>
        Accounts receivable                                             $      46,238   $       28,213
        Allowance for doubtful accounts                                       (16,795)            (747)
                                                                        --------------  ---------------
        Accounts receivable, net                                        $      29,443   $       27,466 
                                                                        ==============  ===============
                                                                                     

</TABLE>


3.     RENTAL PROPERTIES:

       Rental properties consisted of the following at December 31:

<TABLE>
<CAPTION>
                                                                             1998            1997
                                                                        --------------  ---------------
        <S>                                                             <C>             <C>
        Land                                                            $     665,360   $      665,360
        Buildings and improvements                                          3,182,425        3,179,355
                                                                        --------------  ---------------
                                                                            3,847,785        3,844,715 
        Accumulated depreciation                                           (1,391,126)      (1,281,205)
                                                                        --------------  ---------------
        Rental properties, net                                          $   2,456,659   $    2,563,510 
                                                                        ==============  ===============
                                                                                     

</TABLE>

       Depreciation expense was $109,921, $155,805 and $454,860 for 1998, 1997 
       and 1996, respectively.





                                     19      





<PAGE>
<PAGE>

NOTES TO FINANCIAL STATEMENTS, CONTINUED


3.     RENTAL PROPERTIES, CONTINUED

       The leases at Edison Square are noncancelable leases. Based on the terms 
       of the leases in existence at December 31, 1998, future minimum annual 
       rentals from these leases over the next five years, and in the 
       aggregate, will be approximately as follows:

              1999                                $  254,789
              2000                                    68,661
              2001                                    46,385
              2002                                    46,719
              2003                                    33,210
                                                  ----------------
                                                  $  449,764
                                                  ================


4.     DEFERRED LOAN COSTS:

       Deferred loan costs at December 31 are as follows:

<TABLE>
<CAPTION>
                                                      1998          1997
                                                  ------------  ------------
        <S>                                       <C>           <C>
        Loan costs                                $   84,800    $    84,800
        Accumulated amortization                     (47,613)       (36,861)
                                                  ------------  ------------

                                                  $   37,187    $    47,939 
                                                  ============  ============

</TABLE>

       Additions to deferred loan costs relate to modifications of note terms
       and other refinancing transactions during the years ended December 31,
       1997 and 1996. Certain loan costs became fully amortized during the
       years ended December 31, 1997 and 1996 and, therefore, were written
       off. Included in interest expense during 1998, 1997, and 1996 is 
       amortization expense related to loan costs in the amount of $10,752, 
       $22,062 and $49,020, respectively.

                                     20       

<PAGE>
<PAGE>

NOTES TO FINANCIAL STATEMENTS, CONTINUED


5.     MORTGAGES PAYABLE:

       Mortgages payable consisted of the following at December 31:

<TABLE>
<CAPTION>
                                                                                           1998              1997
                                                                                     ----------------  ----------------
        <S>                                                                          <C>               <C>
           Mortgages payable to financial institution:
              Mortgage payable with monthly payments of $16,895 including
                interest at 10.6%, final payment due October 2001                    $    1,621,374    $    1,650,546

           Less current maturities                                                          (32,993)          (29,171)
                                                                                     ----------------  ----------------
                   Total long-term debt less current maturities                      $    1,588,381    $    1,621,375 
                                                                                     ================  ================
</TABLE>

                                     21      




<PAGE>
<PAGE>

NOTES TO FINANCIAL STATEMENTS, CONTINUED

5.     MORTGAGES PAYABLE, CONTINUED

       Long-term portions of mortgages payable are scheduled to 
       mature approximately as follows:

              2000                        $        36,028
              2001                              1,552,353
                                         ----------------
                                          $     1,588,381
                                         ================

       Edison Square rental property and all related rents and receivables are 
       pledged as collateral for mortgages payable.


6.     RELATED PARTY TRANSACTIONS:

       The Partnership participated in the following related party
       transactions:

       The General Partners and their affiliates are entitled to receive
       compensation for leasing and management fees in an amount not to exceed
       6% of gross revenues produced by commercial Partnership properties. For
       the years ending December 31, 1998, 1997 and 1996, the General Partners
       and their affiliates received fees of $0, $12,409 and $106,235, 
       respectively.

       The General Partners and their affiliates are also entitled to
       reimbursement of costs (including amounts of any salaries paid to
       employees and officers of a General Partner or its affiliates) directly
       attributable to the operation of the Partnership which could have been
       obtained from independent parties. Expenses amounting to $0, $25,800
       and $403,615 were incurred during the years ended December 31, 1998, 
       1997 and 1996, respectively, of which the following amounts were
       included in accounts payable and accrued expenses:

<TABLE>
<CAPTION>
                                                                         1998              1997      
                                                                  ----------------- -----------------
        <S>                                                       <C>               <C>              
        Amounts included in accounts payable                      $            0    $        2,150   
                                                                  ================= =================
        Amounts included in accrued expenses                      $            0    $            0   
                                                                  ================= =================
</TABLE>

7.     PROPERTY DISPOSITIONS:

       In January 1997, the Partnership sold the Seaside Inn (formerly the
       Gallery Motel) to an affiliate of the general partner for $6,485,000,
       and received net sales proceeds of approximately $2,725,000, resulting
       in a gain of approximately $3,867,000.  Proceeds of approximately 
       $2,725,000 were distributed to the partners.

       In March 1997, the Partnership sold Villas Plaza property to an 
       unrelated party for $1,900,000, and received net sales proceeds of 
       approximately $620,000, resulting in a gain of approximately $55,500.  
       Proceeds of approximately $620,000 were distributed to the partners.

       In October 1997, the Partnership sold Corporate Park property to an 
       unrelated party for $750,000, and received net sales proceeds of 
       approximately $397,000, resulting in a gain of approximately $76,900.
       Proceeds of approximately $397,000 were distributed to the partners.

       In 1997, the Partnership listed Edison Square for sale.  The Managing
       General Partner will implement a formal plan of liquidation, in 
       accordance with the Partnership agreement, when this property is sold.



                                     22       <PAGE>
<PAGE>



            REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS


Our report on the financial statements of Florida Income Fund, L.P. is
included on page 12 of this Form 10-K. In connection with our audits of such
financial statements, we have also audited the related financial statement
schedule listed in the index on page 33 of this Form 10-K.

In our opinion, the financial statement schedule referred to above, when
considered in relation to the basic financial statements taken as a whole,
presents fairly, in all material respects, the information required to be
included therein.








February 12, 1999
Tampa, Florida


                                      23      

<PAGE>
<PAGE>
<TABLE>
<CAPTION>
                            FLORIDA INCOME FUND, L.P.
                                  SCHEDULE III
                    REAL ESTATE AND ACCUMULATED DEPRECIATION
                               DECEMBER, 31, 1998

  COL. A         COL. B             COL. C                   COL. D                          COL. E                  
                                                         COST CAPITALIZED                GROSS AMT AT      
                                   INITIAL COST            SUBSEQUENT TO                 WHICH CARRIED AT 
                                  TO PARTNERSHIP            ACQUISITION                  CLOSE OF PERIOD
                               -----------------------  -------------------------        ----------------
                                          BLDGS. &                  CARRYING             BLDGS &               
DESCRIPTION      ENCUMBRANCES  LAND       IMPROVEMENTS IMPROVEMENTS COSTS    LAND        IMPROVEMENTS        TOTAL   
-----------      ------------  ----       ------------ ------------ -------- ----        ----------------    -----   
<S>              <C>           <C>        <C>          <C>          <C>      <C>         <C>                 <C>        
Edison Square
Shopping Center
Ft. Myers, FL    $1,621,374    $  665,360 $2,661,440   $  520,985   $-0-     $  665,360  $3,182,425          $ 3,847,785

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

TOTALS           $1,621,374    $  665,360 $2,661,440   $  520,985   $-0-    $  665,360   $3,182,425          $ 3,847,785
                 ==========    ========== ==========   ==========   ====    ==========   ==========          ===========
</TABLE>

<TABLE>
<CAPTION>
  COL. A              COL. F         COL. G       COL. H       COL. I

                   
                                                            LIFE IN WHICH
                                                               DEPRECIATION IN
                                                               LATEST INCOME
                     ACCUMULATED   DATE OF        DATE         STATEMENT IS
DESCRIPTION          DEPRECIATION  CONSTRUCTION   ACQUIRED     COMPUTED
-----------          ------------  ------------   --------     ---------------
<S>                  <C>           <C>            <C>          <C>
Edison Square
Shopping Center
Ft. Myers, FL        $1,391,126    1984           10/19/84     40 years

                     ----------
TOTALS               $1,391,126
                     ==========
<FN>
SEE ACCOMPANYING NOTES TO SCHEDULE III


</FN>
</TABLE>

                                    24
<PAGE>
<PAGE>



                           FLORIDA INCOME FUND, L. P.
                             NOTES TO SCHEDULE III
                                DECEMBER 31, 1998
                    REAL ESTATE AND ACCUMULATED DEPRECIATION


Balance as of 12/31/95                                              $11,276,106
                                                                             
         Improvements, etc.                           42,038        
         Impairment of value                        (229,500)          (187,462)
                                                  ----------        ------------
Balance as of 12/31/96                                               11,088,644
                                                                                
         Improvements, etc.                           27,850       
         Cost of real estate sold                 (7,271,779)        (7,243,929)
                                                  -----------       ------------
Balance as of 12/31/97                                                3,844,715
                                                                                
         Improvements, etc.                            3,070              3,070
                                                  ------------      ------------
Balance as of 12/31/98                                              $ 3,847,785
                                                                    ============



                                       25



<PAGE>
<PAGE>


                            FLORIDA INCOME FUND, L.P.
                             NOTES TO SCHEDULE III
                                DECEMBER 31, 1998
                    REAL ESTATE AND ACCUMULATED DEPRECIATION


Balance as of 12/31/95                                             $ 3,088,938

    Depreciation expense for 1996                     454,860          454,860
                                                  ------------      -----------
Balance as of 12/31/96                                               3,543,798

    Depreciation expense for 1997                     155,805
    Accumulated depreciation on disposal
      of fixed assets                              (2,418,398)      (2,262,593
                                                  ------------     -----------
Balance as of 12/31/97                                               1,281,205
                                                                                
    Depreciation expense for 1998                     109,921          109,921
                                                  -------------    -----------
                                                                   $ 1,391,126
                                                                   ===========



                                       26


<PAGE>
<PAGE>


                            FLORIDA INCOME FUND, L.P.
                             NOTES TO SCHEDULE III
                                DECEMBER 31, 1998
                    REAL ESTATE AND ACCUMULATED DEPRECIATION


(A) The aggregate cost of land and buildings is the same for Federal Income Tax
    purposes.

(B) See Note 1 to the Financial Statements for depreciation method.

(C) See Note 5 to the Financial Statements for further information on debt
    obligations.

                                       27


<PAGE>
<PAGE>


ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE

None.

                                    PART III

ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

         (A) AND (B) IDENTIFICATION OF DIRECTORS AND EXECUTIVE OFFICERS

The Partnership, as an entity, does not have any directors or officers. The
Managing General Partner is Mariner Capital Management, Inc. (located at 12800
University Dr., Ste. 260, Fort Myers, Florida 33907), a Florida corporation
formed for the purpose of becoming the general partner in limited partnerships
formed principally to invest in real estate. The Managing General Partner is a
wholly owned subsidiary of The Mariner Group, Inc., an Ohio corporation
(referred to herein as "Mariner Group"). The executive officers/directors of 
the Managing General Partner as of December 31, 1998, were as follows: Robert 
M. Taylor, Timothy R. Bogott, Allen G. Ten Broek and Elaine Hawkins.

Mr. Taylor and Mr. Bogott have served as officers of the Mariner Capital 
Management, Inc., since its incorporation on July 11, 1983. Allen G. Ten Broek
replaced Lawrence A. Raimondi as President as of December 31, 1997.  Subsequent
to December 31, 1997, Mr. Blacketer resigned as Secretary/Treasurer.  He was
replaced in the capacity by Elaine Hawkins.

MCD Real Estate, Inc. (located at 800 Superior Avenue, Suite 2100, Cleveland, 
Ohio 44114) (referred to herein as "MCD") is a Co-General Partner. MCD is an 
Ohio corporation and a wholly owned subsidiary of McDonald & Company 
Securities, Inc., the Managing Dealer of the offering. McDonald & Company 
Securities, an Ohio corporation, is a wholly owned subsidiary of McDonald & 
Company Investments, Inc., a publicly-traded Delaware corporation listed on 
the New York Stock Exchange. MCD was formed in February of 1981 for the 
principal purpose of becoming the general partner of limited partnerships 
formed to provide equity financing for various real estate projects. The 
directors and officers of MCD as of December 31, 1998, were as follows: James 
C. Redinger, Thomas M. O'Donnell and Richard R. Cundiff.

         (C) IDENTIFICATION OF CERTAIN SIGNIFICANT EMPLOYEES

         Not applicable

         (D) FAMILY RELATIONSHIP

         Not applicable

         (E) BUSINESS EXPERIENCE

                                       28


<PAGE>
<PAGE>


     ROBERT M. TAYLOR: Age 57, is Chairman of the Board and a Director of the
     Managing General Partner. He founded Mariner Group in 1971 and served as
     its President until his election as Chairman and Chief Executive Officer 
     of Mariner Group in 1979. He also serves as an officer or director of 
     various other Affiliates of Mariner Group. Mr. Taylor is a Director of
     Acme-Cleveland Corporation, Cleveland, Ohio, a manufacturer of machine
     tools; Barnett Bank of Fort Myers, Fort Myers, Florida; MIL- COM
     Electronics Corporation, San Antonio, Texas; Florida Council of 100; the
     Fort Myers Chamber of Commerce, and Chairman of the Business Development
     Corporation of Southwest Florida, Fort Myers, Florida. Since 1971, Mr.
     Taylor has directed the completion of over 30 real estate developments in
     Lee County, Florida. Prior to 1971, Mr. Taylor was a management consultant
     employed by McKinsey & Company, Inc., Cleveland, Ohio.

     TIMOTHY R. BOGOTT: Age 52, is a Director and the former President of the
     Managing General Partner. He was involved in all aspects of the
     organization and management of Florida Income Fund, L.P., Florida Income
     Fund II and Florida Income Fund III until January 1994 when he became
     President of South Seas Resorts Company. He joined Mariner Group in 1976
     and has held the positions of Project Manager and Director of
     Administration and Secretary/Treasurer. Prior to 1976, Mr. Bogott was
     employed as an Assistant Vice President of Palmetto Federal Savings and
     Loan Association, Fort Myers, Florida (1974-1976) and held various
     management positions with the First National Bank of Fort Myers
     (1970-1974). Mr. Bogott was elected Secretary/Treasurer of Mariner Group 
     in 1979 and Vice President -Finance in 1983. Mr. Bogott is also President 
     of Mariner Capital Investment Corporation and is an officer or director of
     various other Affiliates of Mariner Group.

     ALLEN G. TEN BROEK: Age 58, Mr. Ten Broek became President of Mariner 
     Capital Management, Inc. on December 31, 1997.  Mr. Ten Broek is also 
     President and CEO of The Mariner Group, Inc., a position in which he 
     served from 1979 to 1992, and again since October 1995.  The Mariner 
     Group is an asset management, business development and real estate 
     development company.  From 1992 to 1995 Mr. Ten Broek was the Vice 
     Chairman and Managing Executive of Hilton Grand Vacations Company, a 
     timeshare development and operations company affiliated with Hilton 
     Hotels.  Mr. Ten Broek is an original shareholder of The Mariner Group, 
     Inc. and has been a director of The Mariner Group, Inc. since 1973.  
     Mr. Ten Broek is the Chairman Emeritus of the Florida Shore and Beach 
     Preservation Association and Chairman of the American Coastal Coalition.  
     He is a former director of two local banks and a founding director of 
     Community Bank of the Islands.  Mr. Ten Broek is an officer and director 
     of various other Mariner affiliates.  Mr. Ten Broek is a graduate of the 
     University of Wisconsin.  He worked for ten years in various executive 
     positions with AT&T prior to joining Mariner.

     ELAINE HAWKINS: Age 46, is the Vice President/Treasurer of the Managing 
     General Partner.  She joined the Mariner Group in 1980 as the Director of  
     Risk Management for all of the affiliated entities.  In 1988 she became 
     the President of South Seas and Captiva Properties, Inc., an affiliated 
     real estate firm.  She holds licenses as a real estate broker, and in 
     property, casualty, life and health insurance.  Prior to joining the 
     company she was employed by Liberty Mutual Insurance Company in 
     commercial sales.

                                                             



                                       29


<PAGE>
<PAGE>


     JAMES C. REDINGER: Age 62. Mr. Redinger joined McDonald & Company (a
     partnership that transferred all of its assets to McDonald & Company
     Securities, Inc.) in March 1974, becoming a partner in 1977, working in 
     the area of corporate underwriting and syndication of real estate and oil 
     and gas ventures. He has had extensive experience in site selection, cost
     projections of both commercial and residential real estate projects and 
     the syndication of such projects through limited partnerships. Mr. 
     Redinger has served as Chairman of the District Nine Committee of the 
     National Association of Securities Dealers, Inc., is a Vice President 
     and a Director of MCD Oil and Gas Company, Inc., a Director of McDonald 
     & Company Venture Capital, Inc., a Director of McDonald & Company 
     Securities, Inc., and a Managing Director of McDonald & Company 
     Securities, Inc.  

     THOMAS M. O'DONNELL: Age 63. Mr. O'Donnell joined McDonald & Company in
     1965 in the Corporate Finance Department. Mr. O'Donnell became a partner 
     of McDonald & Company in 1968 and has been a member of its Policy 
     Committee since 1971. Mr. O'Donnell is a Chartered Financial Analyst and a 
     member of the Cleveland Society of Security Analysts. Mr. O'Donnell is a 
     director of Seaway Food Town, Inc., Maumee, Ohio, a grocery retailer. Mr. 
     O'Donnell is Chief Executive Officer and Chairman of the Board of McDonald
     & Company Investments, Inc., Chief Executive Officer and Chairman of the 
     Board of McDonald, which operates an insurance agency; a Director of MCD 
     Oil & Gas Company, Inc., a Director of McDonald & Company Venture Capital, 
     Inc.; and a Director of McDonald Financial Services.

     RICHARD R. CUNDIFF, III: Age 39. Mr. Cundiff joined McDonald & Company in
     December 1982 and has assisted in the development of the Real Estate and
     Specialty Finance Department. Specializing in real estate and oil and gas
     investment banking, his responsibilities include structuring, marketing 
     and monitoring investments in these particular areas. Mr. Cundiff is 
     a First Vice President of McDonald & Company.

         (F) INVOLVEMENT IN CERTAIN LEGAL PROCEEDINGS

     No director or officer of the Managing General Partner was involved in 
     any event during the past five years which would be responsive to this
     question.





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ITEM 11.  EXECUTIVE COMPENSATION

          (A) CURRENT REMUNERATION OF GENERAL PARTNERS, THEIR DIRECTORS AND
              OFFICERS

          No direct remuneration was paid or payable by the Partnership for the
          period ended December 31, 1998, to directors or officers of the
          General Partners. During the period ended December 31, 1998, 1997 and
          1996, the remuneration paid to the affiliates of the General Partners
          was as follows:

              /bullet/  Management fees totalling $0, $12,409 and $106,235 
                        were paid to the Managing General Partner or its 
                        affiliates for 1998, 1997 and 1996, respectively.

              /bullet/  The General Partners and their affiliates are also
                        entitled to reimbursement for expenses (including
                        amounts of any salaries paid to employees and officers
                        of a General Partner or its affiliates) directly
                        attributable to the operation of the Partnership which
                        could have been obtained from independent parties.
                        Expenses amounting to $0, $25,800 and $403,615 
                        were incurred during the years ended December 31, 1998,
                        1997 and 1996, respectively. Amounts due to related
                        parties, and included in accounts payable and other
                        at December 31, 1998 and 1997 are $0 and $2,150. 
                        A portion of this amount is for the payment of 
                        insurance premiums which are collected by Mariner 
                        Group, Inc. (for all Mariner affiliates) and paid to 
                        the carrier on behalf of Florida Income Fund, L.P. The
                        balance is for reimbursement for on-site property
                        management personnel and for reimbursement of other
                        costs for services performed by the general partner or
                        affiliates which the Partnership would be required to
                        pay to third parties for comparable services in the 
                        same geographical location.

          In accordance with the Partnership Agreement, net income or loss,
          prior to recoupment of the partner's original capital investment, is
          allocated five percent (5%) to the General Partners and ninety-five
          percent (95%) to the Limited Partners as a class. Subsequent to
          recoupment, income or loss is allocated twenty percent (20%) to the
          General Partners and eighty per cent (80%) to the Limited Partners as
          a class.

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          (B) PROPOSED REMUNERATION

          Except for the payment of acquisition fees and the allocation of net
          income or loss as described above, the Partnership has no ongoing 
          plan or arrangement to compensate the persons and entities named 
          above.  However, the Managing General Partner or its affiliates may 
          receive leasing and management fees in connection with the management 
          of the Partnership's properties, subject to the limitations described 
          herein below.

          The Managing General Partner or its affiliates are entitled to 
          receive property management fees not to exceed 6% of the gross 
          revenues from commercial properties and 5% from residential 
          properties. Other expenses attributable to the operation of the 
          Partnership may be reimbursed to the General Partners or affiliates 
          of the Managing General Partner.

          The Managing General Partner or its affiliates are entitled to one
          half of the commissions paid as a result of the sale of Partnership
          properties, in an amount not to exceed 3% of such prices and
          subordinated to the right of the Limited Partners to receive 
          aggregate cash distributions from the Partnership equal to their 
          capital contribution plus the applicable preference amount.

          (C) REMUNERATION OF DIRECTORS

          None.

          (D) OPTIONS, WARRANTS AND RIGHTS

          The Registrant has granted no options, warrants or rights.

ITEM 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

No person is known to the Partnership to be the beneficial owner of over 5% of
the outstanding Partnership units. For information on net income or loss
allocation see Item 11. (A).

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS

See Note 6, Related Party Transactions in Notes to the Financial Statements, on
page 22.

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                                     PART IV

ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K

         (A) 1. FINANCIAL STATEMENT SCHEDULES

         The following Financial Statement Schedules of the Partnership are
         included in Part II, Item 8:

                                                                         PAGE
                                                                         ----
               Report of Independent Certified Public Accountants          12

               Balance Sheets as of December 31, 1998 and 1997             13

               Statements of Operations for each of the three years
               ended December 31, 1998, 1997 and 1996                      14

               Statements of Partners' Capital for each of the
               three years ended December 31, 1998, 1997 and 1996          15

               Statements of Cash Flows for each of the three years
               ended December 31, 1998, 1997 and 1996                      16

               Notes to Financial Statements                          17 - 22

               Report of Independent Certified Public Accountants on 
               Schedule III                                                23

               Schedule III Real Estate and Accumulated Depreciation  24 - 27

               Schedules Omitted:

               Other schedules have been omitted because of the absence of
               conditions under which they are required or because the
               required information is included in the Financial Statements
               and Notes thereto.

        (A) 2. EXHIBITS

               EXHIBIT 27 - Financial Data Schedule (for SEC use only)

        (A) 3. REPORTS ON FORM 8-K

               None


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                                   SIGNATURES

Pursuant to the requirements of Section 13 or 15 (d) 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.

                                    FLORIDA INCOME FUND, L.P.
                                    (Registrant)
                                    March 31, 1999

                                    By: /s/ ALLEN G. TEN BROEK  
                                    ------------------------------------------
                                    ALLEN G. TEN BROEK  
                                    President, Director and CEO
                                    Mariner Capital Management, Inc.
                                    (Principal Executive Officer)



                                    By: /s/ ELAINE HAWKINS
                                    ------------------------------------------
                                    Elaine Hawkins, Vice President/Secretary   
                                    Mariner Capital Management, Inc.
                                    (Principal Financial and Acctg Officer)





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