<PAGE>
                          UNITED STATES
                SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C.  20549
                            FORM 10-K

(Mark One)
(X)  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)

For the fiscal year ended December 31, 1996
                                or
( )  TRANSITION  REPORT  PURSUANT  TO  SECTION  13  OR  15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
                           
For the transition period from          to 

Commission file number 0-13227

    USAA Real Estate Income Investments I Limited Partnership
      (Exact name of registrant as specified in its charter)

California                                  74-2325025
(State or other jurisdiction of             (I.R.S. Employer
incorporation or organization)              Identification No.)

8000 Robert F. McDermott Fwy., IH 10 West, Suite 600,
San Antonio, Texas                          78230-3884
(Address of principal executive offices)    (Zip Code)

Registrant's telephone number, including area code: (210)498-7391
Securities registered pursuant to Section 12(b) of the Act:

                                       Name of each exchange on
Title of each class                        which registered
      None                                       None

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

              UNITS OF LIMITED PARTNERSHIP INTERESTS
                         (Title of class)

Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.                                
                                              Yes  X    No        

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

<PAGE>
State the aggregate market value of the voting stock held by non-affiliates of
the registrant:  Not Applicable


DOCUMENTS INCORPORATED BY REFERENCE: 

Certain portions of the prospectus of the registrant dated
November 16, 1984 as supplemented, filed pursuant to Rule 424(b)
or (c) under the Securities Act of 1933 are incorporated by
reference in Parts I and III.

<PAGE>
                         TABLE OF CONTENTS


PART I

Item 1.  Business 

Item 2.  Properties

Item 3.  Legal Proceedings

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


PART II

Item 5.  Market for the Registrant's Limited Partnership
         Units and Related Security Holder Matters 

Item 6.  Selected Financial Data

Item 7.  Management's Discussion and Analysis of Financial
         Condition and Results of Operations 

Item 8.  Financial Statements and Supplementary Data

Item 9.  Changes in and Disagreements with Accountants on
         Accounting and Financial Disclosure


PART III

Item 10. Directors and Executive Officers of the General Partner

Item 11. Executive Compensation

Item 12. Security Ownership of Certain Beneficial Owners and
         Management

Item 13. Certain Relationships and Related Transactions 


PART IV

Item 14. Exhibits, Financial Statement Schedules and Reports
         on Form 8-K

Signatures

Index to Exhibits

<PAGE>
                              PART I

Item 1.  Business

       USAA Real Estate Income Investments I Limited Partnership
(the "Partnership") is a limited partnership formed in August
1984, under the California Revised Limited Partnership Act.  The
Partnership has two primary business purposes:  (i) to purchase
qualified income producing real properties; and (ii) to make
participating first mortgage loans on qualified income producing
properties.  To the extent possible (i) all acquisitions of real
property will be made for cash (no acquisition indebtedness will
be incurred) and (ii) participating first mortgage loans will
earn fixed interest and will contain participation rights in the
underlying property's cash flow and net proceeds of sale or
refinancing and other items, or both.  

       Defined terms contained herein shall have the meaning set
forth in the Glossary contained in the Partnership Prospectus
dated November 16, 1984, filed pursuant to Rule 424(b) attached
as Exhibit 99.a, and incorporated herein by this reference.

       The Partnership sold $27,305,000 in Units of Limited
Partnership Interests (54,610 Units at $500 per Unit) from the
commencement of the offering of Units on or about January 15,
1985, through the completion of the offering on May 30, 1985. 
Limited Partners are not required to make any additional capital
contributions.

       Proceeds available to the Partnership for investment were
used to acquire Volusia Point Shopping Center in 1985.  In 1986,
the Partnership acquired one property (the Systech building,
formerly called Computer Associates Office Building) and funded
one first mortgage loan (Plaza on the Lake).  Remaining offering
proceeds were used to repay the mortgage indebtedness on the
Systech building upon its maturity in 1988.  See "Item 2. 
Properties".

       Competitive conditions for the Partnership's properties
in 1996 were as follows:  

       Volusia Point Shopping Center, located in Daytona Beach,
Florida is in the northwestern portion of Volusia County, at the
corner of U.S. Highway 92 (Volusia Avenue) and Bill Francis
Boulevard.  The shopping center is in close proximity to the
Volusia Mall, the Daytona International Speedway and the new
Daytona USA International Racing Center which opened in mid 1996. 
The location of the shopping center allows the retail tenants to
take advantage of the significant volume of traffic that is
attracted to the area.  Occupancy at Volusia Point increased
throughout 1996 to 92% at year end, compared to approximately 95%
in the surrounding retail market.  Lease rates at Volusia Point
during the fourth quarter are competitive with retail centers in
the area and range from $9.50 to $11.50 per square foot, net of
operating expenses.  Due to the occupancy level at Volusia Point
and the stability of the market surrounding the property,
management believes the property is well positioned to sell.
Volusia Point Shopping Center will be actively marketed for sale
in 1997; however, no formal plan exists for the ultimate
disposition of the property.

<PAGE>
       The Systech building, located in northern San Diego,
California, was vacated in August 1993 upon the lease expiration
of the prior single tenant, and remained vacant throughout 1994
during building renovations and improvements and re-tenanting
efforts.  A lease for approximately 79% of the building commenced
in March 1995 with Systech Computer Corporation; the lease
provided for an increase in occupancy to 98% in March 1996. 
After a change in their business requirements, the lease with
Systech Computer Corporation was amended in July 1996 to allow
for scheduled decreases in occupied square footage.  At the same
time, a 42-month lease was executed with Integrated Systems, Inc.
("ISI").  ISI is scheduled to occupy additional space as Systech
Computer Corporation downsizes throughout the remainder of their
lease term which expires in March 1998.  As a result of the above
leasing activity, the Systech building was 100% leased as of
December 31, 1996. During the years ended December 31, 1996 and
1995, the Partnership recorded rental income of approximately
$493,000 and $414,000, respectively, from a major tenant in the
computer industry.  This income represented approximately 35% and
37% of total rental income of the Partnership for 1996 and 1995,
respectively.

       Due to the configuration of the Systech building, it
competes in both the office and research and development ("R&D")
markets of the Sorrento Valley submarket of San Diego.  By the
end of 1996, occupancy in the San Diego office and R & D markets
was approximately 91% and 97%, respectively.  The markets
surrounding the Systech building are stable.  As a result,
management is currently analyzing the feasibility of marketing
this property for sale in the near term.

       Plaza on the Lake, located in Austin, Texas, was the
underlying asset for the mortgage loan funded by the Partnership. 
On January 31, 1996, per the terms of the loan documents, the
Partnership received the full principal balance of $5,440,000 of
the mortgage loan receivable from the borrower.    

       See "Item 2 Properties" for further information
pertaining to the status of the Partnership's properties.

       The Partnership has no employees; it has, however,
entered into an Advisory Agreement with USAA Real Estate Company
(the "Advisor"), a wholly-owned subsidiary of USAA Capital
Corporation, which is a wholly-owned subsidiary of United
Services Automobile Association ("USAA").  The Advisor is
responsible for managing the day-to-day operations of the
Partnership. 
                    
       The General Partner of the Partnership is USAA Investors
I, Inc. (the "General Partner"), a Texas corporation and a
subsidiary of the Advisor.  The General Partner has the general
responsibility for management of the Partnership's business and
oversees the activities of the Advisor.

<PAGE>
Item 2.  Properties

       The Partnership owns the properties described below as of
December 31, 1996.   Also described is the property underlying
the mortgage loan funded by the Partnership.

Location                     Description of Property

Daytona Beach, Florida      Volusia Point Shopping Center: A
                            shopping center containing 76,579
                            gross rentable square feet situated
                            on approximately 9 acres.  As of
                            December 31, 1996, the property was
                            92% leased and average monthly
                            rental was approximately $61,000. 
                            There are lease expirations totaling
                            approximately 3% of total square
                            footage in 1997 which are subject to
                            market risk.  There is no debt on
                            this property.  The Partnership has
                            100% fee-simple ownership.

San Diego, California       Systech building:  An office
                            building containing 54,094 gross
                            rentable square feet situated on
                            approximately 2 acres of land.  As
                            of December 31, 1996, the property
                            was 100% leased and average monthly
                            rental was approximately $49,000. 
                            There are no lease expirations in
                            1997.  There is no debt on this
                            property.  The Partnership has 100%
                            fee-simple ownership. 

Austin, Texas               Plaza on the Lake:  An office
                            building containing 118,063 gross
                            rentable square feet situated on
                            approximately 4.6 acres of land.  On
                            January 31, 1986, the Partnership
                            funded a first mortgage note on this
                            property in the amount of
                            $5,440,000.  Per the terms of the
                            loan agreement, the principal
                            balance of $5,440,000 was received
                            by the Partnership on January 31,
                            1996 and the underlying note was
                            paid in full.

       See notes 3, 4, 5 and 8 of Notes to Financial Statements
in Item 8 for further discussion relating to the properties and
encumbrances thereon.

Item 3.  Legal Proceedings

       There are no material legal proceedings pending to which
the General Partner or the Partnership is a party or to which any
of the Partnership's properties are subject.

<PAGE>
Item 4.  Submission of Matters to a Vote of Security Holders

       No matters were submitted to a vote of security holders
during the fourth quarter of the fiscal year covered by this
report through solicitation of proxies or otherwise.


                             PART II

Item 5.  Market for the Registrant's Limited Partnership Units
         and Related Security Holder Matters

       There is no established public trading market for the
Limited Partnership Units ("the Units"), and it is not
anticipated that a public market will develop.  Upon request,
Real Estate Limited Partnership Investor Services, a department
in USAA Real Estate Company, may assist a Limited Partner
desiring to transfer his Units.  The purchase price for the Units
upon resale and all other terms of a resale transaction are
subject to negotiations between the buyer and the seller.  The
limited market for the Units may adversely affect the value of
the Units. 

       As of December 31, 1996, there were 6,370 Limited
Partners of the Partnership, owning an aggregate of 54,610 Units.

       During the year ended December 31, 1996, quarterly
distributions totaling $709,930 and $7,171 were distributed to
the Limited Partners and the General Partner, respectively, for a
total of $717,101 in cash distributions.  In addition, a special
distribution of approximately $4,999,986 was made in March 1996
to Limited Partners after the payoff of the mortgage loan
receivable on Plaza on the Lake.  The return of capital portion
of the total 1996 distributions was $5,357,405 and $3,610 for the
Limited Partners and General Partner, respectively. 

       During the year ended December 31, 1995, quarterly
distributions totaling $873,760 and $8,826 were distributed to
the Limited Partners and the General Partner, respectively, for a
total of $882,586 in cash distributions.  The return of capital
portion of 1995 distributions was $232,975 and $2,354 for the
Limited Partners and General Partner, respectively. 

       Future cash distributions to Limited Partners are
currently anticipated.

<PAGE>
<TABLE>
Item 6.  Selected Financial Data

              USAA REAL ESTATE INCOME INVESTMENTS I LIMITED PARTNERSHIP
              YEARS ENDED DECEMBER 31, 1996, 1995, 1994, 1993 AND 1992

<CAPTION>
                               1996       1995       1994        1993       1992
<S>                        <C>         <C>        <C>         <C>        <C>                     
Rental Income              $ 1,397,128  1,199,715    849,543   1,605,142  2,037,965
Interest Income                141,182    639,040    655,982     653,526    644,419
Net Income (Loss)              356,072    647,257    436,049  (5,375,196) 1,561,858
Net Income (Loss) per 
   Limited Partnership
   Unit (1)                       6.46      11.73       7.90      (97.44)     28.31
Taxable Income (Loss)          (46,201)    (1,224)  (116,064)    747,432  1,602,750
Taxable Income (Loss) per
   Limited Partnership
   Unit (1)                      (0.84)     (0.02)     (2.10)      13.55      29.05
Cash Distributions           5,717,087    882,586    882,585   1,103,233  1,820,333
Cash Distributions per       
   Limited Partnership
   Unit (2)                     104.56      16.00      16.00       20.00      33.00
Total Assets at Period End  11,396,279 16,701,347 16,968,881  17,380,331 24,082,797

(1)  Based on limited partnership units issued at period end and net income
     (loss) / taxable income (loss) allocated to Limited Partners.

(2)  Based on limited partnership units issued at each quarter end and cash
     distributions allocated to Limited Partners with the exception of the
     special distribution of $91.56 per limited partnership unit that was
     paid in March 1996 which was based on the limited partnership units 
     outstanding at January 31, 1996, the date of the mortgage loan payoff.

     The above selected financial data should be read in conjunction with the
financial statements and related notes appearing elsewhere in this report.
</TABLE>

<PAGE>
Item 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

LIQUIDITY AND CAPITAL RESOURCES

At December 31, 1996, the Partnership had cash of $46,204 and
temporary investments of $926,892.  These funds were held in the
working capital reserve for the payment of obligations of the
Partnership.  Accounts receivable consisted of amounts due from
tenants at Volusia Point and the Systech building.  Deferred
charges and other assets consisted of deferred rent that resulted
from recognition of income as required by generally accepted
accounting principles and lease commissions.  Accounts payable
included amounts due to affiliates for management fees and
reimbursable expenses and amounts due to third parties for
expenses incurred for operations.  Accrued expenses and other
liabilities consisted of security deposits and prepaid revenue
from tenants.

On January 31, 1996, the maturity date of the Plaza on the Lake
mortgage loan receivable, the Partnership received $5,440,000
from USAA Real Estate Company, the borrower, in full payment of
the loan. Approximately $5,000,000 of the proceeds from the loan
payoff, or $91.56 per Limited Partnership unit, was distributed
to the Limited Partners during the quarter ended March 31, 1996. 
The balance of the proceeds of approximately $440,000 was held by
the Partnership for future operating requirements.

In addition to the distribution of funds from the mortgage loan
payoff, the Partnership distributed $709,930 to Limited Partners
and $7,171 to the General Partner during 1996 for a total of
$717,101, or $13.00 per Limited Partnership unit. Quarterly
distributions were decreased from $4.00 per unit to $3.00 per
unit beginning in the first quarter of 1996 due to the reduced
cash flow that occurred subsequent to the repayment of the
mortgage loan receivable and the resulting loss of interest
income to the Partnership. During the ten-year term of the
mortgage loan receivable, the Partnership recorded interest
income on the mortgage loan receivable, including participation
income, averaging approximately $590,000 per year.

Quarterly distributions were increased in the fourth quarter of
1996 from $3.00 to $4.00 per Limited Partnership unit. 
Management evaluates reserves and the availability of funds for
distribution to the Partners on a continuing basis based on
anticipated leasing activity and cash flows available from the
Partnership investments.

Volusia Point Shopping Center, located in Lakeland, Florida will
be actively marketed for sale in 1997; however, no formal plan
exists for the ultimate disposition of the property.  Management
believes that the property is well positioned to sell due to its
occupancy level and the stability of the surrounding Daytona
Beach market.  The Sorrento Valley market where the Systech
building is located is also stable.  Management is currently
analyzing the feasibility of also selling the Systech building in
the near future.

<PAGE>
At the Systech building, a 42-month lease was executed in July
1996 between the Partnership and a new tenant after a change in
Systech Computer Corporation's business requirements.  The new
tenant is Integrated Systems, Inc. ("ISI").  In August, ISI
occupied 24,191 square feet of the Systech building.  Prior to
the scheduled date of December 1996, ISI moved into an additional
4,712 square feet.  The lease provides for a subsequent addition
of 13,201 square feet in April 1998, following vacancy of that
space by Systech Computer Corporation.  The lease also provides
ISI with the right of first refusal for any additional space
which may become available on the fourth floor of the building as
a result of the early termination of the lease with Systech
Computer Corporation.  The rental rate for ISI began at $10.13
per square foot per year and will increase to $12.57 per square
foot per year over the term of the lease.  In addition to rent,
ISI will pay their pro rata share of property operating expenses
which exceed those of 1995, the base year.

The lease between the Partnership and Systech Computer
Corporation was amended in July 1996 to allow for the gradual
decrease of leased square footage and early termination.  In
August 1996, Systech Computer Corporation moved out of the first
two floors of the four story office building to accommodate
occupancy by ISI.  Systech Computer Corporation's lease
obligation was further reduced in December 1996 by the 4,712
square feet ISI expanded into; a further reduction is scheduled
to occur in March 1998, and will again be followed by the
increases in space occupied by ISI.

The rental rate for ISI is lower than the rate paid by Systech
Computer Corporation.  To compensate the Partnership for this
difference and the potential vacancy of approximately 8,300
square feet on the fourth floor of the Systech building, the
tenant forfeited their security deposit of approximately $36,400,
paid a $10,000 buy-out fee and was responsible for payment of
brokerage fees and legal fees associated with this lease
restructuring process.  In addition to payment of these fees,
Systech's current rental rate was increased from $11.04 to $11.53
per square foot per year, and will increase to $12.98 over the
remaining term of the lease.  

Approximately $75,000 of the Partnership's commitment for the
final phase of tenant improvements at the Systech building was
expended as of December 31, 1996.  The original $84,400 allowance
for the improvements was increased to approximately $97,000 to
allow for HVAC improvements.  The balance of approximately
$22,000 was paid in January 1997 and was funded from the working
capital reserve of the Partnership.

Future liquidity is expected to result from cash generated from
operations of the properties, interest on temporary investments
and ultimately through the sale of the properties. 

<PAGE>
Results of Operations

For each of the years in the three-year period ended December 31,
1996, income was generated from rental income from the income
producing properties, interest income and participation income
earned on the mortgage loan and interest income earned on the
funds invested in temporary investments.  As there was no lease
in force at the Systech building from August 1993 through
February 1995, no income was generated by that property during
that period.  Subsequent to January 31, 1996, the date of the
payoff of the mortgage loan receivable, no interest was earned on
that investment.  Expenses incurred during the same periods were
associated with operations of the Partnership's properties and
various other costs required for administration of the
Partnership.

The decrease in rental properties from December 31, 1995 to
December 31, 1996 was attributable to depreciation on the
Partnership properties, and was offset by the tenant improvements
at the Systech building.  Cash and cash equivalents increased
during the same period primarily due to the reserve held by the
Partnership from the proceeds of the mortgage loan payoff.  The
increase in accounts receivable from December 31, 1995 to
December 31, 1996 reflects outstanding reimbursement of property
operating expenses from tenants at the Systech building. 
Amortization of lease commissions for the Systech building caused
the decrease in deferred charges.  The increase in accounts
payable reflected timing of payment of tenant improvements at the
Systech building.  The receipt of prepaid revenue from a tenant
at the Systech building accounted for the increase in accrued
expenses from December 31, 1995 to December 31, 1996.

The increases in rental income from the twelve-month period ended
December 31, 1994 to December 31, 1995 and from the twelve-month
period ended December 31, 1995 to December 31, 1996 reflected the
March 1, 1995 commencement of a single-tenant lease at the
Systech building.  The increase in rental income from 1995 to
1996 was also impacted by Systech Computer Corporation's
forfeiture of their $36,456 security deposit, payment of a
$10,000 fee related to the lease restructuring and receipt of
reimbursable property operating expenses subsequent to the 1995
base year of the leases at the Systech building.

Occupancy at Volusia Point remained fairly consistent at 92%, 88%
and 93% at December 31, 1996, 1995 and 1994, respectively.  The
increase in rental income at Volusia Point from the year ended
December 31, 1995 to December 31, 1996 that resulted from the
increase in occupancy was offset by a decrease in percentage rent
during the same period.

The decrease in interest income from the mortgage loan receivable
for the year ended December 31, 1996 from the two prior years
reflected the January 31, 1996 payoff of the receivable. 
Interest income on cash held by the Partnership fluctuated during
the three-year period ended December 31, 1996 as a result of the
changes in cash and cash equivalents held by the Partnership.

<PAGE>
The increases in direct expenses during the three-year period
ended December 31, 1996 was consistent with the increase in
depreciation on the tenant and building improvements at the
Systech building.  This increase in depreciation expense from
1995 to 1996 was partially offset by increases in reimbursements
of property operating expenses from tenants at the Systech
building during the same time period.

General and administrative expenses remained stable overall
during each of the years in the three-year period ended December
31, 1996.  Printing charges decreased in each of the years in the
three-year period ended December 31, 1996.  The decrease from
1994 to 1995 reflected savings realized on annual reports to
investors. Legal charges were higher for the year ended December
31, 1994 than for the years ended December 31, 1995 and 1996 due
to pending litigation at both of the Partnership properties
during 1994.  The mortgage loan servicing fee decreased as a
result of the payoff of the mortgage loan receivable in January
1996.  These decreases in printing and legal charges and the
mortgage loan servicing fee were offset by increases in
amortization expense on lease commissions at the Systech
building.

The Partnership's management fee is based on cash flow from
operations of the Partnership adjusted for cash reserves and
fluctuated accordingly.  The decrease in the management fee for
the year ended December 31, 1996 from the prior year reflected
the decrease in revenue resulting from the maturity of the
mortgage loan receivable.  The increase in the management fee for
the year ended December 31, 1995 from the prior year resulted
from the increase in rental revenue at the Systech building. 

INFLATION

An increase in inflation could affect the Partnership's
investments through increases in the costs of operating and
maintaining the properties acquired and in various administrative
costs of Partnership operation.  The adverse effect inflation may
have on operating expenses would be offset to some extent by
increases in rental rates charged tenants at the Partnership's
properties.  If high occupancy levels are maintained at the
properties, increases in rental income should offset increasing
property operating expenses with a minimal effect on operating
income.

<PAGE>
<TABLE>
Item 8.  Financial Statements and Supplementary Data

            USAA REAL ESTATE INCOME INVESTMENTS I LIMITED PARTNERSHIP
                                BALANCE SHEETS
                          December 31, 1996 and 1995
<CAPTION>

                                                                1996           1995
<S>                                                       <C>              <C> 
ASSETS
Rental properties, net (note 3)                           $   9,964,683     10,438,578
Mortgage loan receivable from affiliate (note 4)                     --      5,440,000
Temporary investments at cost which approximates
    market value - 
       Money market fund                                        926,892        343,834
Cash                                                             46,204         23,003
   Cash and cash equivalents                                    973,096        366,837
Accounts receivable                                              72,175         45,201
Deferred charges, at amortized cost, and other                              
  assets                                                        386,325        410,731

                                                          $  11,396,279     16,701,347

LIABILITIES AND PARTNERS' EQUITY
Accounts payable, including amounts due to                                     
  affiliates of $27,907 and $45,090 (note 6)              $      83,582         55,379
Accrued expenses                                                 35,634          8,510
Security deposits                                                66,616         65,996
         Total liabilities                                      185,832        129,885

Partners' equity:                                                             
  General Partner:                                                            
    Capital contribution                                          1,000          1,000
    Cumulative net income                                        89,818         86,257
    Cumulative distributions                                   (184,391)      (177,220)
                                                                (93,573)       (89,963)
  Limited Partners (54,610 units):
    Capital contributions, net of offering costs             25,666,700     25,666,700
    Cumulative net income                                     8,892,025      8,539,514
    Cumulative distributions                                (23,254,705)   (17,544,789)
                                                             11,304,020     16,661,425
          Total Partners' equity                             11,210,447     16,571,462

                                                          $  11,396,279     16,701,347


See accompanying notes to financial statements.
</TABLE>
 
<PAGE>
<TABLE>
            USAA REAL ESTATE INCOME INVESTMENTS I LIMITED PARTNERSHIP
                              STATEMENTS OF INCOME
                  Years Ended December 31, 1996, 1995 and 1994
<CAPTION>
                                                                1996           1995           1994
<S>                                                       <C>                <C>             <C>          
INCOME
Rental income                                             $   1,397,128      1,199,715        849,543
Interest from mortgage loan (notes 4 and 6)                      52,124        612,757        605,535
Less direct expenses, including depreciation
  of $572,255, $543,494 and $431,171                           (863,601)      (861,541)      (766,591)
     Net operating income                                       585,651        950,931        688,487

Interest income (note 6)                                         89,058         26,283         50,447

     Total income                                               674,709        977,214        738,934

EXPENSES
General and administrative (note 6)                             250,744        252,165        253,560
Management fee (note 6)                                          67,893         77,792         49,325
     Total expenses                                             318,637        329,957        302,885

Net income                                                $     356,072        647,257        436,049
 
Net income per limited partnership unit                   $        6.46          11.73           7.90



See accompanying notes to financial statements.
</TABLE>

<PAGE>
<TABLE>
            USAA REAL ESTATE INCOME INVESTMENTS I LIMITED PARTNERSHIP
                        STATEMENTS OF PARTNERS' EQUITY
                  Years Ended December 31, 1996, 1995 and 1994
<CAPTION>

                                                              General        Limited
                                                              Partner        Partners        Total
<S>                                                       <C>               <C>            <C>
Balances at December 31, 1993                             $     (83,144)    17,336,471     17,253,327

Net income                                                        4,360        431,689        436,049
Cash distributions                                               (8,825)      (873,760)      (882,585)
Balances at December 31, 1994                                   (87,609)    16,894,400     16,806,791

Net income                                                        6,472        640,785        647,257
Cash distributions                                               (8,826)      (873,760)      (882,586)
Balances at December 31, 1995                                   (89,963)    16,661,425     16,571,462

Net income                                                        3,561        352,511        356,072
Cash distributions                                               (7,171)    (5,709,916)    (5,717,087)
Balances at December 31, 1996                             $     (93,573)    11,304,020     11,210,447



See accompanying notes to financial statements.
</TABLE>

<PAGE>
<TABLE>
            USAA REAL ESTATE INCOME INVESTMENTS LIMITED PARTNERSHIP
                          STATEMENTS OF CASH FLOWS
                 Years Ended December 31, 1996, 1995 and 1994
<CAPTION>

                                                                1996           1995           1994
<S>                                                       <C>                <C>            <C>       
Cash flows from operating activities:
  Net income                                              $     356,072        647,257        436,049
  Adjustments to reconcile net income to
    net cash provided by operating activities: 
      Depreciation                                              572,255        543,494        431,171
      Amortization                                               44,937         34,290          9,467
      Loss on early retirement of assets                             --             --          2,465
      Decrease (increase) in accounts receivable                (26,974)        (9,297)        65,380
      Increase in deferred charges and other assets             (20,531)      (168,240)      (194,539)
      Increase (decrease) in accounts payable, 
        accrued expenses and other liabilities                   55,947        (32,205)        35,086

          Cash provided by operating activities                 981,706      1,015,299        785,079
 
Cash flows from investing activities:
  Additions to rental properties                                (98,360)      (561,552)      (684,626)
  Proceeds from mortgage loan receivable                      5,440,000             --             --
          Cash provided by (used in) investing activities     5,341,640       (561,552)      (684,626)

Cash flows used in financing activities -
  Payment of distributions                                   (5,717,087)      (882,586)      (882,585)

Net increase (decrease) in cash and cash equivalents            606,259       (428,839)      (782,132)

Cash and cash equivalents at beginning of year                  366,837        795,676      1,577,808

Cash and cash equivalents at end of year                  $     973,096        366,837        795,676



See accompanying notes to financial statements.
</TABLE>

<PAGE>
              USAA REAL ESTATE INCOME INVESTMENTS I 
                       LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS
                 December 31, 1996, 1995 and 1994

1.       Organization, Summary of Significant Accounting Policies and
         Other

         USAA Real Estate Income Investments I Limited Partnership is
         engaged solely in the business of real estate investment;
         therefore, presentation of information about industry
         segments is not applicable.  The General Partner, USAA
         Investors I, Inc., is a wholly-owned subsidiary of USAA Real
         Estate Company, which is a wholly-owned subsidiary of USAA
         Capital Corporation, which is a wholly-owned subsidiary of
         United Services Automobile Association ("USAA").

         At December 31, 1996, the Partnership owned a shopping
         center located in Daytona Beach, Florida and an office
         building located in San Diego, California.  The
         Partnership's revenue is subject to changes in the economic
         environments of these areas.

         Rental properties are valued at cost.  The carrying amount
         of a property is not changed for temporary fluctuations in
         value unless the carrying value is believed to be
         permanently impaired.  In 1995, the Partnership adopted the
         provisions of Financial Accounting Standards Board Statement
         No. 121, "Accounting for Impairment of Long-Lived Assets and
         for Long-Lived Assets to Be Disposed Of," ("Statement 121"). 
         Statement 121 provides guidance for determining impairment
         of long-lived assets utilizing undiscounted future cash
         flows.  The assessment for and measurement of impairment is
         based upon the undiscounted future cash flows and fair
         value, respectively, of the individual real estate
         properties.  Based on the provisions of Statement 121, the
         Partnership's long-lived assets, real estate and
         improvements are not considered impaired.  The adoption of
         Statement 121 had no financial statement impact.
         
         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.  

         For purposes of the Statements of Cash Flows, all highly
         liquid marketable securities that have a maturity at
         purchase of three months or less and money market mutual
         funds are considered to be cash equivalents.  

<PAGE>
         Depreciation is provided over the estimated useful lives of
         properties using the straight-line method.  The estimated
         lives of the buildings and improvements are 30 years (19 -
         39 years for Federal income tax purposes).

         Rental income is recognized under the operating method,
         whereby aggregate rentals are reported as income on the
         straight-line basis over the life of the lease.  Rental
         income recognized was $15,873, $65,461 and $68,669 more than
         the amount due per the lease agreements for the years ended
         December 31, 1996, 1995 and 1994, respectively.

         No provision or credit for income taxes has been made as the
         liability for such taxes is that of the Partners rather than
         the Partnership.  The Partnership files its tax return on an
         accrual basis.

         For financial reporting purposes, net income (loss) is
         allocated 1% to the General Partner and 99% to the Limited
         Partners.  Net income (loss) per limited partnership unit is
         based upon the limited partnership units outstanding at the
         end of the period and the net income (loss) allocated to the
         Limited Partners.

         Cash distributions per limited partnership unit were $104.56
         during 1996 and $16.00 during 1995 and 1994.  The
         distributions of $13.00, $16.00 and $16.00 per limited
         partnership unit paid during the years ended December 31,
         1996, 1995 and 1994, respectively, were based on the limited
         partnership units outstanding at each quarter end and the
         cash distributions allocated to Limited Partners.  The
         additional distribution of $91.56 per limited partnership
         unit that was paid in March 1996 was based on the limited
         partnership units outstanding at January 31, 1996, the date
         of the mortgage loan payoff.  See note 4.
 
2.       Partnership Agreement

         Pursuant to the terms of the Partnership Agreement, all net
         cash flow shall be distributed in the ratio of 1% to the
         General Partner and 99% to the Limited Partners within 60
         days after the close of each fiscal quarter.  Generally, net
         taxable income or losses not arising from the sale or
         refinancing of properties of the Partnership are allocated
         99% to the Limited Partners and 1% to the General Partner. 

         Residual proceeds are allocated first to the Limited
         Partners until the Limited Partners shall receive an amount
         equal to their adjusted capital contributions plus an amount
         which when added to all prior distributions to Limited
         Partners equals a 9% per annum cumulative return on their
         adjusted capital contributions; second, to all Partners, in
         an amount equal to their respective positive capital account
         balances to the extent such balances exceed the amounts
         provided for in the preceding clauses; third, in the case of
         any sale of a property, a real estate brokerage commission
         to the Advisor as provided in the Partnership Agreement; and
         fourth, the balance, 90% to the Limited Partners and 10% to
         the General Partner.

<PAGE>
         Generally, all items of income, gain, loss, deduction and
         credit from operations will be allocated 99% to the Limited
         Partners and 1% to the General Partner.  Net taxable gain or
         loss from the sale or other disposition of a property shall
         be allocated as described in the Partnership Agreement.

3.       Rental Properties

         Rental properties at December 31 consisted of the following:

                                         1996             1995

         Buildings and improvements  $13,710,277       13,611,917
         Land                          2,282,163        2,282,163
                                      15,992,440       15,894,080
         Less accumulated 
          depreciation                (6,027,757)      (5,455,502)
                                     $ 9,964,683       10,438,578

4.       Mortgage Loan Receivable from Affiliate

         On January 31, 1986, the Partnership funded a first mortgage
         loan in the amount of $5,440,000 with interest at 10% due
         January 31, 1996 to Plaza on the Lake Investors, Ltd.  USAA
         Real Estate Company, the parent of the General Partner, held
         a second mortgage note on Plaza on the Lake.  On February 9,
         1987, as allowed in the loan documents, upon default of the
         borrower, USAA Real Estate Company accepted a deed on the
         property effective January 1, 1987, and replaced Plaza on the
         Lake Investors, Ltd. as the borrower on the first lien held
         by the Partnership.  All terms and conditions contained in
         the original documents remained as originally written.

         On January 31, 1996, in accordance with the terms of the
         mortgage loan agreement between USAA Real Estate Income
         Investments I Limited Partnership and USAA Real Estate
         Company, the principal balance of the $5,440,000 mortgage
         loan receivable was received by the Partnership and the
         underlying note paid in full.  Approximately $5,000,000 of
         the proceeds from the loan payoff, or $91.56 per Limited
         Partnership unit, was distributed to the Limited Partners
         during the first quarter of 1996.

         In addition to the interest income, the Partnership received
         3.2% of the gross revenues of the property through year six
         and 3.84% in years seven through ten.  The Partnership
         recorded interest income on the mortgage loan receivable of
         $52,124, $612,757 and $605,535, which includes $5,921,
         $68,757 and $61,535 in participation income for the years
         ended December 31, 1996, 1995 and 1994, respectively.

<PAGE>
         The following is summarized financial information for the
         years ended December 31 for Plaza on the Lake, the underlying
         property of the mortgage loan receivable.

                                        1995        1994
           Rental income             $1,594,840   1,520,306
           Net loss                     (77,393)   (274,968)
           Net rental property at 
             period end               7,659,893   7,702,603
           Total assets at period 
             end                      8,169,336   8,174,974
           Mortgage payable at 
             period end               5,440,000   5,440,000
           Total liabilities at 
             period end               5,782,150   5,761,506

        Financial information for Plaza on the Lake for fiscal year
        1996 is not included as the mortgage loan receivable was paid
        in full in January 1996.

5.      Minimum Future Rentals

        Operating leases with tenants have remaining terms from one
        to twelve years. Minimum future rentals are cash payments to
        be received under non-cancelable leases over the lease terms
        and do not necessarily represent rental income under
        generally accepted accounting principles.  Rental income
        reported in the Statements of Income is recognized under the
        operating method, whereby aggregate rentals are reported as
        income on the straight-line basis over the life of the lease. 
        Approximate minimum future rentals are as follows:

                         1997            $ 1,319,000
                         1998              1,235,000
                         1999              1,096,000
                         2000                384,000
                         2001                222,000
                      Thereafter           1,073,000          
                                         $ 5,329,000

6.      Transactions With Affiliates

        USAA Real Estate Company (as the Advisor) may receive real
        estate brokerage commissions of up to 1% of the aggregate
        selling prices of properties sold, management fees of up to
        4% of gross revenues from operations or 9% of the
        Partnership's adjusted cash flow, and an annual mortgage
        servicing fee of up to 1/4 of 1% of amounts funded by the
        Partnership in mortgage loans which are serviced by the
        Advisor.

        Through January 1995, a portion of the Partnership's working
        capital reserve and other available funds were invested in
        USAA Mutual Fund, Inc., an affiliate of the General Partner,
        and earned interest thereon at market rates.

<PAGE>
        Quorum Real Estate Services Corporation (also known as USAA
        Realty Company), an affiliate of the General Partner,
        receives fees of up to 6% of the cash receipts of Partnership
        properties for managing and providing leasing services for
        the properties.

        A summary of transactions with affiliates follows:
<TABLE>
<CAPTION>
                                                                           MORTGAGE
                           REIMBURSEMENT  INTEREST MANAGEMENT    LEASE    SERVICING
                          OF EXPENSES (1)  INCOME     FEES    COMMISSIONS    FEES     TOTAL
<S>                       <C>             <C>          <C>         <C>         <C>     <C>            
USAA Mutual Fund, Inc.:
     1996                 $           --        --         --          --          --        --
     1995                             --       (18)        --          --          --       (18)
     1994                             --      (363)        --          --          --      (363)

USAA Real Estate Company:
     1996                        117,027   (52,124)    67,893          --       1,115   133,911
     1995                        112,413  (612,757)    77,791          --      13,600  (408,953)
     1994                        136,978  (605,535)    49,325          --      12,427  (406,805)

Quorum Real Estate
Services Corporation:
     1996                         60,609        --     48,992      17,282         --    126,883
     1995                         19,550        --     40,089      16,273         --     75,912
     1994                         15,832        --     29,205      15,745         --     60,782

(1)  Reimbursement of expenses represents amounts paid or accrued
as reimbursement of expenses incurred on behalf of the
Partnership at actual cost and does not include any mark-up or
items normally considered as overhead.
</TABLE>

7.   Income Taxes

     A reconciliation of financial statement net income to
     taxable loss follows:

                                  1996         1995         1994
     Net income-financial
       statement basis         $ 356,072      647,257      436,049
     Adjusted by:
     Increase in deferred rent   (15,600)     (65,461)     (66,001)   
     Repairs and maintenance 
       capitalized                    --           --       33,728
     Excess tax depreciation over
       financial statement
       depreciation             (412,660)    (441,114)    (531,939)
     Prepaid rent                 27,933      (10,420)       8,407
     Other reconciling items      (1,946)       1,638        3,692
     Tax loss on disposal
       of asset                       --     (133,124)          --
     Taxable loss              $ (46,201)      (1,224)    (116,064)

<PAGE>
8.   Major Customer Information

     During the years ended December 31, 1996 and 1995, the
     Partnership recorded rental income of approximately $493,000
     and $414,000, respectively, from a major tenant in the
     computer industry.  This income represented approximately 35%
     and 37% of total rental income for 1996 and 1995,
     respectively.  There is no applicable major customer
     information for the year ended December 31, 1994.

9.   Fair Value of Financial Instruments

     The carrying amount of cash and cash equivalents, accounts
     payable and accrued expenses and other liabilities
     approximates fair value because of the short-term nature of
     these instruments.

<PAGE>
                    INDEPENDENT AUDITORS' REPORT

THE PARTNERS
USAA REAL ESTATE INCOME INVESTMENTS I LIMITED PARTNERSHIP:

We have audited the accompanying balance sheets of USAA Real Estate
Income Investments I Limited Partnership as of December 31, 1996
and 1995, and the related statements of income, partners' equity,
and cash flows for each of the years in the three-year period ended
December 31, 1996.  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 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 financial position of USAA
Real Estate Income Investments I Limited Partnership as of December
31, 1996 and 1995, and the results of its operations and its cash
flows for each of the years in the three-year period ended December
31, 1996, in conformity with generally accepted accounting
principles.




                                         /s/KPMG PEAT MARWICK LLP
                                         KPMG PEAT MARWICK LLP

San Antonio, Texas 
January 29, 1997

<PAGE>
Item 9.   Changes in and Disagreements with Accountants on
          Accounting and Financial Disclosure

     Not Applicable.

<PAGE>
                              Part III

Item 10. Directors and Executive Officers of the Registrant

       The General Partner of the Partnership is USAA Investors
I, Inc., a Texas corporation.

       As of January 1, 1997, the directors and executive
officers of the General Partner were as follows:

                                   POSITION WITH 
           NAME                   GENERAL PARTNER


       Edward B. Kelley          Chairman, President,
                                 Chief Executive Officer and
                                 Director

       T. Patrick Duncan         Vice Chairman
                                 Senior Vice President -
                                 Real Estate Operations and Director

       Randal R. Seewald         Vice President, Secretary,
                                 Legal Counsel and Director

       Martha J. Barrow          Vice President -
                                 Administration and
                                 Finance/Treasurer

       S. Wayne Peacock          Vice President -
                                 Portfolio Management

       David A. Rosales          Assistant Vice President - 
                                 Controller 

       Susan T. Wallace          Assistant Vice President - 
                                 Acquisitions and Dispositions

       David M. Holmes           Assistant Vice President -
                                 Capital Investments

       Stephen S. King           Assistant Vice President -
                                 Western Region

       All of the foregoing directors and executive officers
have been elected to serve one-year terms until the annual
meeting of the General Partner.

       There are no arrangements or understandings between or
among any of said directors or executive officers to be elected
or selected as such, nor are there any family relationships among
any of the foregoing directors and executive officers.  The
foregoing directors and executive officers are also officers
and/or directors of various affiliated companies of the General
Partner.

       The age and business experience of each of the directors
and executive officers of the General Partner is as follows:

<PAGE>
       Edward B. Kelley, 56, joined USAA in April 1989 and is
Vice Chairman, President, Chief Executive Officer and Director of
USAA Real Estate Company and Chairman, President, Chief Executive
Officer and Director of USAA Real Estate Development Company,
USAA Real Estate Management Company, Quorum Real Estate Services
Corporation, USAA Properties Fund, Inc., USAA Investors I, Inc.,
USAA Investors II, Inc., USAA Properties II, Inc., USAA
Properties III, Inc., USAA Properties IV, Inc., La Paz, Inc.,
USAA Real Estate Equities, Inc., Alhambra Gables One, Inc., L. A.
Wilshire One, Inc., USAA Real Estate - Midwest, Inc., and Las
Colinas Management Company.  He also serves as Chief Executive
Officer, President and Director of Fiesta Texas Showpark, Inc.,
La Cantera Development Company and La Cantera Hospitality, Inc. 
Mr. Kelley is also Chairman of the Board, Chief Executive Officer
and Director of USAA Equity Advisors, Inc.  Mr. Kelley serves as
President and Director of USAA Health Services, Inc.  All of the
previously named companies are affiliates of the General Partner. 
He graduated from St. Mary's University of San Antonio, Texas
with a Bachelor of Business Administration Degree in Finance in
1964 and was awarded a Master of Business Administration Degree,
in Finance, by Southern Methodist University, Dallas, Texas in
1967.  Mr. Kelley was employed by Barshop Enterprises, Inc., of
San Antonio, Texas from July 1980 until April 1989 where he was
President and an Advisory Director of Barshop Enterprises, Inc.
and its corporate subsidiaries.  The Barshop group of companies
is engaged in the development, management and ownership of
commercial real estate properties in San Antonio and other Texas
cities.  He is past Chairman of the Board and a member of the
Executive Committee of the Greater San Antonio Chamber of
Commerce; past member of the Board of Directors, Executive
Committee, and past President of the San Antonio chapter of the
National Association of Industrial and Office Parks; past member
of the Board of Directors of the San Antonio Economic Development
Foundation, and past Chairman of the Board of Trustees of St.
Mary's University and its Executive Committee.  Mr. Kelley is a
member of the Board of Directors and Executive Committee, Vice
President of the Board of Directors, and Chairman of the 1994
Friends of Scouting Bexar County Campaign, as well as the
President of the Alamo Area Council of Boy Scouts of America;
member of the Board of Trustees of St. Mary's University; member
of the Board of Trustees of the Baptist Children's Home of San
Antonio; member of the Board of Directors of the San Antonio
Economic Development Foundation; member of Board of Trustees for
the United Way of San Antonio and Bexar County; and a member of
the Board of Directors of the American Industrial Properties REIT
(AIP).

       T. Patrick Duncan, 47, is Senior Vice President - Real
Estate Operations and Director of USAA Real Estate Company, USAA
Real Estate Equities, Inc. and USAA Health Services, Inc.  He
also serves as Senior Vice President, Director and Vice Chairman
of USAA Real Estate Development Company, USAA Real Estate
Management Company, Quorum Real Estate Services Corporation, USAA
Properties Fund, Inc., USAA Investors I, Inc., USAA Investors II,
Inc., USAA Properties II, Inc., USAA Properties III, Inc., USAA
Properties IV, Inc., La Paz, Inc., USAA Equity Advisors, Inc.,
Alhambra Gables One, Inc., L. A. Wilshire One, Inc., USAA Real

<PAGE>
Estate-Midwest, Inc., and Las Colinas Management Company.  All of
the previously named companies are affiliates of the General
Partner.  He is a 1972 graduate of the University of Arizona and
was awarded the Bachelor of Science Degree with a dual major in
Accounting and Finance.  Prior to joining USAA in 1986, Mr.
Duncan was an audit manager with Deloitte Touche and Company and
Comptroller of Trammell Crow Company in Dallas, Texas.  Mr.
Duncan is a Certified Public Accountant and holds a Texas Real
Estate Brokers License.  He holds memberships in the Texas and
Arizona State Boards of Accounting, the Texas and Arizona State
Societies of Certified Public Accountants, the International
Council of Shopping Centers, the Urban Land Institute, The
National Association of Real Estate Investment Managers and the
Pension Real Estate Association.  Mr. Duncan serves on the Board
of Trustees and is Chairman of the Finance Committee of the
Daughters of Charity; and Board member of the North San Antonio
Chamber of Commerce, as well as Chairman of its Governmental
Affairs Council.  Mr. Duncan is a Board member of Meridian
Industrial Trust and American Industrial Trust, two public REITs
traded on the New York Stock Exchange.  Mr. Duncan serves on
various committees of these two entities.

       Randal R. Seewald, 43, began his career with USAA in
1976, and is currently Vice President, Director, Secretary and
Legal Counsel of USAA Real Estate Development Company, USAA Real
Estate Management Company, USAA Properties Fund, Inc., USAA
Properties II, Inc., USAA Properties III, Inc., USAA Properties
IV, Inc., USAA Investors I, Inc., USAA Investors II, Inc.,
Alhambra Gables One, Inc., L. A. Wilshire One, Inc., Quorum Real
Estate Services Corporation, USAA Real Estate-Midwest, Inc., La
Paz, Inc., USAA Equity Advisors, Inc., USAA Health Services,
Inc., and Las Colinas Management Company.  He is also Vice
President, Secretary and Legal Counsel of USAA Real Estate
Company and USAA Real Estate Equities, Inc.  Mr. Seewald serves
as Vice President, Legal Counsel, Treasurer and Secretary of
Fiesta Texas Showpark, Inc., La Cantera Development Company and
La Cantera Hospitality, Inc.  All of the previously named
companies are affiliates of the General Partner.  Mr. Seewald
holds a Bachelor of Business Administration from Texas A&M
University and a J.D. from St. Mary's University School of Law. 
He is a member of the State Bar of Texas, the American Bar
Association, the San Antonio Bar Association, and the American
Corporate Counsel Association.

       Martha J. Barrow, 49, is Vice President, Administration
and Finance, and Treasurer of USAA Real Estate Company, Alhambra
Gables One, Inc., L.A. Wilshire One, Inc., La Paz, Inc., Las
Colinas Management Company, Quorum Real Estate Services
Corporation, USAA Health Services, Inc., USAA Investors I, Inc.,
USAA Investors II, Inc., USAA Properties Fund, Inc., USAA
Properties II, Inc., USAA Properties III, Inc., USAA Properties
IV, Inc., USAA Real Estate-Midwest, Inc., USAA Real Estate
Development Company, USAA Real Estate Equities, Inc., and USAA
Real Estate Management Company.  Ms. Barrow serves as President
of USAA Equity Advisors, Inc.  All of the previously named
companies are affiliates of the General Partner.  Ms. Barrow
joined USAA in June 1983.  Prior to her joining USAA, she served

<PAGE>
as a Tax Accountant of La Quinta Motor Inns, Inc. and as Senior
Accountant with NL Industries.  She is a Certified Public
Accountant in the state of Texas and is a member of the Texas
Society of Certified Public Accountants and the American
Institute of Certified Public Accounts.  She is a license holder
for Securities Registration Series 7, Series 63, and Series 24. 
Ms. Barrow holds a Bachelor of Business Administration in
Accounting from Pan American University and an Master of Business
Administration from St. Mary's University.  She is a member of
the National Association of Real Estate Investment Managers
(NAREIM), the National Council of Real Estate Investment
Fiduciaries (NCREIF), and the American Real Estate Society
(ARES).

       S. Wayne Peacock, 38, is Vice President, Portfolio
Management of USAA Real Estate Company, USAA Properties Fund,
Inc., USAA Properties II, Inc., USAA Properties III, Inc., USAA
Properties IV, Inc., USAA Investors I, Inc., USAA Investors II,
Inc., Quorum Real Estate Services Corporation, USAA Real Estate
Equities, Inc., Alhambra Gables One, Inc., L. A. Wilshire One,
Inc., USAA Equity Advisors, Inc., USAA Real Estate Development
Company, and USAA Real Estate-Midwest, Inc.  He is also a
Director of Quorum Real Estate Services Corporation.  All of the
previously named companies are affiliates of the General Partner. 
Mr. Peacock joined USAA in January 1992.  Mr. Peacock has
previous real estate experience with Coldwell Banker and Merrill
Lynch.  He graduated in 1981 from Tulane University, New Orleans,
Louisiana, where he received a Bachelor of Arts degree in
Economics.  Mr. Peacock is a Certified Commercial Investment
Manager (CCIM).  He holds memberships in the San Antonio Board of
Realtors and CCIM.

       David A. Rosales, 40, is Assistant Vice President -
Controller for USAA Real Estate Company, Alhambra Gables One,
Inc., L.A. Wilshire One, Inc., La Paz, Inc., Las Colinas
Management Company, USAA Equity Advisors, Inc., USAA Investors I,
Inc., USAA Investors II, Inc., USAA Properties Fund, Inc., USAA
Properties II, Inc., USAA Properties III, Inc., USAA Properties
IV, Inc., USAA Real Estate - Midwest, Inc., USAA Real Estate
Development Company, USAA Real Estate Equities, Inc., and USAA
Real Estate Management Company.  He is also Assistant Vice
President, Controller of Quorum Real Estate Services Corporation. 
All of the previously named companies are affiliates of the
General Partner.  Mr. Rosales joined USAA in September 1983.  He
holds a Bachelor of Business Administration from St. Mary's
University and an Master of Business Administration from Our Lady
of the Lake University.  He is a Certified Public Accountant in
the state of Texas and holds memberships in the Texas Society of
CPAs, the San Antonio chapter of CPAs and the American Institute
of CPAs.  Mr. Rosales also holds memberships in the National
Association of Real Estate Companies and the National Council of
Real Estate Investments Fiduciaries.  He serves as Chairman of
the Board of Communities in Schools-San Antonio, Inc.

<PAGE>
       Susan T. Wallace, 42, is Assistant Vice President, Real
Estate Investments for USAA Real Estate Company, USAA Properties
Fund, Inc., USAA Properties II, Inc., USAA Properties III, Inc.,
USAA Properties IV, Inc., USAA Investors I, Inc., USAA Investors
II, Inc., USAA Equity Advisors, Inc., Alhambra Gables One, Inc.,
L. A. Wilshire One, Inc., USAA Real Estate-Midwest, Inc., and
USAA Real Estate Equities, Inc.  All of the previously named
companies are affiliates of the General Partner.  Ms. Wallace
attended Bowling Green State University in Bowling Green, Ohio
and the University of Cincinnati in Cincinnati, Ohio.  From
December 1983 until September 1988 she served as Director with
USAA Real Estate Company where she was responsible for the
identification of equity investments and acquisition of the
identified investments.  Prior to joining USAA Real Estate
Company, she was Project Director and Division Manager for
Gibraltar Savings Association of Houston, Texas.  Ms. Wallace
holds a Texas Real Estate License, is a graduate of the Realtors
Institute and is a member of the San Antonio and Texas Board of
Realtors, the National Association of Realtors, the National
Association of Real Estate Investment Managers and the
International Association of Corporate Real Estate Executives. 
Ms. Wallace serves on the Board of Governors for the Affordable
Housing Investors Council.

         David M. Holmes, 36, is Assistant Vice President,
Capital Investments for USAA Real Estate Company, USAA Properties
Fund, Inc., USAA Properties II, Inc., USAA Properties III, Inc.,
USAA Properties IV, Inc., USAA Investors I, Inc., USAA Investors
II, Inc., USAA Equity Advisors, Inc., Alhambra Gables One, Inc.,
L.A. Wilshire One, Inc., and USAA Real Estate-Midwest, Inc.  All
of the previously named companies are affiliates of the General
Partner.  Mr. Holmes joined USAA in May 1985.  His
responsibilities include new property acquisition and capital
market activities.  Mr. Holmes currently oversees over 2 million
square feet of office and industrial development.  He also acts
as the primary contact for real estate securitization
transactions and coordinates contact with banking relationships,
alliance partners and other third party development or financing
sources.  Prior to joining USAA, Mr. Holmes was a tax consultant
for Touche Ross & Company in San Antonio.  He is a 1982 graduate
of Trinity University, San Antonio, Texas, where he received a
Bachelor of Business Administration with a concentration in
Accounting and Finance and is a Certified Public Accountant.  He
has served on the Board of Directors of Big Brothers and Sisters
of San Antonio and as a member of the Finance Committee of the
San Antonio Public Library.

       Stephen S. King, 40, is Assistant Vice President -
Western Region of USAA Real Estate Company, L.A. Wilshire One,
Inc., La Paz, Inc., USAA Investors I, Inc., USAA Properties III,
Inc., and USAA Properties IV, Inc.  All of the previously named
companies are affiliates of the General Partner.  Mr. King joined
USAA in July 1993.  Prior to joining USAA, Mr. King had fifteen
years of professional real estate development, construction and
management experience.  He graduated in 1978 from Texas A&M
University, where he received a Bachelor of Arts in Economics. 

<PAGE>
Mr. King is a licensed California Broker, a member of the
Institute of Real Estate Management (IREM), the Building Owners
and Managers Association (BOMA), the National Association of
Realtors, and the Lincoln Club of Orange County.

<PAGE>
Item 11. Executive Compensation

       The directors and officers of the General Partner of the
Partnership receive no current or proposed remuneration from the
Partnership or the General Partner.

       The General Partner is entitled to receive a share of
cash distributions, profits and losses and sales and refinancing
proceeds as described under the captions "Compensation and Fees
to the General Partner, Advisor and Affiliates" at pages 12-17
and "Taxable Income and Tax Losses and Cash Distributions" at
pages 44-46 of the Prospectus dated November 16, 1984, filed
pursuant to Rule 424(b).  Copies of these pages are attached
hereto as Exhibit 99.b, and are incorporated herein by this
reference. For the year ended December 31, 1996, the General
Partner received cash distributions of $7,171.

Item 12. Security Ownership of Certain Beneficial Owners and Management

(a)      Security Ownership of Certain Beneficial Owners

               Name and           Amount and
               Address of         Nature of 
  Title of     Beneficial         Beneficial          Percent
  Class        Owner              Ownership (1)       of Class

  Units of     USAA Investors     6,035 Units of        11.05%  
  Limited      I, Inc. (General   Limited Partnership
  Partnership  Partner)(2)        Interests 
  Interests    8000 Robert F. 
               McDermott Fwy.,
               IH 10 West, 
               Suite 600
               San Antonio, Texas

(1)     The Amended and Restated Agreement of Limited Partnership
        provides that the General Partner will vote such Units in
        the same proportions as all other Limited Partners in the
        event a vote of Limited Partners is taken.

(2)     USAA Investors I, Inc. is a wholly-owned subsidiary of USAA
        Real Estate Company, which is a wholly-owned subsidiary of
        USAA Capital Corporation, which is a wholly-owned subsidiary
        of USAA.

(b) Security Ownership of Management

   None of the officers and directors of the General Partner of
the Partnership beneficially own equity securities of the
registrant or any of its parents.

<PAGE>
Item 13. Certain Relationships and Related Transactions

       The Partnership is permitted to engage in various
transactions involving the General Partner or its affiliates.

       Pursuant to an advisory agreement, the Advisor, an
affiliate of the General Partner, may receive, in the aggregate,
property acquisition fees of up to 4% of the gross offering
proceeds, loan origination and commitment fees of up to 4% of the
gross offering proceeds, real estate brokerage commissions of up
to 1% of the aggregate selling prices of properties sold,
management fees of up to 4% of gross revenues from operations or
9% of adjusted cash flow for the Partnership, and an annual
mortgage servicing fee of up to 1/4 of 1% of amounts funded by
the Partnership in mortgage loans, which are serviced by the
Advisor. 

       An affiliate of the General Partner, USAA Investment
Management Company, received selling commissions equal to 4% of
the gross proceeds from sales of limited partnership interests
and an expense allowance equal to 2% of the gross offering
proceeds for organizational and offering expenses.  Through
January 1995, a portion of the Partnership's working capital
reserve and other available funds were invested in USAA Mutual
Fund, Inc.

       An affiliate of the General Partner, Quorum Real Estate
Services Corporation (also known as USAA Realty Company),
provides property management and leasing services for the
properties and may receive fees of up to 6% of property cash
receipts for those services.

       A summary of transactions with affiliates follows for the
three years ended December 31, 1996, 1995 and 1994:
<TABLE>
<CAPTION>
                                                                           MORTGAGE
                           REIMBURSEMENT  INTEREST MANAGEMENT    LEASE    SERVICING
                          OF EXPENSES (1)  INCOME     FEES    COMMISSIONS    FEES     TOTAL
<S>                       <C>             <C>          <C>         <C>         <C>      <C>                
USAA Mutual Fund, Inc.:
     1996                 $           --        --         --          --          --         --
     1995                             --       (18)        --          --          --        (18)
     1994                             --      (363)        --          --          --       (363)

USAA Real Estate Company:
     1996                        117,027   (52,124)    67,893          --       1,115    133,911
     1995                        112,413  (612,757)    77,791          --      13,600   (408,953)
     1994                        136,978  (605,535)    49,325          --      12,427   (406,805)

Quorum Real Estate
Services Corporation:
     1996                         60,609        --     48,992      17,282          --    126,883
     1995                         19,550        --     40,089      16,273          --     75,912
     1994                         15,832        --     29,205      15,745          --     60,782

(1)  Reimbursement of expenses represents amounts paid or accrued
     as reimbursement of expenses incurred on behalf of the
     Partnership at actual cost and does not include any mark-up
     items normally considered as overhead.
</TABLE>

<PAGE>
                             PART IV

Item 14.  Exhibits, Financial Statement Schedules and Reports on Form 8-K

     The following documents are filed as part of this Report.

(a) 1.  Financial Statements

       The following financial statements, notes to financial
statements and independent auditors' report are included in Part
II Item 8:

       Balance Sheets as of December 31, 1996 and 1995

       Statements of Income for the years ended
        December 31, 1996, 1995 and 1994

       Statements of Partners' Equity for the years ended
        December 31, 1996, 1995 and 1994

       Statements of Cash Flows for the years ended
        December 31, 1996, 1995 and 1994

       Notes to Financial Statements

       Independent Auditors' Report

    2.  Financial Statement Schedules

       Real Estate and Accumulated Depreciation as of
        December 31, 1996 (Schedule III)

       Independent Auditors' Report 

      All other schedules have been omitted as the schedules
are not required under the related instructions, are not
applicable, or the information required thereby is set forth in
the financial statements or the notes thereto.

<PAGE>
    3.  Exhibits                     

Exhibit                                             
 No.    Description

 3.a    Restated Certificate and Agreement of Limited
        Partnership of Limited Partnership dated as of October
        18, 1984, incorporated as Exhibit A to the Partnership's
        Prospectus dated November 16, 1984, filed pursuant to
        Rule 424(b),(Regis. No.2-92845) and incorporated herein
        by this reference.

27      Financial Data Schedules

99.a    "Glossary of Terms Used in Prospectus" pages 64-70
        contained in the Prospectus dated November 16, 1984,
        filed pursuant to Rule 424(b) (Regis. No. 2-92845).

99.b    "Compensation and Fees to the General Partner, Advisor
        and Affiliates" at pages 12-17 and "Taxable Income and
        Tax Losses and Cash Distributions" at pages 44-46 of the
        Prospectus dated November 16, 1984, filed pursuant to
        Rule 424(b)(Regis. No. 2-92845.)

(b)  Reports filed on Form 8-K

        During the quarter ended December 31, 1996, there were
no Current Reports on Form 8-K filed.

(d)   The following Plaza on the Lake Financial Statements and
Financial Statement Schedules are filed as part of this report:

      FINANCIAL STATEMENTS:
      
      Balance Sheets as of December 31, 1995 and 1994

      Statements of Operations and Owner's Equity for
        the years ended December 31, 1995, 1994 and 1993

      Statements of Cash Flows for the years ended
        December 31, 1995, 1994 and 1993

      Notes to Financial Statements

      Independent Auditors' Report on Financial Statements
        and Financial Statement Schedules

      FINANCIAL STATEMENT SCHEDULES:

      Valuation and Qualifying Accounts for the years ended
        December 31, 1995, 1994 and 1993 (Schedule II)
              
      Real Estate and Accumulated Depreciation as of
        December 31, 1995 (Schedule III)

<PAGE>
    Financial information for Plaza on the Lake for fiscal year
1996 is not included in this Form 10-K.  The mortgage loan
secured by Plaza on the Lake was paid in full to USAA Real Estate
Income Investments I Limited Partnership in January 1996 and the
financial information on the property underlying the mortgage
loan is therefore no longer required.

    All other schedules have been omitted as the schedules are
not required under the related instructions, are not applicable,
or the information required thereby is set forth in the financial
statements or the notes thereto. 

<PAGE>
<TABLE>
SCHEDULE III  USAA REAL ESTATE INCOME INVESTMENTS I LIMITED PARTNERSHIP
                      REAL ESTATE AND ACCUMULATED DEPRECIATION
                                  December 31, 1996
<CAPTION>

                                                                                      Cost Capitalized
                                                             Initial cost to            Subsequent to
                                                               Partnership               Acquisition
                                                                        Buildings
     Year of            Date                                               and        Improve-    Carrying
   Construction       Acquired       Description           Land       Improvements      ments       Costs
<S>                <C>            <C>                  <C>             <C>            <C>             <C>
       1984        Sept 30, 1985  Volusia Point
                                  Shopping Center
                                  Daytona Beach, FL    $  1,800,000     6,890,958       720,254       --


       1982        June 11, 1986  Systech Building
                                  San Diego, CA           1,532,876    10,509,494     1,266,177       --

                                                       $  3,332,876    17,400,452     1,986,431       -- 


<CAPTION>
                        Gross Amount at Which
                         Carried at Close of
                               Period 
                                      Buildings      Total Investment  Accumulated     Related
                                         and            Properties    Depreciation    Mortgages
   Description        Land (5)       Improvements        (2) (4)        (1) (3)        Payable
<S>                    <C>               <C>              <C>            <C>                 <C>
Volusia Point
Shopping Center
Daytona Beach, FL      1,800,000          7,383,894        9,183,894     2,765,012           --


Systech Building
San Diego, CA            482,163          6,326,383        6,808,546     3,262,745           --
                                                                       
                       2,282,163         13,710,277       15,992,440     6,027,757           --

<PAGE>
SCHEDULE III (continued)

NOTES:
(1) Depreciation is based on a 30 year life, straight-line method for
    buildings.  Tenant improvements are amortized over the life of the
    related lease using the straight-line method.
<S>                                            <C>        <C>
(2) Reconciliation of real estate:
    Balance at December 31, 1993                          $ 14,824,256
      Additions during period-improvements     $ 684,626
      Less:  Retirements                         (16,516)      668,110
    Balance at December 31, 1994                            15,492,366
      Additions during period-improvements       561,552
      Less:  Retirements                        (159,838)      401,714
    Balance at December 31, 1995                            15,894,080
      Additions during period-improvements        98,360
      Less:  Retirements                              --        98,360
    Balance at December 31, 1996                          $ 15,992,440


(3) Reconciliation of accumulated depreciation:
    Balance at December 31, 1993                          $  4,654,726
      Depreciation during period               $ 431,171
      Less:  Retirements                         (14,051)      417,120
    Balance at December 31, 1994                             5,071,846
      Depreciation during period                 543,494
      Less:  Retirements                        (159,838)      383,656
    Balance at December 31, 1995                             5,455,502
      Depreciation during period                 572,255
      Less:  Retirements                              --       572,255
    Balance at December 31, 1996                          $  6,027,757

(4) The aggregate cost of real estate at December 31, 1996 for Federal income tax
    purposes is $22,802,414.

(5) There were no additions to land subsequent to acquisition.
</TABLE>

<PAGE>
INDEPENDENT AUDITORS' REPORT ON FINANCIAL STATEMENT SCHEDULES

THE PARTNERS
USAA REAL ESTATE INCOME INVESTMENTS I LIMITED PARTNERSHIP:
 
Under date of January 29, 1997, we reported on the balance sheets
of USAA Real Estate Income Investments I Limited Partnership as
of December 31, 1996 and 1995, and the related statements of
income, partners' equity, and cash flows for each of the years in
the three-year period ended December 31, 1996.  In connection
with our audits of the aforementioned financial statements, we
also have audited the related financial statement schedules as
listed in Item 14(a)2.  These financial statement schedules are
the responsibility of the Partnership's management.  Our
responsibility is to express an opinion on these financial
statement schedules based on our audits.

In our opinion, such financial statement schedules, when
considered in relation to the basic financial statements taken as
a whole, present fairly, in all material respects, the
information set forth therein.






                                               /s/KPMG PEAT MARWICK LLP
                                               KPMG PEAT MARWICK LLP



San Antonio, Texas
January 29, 1997

<PAGE>
<TABLE>
                        PLAZA ON THE LAKE
                          BALANCE SHEETS
                    DECEMBER 31, 1995 and 1994
<CAPTION>
                                                            1995           1994
<S>                                                    <C>              <C>  
ASSETS
Rental property, net (notes 2, 3 and 5)                $   7,659,893      7,702,603
Accounts receivable, net of allowance
    for doubtful accounts of $30,000
    and $11,000                                               65,676         54,742
Notes receivable from tenants (note 6)                        39,795         90,738
Deferred rent and other assets, at
    amortized cost, net of allowance of
    $664,912 in 1995 and 1994 (notes 4 and 6)                403,972        326,891

                                                       $   8,169,336      8,174,974

LIABILITIES AND OWNER'S EQUITY
Mortgage payable (note 5)                              $   5,440,000      5,440,000  
Accounts payable                                              31,225         86,660
Accrued expenses and other liabilities                       310,925        234,846
         Total liabilities                                 5,782,150      5,761,506

Owner's equity                                            13,547,555     13,496,444
Cumulative net loss                                      (11,160,369)   (11,082,976)
          Total owner's equity                             2,387,186      2,413,468
                                                        
                                                       $   8,169,336      8,174,974


See accompanying notes to financial statements.
</TABLE>

<PAGE>
<TABLE>
                        PLAZA ON THE LAKE
           STATEMENTS OF OPERATIONS AND OWNER'S EQUITY
           Years Ended December 31, 1995, 1994 and 1993
<CAPTION>
                                                            1995           1994           1993
<S>                                                    <C>               <C>            <C>
INCOME
Rental income                                          $   1,594,840      1,520,306      1,482,447
Less direct expenses, including
  depreciation of $256,115, $278,400
  and $318,605                                              (993,927)    (1,122,887)    (1,258,711)
Provision for investment property
  write-down (note 3)                                            --             --      (1,000,000)

     Net operating income (loss)                             600,913        397,419       (776,264)
                                                                        
EXPENSES
General and administrative                                    65,549         66,852         89,248
Interest                                                     612,757        605,535        604,295
                                                                        
     Total expenses                                          678,306        672,387        693,543
                                                                        
Net loss                                                     (77,393)      (274,968)    (1,469,807)

Owner's equity at beginning of year                        2,413,468      2,607,764      3,898,415

Contributions by the owner                                    51,111         80,672        179,156

Owner's equity at end of year                          $   2,387,186      2,413,468      2,607,764
                                                                        

See accompanying notes to financial statements.
</TABLE>

<PAGE>
<TABLE>
                        PLAZA ON THE LAKE
                     STATEMENTS OF CASH FLOWS
           Years Ended December 31, 1995, 1994 and 1993
<CAPTION>
                                                            1995           1994           1993
<S>                                                    <C>                 <C>          <C>
Cash flows from operating activities:
   Net loss                                            $     (77,393)      (274,968)    (1,469,807)
   Adjustments to reconcile net loss to net 
      cash provided by (used in) operating activities: 
      Depreciation                                           256,115        278,400        318,605
      Amortization                                            61,720         57,510         53,045
      Loss on retirement of assets                            28,039            --             --
      Investment property write-down                                                     1,000,000
      Decrease in accounts and notes receivable               40,009         31,687         40,834
      Increase in deferred charges and 
         other assets                                       (138,801)      (119,104)       (17,043)
      Increase (decrease) in accounts payable,                          
         accrued expenses and other liabilities               20,644         30,548        (25,249)

        Cash provided by (used in) operating activities      190,333          4,073        (99,615)

Cash used in investing activities -
   Additions to rental properties                           (241,444)       (84,745)       (79,641)


Cash provided by financing activities -
  Contributions from owner                                    51,111         80,672        179,156


Net change in cash                                               --             --            (100)

Cash at beginning of year                                        --             --             100

Cash at end of year                                    $         --             --             --


See accompanying notes to financial statements.
</TABLE>

<PAGE>
                        PLAZA ON THE LAKE

                  NOTES TO FINANCIAL STATEMENTS
                December 31, 1995, 1994 and 1993 

1.       Organization, Summary of Significant Accounting Policies and
         Other

         Pursuant to the requirements of Staff Accounting Bulletin
         No. 71, a registrant is to file separate audited financial
         statements for a property which is the underlying asset of a
         mortgage loan when the balance of the mortgage loan is
         greater than or equal to 20% of the registrant's total
         assets.  In accordance with Rule 3-09 of Regulation S-X,
         financial statements are to be filed for the same periods
         and dates as the audited financial statements of the
         registrant.  These separate financial statements are
         required to be audited only for those fiscal years for which
         the 20% test is met.

         Plaza on the Lake, a three-story office building in Austin,
         Texas, became a wholly-owned property of USAA Real Estate
         Company effective January 1, 1987.  USAA Real Estate Company
         originally held a second mortgage on this property until the
         default of the borrower on February 9, 1987, at which time
         USAA Real Estate Company accepted a deed to the property and
         replaced the borrower on the first lien held by USAA Real
         Estate Income Investments I Limited Partnership.

         The rental property is valued at cost less provisions for
         investment property write-down.  See note 3.

         In March 1995, the Financial Accounting Standards Board
         issued Statement of Financial Accounting Standards No. 121,
         "Accounting for the Impairment of Long-lived Assets and
         Assets to be Disposed Of" (FAS No. 121).  The statement,
         which is effective for fiscal years beginning after December
         15, 1995, requires that an entity evaluate long-lived assets
         and certain other identifiable intangible assets for
         impairment whenever events or changes in circumstances
         indicate that the carrying amounts of the assets may not be
         recoverable.  An impairment loss meeting the recognition
         criteria is to be measured as the amount by which the
         carrying amount for financial reporting purposes exceeds the
         fair value of the asset.

         Generally, for properties to be held and used, FAS No. 121
         would require recognition of an impairment loss if the
         undiscounted cash flows are less than the carrying amount of
         the asset.  Based on management's current estimates of the
         undiscounted future cash flows of Plaza on the Lake, the
         cash flows exceed the carrying amount of the property.  The
         cash flows ultimately realized may be more or less than the
         amounts used in this analysis.  USAA Real Estate Company
         plans to adopt FAS No. 121 in 1996 and does not expect the
         adoption of the statement to have a material effect, if any,
         on Plaza on the Lake's financial position or results of
         operations.

<PAGE>
         Depreciation is provided over the estimated useful life of
         the property using the straight-line method.  The estimated
         life of the building and improvements is 45 years.  

         Rental income is recognized under the operating method,
         whereby aggregate rentals are reported as income on the
         straight-line basis over the life of the lease.  Rental
         income recognized was $86,821, $117,672 and $102,588 more
         than the amount due per the lease agreements for the years
         ended December 31, 1995, 1994 and 1993, respectively.

         No provision for income taxes has been made because the
         property is not a separate taxable entity.

         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.       Rental Property

         Rental property at December 31 consisted of the following:

                                             1995            1994

         Building and Improvements       $ 8,966,658       8,837,734
         Land                              2,007,473       2,007,473
                                          10,974,131      10,845,207
         Less accumulated depreciation    (3,314,238)     (3,142,604)
                                         $ 7,659,893       7,702,603

3.       Provision for Investment Property Write-down

         Under generally accepted accounting principles, USAA Real
         Estate Company provides for a permanent impairment of value
         on a property when it becomes probable that the property
         cannot recover its cost basis, reduced by depreciation,
         during its expected holding period.  Through detailed
         analysis, a permanent impairment of value is estimated by
         comparing a property's depreciated cost to its market value,
         which is estimated based on the expected sales price of the
         property, or internal computations.  Any loss in value
         deemed permanent is recognized as a write-down in value of
         that property.  In 1993, USAA Real Estate Company determined
         that Plaza on the Lake had sustained a permanent impairment
         of value.  An investment property write-down of $1,000,000
         was recorded in 1993. 

<PAGE>
4.       Minimum Future Rentals

         Operating leases with tenants have remaining terms from one
         to five years.  Minimum future rentals are cash payments to
         be received under non-cancelable leases over the lease terms
         and do not necessarily represent rental income under
         generally accepted accounting principles.  Rental income
         reported in the Statements of Operations is recognized under
         the operating method, whereby aggregate rentals are reported
         as income on the straight-line basis over the life of the
         lease.  Approximate minimum future rentals are as follows:

                                       1996            $1,650,000
                                       1997             1,553,000
                                       1998             1,138,000
                                       1999             1,142,000
                                       2000               189,000
                                       Thereafter              --
                                                       $5,672,000

5.       Mortgage Payable

         On February 9, 1987, as allowed in the loan documents, upon
         default of the borrower, USAA Real Estate Company accepted a
         deed on the property effective January 1, 1987, and replaced
         Plaza on the Lake Investors, Ltd. as the borrower on the
         first lien held by the USAA Real Estate Income Investments I
         Limited Partnership.  This mortgage loan was in the amount
         of $5,440,000 with interest at 10% due monthly.

         In addition to the interest income, the Partnership received
         3.2% of the gross revenues of the property through year six
         and received 3.84% of the gross revenues of the property in
         years seven through ten.  Interest expense included $68,757,
         $61,535 and $60,295 relating to the lender's participation
         in gross revenues for the years ended 1995, 1994 and 1993,
         respectively.  Total interest payments in 1995, 1994 and
         1993 were $609,732, $607,729 and $603,918, respectively. 
         The carrying value of the mortgage payable approximates fair
         value at December 31, 1995 due to the short term to maturity
         of January 31, 1996.

         On January 31, 1996, in accordance with the terms of the
         mortgage loan agreement between USAA Real Estate Company, as
         borrower, and USAA Real Estate Income Investments I Limited
         Partnership, as lender, the principal balance of the
         $5,440,000 mortgage loan payable was paid by the borrower
         and the underlying note paid in full.

<PAGE>
6.       Major Customer Information

         During each of the years ended December 31, 1995, 1994 and
         1993, approximately $542,000, $535,000 and $535,000 of
         rental income was recorded from a single tenant in the
         telecommunications industry which represented approximately
         35%, 35% and 36% of total rental income, respectively.

         During the year ended December 31, 1995, $282,000 and
         $172,000 of rental income was recorded from two other
         tenants at Plaza on the Lake, representing approximately 18%
         and 11% of total rental income, respectively.
  
         At December 31, 1995, Plaza on the Lake had $175,130, net of
         allowance of $664,912, of deferred rent and a $39,795 note
         receivable due from a tenant in the telecommunications
         industry.

7.       Economic Dependency

         Plaza on the Lake has incurred net losses of $77,393,
         $274,968 and $1,469,807 for the years ended December 31,
         1995, 1994 and 1993, respectively.  Cash deficits generated
         by the property are being funded by USAA Real Estate
         Company.  USAA Real Estate Company intends to continue
         funding the property's operating and capital requirements
         through cash contributions.

<PAGE>
<TABLE>
SCHEDULE II            PLAZA ON THE LAKE
                VALUATION AND QUALIFYING ACCOUNTS
        For Years Ended December 31, 1995, 1994 and 1993
<CAPTION>

                                               Additions
                                   Balance    charged to                  Balance
                                at beginning   costs and                   at end
            Description           of period    expenses    Deductions    of period
<S>                              <C>           <C>           <C>           <C>
1995 Allowance for doubtful
        accounts                 $  11,000      19,000           --         30,000
     Allowance for deferred 
        rent                       664,912          --           --        664,912
                                 $ 675,912      19,000           --        694,912

1994 Allowance for doubtful
        accounts                 $  11,000          --           --         11,000
     Allowance for deferred 
        rent                       561,184     103,728           --        664,912
                                 $ 572,184     103,728           --        675,912

1993 Allowance for doubtful
        accounts                 $  60,000          --       49,000         11,000
     Allowance for deferred 
        rent                       457,456     103,728           --        561,184
                                 $ 517,456     103,728       49,000        572,184
</TABLE>

<PAGE>
<TABLE>
SCHEDULE III            PLAZA ON THE LAKE
            REAL ESTATE AND ACCUMULATED DEPRECIATION
                        December 31, 1995
<CAPTION>
                                                                           Cost Capitalized
                                            Initial Cost to                 Subsequent to
                                              Partnership                    Acquisition
                                                      Buildings
  Year of        Date                                    and            Improve-       Carrying
Construction   Acquired    Description     Land      Improvements        ments           Costs
<S>          <C>          <C>          <C>              <C>               <C>                  <C>   
    1985     Jan 1, 1987  Plaza on the
                          Lake Office
                          Building
                          Austin, TX   $3,650,000       12,389,715        1,642,221            --


<CAPTION>
                                           Gross Amount at Which
                                            Carried at Close of
                                                 Period
                                                      Buildings     Total Investment  Accumulated    Related
  Year of        Date                                    and           Properties    Depreciation   Mortgages
Construction   Acquired    Description   Land (5)  Improvements (5)     (2) (5)         (1) (3)    Payable (4)
<S>          <C>          <C>          <C>               <C>             <C>            <C>         <C>            
    1985     Jan 1, 1987  Plaza on the
                          Lake Office
                          Building
                          Austin, TX   $2,007,473        8,966,658       10,974,131     3,314,238   5,440,000
</TABLE>

<PAGE>
SCHEDULE III (continued)

NOTES:
(1) Depreciation is based on the straight-line method for the building, with
    a 45 year life for 1991 through 1994 and a 30 year life prior to 1991.
    Tenant improvements are amortized over the life of the related lease
    using the straight-line method.

(2) Reconciliation of real estate:
    Balance at December 31, 1992                               $  11,895,553
      Additions during period:  Improvements     $      79,641
      Less:  Retirements (5)                        (1,000,000)     (920,359)
    Balance at December 31, 1993                                  10,975,194
      Additions during period:  Improvements            84,745
      Less:  Retirements                              (214,732)     (129,987)
    Balance at December 31, 1994                                  10,845,207
      Additions during period:  Improvements           241,444
      Less:  Retirements                              (112,520)      128,924
    Balance at December 31, 1995                               $  10,974,131

(3) Reconciliation of accumulated depreciation:
    Balance at December 31, 1992                               $   2,760,331
      Depreciation during period                 $     318,605
      Less:  Retirements                                    --       318,605
    Balance at December 31, 1993                                   3,078,936
      Depreciation during period                       278,400
      Less:  Retirements                              (214,732)       63,668
    Balance at December 31, 1994                                   3,142,604
      Depreciation during period                       256,115
      Less:  Retirements                               (84,481)      171,634
    Balance at December 31, 1995                               $   3,314,238

(4) The investment property is pledged as security for the mortgage payable.

(5) During 1993, a provision for investment property write-down of $1,000,000
    was recognized as the property has sustained a permanent impairment of
    value.

<PAGE>
                   INDEPENDENT AUDITORS' REPORT


THE BOARD OF DIRECTORS AND STOCKHOLDER
USAA REAL ESTATE COMPANY:

     We have audited the accompanying balance sheets of Plaza on
the Lake as of December 31, 1995 and 1994 and the related
statements of operations and owner's equity, and cash flows for
each of the years in the three-year period ended December 31,
1995.  In connection with our audits of the financial statements,
we also have audited the financial statement schedules as listed
in Item 14(d) of Form 10-K.  These financial statements and
financial statement schedules are the responsibility of the
Property's management.  Our responsibility is to express an
opinion on these financial statements and financial statement
schedules 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 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 financial position
of Plaza on the Lake as of December 31, 1995 and 1994 and the
results of its operations and its cash flows for each of the
years in the three-year period ended December 31, 1995, in
conformity with generally accepted accounting principles.  Also
in our opinion, the related financial statement schedules, when
considered in relation to the basic financial statements taken as
a whole, present fairly, in all material respects, the
information set forth therein.



                                         /s/KPMG PEAT MARWICK LLP
                                         KPMG PEAT MARWICK LLP   
San Antonio, Texas
January 31, 1996


<PAGE>
                            SIGNATURES

                                 

Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, USAA REAL ESTATE INCOME
INVESTMENTS I LIMITED PARTNERSHIP has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly
authorized:

USAA REAL ESTATE INCOME INVESTMENTS I LIMITED PARTNERSHIP
(Registrant)

BY:  USAA INVESTORS I, INC.,
General Partner

BY:  /s/Edward B. Kelley
Edward B. Kelley,
Chairman, President,
Chief Operating Officer
and Director

Date: March 25, 1997

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

/s/Edward B. Kelley                    Date:  March 25, 1997
Edward B. Kelley
Director, Chairman of the Board,
President and Chief Operating Officer
of the General Partner

/s/T. Patrick Duncan                  Date:  March 25, 1997
T. Patrick Duncan
Director, Vice Chairman,
Senior Vice President-Operations
of the General Partner

/s/Randal R. Seewald                  Date:  March 25, 1997
Randal R. Seewald
Director, Vice President
Secretary and Legal Counsel


<PAGE>
                          Exhibit Index          

Exhibit                                             Numbered
 No.                   Description                    Page
   
 3.a    Restated Certificate and Agreement
        of Limited Partnership dated as of 
        October 18, 1984, incorporated as
        Exhibit A to the Partnership's
        Prospectus dated November 16, 1984,
        filed pursuant to Rule 424(b),
        (Regis. No.2-92845) and
        incorporated herein by this reference.         --

27      Financial Data Schedules

99.a    "Glossary of Terms Used in Prospectus" 
        pages 64-70 contained in the Prospectus
        dated November 16, 1984, filed pursuant
        to Rule 424(b) (Regis. No. 2-92845).

99.b    "Compensation and Fees to the General
        Partner, Advisor and Affiliates" at
        pages 12-17 and "Taxable Income and Tax
        Losses and Cash Distributions" at pages
        44-46 of the Prospectus dated November 16, 
        1984, filed pursuant to Rule 424(b)
        (Regis. No. 2-92845.)