Item 2.  Acquisition or Disposition of Assets

                              MAIN PARK APARTMENTS
                               Duncanville, Texas

         On  February  4,  1998,  Apple  Residential  Income  Trust,  Inc.  (the
"Company")  purchased the Main Park Apartments located at 1303 South Main Street
in Duncanville (southwest of Dallas), Texas (The "Property").

         The Property  comprises 192 apartment units. The purchase price for the
Property was  $8,000,000.  The seller was MGW  Apartments  Partnership,  a Texas
limited partnership which is not affiliated with the Company,  Apple Residential
Advisors,  Inc. or their  Affiliates.  The entire  purchase price was paid using
proceeds  from the sale of Company  common  shares.  Title to the  Property  was
conveyed to the Company by limited warranty deed.

         LOCATION.  The Property is located on South Main Street in Duncanville,
southwest  of  Dallas,   within  the  greater   Dallas/Fort  Worth  Consolidated
Metropolitan  Statistical Area, or as it is called locally, "The Metroplex." The
following  information is based in part upon information  provided by the Dallas
Chamber of Commerce.

         The Dallas/Fort Worth Metroplex is in the  north-central  part of Texas
and is composed of nine  counties.  The 1996  population  of The  Metroplex  was
approximately 4,400,000.  Dallas is the second largest city in the state, behind
Houston.

         The economy of the Dallas/Fort  Worth area is complex and  diversified.
Key economic factors include a large  manufacturing  base (including as products
military hardware,  electronics,  automobiles,  industrial equipment,  oil-field
parts,   food   products   and   chemicals),    banking,   insurance   services,
communications,  oil and gas production and air transportation.  Major employers
in the area include Texas Instruments,  Southwestern Bell, General Motors,  J.C.
Penney, NationsBank and Vought Aircraft Company.

         The  Metroplex  is also an  established  transportation  center for the
nation.  The Dallas/Fort  Worth  International  Airport  occupies  approximately
17,800  acres of land  between  the two  cities.  It is the  largest  commercial
airport in the United  States in terms of land area,  and is the fourth  busiest
airport in the world, with 1,700 daily arrivals and departures.

         The area also has a well-established  system of interstate highways and
supporting  secondary routes. The Metroplex is located at the hub of Interstates
35,45,  20 and 30. Two outer loops,  Interstate 635 in Dallas and Interstate 820
in Fort Worth, surround the respective cities.


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         The many  institutions of higher learning in the area include  Southern
Methodist University, the University of Texas at Dallas, the University of Texas
at Arlington, the University of North Texas, and Texas Christian University.

         The  immediate  area   surrounding  the  Property   consists  of  other
multi-family,  single-family, commercial and retail development. The Property is
located near  restaurants,  businesses,  schools,  and churches,  and is readily
accessible from  Interstate 20 and Highway 67. The Property is an  approximately
20-minute drive from downtown Dallas.

         DESCRIPTION OF THE PROPERTY.  The Property consists of 192 garden-style
apartment units in 24 two-story  buildings on approximately  10.4 acres of land.
The Property was constructed in 1984.

         The Property offers eight different unit types.  The unit mix and rents
being charged new tenants as of February, 1998 are as follows:

                                                    Approximate  
                                                     Interior
Quantity          Type                            Square Footage  Monthly Rental

    49      One bedroom/one bathroom                     757         $579
    11      One bedroom/one bathroom (view)              757          609
    22      One bedroom/one bathroom w/den               901          689
     8      One bedroom/one bathroom w/den (view)        901          709
    39      Two bedrooms/two bathrooms                 1,056          749
    15      Two bedrooms/two bathrooms (view)          1,056          769
    38      Two bedrooms/two bathrooms                 1,058          769
    10      Two bedrooms/two bathrooms (view)          1,058          789


         The apartments provide a total of approximately  180,000 square feet of
net rentable area.


         The  Company  believes  that  the  Property  has  generally  been  well
maintained  and is in good  condition.  The Company has  budgeted  approximately
$144,000 for additional capital improvements to the Property. These improvements
will include clubhouse renovations, exterior painting and interior upgrades.


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         Leases at the  Property  are  generally  for terms of one year or less.
Average  rental rates for the past five years have  generally  increased.  As an
example, a two-bedroom,  two-bathroom  apartment unit (1,058 square feet) rented
for $608 in 1993, $618 in 1994, $655 in 1995, $683 in 1996 and $702 in 1997. The
average  effective annual rental per square foot at the Property for 1993, 1994,
1995, 1996 and 1997 was $7.08, $7.20, $7.63, $7.96, and $8.18, respectively.

         The buildings are wood-frame  construction  with a combination of brick
veneer and masonite  hardboard siding on reinforced  concrete slab  foundations.
Roofs are sloped fiberglass shingled on plywood.

         The Property has two outdoor  swimming  pools,  a jacuzzi,  two laundry
facilities and a wooded creek view.  There is also a clubhouse  which includes a
kitchen, entertainment area and leasing office. There is ample paved parking for
the tenants.

         All apartment units have wall-to-wall carpeting in the living areas and
vinyl floors in the kitchen,  bath, entry and utility areas. Each apartment unit
has a cable television  hook-up and an individually  controlled  heating and air
conditioning  unit.  Each  kitchen  is  equipped  with  a  refrigerator/freezer,
electric range and oven,  dishwasher and garbage  disposal.  Each apartment unit
has a fireplace,  washer/dryer connections,  miniblinds,  exterior storage and a
private balcony or patio. All upstairs units have vaulted ceilings. The owner of
the Property  pays for cold water,  gas usage for hot water,  sewer  service and
trash removal.  Tenants pay for their own  electricity  service,  which includes
cooking, lighting, heating and air conditioning.

         There are at least four  apartment  properties  that  compete  with the
Property.  All  offer  similar  amenities  and  generally  have  rents  that are
comparable to those of the Property.  Based on a recent  telephone  survey,  the
Advisor estimates that occupancy in the nearby competing properties now averages
approximately 94%.

         According to information provided by the seller,  physical occupancy at
the Property  averaged  approximately 94% in 1993, 95% in 1994, 96% in 1995, 96%
in 1996,  and 96% in  1997.  As of  February  4,  1998,  the  Property  was 95 %
occupied.  The tenants are a mix of white-collar  workers,  blue-collar workers,
students and retired persons.

         The following  table sets forth the 1997 real estate tax information of
the Property:

                           Assessed
Jurisdiction                 Value          Rate              Tax
------------                 -----          ----              ---

County of Dallas         $6,850,180      $2.80107         $191,878.34


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         The basis of the depreciable  residential  real property portion of the
Property (currently estimated at about $7,458,550) will generally be depreciated
over 27.5 years on a  straight-line  basis.  The basis of the personal  property
portion will be depreciated  in accordance  with the modified  accelerated  cost
recovery  system of the Code.  Amounts to be spent by the Company on repairs and
improvements  will be treated for tax purposes as permitted by the Code based on
the nature of the expenditures.

         The  Advisor  and the  Company  believe  that the  Property is and will
continue to be adequately covered by property and liability insurance.

         MATERIAL  FACTORS  CONSIDERED IN ASSESSING  THE  PROPERTY.  The factors
considered  by the Advisor and the  Company to be  relevant  in  evaluating  the
Property for acquisition by the Company included the following:

         1. The Dallas/Fort  Worth area generally and the specific area in which
the Property is located  were  perceived  as being  characterized  by a diverse,
stable and steadily  growing  economy.  Accordingly,  it was believed  that such
economy  and  its  anticipated  growth  and  development  would  support  stable
occupancy rates and reasonable increases in rents at the Property.

         2.  Based  upon an  engineering  report  and its own  inspections,  the
Advisor  believes that the Property has been well maintained and is generally in
good  condition,  although  the Advisor  believes  that the planned  repairs and
improvements will allow future increases in rents at the Property.

         3. The Property is strategically located in the Duncanville area, which
is one of the  most  commercially  active  areas  in the  Metroplex,  and  has a
well-respected school system.

         The Company is not aware of any material  adverse  factors  relating to
the  Property  not set forth in this  report  that  would  cause  the  financial
information contained in this report not to be necessarily  indicative of future
operating results.

         ACQUISITION  AND  MANAGEMENT  SERVICES AND FEES.  In  consideration  of
services   rendered  to  the  Company  in  connection  with  the  selection  and
acquisition  of the  Property,  the Company will pay  Cornerstone  Realty Income
Trust, Inc., a property acquisition fee equal to 2% of the purchase price of the
Property,  or $160,000.  Cornerstone  Realty  Income  Trust,  Inc. will serve as
property  manager  for the  Property  and for its  services  will be paid by the
Company  a monthly  management  fee  equal to 5% of the  gross  revenues  of the
Property plus reimbursement of certain expenses.


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