<PAGE> 1

                UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                   FORM 10-QSB

[X] Quarterly Report under Section 13 or 15(d) of the Securities Exchange
    Act of 1934
    For the quarterly period ended March 31, 1997

[ ] Transition Report under Section 13 or 15(d) of the Securities
    Exchange Act of 1934
    For the transition period from ________________ to ________________

                         Commission file number: 0-5370

                    GENERAL RESIDENTIAL CORPORATION
                    -------------------------------
   (Exact name of small business issuer as specified in its charter)

    Delaware                                             95-2679815
    --------                                             ----------
(State or other jurisdiction of                       (I.R.S. employer
incorporation or organization)                     identification number)

     17992 Darmel Place, Santa Ana, California         92705
     -------------------------------------------------------
     (Address of principal executive offices)     (Zip Code)

Issuer's telephone number, including area code: (714) 633-4275

                            not applicable
                            --------------
          (Former name, former address and former fiscal year,
                 if changed since last report.)

Check whether the issuer (1) has filed all reports required to be filed
by Section 13 or 15(d) of the Exchange Act during the past 12 months (or
for such shorter period that the issuer was required to file such
reports), and (2) has been subject to such filing requirements for the
past 90 days. Yes [X] No [ ] 

As of March 31, 1997, the Company had 16,359,260 shares of common stock
issued and outstanding.

Transitional Small Business Disclosure Format: Yes [ ] No [X]

Total sequentially numbered pages in this document:  7.
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                         PART I. FINANCIAL INFORMATION

ITEM 1.     FINANCIAL STATEMENTS

                       GENERAL RESIDENTIAL CORPORATION

                    CONDENSED BALANCE SHEETS (UNAUDITED)

                                                March 31,    December 31,
                                                  1997           1996
                                              ------------   ------------

                                    ASSETS

CASH                                          $    12,877    $     4,265 
INCOME TAXES RECEIVABLE                                            8,655 
PROPERTY AND EQUIPMENT,
  net of accumulated depreciation               1,877,908      1,902,169 
                                              ------------   ------------
                                              $ 1,890,785    $ 1,915,089 
                                              ============   ============


                      LIABILITIES AND SHAREHOLDERS' EQUITY

LIABILITIES
  Note payable                                $              $    31,236 
  Accounts payable and accrued expenses            14,195         14,195 
  Income taxes payable                              1,345
  Deferred income taxes                           481,700        489,000 
  Due to related parties                          158,500        150,500 
                                              ------------   ------------
    TOTAL LIABILITIES                             655,740        684,931 
                                              ------------   ------------

SHAREHOLDERS' EQUITY
  Common stock, $.01 par value;
   authorized - 50,000,000 shares; issued
   and outstanding - 16,359,260 shares            163,593        163,593 
  Additional paid-in capital                    1,324,880      1,324,880 
  Accumulated deficit                            (253,428)      (258,315)
                                              ------------   ------------
    TOTAL SHAREHOLDERS' EQUITY                  1,235,045      1,230,158 
                                              ------------   ------------
                                              $ 1,890,785    $ 1,915,089 
                                              ============   ============

See accompanying Notes to Condensed Financial Statements.
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                         GENERAL RESIDENTIAL CORPORATION

                       CONDENSED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

                   Three Months Ended March 31, 1997 and 1996

                                                  1997           1996
                                              ------------   ------------

Leasing revenues                              $    90,723    $    90,695 
                                              ------------   ------------

Costs and expenses:
  Fees and expenses to directors and officers      42,000         28,500 
  General and administrative                       12,617         12,082 
  Depreciation                                     24,261         24,261 
  Interest expense, including $4,084 in 1997
   and $3,713 in 1996 to related parties            4,258          6,503 
                                              ------------   ------------

                                                   83,136         71,346 
                                              ------------   ------------

Income before income taxes                          7,587         19,349 
Income taxes                                        2,700          5,600 
                                              ------------   ------------

Net income                                    $     4,887    $    13,749 
                                              ============   ============

Net income per common share                   $       nil    $       nil 
                                              ============   ============

Weighted average number of common shares
 outstanding                                   16,359,260     16,540,263 
                                              ============   ============


See accompanying Notes to Condensed Financial Statements.
<PAGE>                           4
                         GENERAL RESIDENTIAL CORPORATION

                       CONDENSED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
                   Three Months Ended March 31, 1997 and 1996

                                                  1997           1996
                                              ------------   ------------
CASH FLOWS FROM OPERATING ACTIVITIES
  Cash received from lessees                  $    90,723    $    90,695 
  Interest paid to related parties                 (4,084)        (3,713)
  Interest paid to others                            (174)        (2,790)
  Income taxes paid                                               (5,273)
  Payments to directors and officers for
   fees and expenses                              (42,000)       (28,500)
  General and administrative expenses             (12,617)       (12,082)
                                              ------------   ------------
    NET CASH PROVIDED BY
     OPERATING ACTIVITIES                          31,848         38,337 
                                              ------------   ------------
CASH FLOWS FROM FINANCING ACTIVITIES
  Principal payments on notes payable,
   secured by deeds of trust                      (31,236)       (38,163)
  Borrowings from related party                     8,000
  Common stock repurchased and retired                            (1,663)
                                              ------------   ------------
    NET CASH USED IN FINANCING ACTIVITIES         (23,236)       (39,826)
                                              ------------   ------------
NET INCREASE (DECREASE) IN CASH                     8,612         (1,489)
CASH BALANCE AT BEGINNING OF PERIOD                 4,265         10,118 
                                              ------------   ------------
CASH BALANCE AT END OF PERIOD                 $    12,877    $     8,629 
                                              ============   ============
RECONCILIATION OF NET INCOME TO NET CASH
 PROVIDED BY OPERATING ACTIVITIES
  Net income                                  $     4,887    $    13,749 
  Adjustments to reconcile net income
   to net cash provided by operating
   activities:
     Depreciation of property and equipment        24,261         24,261 
     Increase in income taxes payable
      and deferred taxes                            2,700            327 
                                              ------------   ------------
NET CASH PROVIDED BY OPERATING ACTIVITIES     $    31,848    $    38,337 
                                              ============   ============


See accompanying Notes to Condensed Financial Statements.
<PAGE> 5
                        GENERAL RESIDENTIAL CORPORATION

               NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)


1. BASIS OF PRESENTATION

The accompanying unaudited financial statements, which are for interim
periods, do not include all disclosures provided in the annual financial
statements. These unaudited financial statements should be read in
conjunction with the financial statements and the footnotes thereto
contained in the Annual Report on Form 10-KSB for the year ended December
31, 1996 of General Residential Corporation (the "Company"), as filed
with the Securities and Exchange Commission. The December 31, 1996
balance sheet was derived from audited financial statements, but does not
include all disclosures required by generally accepted accounting
principles.

In the opinion of the Company, the accompanying unaudited financial
statements contain all adjustments (which are of a normal recurring
nature) necessary for a fair presentation of the financial statements.
The results of operations for the three months ended March 31, 1997 are
not necessarily indicative of the results to be expected for the full
year.
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ITEM 2.     MANAGEMENT'S DISCUSSION AND ANALYSIS OF PLAN OF OPERATION

Financial Condition:

     The Company expects to generate sufficient cash flow from operations
to fund scheduled debt service requirements and general and
administrative expenses during the fiscal year ending December 31, 1997.

Results of Operations:

     The Company leases its three properties to an unrelated entity which
operates the properties as residential board and care facilities. The
Company has a fixed yearly lease income of approximately $360,000 through
April 2005. The Company has no other sources of operating revenues.



                           PART II. OTHER INFORMATION

Items 1 through 6 are not applicable.
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                                    SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

                                       GENERAL RESIDENTIAL CORPORATION   
                                    -------------------------------------
                                                (Registrant)



Date:  April 30, 1997          /S/PAUL M. KUEFLER
                         By:  __________________________________________
                                Paul M. Kuefler
                                President
                                (Principal Executive Officer)


Date:  April 30, 1997          /S/DANIEL LEZAK
                         By:  __________________________________________
                                Daniel Lezak
                                Secretary-Treasurer
                                Chief Financial Officer
                                (Principal Financial and
                                  Accounting Officer)