SECURITIES AND EXCHANGE COMMISSION
	Washington, DC  20549

	FORM 10-KSB
(Mark One)

[ X ]	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF
	THE SECURITIES EXCHANGE ACT of 1934
	For the fiscal year ended December 31, 2001

	OR

[    ]	TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
	SECURITIES EXCHANGE ACT OF 1934
	For the Transition period from                  to

	Commission file: Number 0-14453


	NATIONAL REAL ESTATE LIMITED PARTNERSHIP INCOME PROPERTIES
	(Name of Small Business Issuer in Its Charter)

Wisconsin								39-1503893
(State or Other Jurisdiction of
	(I.R.S. Employer
Incorporation or Organization)
Identification No.)

1155 Quail Court, Pewaukee, Wisconsin
53072-3703
(Address of Principal Executive Offices)
	(Zip Code)

(262) 695-1400
(Issuer=s Telephone Number, Including Area Code)

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

	None

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

	Limited Partnership Interests
	(Title of Class)

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

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

Issuer=s total gross rental revenues for its most recent fiscal
year ended December 31, 2001, were $ 743,909.


State the aggregate market value of the voting and non-voting
common equity held by non-affiliates of the Registrant as of
December 31, 2001: indeterminate value as there is no market.*

*For purposes of this disclosure only.

The number of Limited Partnership interests outstanding as of
 December 31, 2001: 9,004.15

	DOCUMENTS INCORPORATED BY REFERENCE

Portions of the annual report to Partners for the year ended
December 31, 2001 are incorporated by reference into Parts I and II.


	TABLE OF CONTENTS


Item No.	 Page No.

	PART I

	1.	Description of Business	 3

	2.	Description of Properties	3

	3.	Legal Proceedings	3

	4.	Submission of Matters to a Vote of Security
 Holders	3


	PART II

	5.	Market for Partnership's Securities and Related
		Security Holder Matters	4

	6.	Management's Discussion and Analysis of Financial
		Condition and Results of Operations	5

	7.	Financial Statements	5

	8.	Changes in and Disagreements with Accountants on
Accounting and Financial Disclosure	5

	PART III

	9.	Directors, Executive Officers, Promoters, and Control
Persons; Compliance with Section 16(a) of the
Exchange Act 	6

	10.	Executive Compensation	9

	11.	Security Ownership of Certain Beneficial Owners and
		Management	10

	12.	Certain Relationships and Related Transactions	10


	13.	Exhibits, List, and Reports on Form 8-K	10




	PART I


Item 1. 	Description of Business

ABusiness@ on pages 1, through 3 of the Partnership's annual
report to Partners for the year ended December 31, 2001 is
incorporated herein by reference.


Item 2. 	Description of Properties

AProperties@ on pages 3 and 4 of the Partnership's annual
 report to Partners for the year ended December 31, 2001,
 is incorporated herein by reference.


Item 3. 	Legal Proceedings

ALegal Proceedings@ on pages 4 through 5 of the Partnership's
 annual report to Partners for the year ended December 31,
2001, is incorporated herein by reference.


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

	None




	PART II


Item 5.	Market for the Partnership's Securities and Related
 Security Holder Matters

a) Market Information

The Partnership has two classes of equity securities: General
 Partners Interests and Limited Partners Interests. The General
Partnership Interests are held by the General Partners of the
 Partnership. As of December 18, 1986, the Partnership concluded
 its offering of Limited Partnership Interests (AInterests@)
and 9,034.01 Interests had been sold to the public at a price
 of $1,000 per Interest. Management is not aware of any public
 trading market for the Interests. The Partnership does provide
a repurchase pool whereby the limited partners may offer to sell
their Interests to the Partnership at a specified price. Offers
to sell are accepted semi-annually if they meet the criteria
established by the General Partners. As of December 31, 2001,
 29.86 Interests have been repurchased and are held in Treasury.

b) Security Holders

Number of Record Holders		   Number of Interests
 Title of Class 	(as of December 31, 2001)		(as of
 December 31, 2001)

Limited Partner-
 ship Interests		   1,127				   9,004.15

c) Dividends or Similar Distributions

Cash distributions to Limited Partners depend upon attaining
and thereafter maintaining operating income and expenses of the
 Partnership at levels permitting distributions. Distributions
of cash, if any, will be made from: (i) Cash Available for
 Distribution; (ii) cash from property sales; and (iii) cash
from Partnership reserve accounts.

ACash Available for Distribution@ is defined in the Partnership
Agreement to include Cash Flow from the Partnership less amounts
 set aside for Reserves plus, through 1987, the amount of any
General Partner Loan for such period. ACash Flow@ is defined as
the Partnership's cash funds provided from operations and Reserves,
 including lease payments on net leases from builders and sellers,
without deductions for depreciation, but after deducting cash
funds used to pay all Operating Expenses, deferred fees, other
 expenses, debt payments, capital improvements and replacements.
 Mr. Vishnevsky, as Individual General Partner, was required to
loan funds to the Partnership quarterly to the extent necessary
 to make Cash Available for Distribution to Limited Partners equal
 to 8% in 1985, 8.25% in 1986, and 8.5% in 1987, up to a maximum
 loan of 3% of the gross proceeds of the offering. Through December
 31, 2001, the Individual General Partner loaned $271,020 to the
 Partnership under this commitment, which is the maximum amount
under the commitment. This commitment expired December 31, 1987. The
Individual General Partner shall be repaid with interest equal to 12%
 or the prime rate plus two percentage points, whichever is lower,
 solely from sale proceeds. The Partnership continued cash distributions
 in 2001 with an aggregate of $135,062 and $4,177 to its Limited
 Partners and General Partners, respectively. Distributions for
2001 were at a rate that equaled 1.5% on the Limited Partners'
 original capital investment. The General Partners anticipate
that the Partnership will continue to make cash distributions
to its Limited Partners in 2002, including a final liquidating
distribution, though the level of such cash distributions will
 be dependent upon the results of property operations and amounts
realized from property sales.  There can be no assurance as to the
 amounts, if any, that may be distributed.


Cash Available for Distribution, as defined in the Agreement
, will be distributed 97% to the Limited Partners and 3% to the
 General Partners. After the repayment of any General Partner
Loans, cash from property sales will be distributed as follows:
 (1) 97% to the Limited Partners and 3% to the General Partners
until the Limited Partners have received (A) 100% of their initial
 capital investment and (B) cumulative, non-compounded distributions
 of sales proceeds, in excess of the amount required in (A), and
Cash Available for Distribution equal to 6% per annum on their
initial capital investment, with the 3% payable to the General
Partners subordinated to payment of the amounts in (A) and (B)
to the Limited Partners; (2) to an affiliate of the General Partners,
an amount equal to its subordinated real estate commission (up to
 3% of the aggregate selling price of all properties); and (3) the
 balance, if any, 88% to the Limited Partners and 12% to the General
Partners, with such payments to the General Partners subordinated to
a total return to the Limited Partners of (A) 100% of their initial
capital investment plus (B) a cumulative preference of 10% per annum
 on their initial capital investment.

If the General Partners should at any time determine that the Reserves
 of the Partnership are in excess of the amount reasonably necessary
 under the circumstances, such Reserves may be reduced and the amount
 of such reduction may, in the sole discretion of the General Partners,
 be used for payment of expenses, capital expenditures, or distributions
 to the Limited Partners and the General Partners in accordance with
 the formula for Cash Available for Distribution.


Item 6. 	Management's Discussion and Analysis of Financial Condition
 and Results of Operations

AManagement's Discussion and Analysis of Financial Condition and
Results of Operations@ on pages 6 through 8 of the Partnership's
annual report to Partners for the year ended December 31, 2001, is
incorporated herein by reference.


Item 7. 	Financial Statements

The financial statements included on pages 11 through 15 of the
Partnership's annual report to Partners for the year ended December
 31, 2001, are incorporated herein by reference.


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

There were no disagreements with Kerber, Eck and Braeckel LLP, on
 any matter of accounting principles or practices, financial statement
disclosure, or auditing scope or procedure.



	PART III


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

(a-b) Directors and Executive Officers

The Partnership has no directors or officers. The General
 Partners of the Partnership are John Vishnevsky and EC Corp.,
 a Wisconsin corporation of which Stephen P. Kotecki is the
sole stockholder. John Vishnevsky has been a General Partner
 of the Partnership since its inception. EC Corp. became a general
 partner on June 20, 1991. National Development and Investment,
 Inc. ("NDII"), a former Wisconsin corporation of which Mr. Vishnevsky
was the sold shareholder, had been a General Partner of the Partnership
 from the Partnership's inception, until NDII's dissolution effective
October 1, 2001.  The address of both General Partners is 1155 Quail
 Court, Pewaukee, Wisconsin 53072-3703. The phone number for John
 Vishnevsky is (262) 691-3122. The phone number for EC Corp. is
 (262) 695-1400.

The General Partners manage and control the affairs of the
 Partnership and have responsibility and ultimate authority
in all matters affecting its business. The names of the
 directors and executive officers of EC Corp. are as follows:

Term
       Name
 Office               		Held Office(since)

EC Corp.:
  	Stephen P. Kotecki	President, Treasurer, Director
			10/30/92
  		Thomas Rielly		Vice President, Secretary,
Director			12/17/92


Officers of the corporation are elected annually by its
 Boards of Directors. There is no arrangement or understanding
 between or among any of said directors or officers and any
other person pursuant to which such individual was selected
 as a director or officer.


(c) Identification of Certain Significant Persons

The General Partners, in conjunction with their affiliates,
 believe that they have sufficient personnel to fully discharge
 their responsibilities to the Partnership. The Partnership
employs various individuals to oversee the Partnership's affairs
and report to the General Partners, but the Partnership relies
 directly on the General Partners for the management and control
of the Partnership's affairs. See Subsection (d), for a description
 of the business experience of officers, directors, and personnel
 of the General Partners and affiliates.

There are two other organizations which are or were affiliated
with the individual or corporate General Partner whose services
 are utilized by the Partnership: National Realty Management, Inc.
 (ANRMI@), which provides property and partnership management, real
 estate acquisition, and real estate brokerage services, and The
John Vishnevsky Company (AJVCO@), which has provided consulting
services in the areas of real estate investments, joint ventures,
financing, systems, accounting, and internal controls.

	RELATIONSHIP OF GENERAL PARTNERS
	AND THEIR AFFILIATES


The following diagram shows the relationship of the Partnership
 to various affiliates:






NATIONAL REAL ESTATE LIMITED
PARTNERSHIP INCOME PROPERTIES








 (1)






EC CORP
Corporate General Partner



JOHN VISHNEVSKY
Individual General Partner
















100%



(2)

100%



JOHN VISHNEVSKY COMPANY
Financial and Real Estate Consulting and Services







NATIONAL REALTY MANAGEMENT, INC.

Partnership and Property Management Acquisition & Brokerage



(1)	The outstanding stock of EC Corp. is held by Mr.
Stephen P. Kotecki (100%).

(2)	Until February 6, 1998, the outstanding stock of
NRMI was held by Mr. Edward Carow (51%), Ms. Anastasia
Vishnevsky, Mr. John Vishnevsky=s daughter, (25%), and
Mr. Jeffrey Wussow (24%).
Since February 6, 1998, the outstanding stock is owned
100% by John Vishnevsky.


(d) Business Experience

The experience of the officers and directors of the
 corporate General Partner and of Mr. Vishnevsky includes
 the following:


John Vishnevsky Sole Shareholder of National Realty
 Management, Inc. is a graduate of Marquette University.
For over 40 years he has been involved in real estate related
activities such as land development, residential, apartment,
 and commercial construction, property management, and the
 structuring of limited partnerships. Mr. Vishnevsky has
directed companies that have developed or constructed projects
 with a current market value of over $100 million. He, corporate
 entities he controls, or both, act as general partner for all
 NRMI limited partnerships. These partnerships have sold in
excess of $160 million of limited partnership interests. Mr.
Vishnevsky is licensed as a real estate broker. He has lectured
frequently and taught courses in real estate at the University
of Wisconsin-Milwaukee. He has appeared as a guest on television
and radio programs related to real estate investments. Mr. Vishnevsky
 is author of the following books: The Art of Financial Independence,
The Phantom Yield of Real Estate Investment, The Great Real
 Estate Disaster... The Great Real Estate Opportunity, Getting
to Know You, Releasing Your Creativity, Principles and Don=t
Feed the Crocodiles.

Stephen P. Kotecki President, Treasurer, and Director of EC Corp.
, is a general securities registered representative, multi-line
licensed insurance agent and entrepreneur. He is the sole
stockholder of EC Corp. Mr. Kotecki holds a Bachelor of
Science Degree with a major in Political Science from the
University of Wisconsin-Whitewater, and a Master of Science
 Degree in Urban Affairs from the University of Wisconsin-
Milwaukee. Mr. Kotecki  directed research for the American
 Federation of State, County and Municipal Employees'
 District Council in Milwaukee County for over four years.
Mr. Kotecki further has experience as a Regional Criminal
Justice Planner and as a Housing Evaluation Specialist. As
 a college instructor Mr. Kotecki lectured courses in Business
 and Industrial Relations, Marketing and Investments for over
three years.

Thomas P. Rielly Vice President, Secretary and Director of
 EC Corp., is a licensed general securities principal and a
 financial and operations principal. Mr. Rielly has been an
 active participant in the financial services industry for
over 25 years. His diverse financial services experience
 includes professional assignments in the areas of venture
capital, business planning and venture formation, investment
 banking, asset management and securities placement. Mr. Rielly
has been associated with Mr. Vishnevsky and related companies
 for over 13 years.

Other personnel of the General Partners, affiliates, or other
 entities who were significantly involved in the Partnership'
s affairs include the following:

Joan Jenstead Director of Property Operations, has been involved
in the management of over ten thousand apartment units in
addition to commercial and condominium management nationwide.
 She is a Certified Property Manager and a licensed Wisconsin
 real estate broker. Ms. Jenstead attended the University o
f North Dakota, majoring in Business. In 1984, she was responsible
 for the recognition of NRMI as an Accredited Management
Organization (AMO) by the Institute of Real Estate Management,
 (IREM). In 1988, she served as President of  the local
chapter of the  Institute of Real Estate Management. She
is also a member of the national faculty of IREM, a past
faculty member of the Milwaukee Area Technical College, a
nd a past President of the Board of Directors for the s
tate of Wisconsin Technical College Trustee Association.
In 1990, Ms. Jenstead was recognized for her accomplishments
in higher education in AProfiles in Success@ published by
the National Center for Higher Education. In 1994 she was
elected  a director on the  National Board of the
Association of Community College Trustees.  In 2000 The
Wisconsin Trustee Association recognized Ms. Jenstead's
community college service with a Lifetime Membership
Award to the National Association.


John Vishnevsky is or was the Individual General Partner
of National Real Estate Limited Partnership-II
 (NRELP-II), National Real Estate Limited Partnership-III
 (NRELP-III), National Real Estate Limited Partnership-IV
 (NRELP-IV), National Real Estate Limited Partnership-V
(NRELP-V), National Real Estate Limited Partnership-VI
(NRELP-VI), National Real Estate Limited Partnership
 Income Properties-II (NRELP-IP-II) and the Partnership,
 among others. NDII was the corporate general partner of
 NRELP-IV, NRELP-V, NRELP-VI, NRELP-IP-II, and the Partnership,
among others. EC Corp. is or was the corporate general partner
 of NRELP-VI, NRELP-IP-II and the Partnership, among others.

Section 16(a) Beneficial Ownership Reporting Compliance

To the best of management=s knowledge, there are no
 violations of this requirement.






Item 10. 	Executive Compensation

As stated above, the Partnership has no officers
 or directors. The officers and directors of the
 Corporate General Partner receives no current or
 proposed direct remuneration in such capacities,
pursuant to any standard arrangement or otherwise,
 from either the Corporate General Partner or from

the Partnership.

Pursuant to the terms of the Limited Partnership
Agreement, net profits and losses from operations
 and Cash Available for Distribution are allocated
 97% to the Limited Partners and 3% to the General
 Partners. For such 3% interest, the General Partners
contributed $6,000 to the Partnership. For the fiscal
 period ended December 31, 2001, this interest resulted
 in net taxable income to the Individual General Partner
 in the amount of approximately $1,210. Cash distributions
 of $4,177 were made to the Individual General Partner in 2001.

Cash Available for Distribution, as defined in the Agreement,
 will be distributed 97% to the Limited Partners and 3% to the
 General Partners. After the repayment of any General Partner
loans, sales proceeds will be distributed as follows: (1) 97%
 to the Limited Partners and 3% to the General Partners until
the Limited Partners have received (A) 100% of their initial
 capital investment and (B) cumulative, non-compounded
distributions of sales proceeds, in excess of the amount
required in (A), and Cash Available for Distribution equal
 to 6% per annum on their initial capital investment, with the
 3% to the General Partners subordinated to payment of the amounts
in (A) and (B) to the Limited Partners; (2) to an affiliate of the
General Partners, an amount equal to its subordinated real estate
commission (up to 3% of the aggregate selling price of all properties);
 (3) 88% to the Limited Partners and 12% to the General Partners, with
such payments to the General Partners subordinated to a total return
 to the Limited Partners of (A) 100% of their initial capital investment
plus (B) a cumulative preference of 10% per annum on their initial
capital investment.

The Partnership is engaged in various transactions with affiliates
of the General Partners.

Property management fees are payable currently to the General Partners
or affiliates of the General Partners. Fees for property management and
rental services are being charged to expense over the period property
 management services are being performed.

The General Partners are general partners for other limited partnerships
 which have invested in real estate. The Partnership reimburses
affiliates of the General Partner for the actual cost of goods
and materials used by or for the Partnership in the course of
performing the general functions of the Partnership. These general
functions include certain management, accounting and other expenses.
 National Realty Management, Inc. provides property management,
 partnership management, accounting, and administrative services
that are charged to the Partnership.

The contracts between the Partnership and affiliates provide that
 the compensation, price, or fee payable to such affiliates must
 be comparable and competitive with the compensation, price, or
fee which would be charged by unaffiliated persons whose services
 could reasonably be made available to the Partnership. The General
 Partners believe compensation to affiliates for services to the
Partnership was on terms no less favorable to the Partnership than
 would have been available through arm's-length negotiations for
similar services from unrelated parties.











Item 11. 	Security Ownership of Certain Beneficial
Owners and Management

(a) Persons or groups known by the Partnership to own
beneficially more than 5% of the outstanding Interests
of the Partnership are indicated below:


   			   Name of		    Amount and Nature
 of		Percent of
        Beneficial Owner  	    Beneficial Ownership
		   Class
Limited Partnership		Thea J. Peterson	  	500
 Interests
Interests	  		25 Utopia Circle 		Individual
 Ownership	   	      5.55%
Sturgeon Bay, WI 54235


(b) By virtue of its organization as a limited partnership,
the Partnership has no officers or directors. The General
Partners are responsible for management of the Partnership,
subject to certain limited democracy rights of the Limited
Partners described in the Limited Partnership Agreement.
Persons or entities performing functions similar to those
 of officers and directors of the Partnership, beneficially
own, in the aggregate, the following Interests of the Partnership
as of December 31, 2001:


    			Name of		  Amount and Nature of
	Percent of
  Title of Class   	     Beneficial Owner  		 Beneficial
 Ownership			   Class

Limited Partnership	     John Vishnevsky
	29.56 Interests				0.33%
Interests
	Sole Investment Power

Limited Partnership	     Stephen P. Kotecki
	4 Interests				0.04%
Interests
	Sole Investment Power


(c) There is no arrangement known to the Partnership
 which may, at a subsequent date, result in a change
 in control of the Partnership; however, the Partnership
 has been named as a nominal defendant in certain litigation
 which will likely limit the authority of the General Partners
 to sell Partnership property (See Exhibit 13, Legal Proceedings).


Item 12. 	Certain Relationships and Related Transactions

Neither the General Partners nor their affiliates were indebted
 to the Partnership during the year ended December 31, 2001.

There were no transactions with management other than the
Partnership's transactions with the General Partners and
 affiliates, as described in this report at Items 9 and 10.


Item 13. 	Exhibits, List, and Reports on Form 8-K

(A)	Exhibits

See attached exhibit list which is incorporated by reference.



(B)	Reports on Form 8-K for the Quarter ended December 31, 2001

None


(C)	Exhibits
3(a)	Limited Partnership Agreement. Incorporated by reference
from Prospectus previously filed with Registration Statement 2-95072
 on Form S-11 effective January 31, 1985.
3(b)	Certificate of Limited Partnership. Incorporated by reference
 from Exhibit 3B of the Registration Statement 2-95072 on Form
S-11 filed December 20, 1984.
4	Subscription Agreement Evidencing Ownership of a Partnership
Interest. Incorporated by reference from Registration Statement
 2-95072 on Form S-11 effective January 31, 1985.
10(a)	Consulting Fee Agreement between the Partnership and NDII
dated January 31, 1985. Incorporated by reference from 1985 10-K
filed March 28, 1986.
10(b)	Acquisition Agreement between the Partnership and NDII
 dated January 31, 1985. Incorporated by reference from 1985
 10-K filed March 28, 1986.
10(c)	Organization Expense Agreement between the Partnership
and NDII dated January 31, 1985. Incorporated by reference from
 1985 10-K filed March 28, 1986.
10(d)	Contracts for Acquisition of AssetsC
(1)	With respect to Lock-It Lockers Mini-Warehouse, Tucson,
Arizona: Incorporated by reference from Exhibit 2-1 to current
report on Form 8-K dated May 7, 1985; July 9, 1985; August 9,
1985; and September 13, 1985.
(2)	With respect to Lock-It Lockers Mini-Warehouse, Phoenix,
 Arizona: Incorporated by reference from Exhibit 2-1 to periodic
report on Form 8-K dated January 1, 1986; February 1, 1986; and
 April 2, 1986.
(3)	With respect to Cave Creek Mini-Warehouses, Phoenix,
Arizona: Incorporated by reference Exhibit 2-1 to periodic
report on Form 8-K dated April 30, 1987.
(4)	With respect to Northridge Commons Shopping Center,
Milwaukee, Wisconsin: Incorporated by reference Exhibit 2-1
to periodic report on Form 8-K dated May 28, 1987.
10(e)	Escrow Agreement dated January 31, 1985. Incorporated
by reference from Exhibit 10 to Amendment No. 1 to Registration
 Statement 2-95072 effective January 31, 1985.
10(f)	Management Consulting Delegation of Duties Agreement between
 General Partners and NRMI dated May 28, 1991. Incorporated by
 reference from the 1991 10-K filed March 27, 1992.
10(g)	Co-General Partner Agreement dated June 20, 1991. Incorporated
by reference from Exhibit 5-1 to current report on 8-K dated
 July 26, 1991.
10(h)	Property Management Agreement between the Partnership
and NRMI dated November 1, 1995. Incorporated by reference
herein. (See 12-31-98 Form 10K SB)
10(i)	Sublease Agreement between the Partnership and NRMI
dated February 1, 1998. Incorporated by reference herein.
(See 12-31-98 Form 10K SB)
*13	National Real Estate Limited Partnership Income
Properties 2001 Annual Report to Partners is included
 as an exhibit hereto for those portions of such annual
report specifically incorporated by reference elsewhere herein.

  (D)		Financial Statement Schedules

            *	Filed with this Report.



SIGNATURES

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

NATIONAL REAL ESTATE LIMITED PARTNERSHIP INCOME PROPERTIES
	(Registrant)

Dated: March_31,_2002__    			By:        /S/
 John Vishnevsky
John Vishnevsky
Individual General Partner




Dated: March_31,_2002_      			By:        /S/
John Vishnevsky
John Vishnevsky
Individual General Partner





In accordance with the Exchange Act, 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/ Stephen P. Kotecki  			President,
Treasurer and	  _March 31, 2002
Stephen P. Kotecki			Director
		(dated)
EC Corp.




  /S/ Thomas Rielly    __  			Vice President,
Secretary	  _March 31, 2002
Thomas Rielly				and Director
			(dated)
EC Corp






* The indicated positions are held in the Corporate General
 Partner of the Registrant.









	SIGNATURES

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

NATIONAL REAL ESTATE LIMITED PARTNERSHIP INCOME PROPERTIES
	(Registrant)

Dated: 	March 31, 2002		By:
							John Vishnevsky
							Individual General
 Partner




Dated: 	March 31, 2002		By:
							John Vishnevsky
							Individual General
 Partner





In accordance with the Exchange Act, this report has been
 signed below by the following persons on behalf of the Registrant
 and in the capacities* and on the dates indicated:




President, Treasurer and	______March 31, 2002____
Stephen P. Kotecki		Director
		(dated)
EC Corp.




Vice President, Secretary	______March 31, 2002____
Thomas Rielly			and Director
	(dated)
EC Corp






* The indicated positions are held in the Corporate General
 Partner of the Registrant.



	EXHIBIT 13

	NATIONAL REAL ESTATE LIMITED PARTNERSHIP INCOME PROPERTIES


Business

The Registrant, National Real Estate Limited Partnership
 Income Properties (the APartnership@), is a limited partnership
organized under the Wisconsin Uniform Limited Partnership Act
 pursuant to a Certificate and an Agreement of Limited Partnership,
each dated December 18, 1984. As of December 31, 2001, the
 Partnership consisted of an Individual and a Corporate General
 Partner and 1,124 Limited Partners owning 9,004.15 limited
partnership interests (the AInterests@) acquired at a public
offering price of $1,000 per Interest ($9,024,556 net of affiliate
 discounts). The Interests were sold commencing January 31, 1985,
 pursuant to a Registration Statement on Form S-11 under the
 Securities Act of 1933 (Registration #2-95072) as amended. The
 offering of Interests was concluded on December 18, 1986. The
Individual General Partner is John Vishnevsky and the Corporate
 General Partner is EC Corp., a Wisconsin corporation. National
 Development and Investment, Inc. (NDII), a former Wisconsin corporation
 of which Mr. Vishnevsky was the sole shareholder, had been a General
Partner of the Partnership from the Partnership's inception, until
 dissolution effective October 1, 2001. All management decisions are
 the responsibility of the General Partners.

The Partnership's primary objective was to acquire existing commercial
 space, such as office buildings, shopping centers, and mini-warehouses,
 though it was also permitted to acquire existing residential
properties from non-affiliated sellers. Although the Partnership
 intended to acquire existing properties, it was permitted to acquire
 properties which were recently completed. The Partnership's principal
 investment objectives are to invest in real estate properties which will:

1)	preserve and protect the Limited Partners' capital investment;

2)	provide quarterly distributions of cash from operations,
commencing December 31, 1985; and

3)	provide capital appreciation through increases in the value
 of the Partnership's real estate assets.

The Partnership is in the process of sale and disposition of all of
its property holdings, at which time the Partnership will commence to
 liquidate its operations as soon as feasibly possible, depending upon,
among other factors, federal income tax consequences to its limited
partners and approval of a majority of limited partnership interests.
  Liquidation is expected to occur in 2002.

The Partnership owned and operated three investment properties in 2001.
During the fiscal year ended December 31, 1985, the Partnership acquired
Lock-It Lockers Mini-Warehouse, a self storage mini-warehouse rental
complex located in Tucson, Arizona (ATucson Lock-It Lockers@). Tucson
 Lock-It Lockers was acquired in four separate Parcels as follows: Parcel
 I (21,670 net rentable square feet) effective May 1, 1985; Parcel II
(15,575 net rentable square feet) effective July 1, 1985; Parcel III
 (6,845 net rentable square feet) effective August 1, 1985; and Parcel
IV (5,795 net rentable square feet) effective September 1, 1985. In 1986,
the Partnership continued its investment in properties by acquiring an
additional Lock-It Lockers Mini-Warehouse located in Phoenix, Arizona
(APhoenix Lock-It Lockers@), in three separate parcels, as follows:
Parcel I (18,600 net rentable square feet) effective January 1, 1986;
Parcel II (17,625 net rentable square feet) effective February 1, 1986
; and Parcel III (22,541 net rentable square feet including 8,000 net
rentable square feet for recreational vehicle storage) effective April
 1, 1986. The Partnership completed its investment in properties during
 the fiscal year ended December 31, 1987, when it purchased the following
 two investment properties: a parcel of land containing one building plus
part of a second building out of a total of five buildings of Cave Creek
Mini Warehouses in Phoenix, Arizona, and Northridge Commons Shopping Center,
 a community shopping center located in Milwaukee, Wisconsin; however,
Northridge Commons was sold December 15, 1999. These properties, with the
 exception of Northridge Commons, are described more fully in this report
 in Properties. Cave Creek was managed by Enterprise Growth Group (AEGG@)
 from the time the property was purchased through October, 1991. As of
 November
1, 1991, National Realty Management, Inc. (ANRMI@) took over
 management of
 the property. All other Partnership properties were managed by NRMI
since their purchase.

The real estate investment business is highly competitive. The
 Partnership's properties are in competition for tenants with numerous
other alternative sources for storage or shopping center space.

The Partnership is not dependent upon any single tenant for its operating
 success. The Partnership does not foresee any events or market trends
 which would have a materially adverse affect upon the Partnership's
 revenues, except for increased competition for tenants, which is
discussed
 in the section entitled Results of Operations of this report.

During 2001, the Partnership employed three full-time and five part-
time on-site personnel in the following capacities: three managers,
three rental agents, two cleaning/maintenance persons. In addition,
due to the centralized nature of the Partnership's accounting and
 management systems, another 12 employees provided various accounting
 and management services to this and other partnerships. All on-site
and partnership employees are supervised by NRMI under its Management
 Consulting Delegation of Duties and Property Management Agreements
 with the Partnership.

The Partnership is engaged solely in the business of investing in
and managing real estate. Its business is believed by management
 to fall entirely within a single industry segment. The business
 of the Partnership is not seasonal, although the Partnership's
properties may experience cyclical fluctuations in occupancy levels
 in the rental markets where they are located.

The General Partners are general partners for other limited
 partnerships that have invested in real estate which may be
 competitive with the Partnership.

There may be conflicts of interest between the Partnership and
the General Partners at such time as the Partnership attempts
to sell its properties or may compete for tenants with the
 Partnership's investments. If properties are being sold,
the General Partners will attempt to give equal exposure to
 competing properties and will sell solely on the basis of
 purchaser preference. The General Partners will establish
asking prices based upon market conditions. The General Partners
will follow a policy of renting first on the basis of the tenants'
 preference and then on the basis of greatest vacancy. In the
hiring of resident building managers, the General Partners will
 follow a policy of filling the oldest vacancy first.

The Partnership, by virtue of its ownership in real estate, is
 subject to federal and state laws and regulations covering
 various environmental issues. The General Partners are not
 aware of any potential liability related to environmental
issues or conditions that would be material to the Partnership.


Properties

The properties in which the Partnership has invested are owned
 in fee simple, described more fully at Notes to Financial
Statements (Note E). The principal factors which the Genera
l Partners believe affect rental rates and occupancy levels
include location, ease of access, amenities, and the quality
 of property management.
Tucson Lock-It Lockers

Tucson Lock-It Lockers is located on 2.057 fully improved
acres at 6560 East Tanque Verde Road, Tucson, Arizona. Tucson
Lock-It Lockers consists of seven single-story buildings
 containing a total of 598 units which were constructed in 1976.
Tucson Lock-It Lockers has an aggregate of 49,865 net rentable
 square feet (57,710 gross) with a unit mix that varies. Management
 has the ability to subdivide some of the larger units in
accordance with market demand. Features of Tucson Lock-It
Lockers include fire walls and exterior passage doors constructed
of solid-core steel hinged in steel frames. Security at Tucson
Lock-It Lockers is provided by a resident manager and a fenced
perimeter with single-gate access. In addition to the seve
n warehouse buildings, there is an on-site office/apartment.
  Limited customer parking spaces are available.

Phoenix Lock-It Lockers

Phoenix Lock-It Lockers is located on 3.1 fully improved acres
 at 10250 North 19th Avenue, Phoenix, Arizona. The complex
consists of three single-story buildings containing a total
 of 569 units and 39 outside RV spaces which were constructed
 in 1976. Phoenix Lock-It Lockers has an aggregate of 62,016 net
 rentable square feet (66,200 gross) with a unit mix that varies.
 Management has the ability to subdivide some of the larger units
 according to market demand. Features of the complex include
 fire walls and exterior passage doors constructed of solid-core
 steel hinged in steel frames. Security in the complex is provided
 by electronic surveillance cameras with a motion detector that
 provides the resident manager with the ability to monitor the
property during the day and night. There is also a fenced perimeter
 with a single-gate access to the property which provides additional
 security. In addition to the three warehouse buildings, there is
 an on-site office/apartment.  Customer parking spaces are available.

Cave Creek Mini-Warehouse

Cave Creek Mini-Warehouse is located at 1201 East Cinnabar Avenue,
 Phoenix, Arizona, on approximately 1.7 acres (the AComplex@).
The 728 unit Complex consists of three individual one story and
 two individual two story buildings. The Partnership's ownership
consists of one one-story building and part of one two-story
building of the Complex, of which construction was completed
 in 1985. The Partnership has an interest in the remaining portions
 of the Complex for access and use of the business office facilities.
National Real Estate Limited Partnerships Income Properties II,
 another limited partnership of which the General Partners are
general partners, owns the other portion. Security in the Complex
is provided by a resident manager and a fenced perimeter with
single-gate access.

The Complex has an aggregate of 46,283 net rentable square feet
.. The Partnership's property contains approximately 8,200 ne
t rentable square feet, or approximately 18% of the total net
 rentable square feet of the Complex. Units can be subdivided,
 if appropriate, in light of demand; therefore, the total unit
 count may fluctuate. At the time of purchase, the Partnership's
 property was divided into 91 units.

The Tucson and Phoenix real estate rental markets are highly
competitive. For a further discussion of occupancy rates, see
 Management's Discussion and Analysis of Financial Condition
and Results of Operations contained in this report. Additional
 mini-warehouse projects may be built within the Tucson and
Phoenix areas, which may compete directly with the Partnership's
properties.

The General Partners believe that the Partnership is adequately
 covered by insurance on the properties.



Legal Proceedings

On May 25, 1999, the general partners, the property management
company (NRMI), and other entities and individuals were named
 as defendants in a lawsuit (the "Vishnevsky Defendants").
The Partnership was not included in the original lawsuit but
was later added to the action as a nominal defendant.  The
 plaintiffs sought to have this action certified as a class
 action lawsuit.  In the complaint, the plaintiffs alleged
wrongdoing against the Vishnevsky Defendants in connection with
 two basic areas.  First, allegations were made involving various
vote solicitations alleged by the plaintiffs to be an effort to
perpetuate the Partnerships and avoid liquidation.  Second,
allegations were made involving the taking and use of Partnership
 funds and property, including excessive fees and unauthorized
expenses.  On March 14, 2000, the parties to the litigation with
the exception of the defendant Wolf & Company entered into a
 Stipulation of Settlement.

Based upon the Stipulation, on April 27, 2000, the Circuit Court
of Waukesha County held a hearing which certified the case as a
class action and approved terms of a settlement.  The more
significant
 terms of the Stipulation of Settlement are as follows:

An independent marketing agent (the "Partnerships' Representative")
was appointed to market and sell the Partnership investment
property.
 However, no offer to purchase the property will be accepted
without first obtaining approval from a majority interest of
the limited partners.  Final distributions of the net proceeds
 received from a sale of the Partnership's investment property
 will be made in accordance with the terms of the Partnership's
limited partnership agreement and prospectus, and upon providing
 20-day notice to the plaintiffs' attorney.  Net proceeds will
first be applied to pay plaintiffs' counsel's legal fees, expenses
 and costs, with interest thereon.  At the present time (4-1-02)
 Lock-it Lockers, Tucson and Cave Creek Parcel I are under contract
to be sold.  Lock-it Lockers, Phoenix is subject to a Letter of Intent.

Interim distributions to limited partners will continue to be made
in accordance with the limited partnership agreement.  However,
 upon final approval of the Settlement, distributions were increased
 to the extent that sufficient reserves were established to support
normal partnership operations and the wind-up of Partnership affairs
upon the sale of the investment property. Any such additional
 distributions were made within 30 days of the final approval
of the Settlement.

NRMI and the general partners shall continue to provide management
and consulting services to the Partnership until the investment
 property is sold and assets liquidated and the Partnership
entity dissolved.  NRMI will also be the listing broker for
the sale of the Partnership properties.

The plaintiffs' claims made against NRMI, the general partners,
 and other related parties for excessive charging of expenses to
the partnerships, including the Partnership, were to be resolved
through binding arbitration. Any such expenses disallowed through
arbitration shall be reimbursed to the partnerships.

At the April 27, 2000 hearing, the lawsuit was certified as a non
-opt out class action, in which all limited partners of the
Partnership are required to be included in the settlement of
 this litigation.  Furthermore, the Court ruled that plaintiffs'
counsel's attorney fees would be equal to one-third of the difference
 between the secondary market value of the Partnership interests
 and the total funds available for distribution to the limited
partners after payment of all Partnership obligations.

On June 20, 2000, the Court entered a judgment based upon its
April 27th decision. Thereafter, on July 21, 2000, the Court
held a hearing on the plaintiffs' Motion for Enforcement of the
 Court Approved Settlement and in Support of Sanctions.  The outcome
 of the hearing was that the Court granted sanctions totaling
$437,000.00 against the Vishnevsky Defendants and their counsel
 for delaying the appointment of the Partnerships' Representative
and the arbitrators.  The Court took under advisement the remaining
 open issue regarding the secondary market value for computing the
plaintiffs' counsel's attorney fees until the arbitration proceedings
 are completed and the Partnerships' properties are sold.

On August 2, 2000, the Vishnevsky Defendants filed an appeal from
 that portion of the judgment determining the method for computing
 the plaintiffs' counsel's attorney fees.  On October 10, 2000 the
 Vishnevsky Defendants and their counsel filed a second appeal from
 the order granting the sanctions.  A motion to consolidate the two
 appeals was granted.  On October 24, 2001, the Court of Appeals
 rendered its decision with respect to both appeals.  The Court
 affirmed the lower court ruling respecting the determination of
 the attorneys fees, but reversed the Order imposing the sanctions
for delay in implementing the Settlement Agreement based upon the
lower court's erroneous view of the effective date of the Stipulation
 of Settlement.

The Arbitration panel was selected.  The arbitration was tentatively
set for hearing the weeks of February 11, and 18, 2002.  On February
11, 2002 the parties settled the arbitration issue (the "Arbitration
 Settlement").  The Arbitration Settlement provides in part that Mr.
 Vishnevsky will pay into the Settlement Fund an amount equal to the
cash distribution he receives from each Partnership for his general
and limited partnership interests together with an amount equal to
 the amount he receives for the repayment of all loans and deferred
management fees due him from the Partnerships minus the sum of
 $1,300,000.00 to cover Mr. Vishnevsky's tax liability generated
by the sale of the Properties and other expenses.  Mr. Vishnevsky
 will retain the commissions due to NRMI and will receive the
 return of the sanctions money.

Management's Discussion and Analysis of Financial Condition
and Results of Operations

	Information contained in this Annual Report on Form 10-KSB
 contains 'forward-looking statements' within the meaning of the
 Private Securities Litigation Reform Act of 1995, which can be
identified by the use of forward-looking terminology such as 'may',
 'will', 'expect', 'anticipate', 'estimate', or 'continue' or the
negative thereof or other variations thereon or comparable
terminology.  There are a number of important factors with
respect to such forward-looking statements, including certain
 risks and uncertainties, that could cause actual results to
differ materially from those contemplated in such forward-looking
statements.  Such factors, which could adversely affect the
Partnership's ability to obtain these results, include, among
other things, (i) the volume of transactions and prices for real
estate in the real estate markets generally, (ii) a general or
regional economic downturn which could create a recession in the
real estate markets, (iii) the Partnership's debt level and its
ability to make interest and principal payments, (iv) an increase
in expenses related to new initiatives, investments in people and
 technology, and service improvements, (v) the success of the new
 initiatives and investments, and (vi) other factors described
 elsewhere in this Annual Report.


Liquidity and Capital Resources

The Partnership commenced an offering to the public on January
 31, 1985, of up to 15,000 Interests at $1,000 per Interest
pursuant to a Registration Statement on Form S-11 under the
Securities Act of 1933. A total of 3,767.26 Interests were
sold in 1985 ($3,760,356). From January 1, 1986, to December
 18, 1986, at which time the offering was concluded, an additional
 5,266.75 Interests were sold ($5,264,200). After deducting offering
 costs, the Partnership had $8,026,434 with which to purchase the
investment properties, described in this report in Properties, to
pay costs related to purchasing such properties and to meet capital
requirements for operations.

The Partnership does not have any permanent, long-term financing
 nor any other financing on its investment properties and does not
 intend to incur any during the Partnership's life.  The Partnership
 does not have any other present or planned material commitments for
 capital improvements.

The General Partners committed to make loans to the Partnership
 to the extent necessary for the Partnership to make cash distributions
 to the Limited Partners equal to 8% in 1985, 8.25% in 1986, 8.5%
in 1987. However, the maximum the General Partner was required to
 loan was equal to 3% of the gross offering proceeds. Through December
 31, 2001, the Individual General Partner loaned $271,020 to the
Partnership under this commitment, which is the maximum amount under
the commitment. The General Partner=s loan shall be repaid with
 interest equal to 12% or the prime rate plus two percentage points,
whichever is lower, solely from sale proceeds of the investment
 properties. As of December 31, 2001, $108,639 of accrued interest
remains outstanding on the General Partner loan; $746,906 was paid
to the  General Partner in 1999 from the proceeds of the sale of
 Northridge Commons. During 2001, the Partnership continued distributions
 with a total of $135,062 to its Limited Partners and $4,177 to the
 General Partners. The distributions for 2001 equaled 1.5% of the
Limited Partners investment. The pay rates prior to 1988 were
supplemented by the General Partner Loans, as described above,
and the operating results of the properties have not advanced as
originally projected. The Partnership's ability to maintain and or
 increase distributions during 2002 is dependent upon the results
of property operations or amounts realized from the sale of properties
 and therefore no assurance as to the distribution amount, if any,
can be made.

Cash generated by the Partnership's investment properties and the
sale of such properties are expected to provide funds for the
 Partnership=s liquidity needs and any cash distributions to
 the Limited Partners.

Results of Operations

The Partnership operated three investment properties during
2001. The Partnership began operations in 1985 and made additional
 property purchases in 1986 and 1987.

Rental rates in 2001 at Tucson Lock-It Lockers continued to
 range from $28 to $160 depending on the size of the unit.
 Average occupancy at Tucson Lock-It Lockers was 91% during
 2001, compared to 91% in 2000. Marketing efforts are directed
 primarily toward Yellow Pages advertising which is the main
 source of traffic. Signs on Tanque Verde have been upgraded
in order to lead prospective clients around the corner to the
 main entrance. There is a marketing program in place with
 neighboring businesses to share coupon advertising at several
 locations. Management participates in the Tanque Verde Business
 Association and continues to participate in its marketing and
advertising programs. Competition studies done by management
and those done by The Arizona Mini Storage Association show a
Tucson area vacancy rate ranging from 5% to 15%. The property
is more occupied than the neighboring facilities. Newer facilities
 being built in the area have slightly affected occupancy. Most
 of the competition has higher rents because of their amenities,
 controlled access gates, and  air-cooled lockers.


Rental rates are based on unit size at Phoenix Lock-It Lockers
and ranged from $35 to $235 in 2001. Average annual occupancy
at the property was 88% for 2001 and 88% in 2000. Management
 uses the Yellow Pages for advertising as well as using client
referral coupons, and offering discounts to existing clients for
 bringing us new clients. Rate increases will need to remain
conservative. The management competition study and information
 gathered from the Arizona Mini Storage Association indicate the
 surrounding area has vacancy rates ranging from 7% to 33%. The
market continues to soften in the Phoenix area because of overbuilding
of self-storage facilities in the immediate area of the property.
The business suites are 100% occupied, with all suites on at least
 a six month lease.

At Cave Creek Lock-It Lockers asking rents continued to range from
$13 to $145 in 2001, based on unit size. Average annual occupancy
was 88% in 2001 and 89% in 2000. Marketing efforts are directed p
rimarily through the use of Yellow Pages advertising, which is th
e main source of traffic. Management uses resident referral coupo
ns for all current tenants, offering a discount if they refer new
clients. The managers are marketing the lockers to neighboring
businesses and apartment communities, using neighborhood business
 coupon flyers. The General Partners believe marketing efforts and
 excellent customer service will help occupancy to continue to
remain strong. The marketplace for Cave Creek Lock-It-Lockers continues
to soften. Management competition study and information received
 from the Arizona Mini Storage Association indicates a high vacancy
 rate will continue throughout the surrounding area and immediate
 neighborhood. The property is being affected by lower interest
rates that are allowing our tenants to purchase homes with their
own storage space, and by continued over-building of storage facilities.

	Net income increased $10,155 from 2000 to 2001 due to, in
 part, the net effect of a $36,478 decrease in administrative
 expenses, and a $19,698 decrease in interest income.

	The $36,478 decrease in administrative expenses is primarily
 due to a $23,503 decrease in legal fees from 2000 to 2001, and a
$13,526 decrease in salaries and temporary wages from 2000 to 2001.

The $19,698 decrease in interest income is primarily due to a
reduction in cash on hand due to distributions, and decreased
interest rates in 2001 as compared to 2000.


Inflation

The General Partners believe the Partnership's ability to
increase rental rates would offset any adverse effects from
inflation on the Partnership's cost of operations. Inflation
may also tend to cause capital appreciation of the Partnership's
 properties over a period of time as rental rates and replacement
 costs of properties continue to increase. However, the effects
of inflation in real estate may be influenced by general or local
 economic conditions. Future results are subject to uncertainty
and the ability of the Partnership to achieve certain results is
largely beyond the control of the General Partners and their affiliates.











Independent Auditors' Report


The Partners
National Real Estate Limited Partnership
  Income Properties


	We have audited the accompanying statement of net
assets in liquidation of National Real Estate Limited Partnership
Income Properties (a Wisconsin limited Partnership) as of December
31, 2001, and the related statement of changes in net assets in
liquidation as of December 31, 2001, and statements of income,
 partners' capital (deficit) and cash flows for the years ended D
ecember 31, 2001 and 2000.  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 auditing standards
generally accepted in the United States of America.  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.

	As described in Note A to the financial statements, liquidation
of Partnership properties is expected during 2002, and the Partnership
 began liquidation shortly after December 31, 2001. As a result, the
Partnership changed its basis of accounting for periods after December
 31, 2001, from the going concern basis to the liquidation basis.

	In our opinion, the financial statements referred to above present
 fairly, in all material respects, the net assets in liquidation of the
 Partnership as of December 31, 2001, and the changes in net assets
 in liquidation as of December 31, 2001, and the results of its
 operations and its cash flows for the years ended December 31,
2001 and 2000, in conformity with accounting principles generally
 accepted in the United States of America applied on the bases of
 accounting described in the preceding paragraph.


	Our audits were conducted for the purpose of forming an
 opinion on the basic financial statements taken as a whole.
The attached balance sheet of the corporate general partner, EC
 Corp., as of December 31, 2001, is presented for the purpose of
 additional analysis and is not a required part of the basic financial s
tatements, but is supplementary information required by Regulation S-B
of the Securities and Exchange Commission.  Such information has been
subjected to the auditing procedures applied in the audits of the
 basic financial statements and, in our opinion, is fairly stated
in all material respects in relation to the basic financial statements
taken as a whole.

	The accompanying statement of financial condition as of
December 31, 2001, of John Vishnevsky, general partner, is also
 supplementary information required by Regulation S-B and was not
 audited by us and, accordingly, we do not express an opinion on it.


KERBER, ECK & BRAECKEL LLP




Springfield, Illinois
February 11, 2002, except for Note D,
   as to which the date is April 1, 2002




National Real Estate Limited Partnership
Income Properties

STATEMENT OF NET ASSETS IN LIQUIDATION
(Liquidation Basis)

December 31, 2001


ASSETS

Investment properties, at estimated liquidation value
	Buildings, improvements, and land	$	4,080,179

Cash and cash equivalents		296,983
Escrow deposits and other assets		36,458
Estimated arbitration settlement receivable
234,073

		Total assets		4,647,693


LIABILITIES

Tenant security deposits		4,223
Accrued expenses and other liabilities		116,862
Deferred rent			39,803
Accrued interest payable to individual
	general partner		108,639
Note payable to individual general partner
271,020
Reserve for plaintiff's attorney fees		77,199
Reserve for future liquidation expenses		159,924

		Total liabilities		777,670

		Net assets in liquidation	$	3,870,023









The accompanying notes are an integral part of this
statement.

National Real Estate Limited Partnership
Income Properties

STATEMENT OF CHANGES IN NET ASSETS IN LIQUIDATION
(Liquidation Basis)

December 31, 2001


PARTNERS' CAPITAL - DECEMBER 31, 2001,
	before liquidation basis adjustments	$
2,508,269

Liquidation basis adjustments
	Adjustment of estimated values		1,364,804
	Reserve for plaintiff's attorney fees
	(77,199)
	Reserve for future liquidation expenses
(159,924)
	Estimated arbitration settlement receivable
	234,073

NET ASSETS IN LIQUIDATION - DECEMBER 31, 2001	$
	3,870,023

























The accompanying notes are an integral part of this statement.

National Real Estate Limited Partnership
Income Properties

STATEMENTS OF INCOME
(Going Concern Basis)

Year ended December 31


			2001	2000

Operating revenues
	Rentals		$	743,909	$	766,866
	Other			42,260		29,609


		Total operating revenues		786,169
	796,475


Operating expenses
	Operating			208,934		209,166
	Administrative		207,040		243,518
	Repairs and maintenance		25,078		30,968
	Depreciation		143,662		143,815
	Property taxes		118,471		111,335
	Advertising		18,956		19,954

		Total operating expenses		722,141
		758,756

		Income from operations		64,028
37,719

Other income (expenses)
	Interest expense on individual general partner note
	(32,988)		(36,532)
	Interest income		9,296		28,994

		Total other expenses		(23,692)
(7,538)

		Net income	$	40,336	$	30,181

Net income attributable to general partners (3%)
$	1,210	$	905
Net income attributable to limited partners (97%)
	39,126		29,276

			$	40,336	$	30,181

Net income per limited partnership interest	$
	4.33	$	3.24

The accompanying notes are an integral part of these
statements.

National Real Estate Limited Partnership
Income Properties

STATEMENTS OF PARTNERS' CAPITAL (DEFICIT)
(Going Concern Basis)

Years ended December 31, 2001 and 2000


			Cost of Ltd.
			Partner
	General	Limited	Interests Held
	Partners	Partners	in Treasury	Total

Balances at January 1, 2000	$	(140,824)	$
3,472,815	$	(21,671)	$	3,310,320

	Distributions to partners		(22,000)
	(711,329)		-		(733,329)
	Net income for the year		905		29,276
		-		30,181

Balances at December 31, 2000		(161,919)
2,790,762		(21,671)		2,607,172


	Distributions to partners		(4,177)
	(135,062)		-		(139,239)
	Net income for the year		1,210		39,126
		-		40,336

Balances at December 31, 2001,
	before liquidation basis adjustments$	(164,886)
$	2,694,826	$	(21,671)	$	2,508,269

















The accompanying notes are an integral part of these
 statements.

National Real Estate Limited Partnership
Income Properties

STATEMENTS OF CASH FLOWS
(Going Concern Basis)

Years ended December 31


			2001	2000

Cash flows from operating activities
	Net income	$	40,336	$	30,181
	Adjustments to reconcile net income to net cash
		provided by operating activities
			Depreciation		143,662
	143,815
			Changes in assets and liabilities
				Escrow deposits and other assets
		(48,272)		(75,214)
				Tenant security deposits
(600)		820
				Deferred rent		7,840
(6,336)
				Accrued interest payable to individual
 general partner		32,989		36,532
				Accrued expenses and other liabilities
		14,864		42,552

					Net cash provided by operating activities
	190,819		172,350

Cash flows from financing activities
	Distributions to partners		(139,239)
	(733,329)

					Net increase (decrease) in

					   cash and cash equivalents
	51,580		(560,979)

Cash and cash equivalents at beginning of year		245,403
		806,382

Cash and cash equivalents at end of year	$	296,983	$
	245,403

Cash paid for interest	$	-	$	-








The accompanying notes are an integral part of these
 statements.

National Real Estate Limited Partnership
Income Properties

NOTES TO FINANCIAL STATEMENTS

December 31, 2001


NOTE A - LIQUIDATION BASIS OF ACCOUNTING

Subsequent to December 31, 2001, on or about February
11, 2002, litigation described in Note D was settled and,
 consequently, liquidation of Partnership properties is
expected in 2002.  Accordingly, the Partnership revalued
its assets and liabilities to the amounts expected to be
 collected and paid during the liquidation.  The effect of
 the revaluation is included in the statement of changes in
 net assets in liquidation as "Liquidation Basis Adjustments."
  It is not presently determinable whether the amounts realizable
 from the disposition of the remaining assets or the amounts
that creditors will agree to accept in settlement of the obligations
 due them will differ materially from the amounts shown in the
accompanying financial statements.  Differences between the revalued
amounts and actual cash transactions will be recognized in the year
they can be estimated.  The gains (or losses) from liquidation will
be taxable on distribution.


NOTE B - ADJUSTMENTS OF ESTIMATED VALUES

	Effective with the decision to liquidate, the carrying
amounts of assets and liabilities were adjusted from their
historical bases to the amounts of cash expected from their
 realization and settlement.  Because of the expected short
 liquidation period, the effects of discounting would not be
significant and have been ignored.  The initial adjustment
increased net assets by $ 1,361,754 from $ 2,508,269 to $ 3,870,023,
 as follows:

	Estimated
	Historical	Liquidation
	Basis	Value

Investment properties	$	2,612,313	$	4,080,179
Cash and cash equivalents		296,983		296,983
Escrow deposits and other assets		139,520
36,458
Estimated arbitration settlement receivable		-
234,073
Tenant security deposits		(4,223)		(4,223)
Accrued expenses and other liabilities		(116,862)
(116,862)
Deferred rent 		(39,803)		(39,803)
Accrued interest payable to individual
    general partner		(108,639)		(108,639)
Note payable to individual general partner		(271,020)
	(271,020)
Reserve for plaintiff's attorney fees		-
	(77,199)
Reserve for future liquidation expenses		-
	(159,924)

		$	2,508,269	$	3,870,023
NOTE B - ADJUSTMENTS OF ESTIMATED VALUES - Continued
It is at least reasonably possible that the amounts expected
to be realized in the liquidation process will change in the
near term.

Estimated liquidation value of the investment property was
 determined based on the estimated selling price, less
 commissions and other costs as follows:

Estimated selling price			$	4,269,904
Less:
	Broker commissions				128,097
	Other costs				61,628

Estimated liquidation value of investment property
$	4,080,179

Estimated arbitration settlement receivable was determined
 based on the Arbitration Stipulation agreement dated February
11, 2002, which established an arbitration settlement fund
to settle lawsuit claims regarding improper takings of
Partnership assets.  Pursuant to the Stipulation, this
settlement fund received certain financial assets of John
 Vishnevsky arising out of his ownership of Partnership
interests in this and other related Partnership entities.
The total amount contributed to this fund is to be allocated
 and distributed to this and the other partnerships participating
in the litigation, after deducting a 33% award for litigation
 fees payable to the plaintiff's legal counsel.  The Partnership's
 allocable portion of this settlement is estimated to be $
 234,073 and is reported as "Arbitration Settlement Receivable"
 in the statement of net assets in liquidation.

Reserve for plaintiff's attorney fees was determined, as described
 in Note D, based on one-third of the excess of the liquidation
proceeds derived from the sale of the investment property over a
 floor amount.  The amount of this obligation has been estimated
to be $ 77,199 and is to be paid to plaintiff's legal counsel when
 liquidating distributions are made to the limited partners.

Reserve for future liquidation expenses was determined based on
the Arbitration Stipulation, which contains a plan of liquidation
 in which the Partnership shall be dissolved, all outstanding
 matters be resolved, and final distribution of Partnership
assets be accomplished by December 31, 2002.  Accordingly, management
 has established a liquidation reserve to provide for the estimated
remaining costs to wind up Partnership affairs, which include
 the final accounting of financial matters and income tax filings.
 The amount of this obligation has been estimated to be $ 159,924.

NOTE C - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A summary of the significant accounting policies applied in the
 preparation of the accompanying financial statements follows:

1.   Organization

National Real Estate Limited Partnership Income Properties (the
 Partnership) was organized as a limited Partnership under the
 laws of the State of Wisconsin pursuant to a Certificate and an
Agreement of Limited Partnership (the Agreement) dated December
18, 1984, for the purpose of investing primarily in commercial real
 property and began operations in May 1985.  The terms of the
 agreement provide for the Partnership to be dissolved on or before
 December 31, 2004.  As described in Note A above, liquidation of
Partnership properties is expected during 2002.

The Partnership consists of two general partners, John Vishnevsky,
and EC Corp., and 1,127 limited partners at December 31, 2001.

2. Cash and Cash Equivalents

The Partnership considers all short-term investments, which
have original maturities of three months or less when purchased
to be cash equivalents.

3. Investment Properties

Investment properties are stated at estimated liquidation value
as of December 31, 2001. During 2001 and 2000, major additions
 and improvements were capitalized, while items, which do not
extend the useful lives of the assets, were expensed currently.

During 2001 and 2000, depreciation and amortization were
 provided for in amounts sufficient to relate the cost of
depreciable assets to operations over their estimated service
lives, principally on the straight-line method.  The estimated
useful lives used in determining depreciation were:

	Building	27.5 - 40 years
	Improvements	7 - 15 years
	Equipment	5 years

The Partnership evaluates the investment property periodically
 for indication of impairment including recurring operating
losses and other significant adverse changes in the business
climate that affect the recovery of the recorded asset value.

NOTE C - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued

4. Allocations and Distributions

Pursuant to the Agreement, net income and loss from operations
(exclusive of those from the sale or disposition of Partnership
properties) are to be allocated 97% to the limited partners and
3% to the general partners.  Any gains from the sale or disposition
of Partnership properties are to be allocated first to the general
partners and limited partners with deficit net capital accounts;
then the limited partners in an amount equal to their initial
capital investment plus any amount remaining to be paid under
their cumulative preference; then to the general partners in an
 amount equal to the proceeds of such sale distributed to them;
 and all remaining amounts are to be allocated to the limited
partners provided that at least 3% of the gain from sale o
r disposition would be allocated to the general partners.
Losses from the sale or other disposition of Partnership properties
are to be allocated 97% to the limited partners and 3% to the
general partners.

Cash available for distribution, as defined in the Agreement,
will be distributed 97% to the limited partners and 3% to the
general partners.

The stipulation of settlement agreement discussed in Note D
required that the Partnership distribute any excess cash reserves
within 30 days of the final approval of the settlement. The
settlement was approved by the court on April 27, 2000.  The
 amount of the cash distribution made by the Partnership in
March 2000 was determined by management to be the Partnership's
excess cash reserves at that time for the purposes of complying
 with this anticipated provision of the settlement agreement.
During the years 2001 and 2000, cash distributions were made to
 the partners totaling $ 139,239 and $ 733,329, respectively.

After repayment of any general partner loan, sale proceeds
will be distributed as follows: (i) To the Limited Partners an
amount equal to 100% of their Original Capital Contribution;
(ii) then to the General Partner an amount equal to 3% of the
 remaining proceeds, subordinated to cumulative, non-compounded
 distributions of Sale Proceeds and Cash Available for Distribution
equal to 6% per annum on their Capital Investment; (iii) to an
Affiliate of the General Partners, an amount equal to its subordinated
 real estate commissions (up to 3% of the aggregate selling price
of all properties); and (iv) of the remaining proceeds, 88% to
the Limited Partners and 12% to the General Partners, with such
 payments to the General Partners subordinated to a total return
 to the Limited Partners of a Cumulative Preference of 10% per
annum on their Capital Investment.

Any Sale Proceeds distributed to Limited Partners will be
distributed to those persons recognized as Limited Partners
 on the date that the Partnership distributes such Sale Proceeds
 in proportion to the number of interests held on such date.

NOTE C - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued

5. Net Income Per Limited Partnership Interest

Net income per limited Partnership interest is based on 97% of
net income as allocated to the limited partners divided by the
weighted average number of interests outstanding during the year.

6. Advertising

Advertising costs are expensed as incurred.

7. Fees to Affiliates

Property management fees are payable currently to the general
partners or affiliates of the general partners.  Fees for
 property management and rental services are being charged
 to expense over the period property management services are
being performed.  See Note F for property management fee rates
payable to an affiliated party.

8.  Use of Estimates

The preparation of financial statements in conformity with
accounting principles generally accepted in the United
 States of America requires management to make estimates
and assumptions that affect certain reported amounts and
disclosures.  Under the liquidation basis of accounting,
 assets are stated at their estimated net realizable value
 and liabilities are stated at their anticipated settlement
 amounts.  Estimated net realizable value represents management's
 best estimate as to liquidation value of the assets, based on
gross sales prices or current offers or contracts, net of selling
 expenses, including consideration for the effect that the settlement
 of litigation may have on the value of the assets.  There can be no
assurance, however, that the Partnership will be successful in
 liquidating its assets at the estimated net realizable values
 recorded on the statement of net assets in liquidation as of
 December 31, 2001.  Accordingly, actual results could differ
 from those estimates.



NOTE D - LEGAL PROCEEDINGS

On May 25, 1999, the general partners, the property management
 company (NRMI), and other entities and individuals were named
 as defendants in a lawsuit (the "Vishnevsky Defendants").  The
 plaintiffs sought to have this action certified as a class
action lawsuit.  In the complaint, the plaintiffs alleged wrongdoing
 against the Vishnevsky Defendants in connection with two basic
 areas.  First, allegations were made involving various vote
solicitations alleged by the plaintiffs to be an effort to perpetuate
 the Partnerships and avoid liquidation. Second, allegations were
 made involving the taking and use of Partnership funds and property,
including excessive fees and unauthorized expenses.

On March 14, 2000, the parties to the litigation, with the exception
of the defendant Wolf & Company, entered into a Stipulation of
 Settlement ("2000 Settlement"). The 2000 Settlement provided for
the appointment of an independent marketing agent (the "Partnerships'
Representative") to market and sell the Partnership investment
property.  However, no offer to purchase the property was to be
 accepted without first obtaining approval from a majority interest
 of the limited partners.  Final distributions of the net proceeds
received from a sale of the Partnership's investment property were
to be made in accordance with the terms of the Partnership's limited
partnership agreement and prospectus, and upon providing 20-day notice
to the plaintiffs' attorney.  Net proceeds were first to be applied to
pay plaintiffs' counsel's legal fees, expenses and costs, with interes
t thereon.  The actual terms for distribution were finalized in the
February 11, 2002 Arbitration Stipulation, described hereinafter.

Pursuant to the 2000 Settlement, the Partnership and its property
continued to be managed by NRMI and the general partners under the
 existing contracts until such time as the Partnership and its property
 were liquidated.  The Arbitration Stipulation states that the existing
 employees of NRMI will continue to be compensated based on their
 current employment arrangements, notwithstanding provisions set forth
in the 2000 Settlement.

The 2000 Settlement further provided that any legal expenses incurred
 in connection with the arbitration process could not be advanced or
 paid by the Partnership.  The following legal expenses could be paid
 by the Partnership: 1) legal expenses incurred in drafting the 2000
Settlement, or obtaining preliminary or final approval of the 2000
Settlement, 2) legal expenses incurred in the sales process for
marketing or selling the investment property, or 3) other legal
expenses properly incurred in the business of the Partnership unrelated
 to this lawsuit or the arbitration process.  Certain legal expenses
 were charged to this partnership in 2001.  This matter was resolved
 in the Arbitration Stipulation signed February 11, 2002.  The 2000
Settlement also provided that the plaintiffs' claims made against NRMI,
the general partners, and other related parties for excessive charging
of expenses to the partnerships, including the Partnership, were to be
 resolved through binding arbitration.  Any such expenses disallowed
 through arbitration would be reimbursed to the partnerships.  This
matter was also settled in the Arbitration Stipulation.




NOTE D - LEGAL PROCEEDINGS - Continued

As part of the litigation, the plaintiffs' attorneys were also
seeking payment of their fees from the assets of the Partnership
and the other nominal defendant entities.  The plaintiffs' attorneys
 requested that they be paid 33% of the net proceeds derived from the
 sale of the property, which exceeded an aggregate secondary market
 value of all Partnership shares.  Net proceeds include an offset
of partnership liabilities and selling costs.  Independent appraisals
 of the Partnership's secondary market value were obtained by both the
 plaintiffs' attorneys and by Partnership management.  The court gave
preliminary approval to the 33% reimbursement, and the secondary market
 value amount was agreed upon in the Arbitration Stipulation.

On April 27, 2000, the Circuit Court of Waukesha County held a hearing
 and certified the lawsuit as a non-opt out class action, in which all
 limited partners of the Partnership were required to be included in the
 settlement of this litigation.  Furthermore, the Court ruled that
 plaintiffs' counsel's attorney fees would be equal to one-third of
 the difference between the secondary market value of the Partnership
 interest and the total funds available for distribution to the limited
partners after payment of all Partnership obligations, as described above.

On June 20, 2000, the Court entered a judgment based upon its April
 27th decision. Thereafter, on July 21, 2000, the Court held a hearing
 on the plaintiffs' Motion for Enforcement of the Court Approved Settlement
 and in Support of Sanctions.  The outcome of the hearing was that the
Court granted sanctions totaling $437,000 against the Vishnevsky
Defendants and their counsel for delaying the appointment of the
Partnerships' Representative and the arbitrators.  The Court took
 under advisement the remaining open issue regarding the determination
of the secondary market value for computing the plaintiffs' counsel's
attorney fees until the arbitration proceedings were completed and the
 Partnerships' properties were sold.

On August 2, 2000, the Vishnevsky Defendants filed an appeal on the
portion of the judgment which determined the method for computing the
 plaintiffs' counsel's attorney fees. On October 10, 2000 the Vishnevsky
Defendants and their counsel filed a second appeal from the order
granting the sanctions.  A motion to consolidate the two appeals was
 granted. On October 24, 2001, the Court of Appeals rendered its decision
with respect to both appeals. The Court affirmed the lower court ruling
respecting the determination of the attorneys fees, but reversed the Order
 imposing the sanctions for delay in implementing the 2000 Settlement
agreement based upon the lower court's erroneous view of the effective
 date of that agreement.

NOTE D - LEGAL PROCEEDINGS - Continued

The arbitration panel was selected in 2001.  The arbitration was
 tentatively set for hearing the weeks of February 11, and 18, 2002.
 On February 11, 2002 the parties settled the arbitration issue (the
"Arbitration Stipulation").  The Arbitration Stipulation provides in
part that Mr. Vishnevsky will pay into a Settlement Fund an amount
 equal to the cash distribution he receives from each Partnership for
his general and unencumbered limited partnership interests, together
with an amount equal to the amount he receives from the repayment of
all loans, deferred management fees, and interest due him from the
Partnerships minus the sum of $1,300,000 to cover Mr. Vishnevsky's tax
 liability generated by the sale of the Properties and other expenses.
  Mr. Vishnevsky will also receive the commissions due to NRMI and the
return of the sanctions money.  The Arbitration Stipulation also
established the secondary market value to be used in the calculation
of the plaintiffs' attorney fees to be paid, as described above.

The timing of distributions to limited partners will be largely dependent
 on the amount of time necessary to resolve all issues.  The monetary
 impact of these matters has been estimated, and is presented in the
statement of net assets in liquidation as estimated arbitration
 settlement receivable, estimated obligation for plaintiffs' attorney
fees, and estimated obligation for future liquidation expense.  The
final outcome of these estimates is not presently determinable, and
the resulting changes could be material to the financial statements.
 Differences between the estimated amounts and actual transactions
will be recognized in the year they are realized.

NOTE E - INVESTMENT PROPERTIES

Investment properties consist of the following at December 31, 2001:

					Historical Cost Basis

  Estimated
	  	                  Buildings and	     Accumulated
 Liq. Description                                     Land
 Improvements	    Depreciation	Basis
			(in thousands)
	Lock-It-Lockers Mini-Warehouses
	Tucson, Arizona	$	253 	$	1,906	$	1,020	$	1,766
	Lock-It-Lockers Mini-Warehouses
	Phoenix, Arizona		222		2,115		1,112
2,006
	Cave Creek-Phase I Mini-Warehouses
	Phoenix, Arizona	94		304		150		305
	$569	$	4,325	$	2,282	$	4,077

NOTE E - INVESTMENT PROPERTIES - Continued

		Date of
	Description	Construction	Date Acquired

	Lock-It-Lockers Mini-Warehouses
		Tucson, Arizona
           1976	  May 1985
	Lock-It-Lockers Mini-Warehouses

		Phoenix, Arizona
              1976	January 1986
	Cave Creek - Phase I Mini-Warehouses		Phoenix,
Arizona
 1985	April 1987

The aggregate cost of the investment properties is the same for
 financial reporting and federal income tax purposes.  The
 accumulated depreciation reported for federal income tax purposes
was $ 3,610,413 at December 31, 2001.

Depreciation expense for the years ended December 31, 2001 and
 2000, was $ 143,662 and $ 143,815, respectively.


NOTE F - TRANSACTIONS WITH AFFILIATED PARTIES

The general partners are general partners for other limited
Partnerships which have invested in real estate.  The Partnership
reimburses affiliates of the general partner for the actual cost
of goods and materials used by or for the Partnership in the
course of performing the general functions of the Partnership.
  These general functions include certain management, accounting
and other expenses.  The Partnership has executed contracts providing
 for the following fees payable to such entities:

1.   National Realty Management, Inc. (NRMI)

National Realty Management, Inc. (NRMI), which is wholly owned
 by John Vishnevsky, was paid property management fees of $ 46,669
 in 2001 and $ 47,797 in 2000, respectively. Monthly fees represent
6% of gross receipts from the Lock-It-Lockers Mini-Warehouses in
Tucson and Phoenix and Cave Creek Mini-Warehouse.

The Partnership also paid $ 155,279 in 2001 and $ 63,175 in 2000,
 respectively, for the reimbursement of accounting, administrative,
 and property selling expenses incurred by NRMI on behalf of the
 Partnership.  Accrued expenses at December 31, 2001, includes $
2,498 due to NRMI for reimbursable expenses.

NOTE F - TRANSACTIONS WITH AFFILIATED PARTIES - Continued
1. National Realty Management, Inc. (NRMI) - Continued

The Partnership sub-leases a portion of common area office space
 from NRMI under terms of a lease, which expires on August 31,
 2002.  During 2001 and 2000, lease payments totaled $ 10,881
and $ 11,211, respectively, which represents the Partnership's
 pro-rata portion, based on space occupied, of NRMI's monthly
rental obligation.

2.   National Development and Investment, Inc. (Former General
 Partner)

The Partnership paid National Development and Investment, Inc.
 (NDII), which was wholly owned by John Vishnevsky, for the
reimbursement of costs and expenses totaling $ 102,885 and $
 207,863 in 2001 and 2000, respectively.  Effective September
 30, 2001, NDII was dissolved and the remaining administrative
 expenses for 2001 were paid by NRMI.

3.   Individual General Partner

The note payable to the individual general partner, John
 Vishnevsky, is payable from proceeds of the sale or other
 disposition of investment properties, with interest compounded
 monthly at a bank's prime rate plus 2% (6.75% at December 31,
2001) or 12%, whichever is lower.  At December 31, 2001, the
 note payable balance was
$ 271,020.  The Partnership incurred interest of $ 32,988 and
$ 36,532 in 2001 and 2000, respectively, in connection with this
note. During 2001, no interest was paid to the individual general
 partner with respect to this note. At December 31, 2001, accrued
 interest payable on the individual general partner note was $
 108,639.


NOTE G - INCOME TAXES
Income taxes on the net income for the year are payable personally
 by the partners and, accordingly, are not reflected in the financial
 statements.

Differences between the net income as reported herein and the
 net income reported for federal income tax purposes arise primarily
 from timing differences related to depreciation and other GAAP
basis adjustments.  The following is a reconciliation of the reported
 net income and the net income reported for federal income tax
 purposes for the years ended December 31:

NOTE G - INCOME TAXES - Continued
			2001			2000
Net income reported in the financial statements	$	40,336
	$	30,181
Add (deduct)
Depreciation		(37,672)		(38,638)
Accrued wages non-deducted for tax purposes		(1,427)
		(134)
Interest accrued (paid) to individual general partner
32,988		36,532
Severance			(21,485)		28,395
Miscellaneous expenses		(2,855)		3,612

Net income reported for federal income tax purposes	$
9,885	$	59,948


NOTE H - FAIR VALUES OF FINANCIAL INSTRUMENTS

1. Cash and Cash Equivalents

The carrying amount reported in the balance sheet for cash
and cash equivalents approximates its fair value due to their
 short-term nature.

2.	Debt

The fair market value of the individual general partner note
payable approximates its carrying value.


NOTE I - CONCENTRATION OF CREDIT RISK

The Partnership maintains its cash balances in various financial
institutions in Arizona and Wisconsin.  These balances are
insured by the Federal Deposit Insurance Company up to $ 100,000.
 The Partnership has not experienced any losses in such accounts
 and believes it is not exposed to any significant credit risk
on cash and cash equivalents.



NOTE J - BASIS OF ACCOUNTING

The Partnership records are maintained on the basis of
accounting utilized for federal income tax reporting purposes.
 The accompanying financial statements have been prepared
from such  records and  adjusted to  the liquidation  basis of
accounting for  2001  and the  accrual basis of accounting for
2000 in accordance with accounting principles generally accepted
in the United States of America (GAAP).  The primary adjustment
 is for the difference between the cost basis and fair market
value of the investment property.  Certain tax basis amounts are
summarized as follows:

		Tax Basis
	2001	2000
							(In thousands)

Total assets	$	2,715	$	2,799
Partners' capital
General partners (deficit)		(171)		(167)
Limited partners (deficit)		2,494		(2,597)
Net income
General partners		-		2
Limited partners		10		58


As described in Note D, the Partnership reached a
settlement agreement that will ultimately result in
the liquidation of the Partnership's net assets.  These
 financial statements are prepared in accordance with
 the liquidation basis of accounting.  The liquidation basis
 of accounting was used in the preparation of the financial
 statements since operations are not expected to continue and
 liquidation is expected during 2002.



















SUPPLEMENTARY INFORMATION



EC Corp.

BALANCE SHEET

December 31, 2001


ASSETS

Cash and cash equivalents			$	689
Investments in limited partnership				65

				$	754


STOCKHOLDERS' EQUITY

Common stock, 9,000 shares authorized;
100 shares issued and outstanding;
$ 1 par value				$	100
Additional paid-in capital				2,495
Accumulated deficit				(1,841)

				$	754




John Vishnevsky

STATEMENT OF FINANCIAL CONDITION

December 31, 2001


ASSETS

Cash and cash equivalents			$	124,155
Notes receivable				62,076
Investments
Mutual funds		$	145,245
Assigned shares in limited partnerships		821,677
Corporations			10,407		977,329

Receivables
Real estate commissions				571,374
Sanctions					516,000
Miscellaneous					23,173
Prepaid income taxes				171,280
Other assets					198,305

					$	2,643,692

LIABILITIES

Accrued liabilities			$	524,362
Accrued income taxes				171,280
Assigned shares in limited partnership
	821,677
Due to affiliated party				116,000
			     1,633,319

Net worth					1,010,373

					$	2,643,692





1


4





16



National Real Estate Limited Partnership
Income Properties

NOTES TO FINANCIAL STATEMENTS - CONTINUED

December 31, 2001



21





30