FORM 10-KSB--Annual or Transitional Report
                            Under Section 13 or 15(d)
                   (As last amended by 34-31905, eff. 4/26/93)


[X]   Annual Report Under Section 13 or 15(d) of the Securities Exchange Act of
      1934 [Fee Required]

                   For the fiscal year ended December 31, 1995
                                       or
[  ]  Transition Report Under Section 13 or 15(d) of the Securities Exchange Act
      of 1934 [No Fee Required]

                  For the transition period.........to.........

                         Commission file number 0-13530
 

                    DAVIDSON DIVERSIFIED REAL ESTATE I, L.P.
                 (Name of small business issuer in its charter)

          Delaware                                            62-1181565
(State or other jurisdiction of                             (I.R.S. Employer
incorporation or organization)                              Identification No.)

One Insignia Financial Plaza, P.O. Box 1089
    Greenville, South Carolina                                  29602
(Address of principal executive offices)                      (Zip Code)

                    Issuer's telephone number (864) 239-1000

         Securities registered under Section 12(b) of the Exchange Act:

                                      None

         Securities registered under Section 12(g) of the Exchange Act:

                      Units of Limited Partnership Interest
                                (Title of class)

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act of 1934 during the past 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


Check if there is no disclosure of delinquent filers in response to Item 405 of
Regulation S-B contained in this form, and no disclosure will be contained, to
the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-KSB or any
amendment to this Form 10-KSB. [X]

State issuer's revenues for its most recent fiscal year.  $2,955,837

State the aggregate market value of the voting partnership interests held by
non-affiliates computed by reference to the price at which the partnership
interests were sold, or the average bid and asked prices of such partnership
interests, as of December 31, 1995.  Market value information for the
Registrant's partnership interests is not available.  Should a trading market
develop for these interests, it is management's belief that such trading would
not exceed $25,000,000.
                                                                

                       DOCUMENTS INCORPORATED BY REFERENCE
1.  Portions of the Prospectus of Registrant dated November 16, 1983 (included
in Registration Statement, No. 2-84436 of Registrant) are incorporated by
reference into Parts I and III.

                                     PART I

Item 1.   Description of Business

   Davidson Diversified Real Estate I, L.P. (the "Registrant" or "Partnership")
is a Delaware limited partnership organized in January 1983.  The general
partners of the Registrant are Davidson Diversified Properties, Inc., a
Tennessee corporation ("Managing General Partner"); Diversified Equities,
Limited, a Tennessee limited partnership ("Associate General Partner"); and
David W. Talley ("Individual General Partner") (collectively, the "General
Partners").

   The offering of the Registrant's limited partnership units ("Units")
commenced on November 16, 1983, and terminated on September 14, 1984.  The
Registrant received gross proceeds from the offering of $15,008,000 and net
proceeds of $13,507,200.

   The Registrant's primary business is to acquire, own, operate and ultimately
dispose of existing income-producing residential real properties.  Industry
segment information is not relevant.  The Registrant does not engage in any
foreign operations nor derive any income from foreign sources.

   All of the net proceeds of the offering were invested in the Registrant's six
properties, four of which have since been sold or foreclosed upon.  See "Item 2.
Description of Properties," below for a description of the Registrant's
remaining properties.

   The Registrant receives income from its properties and is responsible for
operating expenses, capital improvements and debt service payments under
mortgage obligations secured by the properties.  The Registrant financed its
properties primarily through non-recourse debt.  Therefore, in the event of
default, the lender can generally only look to the subject property for recovery
of amounts due.

   Both the income and expenses of operating the properties owned by the
Registrant are subject to factors outside of the Registrant's control, such as
over-supply of similar properties resulting from over-building, increases in
unemployment or population shifts, reduced availability of permanent mortgage
funds, changes in zoning laws, or changes in patterns or needs of users.  In
addition, there are risks inherent in owning and operating residential
properties because such properties are susceptible to the impact of economic and
other conditions outside of the control of the Registrant.

   At this time, it appears that the investment objective of capital growth will
not be attained.  In addition, unless there is significant improvement in the
performance of the Registrant's properties and the markets in which such
properties are located, investors may not receive a return of a portion of their
initial capital contributions.  

   For the year ended December 31, 1995, the Registrant's properties accounted
for, in the aggregate, in excess of 99% of the Registrant's gross revenues. 
Each of the properties was acquired prior to December 31, 1984.

Competition

   The real estate business is highly competitive.  The Registrant's properties
are subject to competition from similar properties in the vicinity in which each
property is located.  The Partnership is not a significant factor in its
industry.  In addition, various limited partnerships have been formed by the
General Partners and/or their affiliates to engage in business which may be
competitive with the Registrant.

Employees

   The Registrant has no employees.  Management and administrative services are
performed by Davidson Diversified Properties, Inc., the Managing General
Partner, and by Insignia Management Group, L.P., an affiliate of Insignia
Financial Group, Inc. ("Insignia"), an affiliate of the Managing General
Partner.  See "Item 12. Certain Relationships and Related Transactions" for an
enumeration of the affiliates and the compensation and reimbursement received
from the Registrant during 1994 and 1995.


Item 2.  Description of Properties

   The following table sets forth the Registrant's investments in properties:

                          Date of               
 Property                 Purchase     Type of Ownership           Use    
                                     

 Versailles on the Lake   04/05/84   Fee ownership subject      Apartment  
                                     to first and second        156 units
                                     mortgages.
                                                             
 Ashley Woods Apts.       07/31/84   Fee ownership subject      Apartment 
                                     to first mortgage.         352 units
                                     

Schedule of Properties:
<TABLE>
<CAPTION>

                        Gross                                   
                       Carrying    Accumulated     Useful               Federal
 Property                Value     Depreciation     Life     Method    Tax Basis
<S>                 <C>            <C>           <C>        <C>      <C>      
 Versailles on the                                                              
    Lake             $ 4,238,654    $1,980,204    5-25 yrs    S/L     $1,406,005
                                                                                
 Ashley Woods          8,137,625     3,598,921    5-25 yrs    S/L      3,254,714
                                                                                
                     $12,376,279    $5,579,125                        $4,660,719

<FN>
   See Note A of the financial statements included in "Item 7" for a description
of the Registrant's depreciation policy.

</TABLE>

Schedule of Mortgages:
<TABLE>
<CAPTION>
                           Principal                                     Principal
                           Balance At                                     Balance
                          December 31,  Interest    Period    Maturity     Due At
 Property                     1995        Rate     Amortized    Date      Maturity
<S>                       <C>            <C>       <C>       <C>        <C>                          
 Ashley Woods                                                                      
    1st mortgage           $6,011,015     10.0%     20 yrs    07/01/00   $5,822,947
                                                                                   
 Versailles on the Lake                                                            
    1st mortgage            2,674,487     7.6%     21.42 yrs  11/15/02    2,071,366
    2nd mortgage               88,446     7.6%        (1)     11/15/02       88,446

                            8,773,948                                              
 Less unamortized                                                                  
    discounts                (151,379)                                             
                                                                                  
         Total             $8,622,569                                              
<FN>
   (1) Interest only payments. 

</TABLE>

   Schedule of Rental Rates and Occupancy:

                                    Average Annual                  Average 
                                     Rental Rates                  Occupancy
 Property                       1995            1994           1995       1994
                                                            
 Ashley Woods(1)          $5,961/unit       $5,899/unit         94%        88%
                                                               
 Versailles on the Lake    5,509/unit        5,328/unit         94%        94%

   (1)  The Managing General Partner attributes the increase in occupancy at
        Ashley Woods Apartments to increased levels of concessions and other
        leasing incentives along with the rehabilitation of the property's
        exterior, which has enhanced its ability to compete in the Cincinnati
        market.

   As noted under "Item 1. Description of Business," the real estate industry is
highly competitive.  All of the properties of the Registrant are subject to
competition from other residential apartment complexes in the area.  The
Managing General Partner believes that all of the properties are adequately
insured.  The multi-family residential properties' lease terms are for one year
or less.  No residential tenant leases 10% or more of the available space.

   Schedule of Real Estate Taxes and Rates:

                                      1995          1995
                                     Taxes          Rate
                                        
  Ashley Woods                     $138,219        4.38%
  Versailles on the Lake             89,100        9.06%
                                        

Item 3.   Legal Proceedings

   The Registrant is unaware of any pending or outstanding litigation that is
not of a routine nature.  The General Partner of the Registrant believes that
all such pending or outstanding litigation will be resolved without a material
adverse effect upon the business, financial condition or operations of the
Partnership.


Item 4.   Submission of Matters to a Vote of Security Holders

   During the fourth quarter of the fiscal year ended December 31, 1995, no
matters were submitted to a vote of Unit holders through the solicitation of
proxies or otherwise.

                                        
                                     PART II

Item 5.   Market for Partnership Equity and Related Partner Matters

   There is no established market for the Units and it is not anticipated that
any will exist in the foreseeable future.  As of January 1996, there were
approximately 1,142 holders of record owning an aggregate of 751.59 Units.

   Distributions to partners for the year ended December 31, 1995, were
$153,975.  There were no distributions to partners for the year ended December
31, 1994.

   Pursuant to the terms of the Partnership Agreement, there are restrictions on
the ability of the Limited Partners to transfer their Units.  In all cases, the
General Partners must consent to any transfer.

   The Revenue Act of 1987 contained provisions which have an adverse impact on
investors in "publicly traded partnerships."  Accordingly, the General Partners
have established a policy of imposing limited restrictions on the
transferability of the Units in secondary market transactions.  Implementation
of this policy should prevent a public trading market from developing and may
impact the ability of an investor to liquidate his investment quickly.  It is
expected that such policy will remain in effect until such time, if ever, as
further clarification of the Revenue Act of 1987 may permit the Registrant to
lessen the scope of the restrictions.

   There are no material restrictions upon the Registrant's present or future
ability to make distributions in accordance with the provisions of the
Registrant's Partnership
Agreement.

Item 6.   Management's Discussion and Analysis or Plan of Operation

Results of Operations

    The Partnership realized net income of $22,665 for the year ended December
31, 1995, compared to a net loss of $128,025 for the year ended December 31,
1994.  The increase in net income for 1995 is attributable to increased revenues
for the year.  Rental income increased due to rent increases at both investment
properties, combined with an increase in occupancy from 88% in 1994, to 94% in
1995, at Ashley Woods Apartments.  The Managing General Partner attributes the
increase in occupancy at Ashley Woods to increased levels of concessions and
other leasing incentives along with the rehabilitation of the property's
exterior, which has enhanced its ability to compete in the Cincinnati market. 
Other income increased due to an increase in lease cancellation fees at both
properties totalling approximately $22,000 and an increase in cleaning and
damage fees at Ashley Woods totalling approximately $13,000.  

    Overall expenses increased slightly for the year ended December 31, 1995,
compared to the year ended December 31, 1994.  Maintenance expense increased
during 1995, compared to 1994, due to an increase in interior building repairs,
swimming pool repairs and parking lot paving and striping at Ashley Woods. 
Depreciation expense increased in 1995 as a result of the major exterior
rehabilitation at Ashley Woods that was completed in June 1994 in combination
with other property improvements and replacements at both properties in 1995. 
The loss on disposal of property of $31,151 in 1994 represents the write-off of
old roofs that were replaced.

    The Managing General Partner continues to monitor the rental market
environment in each location of its apartment properties to assess the
feasibility of increasing rents and maintaining  or increasing occupancy levels 
to protect the Partnership from increases in expenses.  The Managing General
Partner expects to be able, at a minimum, to continue protecting the Partnership
from the burden of inflation-related increases in expenses by increasing rents
and maintaining a high overall occupancy level.  However, rental concessions and
rental reductions needed to offset softening market conditions could affect the
ability to sustain this plan.

Liquidity

    At December 31, 1995, the Partnership had unrestricted cash of $867,531
compared to  unrestricted cash of $809,719 at December 31, 1994.  Net cash
provided by operating activities increased primarily as a result of the revenue
increases noted above.  Net cash used in investing activities decreased due to
fewer property improvements and replacements at both of the Partnership's
investment properties.  Net cash used in financing activities increased due to
the distribution to partners of $153,975 made during the first quarter of 1995.

    The Partnership has no material capital programs scheduled to be performed
in 1996, although certain routine capital expenditures and maintenance expenses
have been budgeted.  These capital expenditures and maintenance expenses will be
incurred only if cash is available from operations or are funded from the
restricted escrows.

    The sufficiency of existing liquid assets to meet future liquidity and
capital expenditure requirements is directly related to the level of capital
expenditures required at the various properties to adequately maintain the
physical assets as well as future maturing mortgage obligations and related
refinancing expenses.  Such assets are currently thought to be sufficient for
any near-term needs of the partnership.  The Partnership made a distribution to
partners of $153,975 during the first quarter of 1995.  Future cash
distributions will depend on the levels of net cash generated from operations,
refinancings, and property sales.


Item 7.  Consolidated Financial Statements


DAVIDSON DIVERSIFIED REAL ESTATE I, L.P.

LIST OF CONSOLIDATED FINANCIAL STATEMENTS

        Report of Independent Auditors

        Consolidated Balance Sheet   December 31, 1995

        Consolidated Statements of Operations - Years ended December 31, 1995 
        and 1994

        Consolidated Statements of Changes in Partners  Deficit - Years ended 
        December 31, 1995 and 1994

        Consolidated Statements of Cash Flows - Years ended December 31, 1995 
        and 1994

        Notes to Consolidated Financial Statements

                Report of Ernst & Young LLP, Independent Auditors



The Partners
Davidson Diversified Real Estate I, L.P.


We  have  audited  the  accompanying  consolidated  balance  sheet  of  Davidson
Diversified Real Estate I, L.P. (A Limited Partnership) as of December 31, 1995,
and  the related  consolidated  statements of  operations, changes  in partners 
deficit  and  cash  flows  for  each of  the  two  years  in  the  period  ended
December 31, 1995.   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  in  accordance  with  generally   accepted  auditing
standards.  Those standards 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.  An audit also includes
assessing the accounting  principles used and significant estimates made  by the
Partnership s management,  as well as evaluating the overall financial statement
presentation.   We believe that  our audits  provide a reasonable  basis for our
opinion.

In  our opinion, the financial  statements referred to above  present fairly, in
all   material  respects,  the  consolidated  financial   position  of  Davidson
Diversified Real Estate I, L.P. (A Limited Partnership) as of December 31, 1995,
and  the consolidated results of  its operations and its cash  flows for each of
the  two  years in  the  period  ended  December 31,  1995,  in conformity  with
generally accepted accounting principles.


                                                ERNST & YOUNG LLP


Greenville, South Carolina
February 6, 1996




                    DAVIDSON DIVERSIFIED REAL ESTATE I, L.P.

                           CONSOLIDATED BALANCE SHEET

<TABLE>
<CAPTION>
                                December 31, 1995

                                                                            
<S>                                                   <C>            <C>       
 Assets                                                                         
   Cash:                                                                        
     Unrestricted                                                     $  867,531
     Restricted-tenant security deposits                                  87,377
   Accounts receivable                                                    13,596
   Escrows for taxes and insurance                                       156,152
   Restricted escrows                                                    294,022
   Other assets                                                          245,623
   Investment properties (Notes A, C and F):                                    
     Land                                             $ 1,071,881              
     Buildings and related personal property           11,304,398               
                                                       12,376,279               
     Less accumulated depreciation                     (5,579,125)     6,797,154
                                                                                
                                                                      $8,461,455
                                                                               
 Liabilities and Partners' Deficit                                              
                                                                               
 Liabilities                                                                    
   Accounts payable                                                   $   46,378
   Tenant security deposits                                               86,153
   Accrued taxes                                                         231,774
   Other liabilities                                                     183,099
   Due to affiliates (Note B)                                            320,830
   Mortgage notes payable (Note C)                                     8,622,569
                                                                               
 Partners' Deficit                                                              
   General partners                                    $   (73,186)             
   Limited partners (751.59 units                                               
     issued and outstanding)                              (956,162)   (1,029,348)
                                                                                
                                                                      $8,461,455


<FN>
           See Accompanying Notes to Consolidated Financial Statements

</TABLE>

                    DAVIDSON DIVERSIFIED REAL ESTATE I, L.P.

                      CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
              
                                                                             
                                                          Years Ended December 31,
                                                              1995         1994    
<S>                                                     <C>            <C>
 Revenues:                                                                        
    Rental income                                        $2,731,155     $2,564,748
    Other income                                            224,682        190,984
          Total revenues                                  2,955,837      2,755,732
                                                                                  
 Expenses:                                                                        
    Operating                                               678,757        680,311
    General and administrative                              119,118        104,792
    Property management fees                                146,668        134,486
    Maintenance                                             397,570        365,943
    Depreciation                                            486,768        444,473
    Interest                                                877,711        884,902
    Property taxes                                          226,580        237,699
          Total expenses                                  2,933,172      2,852,606
                                                                                  
 Loss on disposal of property                                    --        (31,151)
                                                                     
    Net income (loss) (Note D)                           $   22,665     $ (128,025)
                                                                                  
 Net income (loss) allocated to general partners (5%)    $    1,133     $   (6,401)

 Net income (loss) allocated to limited partners (95%)       21,532       (121,624)
                                                                                 
                                                         $   22,665     $ (128,025)
                                                                     
 Net income (loss) per limited partnership unit:
 (based on 751.59 and 751.84 limited partnership
 units outstanding during the periods,                               
 respectively)                                           $    28.65     $  (161.77)

<FN>
           See Accompanying Notes to Consolidated Financial Statements
</TABLE>

                    DAVIDSON DIVERSIFIED REAL ESTATE I, L.P.
 
             CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' DEFICIT


<TABLE>
<CAPTION>                                                                    
                                     Limited                 
                                   Partnership   General       Limited
                                      Units      Partners      Partners          Total   
<S>                                 <C>        <C>          <C>              <C>
 Original capital contributions      751.84     $  1,000     $15,008,000      $15,009,000

 Partners' deficit at                                                                    
    December 31, 1993                751.84     $(60,219)    $  (709,794)     $  (770,013)

 Net loss for the year ended                                                             
    December 31, 1994                    --       (6,401)       (121,624)        (128,025)

 Partners' deficit at                                                                    
    December 31, 1994                751.84      (66,620)       (831,418)        (898,038)

 Distributions to partners               --       (7,699)       (146,276)        (153,975)

 Abandonment of limited                                                                  
    partnership units (Note A)         (.25)          --              --               --

 Net income for the year ended                                                           
    December 31, 1995                    --        1,133          21,532           22,665

 Partners' deficit at                                                                    
    December 31, 1995                751.59     $(73,186)    $  (956,162)     $(1,029,348)
<FN>
           See Accompanying Notes to Consolidated Financial Statements
</TABLE>

                    DAVIDSON DIVERSIFIED REAL ESTATE I, L.P.

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>

                                                                              
                                                       Years Ended December 31,  
                                                          1995            1994    
<S>                                                   <C>             <C>
 Cash flows from operating activities:                                          
    Net income (loss)                                  $  22,665       $(128,025)
    Adjustments to reconcile net income (loss) to                               
       net cash provided by operating activities:                               
       Depreciation                                      486,768         444,473
       Amortization of discounts and loan fees            62,467          61,647
       Loss on disposal of property                           --          31,151
       Change in accounts:                                                      
         Restricted cash                                    (908)        (14,377)
         Accounts receivable                               1,678         (10,053)
         Escrows for taxes and insurance                 (14,480)         (5,588)
         Other assets                                      1,332          (4,427)
         Accounts payable                                (15,709)         40,564
         Tenant security deposit liabilities                (933)         14,994
         Accrued taxes                                    (9,885)          5,574
         Other liabilities                                68,371         (15,054)
                                                                                
            Net cash provided by operating                                      
                activities                               601,366         420,879
                                                                                
 Cash flows from investing activities:                                          
    Property improvements and replacements              (229,848)       (672,531)
    Deposits to restricted escrows                       (75,143)        (49,048)
    Receipts from restricted escrows                      11,899         203,946
                                                                                
            Net cash used in investing activities       (293,092)       (517,633)
                                                                                
 Cash flows from financing activities:                                          
    Payments on mortgage notes payable                   (96,487)        (88,757)
    Distributions to partners                           (153,975)             --
                                                                                
            Net cash used in financing activities       (250,462)        (88,757)
                                                                                
 Net increase (decrease) in cash                          57,812        (185,511)
                                                                                
 Cash at beginning of year                               809,719         995,230
                                                                                
 Cash at end of year                                   $ 867,531       $ 809,719
                                                                                
 Supplemental disclosure of cash flow information:                              
    Cash paid for interest                             $ 815,524       $ 823,254

<FN>
           See Accompanying Notes to Consolidated Financial Statements

</TABLE>

                    DAVIDSON DIVERSIFIED REAL ESTATE I, L.P.
                                        
                   Notes to Consolidated Financial Statements

                                December 31, 1995

Note A   Organization and Significant Accounting Policies

Organization

Davidson Diversified  Real Estate  I,  L.P. (the  "Partnership") is  a  Delaware
limited  partnership organized  on  January  14, 1983,  to acquire  and  operate
residential real estate properties.

Principles of Consolidation

The financial statements include all the accounts of the Partnership and a 99.9%
owned  partnership.    All  significant  inter-partnership  balances  have  been
eliminated.

Allocations to Partners

Net earnings (loss) of the Partnership and  taxable income (loss) are  allocated
95%  to the limited partners and  5% to the general  partners.  Distributions of
available  cash (cash  flow) are  allocated among  the limited partners  and the
general partners in accordance with the agreement of limited partnership.

Allocation of net income for tax purposes, arising from the occurrence of a sale
or refinancing shall be allocated as follows:

   
   First,  an amount equal to the  aggregate deficit in the  capital accounts of
   the  General and Limited  Partners having deficits in  their capital accounts
   shall be allocated to each such partner in the same ratio as the deficit such
   partner s  capital account  bears  to  the aggregate  of all  such  partners 
   deficits.
   
   Second, to the Limited Partners in an amount equal to the cash distributed to
   them from a sale or refinancing.

   Third, the remainder, if any, five percent  (5%) to the General Partners  and
   ninety-five percent (95%) to the Limited Partners.

Distributions of  cash from  sales or refinancings  shall be  distributed in the
following order of priority:

   First,  to the  Limited Partners,  an amount  which when  added to  all prior
   distributions of cash  from sales or refinancings shall equal  their original
   invested capital, plus an amount which, when added to all prior distributions
   to  the Limited Partners  (excluding distributions which are  deducted in the
   calculation of adjusted invested capital), will equal 8% per annum cumulative
   noncompounded on their adjusted invested capital, commencing the last day  of
   the  calendar  quarter in  which  each  Limited Partner  is  admitted to  the
   Partnership through the date of payment.

Note A - Organization and Significant Accounting Policies (continued)

   Second,  to an  affiliate of  the general  partners, an  amount equal  to its
   subordinated real estate commission, which  fee is equal to the lesser of (i)
   3% of the gross sales price of a property or (ii) one-half of the competitive
   commission, as defined, but may only be paid after  the Limited Partners have
   received their priority distributions as discussed in the previous paragraph.

   Third,  85% of the remaining cash  from sales or refinancings  to the Limited
   Partners and  15% of the   remaining cash from  sales or refinancings  to the
   General Partners.

Abandoned Units

During 1995,  the number of limited  partnership units decreased  by .25  due to
limited  partners abandoning their  units.  In abandoning his or her partnership
units,  a  limited partner  relinquishes all  right, title  and interest  in the
Partnership as of the date of abandonment.

Depreciation

Depreciation is provided by the straight-line method over the estimated lives of
the investment properties and related personal property.  For Federal income tax
purposes,  the accelerated cost  recovery method  is used (1) for  real property
over 18 years for additions after March 15, 1984, and before May 9, 1985, and 19
years for additions after May  8, 1985, and before January 1,  1987, and (2) for
personal property over 5  years for additions prior  to January 1,  1987.  As  a
result of the Tax Reform Act of 1986, for additions after December 31, 1986, the
modified accelerated cost  recovery method is used for depreciation of  (1) real
property additions over 27 1/2 years, and (2) personal property additions over 7
years.

Investment Properties

During 1995, the Partnership adopted FASB Statement No. 121, "Accounting for the
Impairment of  Long-Lived Assets and  for Long-Lived Assets to  be Disposed Of",
which requires impairment losses to  be recognized for long-lived assets used in
operations when indicators  of impairment are present and the  undiscounted cash
flows are not sufficient to recover the assets' carrying amount.  The impairment
loss  is measured  by comparing  the  fair value  of the  asset to  its carrying
amount.   The  adoption of FASB  No. 121 did  not have a material  effect on the
Partnership's financial statements.

Cash

The Partnership considers only unrestricted  cash to be cash.  At certain times,
the amount of cash deposited at a bank may exceed the limit on insured deposits.

Note A - Organization and Significant Accounting Policies (continued)

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 amounts reported in the financial statements and accompanying  notes.
Actual results could differ from those estimates.

Advertising

The  Partnership expenses  the costs  of advertising  as incurred.   Advertising
expense, included in  operating expenses, was $30,318  and $39,384 for the years
ended December 31, 1995 and 1994, respectively.

Restricted Escrows

1) Reserve Account

A general  Reserve Account of  $156,000 was  established in 1992  from the REMIC
refinancing proceeds for the refinanced property to cover necessary repairs  and
replacements of  existing  improvements,  debt service,  out-of-pocket  expenses
incurred  for ordinary and  necessary administrative tasks, and  payment of real
property taxes and insurance  premiums.  The Partnership was required to deposit
net  operating income  (as defined  in the  mortgage note)  from  the refinanced
property to  the reserve account until  the reserve account  equalled $1,000 per
apartment  unit or  $156,000  in total.    At December  31, 1995,  this  reserve
totalled $156,919.

2) Replacement Reserve

A replacement reserve account has been established with the mortgagee for Ashley
Woods,  and these funds will  be used, as needed, to  make necessary repairs and
replacements.  At December 31, 1995, this reserve totalled $137,103.

Present Value Discounts

Periodically,  the Partnership  incurs debt  at below  market rates  for similar
debt.   Present value discounts  are recorded on the basis  of prevailing market
rates and are amortized using the interest  method over the life of the  related
debt.  The amortization expense is included in interest expense.

Loan Costs

Loan  costs are being amortized  on a straight-line  basis over the  life of the
respective loans.  The amortization expense is included in interest expense.

Note A - Organization and Significant Accounting Policies (continued)

Leases

The Partnership generally leases apartment units for twelve-month terms or less.

Restricted Cash

The  Partnership requires security  deposits from all apartment  lessees for the
duration  of the  lease.   Deposits  are refunded  when  the tenant  vacates the
apartment if there has been no damage to the unit.

Fair Value  

In 1995, the Partnership implemented Statement of Financial Accounting Standards
No. 107, "Disclosure about Fair Value of Financial Instruments," which  requires
disclosure of fair value information about financial instruments for which it is
practicable to estimate that value.  The Partnership estimates the fair value of
its fixed rate mortgages  by discounted cash  flow analysis, based on  estimated
borrowing rates currently available to the Partnership.  The carrying amounts of
variable-rate mortgages approximate fair value due to frequent re-pricing.

Reclassifications

Certain reclassifications have been made  to the 1994 balances to conform to the
1995 presentation.

Note B   Due to Affiliates

The  Partnership is liable  to a  company affiliated  with the  Managing General
Partner through common ownership for real estate  commissions in the amounts  of
$124,500 for Revere Village  and $196,330 for Essex which were sold  in previous
years.   Payment of the commissions  will not be made to  the affiliated company
until after payment to  the limited partners of their original invested capital,
plus 8% per  annum cumulative non-compounded on their adjusted  invested capital
commencing on the last day of the calendar quarter in which each limited partner
was admitted to the Partnership through the date of payment.



Note C   Mortgage Notes Payable

The principal terms of mortgage notes payable are as follows:
<TABLE>
<CAPTION>
                                                            
                                                                              
                           Principal      Monthly                         Principal
                          Balance At      Payment    Stated                Balance
                          December 31,   Including  Interest   Maturity    Due At
 Property                    1995        Interest     Rate       Date     Maturity
<S>                       <C>            <C>         <C>      <C>       <C>                         
 Ashley Woods              $6,011,015     $52,870     10.0%    07/01/00  $5,822,947
                                                                                  
 Versailles on the Lake                                                            
   1st mortgage             2,674,487      22,571     7.6%     11/15/02   2,071,366
   2nd mortgage                88,446         560     7.6%     11/15/02      88,446

                            8,773,948     $76,001                                  
                                                                                  
 Less unamortized                                                                  
   discounts                 (151,379)                                             
                                                                                   
      Totals               $8,622,569                                              
                                                                              
</TABLE>

The  above  non-recourse  mortgages are  secured  by  the  related  property and
improvements  of the  Partnership and by pledge  of revenues  from the apartment
properties.  Certain  of the notes require prepayment penalties if  repaid prior
to  maturity  and  prohibit  resale  of  the  properties  subject  to   existing
indebtedness.

The Partnership exercised an interest rate buy-down option for Versailles on the
Lake reducing the  stated rate from 8.76% to  7.60% during the REMIC refinancing
discussed in Note A above.  The fee for the interest rate reduction was $205,201
and is being  amortized as a  loan discount using  the interest method  over the
life of the loans.  The discount fee is reflected as a reduction of the mortgage
notes payable and increases the effective rate of the debt to 8.76%.

The estimated fair  values of the Partnership's aggregate debt  is approximately
$9,077,000.  This value represents a general approximation of possible value and
is not necessarily indicative of the amounts  the Partnership may pay in  actual
market transactions.



Note C   Mortgage Notes Payable (continued)

Scheduled  principal payments of  mortgage notes payable subsequent  to December
31, 1995, are as follows:
      
     Years Ending December 31,                                       
               1996                            $  104,876            
               1997                               114,037            
               1998                               124,014            
               1999                               134,882            
               2000                             5,943,047            
               Thereafter                       2,353,092            
                                               $8,773,948            
                                                                  
Note D   Income Taxes

The Partnership received  a ruling from the Internal  Revenue Service that it is
to be classified as a partnership for Federal income tax purposes.  Accordingly,
no provision  for  income taxes  is made  in  the  financial statements  of  the
Partnership.   Taxable  income or  loss of  the Partnership  is reported  in the
income tax returns of its partners.

Differences between the net income (loss) as reported and Federal taxable income
(loss)  result primarily from  (1) amortization of present  value discounts, (2)
depreciation over  different methods  and lives and  on differing  cost bases of
apartment properties, and (3) change  in rental income received in advance.  The
following is a reconciliation of reported net  income (loss) and Federal taxable
income (loss):
                                                                              
                                                                 
                                        1995               1994  

                                                                 
 Net income (loss) as reported        $ 22,665          $(128,025)
 Add (deduct)                                                    
    Depreciation differences           (66,649)           (72,653)
    Unearned income                     76,413            (11,397)
    Miscellaneous                      (11,104)            37,545
                                                                 
 Federal taxable income (loss)        $ 21,325          $(174,530)
                                                                 
 Federal taxable income (loss)                                   
    per limited partnership unit      $  26.95          $ (220.53)

Note D - Income Taxes (continued)

The following is a reconciliation between the Partnership's reported amounts and
Federal tax basis of net assets and liabilities at December 31, 1995:

       Net deficit as reported                             $(1,029,348)
       Differences in basis of assets and liabilities:                
         Buildings and Land                                    136,576
         Accumulated depreciation                           (2,273,010)
         Basis difference in lower tier partnership            374,636
         Other                                                 136,986
       Net deficit - Federal tax basis                     $(2,654,160)


Note E   Transactions with Affiliated Parties

Affiliates of  Insignia  Financial  Group,  Inc.  ("Insignia")  own  controlling
ownership interest in the Partnership s Managing General Partner.   As a result,
affiliates of Insignia provide property management and asset management services
to the Partnership.

The following  payments were  made to Insignia and  its affiliates  in 1995  and
1994: 

                                                        1995         1994  
       Property management fees                       $146,668     $134,486
       Data processing services                          3,135        2,325
       Marketing services                                2,289        4,236
       Reimbursement for services of affiliates         82,703       68,481
                                                                           
The Partnership insures its  properties under a master  policy through an agency
and insurer unaffiliated with the Managing General Partner.  An affiliate of the
Managing General  Partner acquired,  in the  acquisition of  a business, certain
financial obligations from  an insurance agency which was later acquired  by the
agent who placed  the current year's  master policy.  The current  agent assumed
the financial obligations to  the affiliate of the Managing General Partner, who
receives payments  on these  obligations from  the  agent.   The  amount of  the
partnership's insurance premiums accruing to the benefit of the affiliate of the
Managing  General  Partner   by  virtue  of  the   agent's  obligations  is  not
significant.



Note F - Investment Properties and Accumulated Depreciation
<TABLE>
<CAPTION>

                                               Initial Cost
                                              To Partnership  
                                                       
                                                      Buildings        Cost
                                                     and Related    Capitalized
                                                       Personal    Subsequent to
 Description             Encumbrances       Land       Property     Acquisition
<S>                       <C>          <C>           <C>            <C>     
 Versailles on the Lake                                                        
     Apartments                                                                
     Fort Wayne, Indiana   $2,762,933   $  191,447    $3,847,517     $  199,690
                                                                               
 Ashley Woods Apartments                                                       
     Cincinnati, Ohio       6,011,015      880,434     5,814,753      1,442,438
                                                                               
        Totals             $8,773,948   $1,071,881    $9,662,270     $1,642,128

</TABLE>                                                                  

<TABLE>
<CAPTION>                                                                
                                                                            
                                  Gross Amount At Which Carried                                             
                                         At December 31, 1995                                                 
         
                                              Buildings                                                        
                                             And Related                                                       
                                               Personal                    Accumulated       Date of         Date    Depreciable
Description                        Land        Property       Total        Depreciation    Construction    Acquired  Life-Years
<S>                           <C>           <C>           <C>            <C>                  <C>           <C>        <C>       
Versailles on the Lake                                                                                  
  Apartments                                                                                       
   Fort Wayne, Indiana         $  191,447    $4,047,207    $4,047,207     $1,980,204           1970          04/84      5-25
                                                                                                              
Ashley Woods                                                                                            
   Cincinnati, Ohio               880,434    7,257,191      8,137,625      3,598,921           1971          07/84      5-25  
                                                                                                                     
         Totals                $1,071,881  $11,304,398    $12,376,279     $5,579,125                    

<FN>

The depreciable lives  included above  are for the  buildings and related  personal
property.  The depreciable  lives for  related personal  property are  for 5  to 15
years.

</TABLE>


Note F - Investment Properties and Accumulated Depreciation (continued)


Reconciliation of  Investment Properties and Accumulated Depreciation :

                                               Year Ended December 31,   
                                               1995              1994   
                                                                        
 Investment Properties                                                  
                                                                       
 Balance at beginning of year               $11,074,550      $10,495,536
     Property improvements                      229,848          672,531
     Disposal of property                            --          (93,517)
                                                                       
 Balance at end of year                     $11,304,398      $11,074,550
                                                                       
 Accumulated Depreciation                                               
                                                                        
 Balance at beginning of year                $5,092,357      $ 4,710,250
     Depreciation expense                       486,768          444,473
     Disposal of property                            --          (62,366)
                                                                       
 Balance at end of year                      $5,579,125      $ 5,092,357

The aggregate cost of the real estate for Federal income tax purposes at 
December 31, 1995 and 1994, is $12,512,854 and $12,283,006, respectively.
The accumulated depreciation taken for Federal income  tax purposes at December
31, 1995  and 1994, is $7,852,135 and $7,298,718, respectively.


Item 8.  Changes in and Disagreements with Accountants on Accounting and
         Financial Disclosure

   None.

                                     PART III

Item 9. Directors, Executive  Officers, Promoters and Control Persons; 
        Compliance with Section 16(a) of the Exchange Act

   The names of the directors and executive officers of Davidson Diversified
Properties, Inc., the Partnership's Managing General Partner, their ages and 
the nature of all positions with Davidson Diversified Properties, Inc. 
presently held by them are as follows:

Name                               Age               Position

Carroll D. Vinson                  55                President

Robert D. Long, Jr.                28                Controller and Principal 
                                                     Accounting Officer

William H. Jarrard, Jr.            49                Vice President

John K. Lines                      36                Secretary

Kelley M. Buechler                 38                Assistant Secretary


  Carroll D. Vinson has been President of Metropolitan Asset Enhancement, L.P.,
and subsidiaries since August of 1994.  Prior  to that, during 1993 to August 
1994, Mr. Vinson was affiliated with Crisp, Hughes & Co.  (regional CPA firm)
and engaged in various  other investment and  consulting activities.   Briefly,
in early  1993, Mr. Vinson served as President and Chief Executive Officer of
Angeles Corporation, a  real estate  investment firm.   From  1991 to 1993,  
Mr. Vinson was employed by Insignia in various  capacities including Managing
Director-President  during 1991. From 1986  to  1990, Mr.  Vinson  was 
President and a Director of U.S. Shelter Corporation, a real estate services
company, which sold substantially all of its assets to Insignia in December 
1990.
   
  Robert D. Long, Jr. is Controller and Principal Accounting Officer. Prior to
joining Metropolitan Asset Enhancement, L.P., and subsidiaries, he was an 
auditor for  the State of Tennessee and was associated with the accounting firm
of Harshman Lewis and Associates.  He is a graduate of The University of 
Memphis.

  William H. Jarrard, Jr. is Managing Director - Partnership Administration of
Insignia. During the five years prior to joining Insignia in 1991, he served in
a similar  capacity for  U.S.  Shelter.  He was previously associated with the
accounting firm, Ernst & Whinney, for eleven years.  Mr. Jarrard is a graduate
of the University of South Carolina and a certified public accountant.

   John K. Lines has  been General Counsel and Secretary of Insignia since June
1994. From May 1993 until June 1994, Mr. Lines  was the Assistant General 
Counsel and Vice President  of Oewen  Financial Corporation in West Palm Beach, 
Florida. From October 1991 until  April 1993, Mr. Lines was a  Senior Attorney 
with Banc One Corporation in  Columbus, Ohio.   From May 1984  until October 
1991, Mr.  Lines was employed as an Associate Attorney with Squire Sanders &
Dempsey in Columbus, Ohio.

  Kelley M. Buechler is Assistant Secretary of Insignia. During the five years
prior to joining Insignia in 1991, she served in a similar capacity for U.S.
Shelter.  Ms. Buechler is a graduate of the University of North Carolina.


Item 10.  Executive Compensation

 The Registrant was  not required to and did not pay remuneration to officers
and/or directors of the Managing General Partner during 1995 or 1994.  See "Item
12." below and Note E of  the Notes to the Consolidated Financial Statements for
a discussion of  compensation and  reimbursements paid  to the  General Partners
and certain affiliates.


Item 11.  Security Ownership of Certain Beneficial Owners and Management

   As of February 1996, no Unit holder was known by the Registrant to be the
beneficial owner of more than 5% of the Units of the Registrant.

   As of February 1996, no director or officer of the Managing General Partner
owns,  nor do the directors or officers as a whole own more than  1% of the
Registrant's  Units.  No such director or officer had any right to acquire
beneficial ownership of additional Units of the Registrant.


Item 12.  Certain Relationships and Related Transactions

   Davidson  Diversified Properties,  Inc.,  the Managing  General  Partner of
the Registrant, is owned by MAE GP Corporation, an affiliate of Insignia.

   The majority of  general partner  and limited partner  interests in  
Diversified Equities, Ltd., the Associate General  Partner, are owned by MAE  
Investments, Inc. and Insignia Jacques-Miller,  L.P., respectively,  both of 
whom  are affiliates  of Insignia. Effective January 1, 1992,  management and 
administrative services were  assumed by affiliates of  Insignia.  Amounts for
management  services paid to these affiliates in  1995 and  1994 were $146,668
and $134,486,  respectively.   Reimbursements for administrative services were
paid to affiliates of  Insignia during 1995  and 1994 in the amounts of $82,703
and $68,481, respectively.

   The Partnership Agreement provides  for the Managing General Partner  to
receive a fee for managing the  affairs of the Registrant.  The fee is  5% of 
adjusted cash from operations, as defined in the Partnership Agreement.  The fee
is payable  only after  the Registrant has distributed, to all  limited 
partners, adjusted cash from operations  in any year equal  to 8% of their  
adjusted invested capital as defined in  the Partnership Agreement.   Because
the likelihood of  payment of  the fee is remote, the fee has not been accrued.


Item 13.  Exhibits and Reports on Form 8-K

  (a)   Exhibits:  see Exhibit Index contained herein.

  (b)   No Reports on Form 8-K were filed during the fourth quarter of    
        1995.

                                    SIGNATURES


   In accordance with  Section 13 or 15(d)  of the Exchange Act,  the Registrant
caused this report to  be signed on its  behalf by the undersigned, thereunto  
duly authorized.



                                                                          
                                 DAVIDSON DIVERSIFIED REAL ESTATE I, L.P.

                                 By:   Davidson Diversified Properties, Inc.,
                                       as Managing General Partner


                                 By:   /s/Carroll D. Vinson                
                                       Carroll D. Vinson
                                       President


                                 Date: March 13, 1996



    In accordance with the Exchange Act, this report has been signed below by
the following person on behalf of the Registrant and in the capacities and on
the date indicated.



/s/Carroll D. Vinson              President                   March 13, 1996
Carroll D. Vinson



/s/Robert D. Long, Jr.            Controller and Principal    March 13, 1996
Robert D. Long, Jr.               Accounting Officer


                                   EXHIBIT INDEX

Exhibit

3A      Partnership Agreement dated  January 14, 1983 is  incorporated by 
        reference to Exhibit A  to the Prospectus of  the Registrant dated 
        November 16,  1983 as filed with the Commission pursuant to Rule 424(b)
        under the Act.

3B      Amendment  No. 1  dated January  1,  1986 to  the Partnership  Agreement
        is incorporated by reference to Exhibit  3B to the Registrant's  Annual
        Report on Form 10-K for the fiscal year ended December 31, 1985.

4       Certificate  of Limited Partnership dated  December 2, 1982 is 
        incorporated by reference to Exhibit  4 to the  Registrant's Annual 
        Report on  Form 10-K for the fiscal year ended December 31, 1987.

4A      Certificate of Amendment of Certificate of Limited Partnership  dated
        March,  1983 is  incorporated by reference  to Exhibit 4A  to 
        the Registrant's Annual Report on Form 10-K for the fiscal year ended
        December 31, 1987.

4B      Restated  Certificate  of  Limited  Partnership  dated  June   8,  1983
        is incorporated by reference to Exhibit  4B to the Registrant's  Annual
        Report on Form 10-K for the fiscal year ended December 31, 1987.

4C      Amended and  Restated Certificate of  Limited Partnership dated January
        1, 1986 is incorporated  by reference to Exhibit 4C to the Registrant's 
        Annual Report on form 10-K for the fiscal year ended December 31, 1987.

10A     Agent's Agreement dated November  1, 1983 between the Registrant and 
        Harvey Freeman &  Sons, Inc. is  incorporated by reference to  Exhibit 
        10B to  the Registrant's Annual  Report on Form 10-K for the fiscal year
        ended December 31, 1983.

10B     Agreement Among Agents dated  November 1, 1983 by and among  Harvey 
        Freeman &  Sons, Inc., Harvey  Freeman &  Sons, Inc. of  Arkansas, 
        Harvey Freeman & Sons, Inc.  of Florida,  Harvey  Freeman &  Sons, Inc.
        of Georgia,  Harvey Freeman & Sons, Inc. of Indiana, Harvey  Freeman &
        Sons, Inc. of  Kentucky, Harvey  Freeman & Sons, Inc. of Mississippi, 
        Harvey Freeman & Sons, Inc. of North Carolina, Harvey Freeman and Sons, 
        Inc. of Ohio  and Harvey Freeman & Sons,  Inc. of South  Carolina is 
        incorporated by  reference to Exhibit 10C to the Registrant's Annual 
        Report on Form  10-K for the fiscal  year ended December 31, 1983.

10C     Acquisition  and  Disposition  Services Agreement  dated  October  3,
        1983 between  the Registrant  and  Criswell Freeman  Company is  
        incorporated by reference  to Exhibit 10D  to the  Registrant's Annual
        Report  on Form 10-K for the fiscal year ended December 31, 1983.

10D     Contract  for Sale of Real  Estate for Versailles  on the  Lake dated
        March 16,  1984 between  Versailles on the  Lake Associates,  an 
        Illinois limited partnership  and  Tennessee  Trust Company,  Trustee, 
        is incorporated  by reference to Exhibit 10(b)  to the Registrant's 
        Current Report  on Form 8-K dated April 4, 1984.

10E     Assignment  of Contract  for  Sale dated  April  2, 1984  between 
        Tennessee Trust Company, Trustee, and the  Registrant (relating to 
        Versailles  on the Lake  Apartments)  is incorporated  by  reference
        to  Exhibit  10L to  the Registrant's Annual Report  on Form 10-K for
        the fiscal year ended December 31, 1984.

10F     Note  dated  November  19,  1984  executed  by  the  Registrant  
        payable to American  Fletcher National  Bank and Trust  Company 
        relating to Versailles on the Lake Apartments  is incorporated by 
        reference to Exhibit 10W  to the Registrant's Annual Report on  Form
        10-K for the fiscal year ended December 31, 1985.

10G     Real Estate  Mortgage,  Assignment of  Rents and  Security Agreement
        dated November 19, 1984 executed by  the Registrant payable to  American
        Fletcher National Bank  and Trust  Company relating  to  Versailles on  
        the Lake  is incorporated  by reference  to  Exhibit  10EE to  the 
        Registrant's  Annual Report on Form 10-K for the fiscal year ended 
        December 31, 1985.

10H     Memorandum of Understanding  among SEC Realty Corp., Tennessee  
        Properties, L.P.,  Freeman  Mortgage  Corporation,  J.  Richard  
        Freeman,  W.  Criswell Freeman and  Jacques-Miller Properties, Inc.
        is incorporated by  reference to Exhibit 10BB  to the  Registrant's 
        Annual Report  on Form  10-K for  the fiscal year ended December 31, 
        1988.

10I     Partnership  Administration   and  Consultation   Agreement  among
        Freeman Properties,  Inc., Freeman Diversified  Properties, Inc., 
        Residual Equities Limited and  Jacques-Miller Properties, Inc.  is 
        incorporated by  reference to Exhibit 10CC  to the  Registrant's Annual
        Report  on Form  10-K for  the fiscal year ended December 31, 1988.

10J     Partnership Agreement of Ashley Woods  Associates dated May 16,  1990
        owned 99.9% by the Registrant  relating to refinancing of Ashley Woods 
        Apartments is  incorporated by  reference to Exhibit  10EE to  the 
        Registrant's Annual Report on Form 10-K for the fiscal year ended 
        December 31, 1991.

10K     Multifamily  Note with  Addendum  dated June  14,  1990 executed  by
        Ashley Woods Associates  payable  to PW  Funding  Inc.  relating to
        Ashley  Woods Apartments  is incorporated  by  reference   to  Exhibit
        10FF  to   the Registrant's Annual Report on Form 10-K for the  fiscal
        year ended December 31, 1991.

10L     Multifamily Open-end  Mortgage with Rider dated  June 14,  1990 executed
        by Ashley Woods  Associates in favor  of PW  Funding Inc.  relating to
        Ashley Woods Apartments  is  incorporated by  reference  to  Exhibit 
        10GG  to  the Registrant's Annual Report on Form 10-K for the  fiscal 
        year ended December 31, 1991.

10M     Termination Agreement, dated December 31, 1991  among Jacques-Miller,
        Inc.,Jacques-Miller Property Management, Davidson Diversified  
        Properties, Inc., and  Supar, Inc.  is  incorporated  by reference  to  
        Exhibit 10HH  to  the Registrant's Annual Report on Form 10-K for the 
        fiscal  year ended December 31, 1991.

10N     Assignment of  Limited Partnership Interest  of Freeman Equities,
        Limited, dated December 31,  1991 between  Davidson Diversified 
        Properties,  Inc and Insignia Jacques-Miller, L.P.  is incorporated by 
        reference to Exhibit 10II to the Registrant's Annual  Report on Form  
        10-K for the fiscal  year ended December 31, 1991.

10O     Assignment of General Partner Interests of Freeman  Equities, Limited,
        dated December 31, 1991 between  Davidson Diversified Properties, Inc.
        and MAE  GP Corporation  is incorporated  by reference  to Exhibit 10JJ
        to the Registrant's Annual Report on Form 10-K for the fiscal year ended
        December 31, 1991.

10P     Stock  certificate,  dated December  31, 1991  showing  ownership  of 
        1,000 shares of  Davidson Diversified Properties, Inc.  by MAE  GP 
        Corporation is incorporated  by  reference  to Exhibit  10KK  to  the 
        Registrant's  Annual Report on Form 10-K for the fiscal year ended 
        December 31, 1991.

10Q     Contracts related to refinancing of debt:

        (a) First  Deed of  Trust and  Security Agreement  dated October  28,
            1992 between Davidson  Diversified Real  Estate I,  Limited 
            Partnership and First Commonwealth Realty Credit Corporation, a 
            Virginia Corporation, securing Versailles on the Lake is 
            incorporated  by  reference to Exhibit 10Q (a) to the Registrant's
            Annual Report on Form 10-KSB for the fiscal year ended December 
            31, 1992.

        (b) Second Deed of Trust and Security Agreement dated October 28, 1992
            between Davidson  Diversified Real  Estate I,  Limited Partnership
            and First Commonwealth Realty Credit Corporation, a Virginia 
            Corporation, securing  Versailles  on  the  Lake is  incorporated
            by reference  to Exhibit 10Q (b) to  the Registrant's Annual Report
            on Form 10-KSB for the fiscal year ended December 31, 1992.

        (c) First  Assignment of Leases  and Rents dated October  28, 1992 
            between Davidson  Diversified Real  Estate  I, Limited 
            Partnership  and First Commonwealth  Realty  Credit  Corporation,
            a Virginia Corporation, securing Versailles  on  the Lake  is  
            incorporated  by reference to Exhibit 10Q (c) to the Registrant's
            Annual Report on Form 10-KSB  for the fiscal year ended December 
            31, 1992.

        (d) Second Assignment of  Leases and Rents dated October 28,  1992
            between Davidson Diversified Real Estate, I Limited Partnership
            and First Commonwealth  Realty Credit Corporation,  a Virginia
            Corporation, securing  Versailles  on  the  Lake  is incorporated
            by reference to Exhibit  10Q (d) to the  Registrant's Annual 
            Report on Form 10-KSB for the fiscal year ended December 31, 1992.

        (e) First Deed  of  Trust Note  dated October  28, 1992  between  
            Davidson Diversified Real Estate I Limited  Partnership and First
            Commonwealth Realty  Credit Corporation,  relating  to  Versailles
            on the Lake is incorporated  by reference  to Exhibit  10Q  (e)  to
            the Registrant's Annual Report on Form 10-KSB for the fiscal year 
            ended December 31, 1992.

        (f) Second  Deed of  Trust Note  dated October  28, 1992  between 
            Davidson Diversified Real Estate  I, Limited Partnership and First
            Commonwealth Realty  Credit  Corporation  relating  to Versailles  
            on the Lake is incorporated  by  reference  to Exhibit  10Q  (f) to
            the Registrant's Annual Report on Form 10-KSB for  the fiscal year 
            ended December 31, 1992.

16      Letter from  the Registrant's former  independent accountant regarding
        its concurrence with the statements made  by the Registrant is  
        incorporated by reference to the exhibit filed with Form 8-K dated 
        September 30, 1992.

22      Subsidiaries - the Registrant has no subsidiaries.

27      Financial Data Schedule