<PAGE>   1
                                    FORM 10-Q
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                   QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934


For Quarter Ended      March 31, 1998
                  --------------------------------------------------------------

Commission file number     0-13563
                      ----------------------------------------------------------


                     DAMSON/BIRTCHER REALTY INCOME FUND - I
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)


                Pennsylvania                        13-3264491
--------------------------------------------------------------------------------
      (State or other jurisdiction of            (I.R.S. Employer
       incorporation or organization)           Identification No.)


 27611 La Paz Road, P.O. Box A-1, Laguna Niguel, California    92677-0100
--------------------------------------------------------------------------------
          (Address of principal executive offices)             (Zip Code)


                                 (714) 643-7700
--------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)


                                       N/A
--------------------------------------------------------------------------------
         (Former name, former address and former fiscal year, if changed
                               since last report.)


Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 12(g), 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding twelve 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 [ ]


<PAGE>   2
                      DAMSON/BIRTCHER REALTY INCOME FUND-I
                          QUARTERLY REPORT ON FORM 10-Q
                    FOR THE THREE MONTHS ENDED MARCH 31, 1998

                                      INDEX


<TABLE>
<CAPTION>
                                                                                                          Page
                                                                                                          ----
<S>                                                                                                       <C>
PART I.        FINANCIAL INFORMATION

Item 1.        Financial Statements

               Statements of Net Assets in Liquidation - March 31, 1998 (Unaudited)
               and December 31, 1997 (Audited).......................................................      3

               Statement of Changes of Net Assets in Liquidation -
               Three Months Ended March 31, 1998 (Unaudited).........................................      4

               Statement of Operations (Unaudited) -
               Three Months Ended March 31, 1997.....................................................      5

               Statement of Cash Flows (Unaudited) -
               Three Months Ended March 31, 1997.....................................................      6

               Notes to Financial Statements (Unaudited).............................................      7

Item 2.        Management's Discussion and Analysis of
               Financial Condition and Results of Operations.........................................     10


PART II.       OTHER INFORMATION.....................................................................     14
</TABLE>


                                        2


<PAGE>   3
                          PART I. FINANCIAL INFORMATION


ITEM 1.        FINANCIAL STATEMENTS


                      DAMSON/BIRTCHER REALTY INCOME FUND-I
                     STATEMENTS OF NET ASSETS IN LIQUIDATION


<TABLE>
<CAPTION>
                                                     March 31,          December 31,
                                                      1998                  1997
                                                  ------------         ------------
<S>                                               <C>                  <C>         
ASSETS (Liquidation Basis):                       (unaudited)

Properties                                        $ 36,445,000         $ 36,090,000
Cash and cash equivalents                               49,000              461,000
Accounts receivable                                    120,000              100,000
Other assets                                           122,000               99,000
                                                  ------------         ------------

   Total Assets                                     36,736,000           36,750,000
                                                  ------------         ------------

LIABILITIES (Liquidation Basis):

Accounts payable and accrued liabilities               958,000              945,000
Secured loan payable                                 2,677,000            2,730,000
Accrued expenses for liquidation                     1,049.000            1,049,000
                                                  ------------         ------------

   Total Liabilities                                 4,684,000            4,724,000
                                                  ------------         ------------

Net Assets in Liquidation                         $ 32,052,000         $ 32,026,000
                                                  ============         ============
</TABLE>


   The accompanying notes are an integral part of these financial statements.

                                        3


<PAGE>   4
                      DAMSON/BIRTCHER REALTY INCOME FUND-I
                STATEMENT OF CHANGES OF NET ASSETS IN LIQUIDATION
                    FOR THE THREE MONTHS ENDED MARCH 31, 1998
                                   (UNAUDITED)


<TABLE>
<S>                                                     <C>         
Net assets in liquidation at December 31, 1997          $ 32,026,000

Increase (decrease) during period:
   Operating activities:
         Property operating income, net                      681,000
         Interest income                                       4,000
         General and administrative expenses                (234,000)
         Interest expense on mortgage payable                (61,000)
         Leasing commissions                                (108,000)
                                                        ------------

                                                             282,000

   Liquidating activities -
         Distribution to partners                           (256,000)
                                                        ------------

Net increase in assets in liquidation                         26,000
                                                        ------------

Net assets in liquidation at March 31, 1998             $ 32,052,000
                                                        ============
</TABLE>


   The accompanying notes are an integral part of these financial statements.

                                        4

<PAGE>   5
                      DAMSON/BIRTCHER REALTY INCOME FUND-I
                             STATEMENT OF OPERATIONS
                                   (UNAUDITED)


<TABLE>
<CAPTION>
                                                             For the
                                                           Three Months
                                                              Ended
                                                             3/31/97
                                                           ------------
<S>                                                        <C>         
REVENUES

Rental income                                              $  1,479,000
Interest income                                                  10,000
                                                           ------------
   Total revenues                                             1,489,000
                                                           ------------
EXPENSES

Operating expenses                                              377,000
Real estate taxes                                               201,000
Amortization                                                     70,000
General and administrative                                      369,000
Interest                                                         66,000
                                                           ------------

   Total expenses                                             1,083,000
                                                           ------------
NET INCOME                                                 $    406,000
                                                           ============

NET INCOME ALLOCABLE TO:

   General Partner                                         $      4,000
                                                           ============

   Limited Partners                                        $    402,000
                                                           ============
</TABLE>


   The accompanying notes are an integral part of these financial statements.

                                        5

<PAGE>   6
                      DAMSON/BIRTCHER REALTY INCOME FUND-I
                            STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)


<TABLE>
<CAPTION>
                                                                        For the
                                                                     Three Months
                                                                        Ended
                                                                    March 31, 1997
                                                                     ------------
<S>                                                                 <C>         
Cash flows from operating activities:
Net income                                                           $    406,000
Adjustments to reconcile net income to
  net cash provided by operating
  activities:
  Amortization                                                             70,000
Changes in:
  Accounts receivable                                                     (48,000)
  Prepaid expenses and other assets                                       112,000
  Accrued rent receivable                                                   6,000
  Accounts payable and accrued liabilities                               (146,000)
                                                                     ------------
Net cash provided by operating activities                                 400,000
                                                                     ------------

Cash flows from investing activities:
   Investments in real estate                                             (34,000)
                                                                     ------------
Net cash used in investing activities                                     (34,000)
                                                                     ------------
Cash flows from financing activities:
   Principal payments on secured loan payable                             (49,000)
   Distributions                                                         (255,000)
                                                                     ------------
Net cash used in financing activities                                    (304,000)
                                                                     ------------

Net increase in cash and cash equivalents                                  62,000

Cash and cash equivalents, beginning of
   period                                                                 711,000
                                                                     ------------
Cash and cash equivalents, end of period                             $    773,000
                                                                     ============
</TABLE>


   The accompanying notes are an integral part of these financial statements.

                                        6

<PAGE>   7
                      DAMSON/BIRTCHER REALTY INCOME FUND-I


NOTES TO FINANCIAL STATEMENTS - UNAUDITED

(1)     Accounting Policies

        The financial statements of Damson/Birtcher Realty Income Fund-I (the
        "Partnership") included herein have been prepared by the General
        Partner, without audit, pursuant to the rules and regulations of the
        Securities and Exchange Commission. These financial statements include
        all adjustments which are of a normal recurring nature and, in the
        opinion of the General Partner, are necessary for a fair presentation.
        Certain information and footnote disclosures normally included in
        financial statements prepared in accordance with generally accepted
        accounting principles have been condensed or omitted, pursuant to the
        rules and regulations of the Securities and Exchange Commission. These
        financial statements should be read in conjunction with the financial
        statements and notes thereto included in the Partnership's annual report
        on Form 10- K for the year ended December 31, 1997.

        Liquidation Basis of Accounting

        On February 18, 1997, the Partnership mailed a Consent Solicitation to
        the Limited Partners which sought their consent to dissolve the
        Partnership and sell and liquidate all of its remaining properties as
        soon as practicable, consistent with selling the Partnership's
        properties to the best advantage under the circumstances. A majority in
        interest of the Limited Partners consented by March 14, 1997. As a
        result, the Partnership adopted the liquidation basis of accounting as
        of March 31, 1997. The liquidation basis of accounting is appropriate
        when liquidation appears imminent, the Partnership can no longer be
        classified as a going concern and the net realizable values of the
        Partnership's assets are reasonably determinable. The difference between
        the adoption of the liquidation basis of accounting as of March 14, 1997
        and March 31, 1997 was not material.

        Under the liquidation basis of accounting, assets are stated at their
        estimated net realizable values and liabilities are stated at their
        anticipated settlement amounts. The valuation of assets and liabilities
        necessarily requires many estimates and assumptions, and there are
        substantial uncertainties in carrying out the dissolution of the
        Partnership. The actual values upon dissolution and costs associated
        therewith could be higher or lower than the amounts recorded.

        The Partnership adopted the liquidation basis of accounting on March 31,
        1997. Comparison of results of operations to prior years, therefore, is
        not practical. The Statements of Net Assets in Liquidation and Statement
        of Changes of Net Assets in Liquidation reflect the Partnership in the
        process of liquidation. Prior financial statements reflect the
        Partnership as a going concern.

        On April 30, 1998, the General Partner accepted an offer to purchase all
        of the Partnership's Properties for $39,140,000 (the "Purchase Offer").
        The Purchase Offer anticipates closing in approximately 60-90 days, and
        is subject to certain customary contingencies, including due diligence
        review by the purchaser and negotiation of a definitive purchase and


                                        7


<PAGE>   8
                      DAMSON/BIRTCHER REALTY INCOME FUND-I


NOTES TO FINANCIAL STATEMENTS - UNAUDITED (Cont'd.)

(1)     Accounting Policies (Cont'd.)

        Liquidation Basis of Accounting (Cont'd.)

        sale agreement. There can be no assurance that the proposed sale of the
        properties will be completed. In addition to the Purchase Offer, the
        General Partner has received several other indications of interest from
        prospective purchasers to acquire all of the Partnership's remaining
        properties in a single transaction.

        Earnings Per Unit

        The Partnership Agreement does not designate investment interests in
        units. All investment interests are calculated on a "percent of
        Partnership" basis, in part to accommodate original reduced rates on
        sales commissions for subscriptions in excess of certain specified
        amounts.

        A Limited Partner who was charged a reduced sales commission or no sales
        commission was credited with proportionately larger Invested Capital and
        therefore had a disproportionately greater interest in the capital and
        revenues of the Partnership than a Limited Partner who paid commissions
        at a higher rate. As a result, the Partnership has no set unit value as
        all accounting, investor reporting and tax information is based upon
        each investor's relative percentage of Invested Capital. Accordingly,
        earnings or loss per unit is not presented in the accompanying financial
        statements.

(2)     Transactions with Affiliates

        The Partnership has no employees and, accordingly, the General Partner
        and its affiliates perform services on behalf of the Partnership in
        connection with administering the affairs of the Partnership. The
        General Partner and affiliates are reimbursed for their general and
        administrative costs actually incurred and associated with services
        performed on behalf of the Partnership. For the three months ended March
        31, 1998 and 1997, the Partnership incurred approximately $40,000 and
        $34,000, respectively, of such expenses.

        An affiliate of the General Partner provides property management
        services with respect to the Partnership's properties and receives a fee
        for such services not to exceed 3% of the gross receipts from the
        properties under management. Such fees amounted to approximately $42,000
        and $40,000 for the three months ended March 31, 1998 and 1997,
        respectively. In addition, an affiliate of the General Partner received
        $73,000 and $78,000 for the three months ended March 31, 1998 and 1997,
        respectively, as reimbursement of costs of on-site property management
        personnel and other reimbursable costs.

        As previously reported, on June 24, 1993, the Partnership completed its
        solicitation of written consents from its Limited Partners. A majority
        in interest of the Partnership's Limited Partners approved each of the


                                        8


<PAGE>   9
                      DAMSON/BIRTCHER REALTY INCOME FUND-I


NOTES TO FINANCIAL STATEMENTS - UNAUDITED (Cont'd.)

(2)     Transactions with Affiliates (Cont'd.)

        proposals contained in the Information Statement dated May 5, 1993.
        Those proposals were implemented by the Partnership as contemplated by
        the Information Statement as amendments to the Partnership Agreement,
        and are reflected in these financial statements as such.

        The amended Partnership Agreement provides for the Partnership's payment
        to the General Partner of an annual asset management fee equal to .55%
        for 1998 and .65% for 1997 of the aggregate appraised value of the
        Partnership's properties as determined by independent appraisal
        undertaken in January of each year. Such fees for the three months ended
        March 31, 1998 and 1997, amounted to $52,000 and $61,000, respectively.

        In addition, the amended Partnership Agreement provides for payment to
        the General Partner of a leasing fee for services rendered in connection
        with leasing space in a Partnership property after the expiration or
        termination of leases. Fees for leasing services for the three months
        ended March 31, 1998 and 1997, amounted to $23,000 and $1,000,
        respectively.

(3)     Commitments and Contingencies

        Litigation

        The Partnership is not a party to any material pending legal proceedings
        other than ordinary routine litigation incidental to its business. It is
        the General Partner's belief that the outcome of these proceedings will
        not be material to the business or financial condition of the
        Partnership.

(4)     Accrued Expenses for Liquidation

        Accrued expenses for liquidation as of March 31, 1998, include estimates
        of costs to be incurred in carrying out the dissolution and liquidation
        of the Partnership. These costs include estimates of legal fees,
        accounting fees, tax preparation and filing fees, other professional
        services, the general partner's liability insurance and the pre-payment
        penalty associated with the anticipated early retirement of the mortgage
        loan secured by the Certified Warehouse property. The actual costs could
        vary significantly from the related provisions due to the uncertainty
        related to the length of time required to complete the liquidation and
        dissolution and the complexities which may arise in disposing of the
        Partnership's remaining assets.


                                        9


<PAGE>   10
                      DAMSON/BIRTCHER REALTY INCOME FUND-I


ITEM 2.        MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
               RESULTS OF OPERATIONS

        Liquidity and Capital Resources

        Since the completion of its acquisition program in September 1985, the
        Partnership has been primarily engaged in the operation of its
        properties. The Partnership's original objective had been to hold its
        properties as long-term investments. However, an Information Statement,
        dated May 5, 1993, mandated that the General Partner seek a vote of the
        Limited Partners no later than December 31, 1996, regarding prompt
        liquidation of the Partnership in the event that properties with
        appraised values as of January 1993 which constituted at least one half
        of the aggregate appraised values of all Partnership properties as of
        that date were not sold or under contract for sale by the end of 1996.
        Given the mandate of the May 5, 1993 Information Statement, as of
        December 31, 1995, the General Partner decided to account for the
        Partnership's properties as assets held for sale, instead of for
        investment. In a Consent Solicitation dated February 18, 1997, the
        Partnership solicited and received the consent of the Limited Partners
        on March 14, 1997 to dissolve the Partnership and sell and liquidate all
        of its remaining properties as soon as practicable, consistent with
        selling the Partnership's properties to the best advantage under the
        circumstances. The Partnership's properties were held for sale
        throughout 1997 and continue to be held for sale.

        On April 30, 1998, the General Partner accepted an offer to purchase all
        of the Partnership's Properties for $39,140,000 (the "Purchase Offer").
        The Purchase Offer anticipates closing in approximately 60-90 days, and
        is subject to certain customary contingencies, including due diligence
        review by the purchaser and negotiation of a definitive purchase and
        sale agreement. There can be no assurance that the proposed sale of the
        properties will be completed. In addition to the Purchase Offer, the
        General Partner has received several other indications of interest from
        prospective purchasers to acquire all of the Partnership's remaining
        properties in a single transaction.

        Regular distributions through March 31, 1998 represent cash flow
        generated from operations of the Partnership's properties and interest
        earned on the temporary investment of working capital net of capital
        reserve requirements.

        During the first quarter of 1998, the Partnership spent approximately
        $356,000 on tenant and capital improvements on Cornerstone, Ladera,
        Terracentre and Certified Warehouse, plus a leasing commission of
        approximately $73,000 for Certified Warehouse. Together with a reduction
        in rental income of $248,000 due to the Certified Warehouse vacancy,
        these expenditures depleted the Partnership's cash reserves from
        $461,000 at the beginning of the quarter to $49,000 at the end. The
        Partnership has begun to replenish these reserves, but based upon
        currently budgeted revenues and expenses, it will not make a
        distribution of cash from operations to its Limited Partners this
        quarter or next.

        In December 1996, the Partnership made a special distribution of
        $1,500,000, representing a portion of net proceeds from the sale of
        Arlington Executive Plaza. Future cash distributions will be made


                                       10


<PAGE>   11
                      DAMSON/BIRTCHER REALTY INCOME FUND-I


  ITEM 2.      MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
               RESULTS OF OPERATIONS (Cont'd.)

        Liquidity and Capital Resources (Cont'd.)

        principally to the extent of cash flow attributable to operations and
        sales of the Partnership's properties and interest earned on the
        investment of capital reserves, after loan repayments, payment for
        capital improvements to the Partnership's properties and providing for
        capital reserves.

        Certain of the Partnership's properties are not fully leased. The
        Partnership is actively marketing the vacant space in these properties,
        subject to the competitive environment in each of the market areas. To
        the extent the Partnership is not successful in maintaining or
        increasing occupancy levels at these properties, the Partnership's
        future cash flow may be reduced.

        On July 30, 1993, the Partnership obtained a loan secured by a First
        Deed of Trust on the Certified Distribution Center in Salt Lake City,
        Utah. The loan, in the amount of $3,500,000, carries a fixed interest
        rate of 9% per annum over a 13-year fully amortizing term and a
        prepayment penalty of approximately $600,000 at current interest rates,
        if fully paid off after July 1, 1998.

        In March 1996, the Partnership entered into a loan agreement pursuant to
        which it could borrow up to $1,500,000 (similar to a credit line
        arrangement), evidenced by a note secured by a first deed of trust and
        financing statement on the Ladera I Shopping Center in Albuquerque, New
        Mexico. Pursuant to the note and loan agreement, the Partnership
        borrowed $700,000 in March 1996. The net proceeds of the foregoing loan
        were used to fund a portion of the renovation and tenant improvements at
        The Cornerstone and tenant improvements at Oakpointe. The Partnership
        made interest only payments at the rate of 1% over prime (the loan rate
        was 9.25%) through November 1996, when the entire balance was paid off
        utilizing a portion of the proceeds from the sale of Arlington Executive
        Plaza. The Partnership has the ability to borrow against this credit
        facility (up to $1,500,000) through March 31, 1999, should its cash
        requirements necessitate.

        Results of Operations for the Three Months Ended March 31, 1998

        Because the Partnership adopted the liquidation basis of accounting on
        March 31, 1997, a comparison of the results of operations is not
        practical. As the Partnership's assets (properties) are sold, the
        results of operations will be generated from a smaller asset base, and
        are therefore not comparable. The Partnership's operating results have
        been reflected on the Statement of Changes of Net Assets in Liquidation
        since March 31, 1997 (the date of adoption of the liquidation basis of
        accounting).

        For the three months ended March 31, 1998, the Partnership generated
        $681,000 of net operating income from operations of its properties. The
        decrease in net operating income for the three months ended March 31,


                                       11


<PAGE>   12
                      DAMSON/BIRTCHER REALTY INCOME FUND-I


  ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
           RESULTS OF OPERATIONS (Cont'd.)

        Results of Operations for the Three Months Ended March 31, 1998
        (Cont'd.)

        1998 when compared to the same period in 1997 was primarily the result
        of a decrease in rental revenue at Certified Warehouse ($248,000) and an
        in increase in HVAC repair costs at Terracentre ($34,000). These
        negative impacts were partially offset by higher rental income at
        Cornerstone Shopping Center that resulted from a higher overall
        occupancy in 1998.

        In September and November 1997, Certified Warehouse and Transfer
        Company, Inc. vacated Certified Distribution Center. Although the
        General Partner successfully completed negotiation of a 123,074 square
        foot lease with Quality Distribution effective March 1, 1998 at a rate
        greater than before, the remaining 189,115 square foot vacancy will have
        a negative impact on future distributions of cash from operations to the
        Limited Partners.

        Interest income resulted from the temporary investment of Partnership
        working capital. For the three months ended March 31, 1998, interest
        income was approximately $4,000.

        General and administrative expenses for the three months ended March 31,
        1998, include charges of $116,000 from the General Partner and its
        affiliates for services rendered in connection with administering the
        affairs of the Partnership and operating the Partnership's properties.
        Also included in general and administrative expenses for the three
        months ended March 31, 1998, are direct charges of $118,000, relating to
        audit fees, tax preparation fees, legal fees and professional services,
        liability insurance expenses, costs incurred in providing information to
        the Limited Partners and other miscellaneous costs.

        The decrease in general and administrative expenses for the three months
        ended March 31, 1998, as compared to the corresponding period in 1997,
        was primarily attributable to the decrease in legal, professional
        services and mailing costs associated with the Partnership's
        solicitation of the Limited Partners consent for the liquidation of the
        Partnership in March 1997.

        Accrued expenses for liquidation, as reflected in the Statements of Net
        Assets in Liquidation since March 31, 1997, are not included in results
        of operations for the three month period ended March 31, 1997. The
        liquidation basis of accounting was adopted on March 31, 1997,
        therefore, it was not appropriate to include such adjustments in the
        results of operations for prior periods. Accrued expenses for
        liquidation as of March 31, 1998, includes estimates of costs to be
        incurred in carrying out the dissolution and liquidation of the
        Partnership. These costs include estimates of legal fees, accounting
        fees, tax preparation and filing fees, professional services, the
        general partner's liability insurance and the pre-payment penalty
        associated with the anticipated early retirement of the mortgage loan
        secured by the Certified Warehouse property. The actual costs could vary
        significantly from the related


                                       12


<PAGE>   13
                      DAMSON/BIRTCHER REALTY INCOME FUND-I


ITEM 2.        MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
               RESULTS OF OPERATIONS (Cont'd)

        Results of Operations for the Three Months Ended March 31, 1998
        (Cont'd.)

        provisions due to the uncertainty related to the length of time required
        to complete the liquidation and dissolution and the complexities which
        may arise in disposing of the Partnership's remaining assets.

        Interest expense resulted from interest on the first deed of trust on
        Certified Distribution Center.


                                       13


<PAGE>   14
                      DAMSON/BIRTCHER REALTY INCOME FUND-I


                           PART II. OTHER INFORMATION


ITEM 1.        LEGAL PROCEEDINGS

        So far as is known to the General Partner, neither the Partnership nor
        its properties are subject to any material pending legal proceedings.

        On March 25, 1997, a limited partner named Bigelow/Diversified Secondary
        Partnership Fund 1990 filed a purported class action lawsuit in the
        Court of Common Pleas of Philadelphia County against Damson/Birtcher
        Partners, Birtcher Investors, Birtcher/Liquidity Properties, Birtcher
        Investments, L.F. Special Fund II, L.P., L.F. Special Fund I, L.P.,
        Arthur Birtcher, Ronald Birtcher, Robert Anderson, Richard G. Wollack
        and Brent R. Donaldson alleging breach of fiduciary duty and breach of
        contract and seeking to enjoin the Consent Solicitation dated February
        18, 1997. On April 18, 1997, the court denied the plaintiff's motion for
        a preliminary injunction. On June 10, 1997, the court dismissed the
        plaintiff's complaint on the basis of lack of personal jurisdiction and
        forum non conveniens.


ITEM 6.        EXHIBITS AND REPORTS ON FORM 8-K

        a)     Exhibits:

               27 - Financial Data Schedule

        b)     Reports on Form 8-K:

               None filed in quarter ended March 31, 1998.


                                       14


<PAGE>   15
                      DAMSON/BIRTCHER REALTY INCOME FUND-I


                                   SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                              DAMSON/BIRTCHER REALTY INCOME FUND-I


By: DAMSON/BIRTCHER PARTNERS  By: BIRTCHER PARTNERS,
    (General Partner)             a California general partnership

                                  By: BIRTCHER INVESTMENTS,
                                      a California general partnership,
                                      General Partner of Birtcher Partners

                                      By: BIRTCHER LIMITED,
                                          a California limited partnership,
                                          General Partner of Birtcher 
                                          Investments

                                          By: BREICORP,
                                              a California corporation,
                                              formerly known as Birtcher
                                              Real Estate Inc., General
                                              Partner of Birtcher Limited

Date: May 12, 1998                            By: /s/Robert M. Anderson
                                                  ---------------------
                                                  Robert M. Anderson
                                                  Executive Director
                                                  BREICORP

                              By: LF Special Fund II, L.P.,
                                  a California limited partnership

                                  By: Liquidity Fund Asset Management, Inc.,
                                      a California corporation, General
                                      Partner of LF Special Fund II, L.P.

Date: May 12, 1998                    By: /s/ Brent R. Donaldson
                                          ----------------------
                                          Brent R. Donaldson
                                          President
                                          Liquidity Fund Asset Management, Inc.


                                       15


<PAGE>   16

                                 EXHIBIT INDEX


<TABLE>
<CAPTION>
EXHIBIT
NUMBER                        DESCRIPTION
------                        -----------
<S>                           <C>
27                            Financial Data Schedule
</TABLE>