UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   Form 10-QSB

(Mark One)
[X]   QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
      ACT OF 1934

              For the quarterly period ended September 30, 2005


[ ]   TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT


             For the transition period from _________to _________

                         Commission file number 0-14483


                    DAVIDSON DIVERSIFIED REAL ESTATE II, L.P.
        (Exact name of small business issuer as specified in its charter)



           Delaware                                              62-1207077
(State or other jurisdiction of                               (I.R.S. Employer
 incorporation or organization)                              Identification No.)

                         55 Beattie Place, P.O. Box 1089
                        Greenville, South Carolina 29602
                    (Address of principal executive offices)

                                 (864) 239-1000
                           (Issuer's telephone number)

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

Indicate by check mark whether the  registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act) Yes __ No X_



<PAGE>

                         PART I - FINANCIAL INFORMATION


ITEM 1.     FINANCIAL STATEMENTS



                  DAVIDSON DIVERSIFIED REAL ESTATE II, L.P.

                           CONSOLIDATED BALANCE SHEET
                                   (Unaudited)
                        (in thousands, except unit data)

                               September 30, 2005
<TABLE>
<CAPTION>


Assets
<S>                                                                          <C>
   Cash and cash equivalents                                                 $ 439
   Receivables and deposits                                                      570
   Restricted escrows                                                             86
   Other assets                                                                  436
   Investment properties:
      Land                                                    $  1,953
      Buildings and related personal property                   49,847
                                                                51,800
      Less accumulated depreciation                            (27,090)       24,710
                                                                            $ 26,241

Liabilities and Partners' Deficit

Liabilities
   Accounts payable                                                           $ 91
   Tenant security deposit liabilities                                           134
   Accrued property taxes                                                        413
   Other liabilities                                                             343
   Due to affiliates (Note B)                                                  9,291
   Mortgage notes payable, net of discount                                    21,976

Partners' Deficit
   General partners                                            $ (237)
   Limited partners (1,224.25 units issued and
      outstanding)                                              (5,770)       (6,007)
                                                                            $ 26,241

         See Accompanying Notes to Consolidated Financial Statements
</TABLE>


<PAGE>





                  DAVIDSON DIVERSIFIED REAL ESTATE II, L.P.

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)
                      (in thousands, except per unit data)

<TABLE>
<CAPTION>

                                                Three Months Ended         Nine Months Ended
                                                  September 30,              September 30,
                                                 2005        2004          2005          2004
Revenues:
<S>                                            <C>          <C>          <C>           <C>
  Rental income                                $ 1,646      $ 1,593      $ 4,787       $ 4,520
  Other income                                      155         149            431          475
  Casualty gain (Note C)                             --          --             --            9
       Total revenues                             1,801       1,742          5,218        5,004

Expenses:
  Operating                                         862       1,039          2,614        2,543
  General and administrative                         61          52            209          229
  Depreciation                                      684         622          1,954        1,838
  Interest                                          452         368          1,298        1,068
  Property taxes (Note D)                            99        (141)           352          111
       Total expenses                             2,158       1,940          6,427        5,789

Loss from continuing operations                    (357)       (198)        (1,209)        (785)
Loss from discontinued operations                    --          --             --          (47)

Net loss                                        $ (357)     $ (198)      $ (1,209)      $ (832)

Net loss allocated to general partners           $ (7)       $ (4)        $ (24)        $ (17)
Net loss allocated to limited partners             (350)       (194)        (1,185)        (815)

                                                $ (357)     $ (198)      $ (1,209)      $ (832)
Per limited partnership unit:

  Loss from continuing operations              $(285.89)   $(158.46)    $ (967.94)    $ (628.14)
  Loss from discontinued operations                  --          --            --
                                                                                      (37.57) --

Net loss                                       $(285.89)   $(158.46)    $ (967.94)    $ (665.71)

         See Accompanying Notes to Consolidated Financial Statements
</TABLE>

<PAGE>

                  DAVIDSON DIVERSIFIED REAL ESTATE II, L.P.

            CONSOLIDATED STATEMENT OF CHANGES IN PARTNERS' DEFICIT
                                   (Unaudited)
                        (in thousands, except unit data)


<TABLE>
<CAPTION>

                                       Limited
                                     Partnership     General      Limited
                                        Units        Partners    Partners     Total

<S>                                   <C>              <C>        <C>        <C>
Original capital contributions        1,224.25         $ 1        $24,485    $24,486

Partners' deficit at
   December 31, 2004                  1,224.25        $ (213)     $(4,585)   $(4,798)

Net loss for the nine months
   ended September 30, 2005                 --           (24)      (1,185)    (1,209)

Partners' deficit at
   September 30, 2005                 1,224.25        $ (237)     $(5,770)   $(6,007)

         See Accompanying Notes to Consolidated Financial Statements
</TABLE>

<PAGE>

                  DAVIDSON DIVERSIFIED REAL ESTATE II, L.P.

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                 (in thousands)
<TABLE>
<CAPTION>

                                                                   Nine Months Ended
                                                                     September 30,
                                                                      2005     2004

Cash flows from operating activities:
<S>                                                               <C>         <C>
  Net loss                                                        $(1,209)    $ (832)
  Adjustments to reconcile net loss to net cash
   provided by operating activities:
     Depreciation                                                   1,954       1,838
     Casualty gain                                                     --          (9)
     Amortization of debt discounts and loan costs                    126          86
     Change in accounts:
      Receivables and deposits                                         (2)        194
      Other assets                                                    (41)       (109)
      Accounts payable                                               (53)        (83)
                                                                     8           8
      Tenant security deposit liabilities                              (6)        (15)
      Accrued property taxes                                          (15)       (163)
      Other liabilities                                              (110)       (150)
      Due to affiliate                                                409          10
         Net cash provided by operating activities                  1,053         767

Cash flows from investing activities:
  Property improvements and replacements                             (954)       (487)
  Insurance proceeds received                                          --           9
  Net deposits to restricted escrows                                   --          (1)
         Net cash used in investing activities                       (954)       (479)

Cash flows from financing activities:
  Advances from affiliates                                            197         405
  Payments on advances from affiliates                                 --        (682)
  Payments on mortgage notes payable                                 (553)       (505)
         Net cash used in financing activities                       (356)       (782)


Net decrease in cash and cash equivalents                            (257)       (494)
Cash and cash equivalents at beginning of period                      696         746
Cash and cash equivalents at end of period                         $ 439       $ 252


Supplemental disclosure of cash flow information:
  Cash paid for interest                                           $ 710       $ 983

Supplemental disclosure of non-cash activity:
  Property improvements and replacements in accounts payable       $ 42        $ 164

At  December  31,  2004,  approximately  $44,000 of  property  improvements  and
replacements  were  included  in accounts  payable and are  included in property
improvements and replacements at September 30, 2005.

         See Accompanying Notes to Consolidated Financial Statements
</TABLE>
<PAGE>

                  DAVIDSON DIVERSIFIED REAL ESTATE II, L.P.

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)


Note A - Basis of Presentation

The  accompanying   unaudited  consolidated  financial  statements  of  Davidson
Diversified Real Estate II, L.P. (the  "Partnership" or "Registrant")  have been
prepared in accordance with generally accepted accounting principles for interim
financial  information and with the  instructions to Form 10-QSB and Item 310(b)
of Regulation S-B.  Accordingly,  they do not include all of the information and
footnotes  required by generally  accepted  accounting  principles  for complete
financial statements.  In the opinion of Davidson Diversified  Properties,  Inc.
(the  "Managing  General  Partner"),   all  adjustments  (consisting  of  normal
recurring  accruals)  considered  necessary  for a fair  presentation  have been
included.  Operating  results for the three and nine months ended  September 30,
2005 are not necessarily  indicative of the results that may be expected for the
fiscal year ending  December 31,  2005.  For further  information,  refer to the
consolidated   financial  statements  and  footnotes  thereto  included  in  the
Partnership's  Annual  Report on Form 10-KSB for the fiscal year ended  December
31, 2004. The Managing  General Partner is a subsidiary of Apartment  Investment
and  Management  Company  ("AIMCO"),  a publicly  traded real estate  investment
trust.

Certain  2004  balances  have  been   reclassified  to  conform  with  the  2005
presentation.

Note B - Transactions with Affiliated Parties

The Partnership has no employees and depends on the Managing General Partner and
its  affiliates  for  the  management  and  administration  of  all  Partnership
activities.  The Partnership  Agreement  provides for (i) payments to affiliates
for services and (ii)  reimbursement of certain expenses  incurred by affiliates
on behalf of the Partnership.

Affiliates of the Managing General Partner receive 5% of gross receipts from all
of the Partnership's  properties for providing property management services. The
Partnership paid to such affiliates  approximately $253,000 and $245,000 for the
nine months ended September 30, 2005 and 2004,  respectively,  which is included
in operating expenses.

An  affiliate  of  the  Managing  General  Partner  received   reimbursement  of
accountable  administrative  expenses  amounting to  approximately  $224,000 and
$151,000 for the nine months ended  September  30, 2005 and 2004,  respectively,
which  is  included  in  general  and  administrative  expenses  and  investment
properties.   The  portion  of  these  reimbursements   included  in  investment
properties  for the  nine  months  ended  September  30,  2005 and 2004 are fees
related to  construction  management  services  provided by an  affiliate of the
Managing General Partner of approximately $82,000 and $21,000, respectively. The
fees are calculated based on a percentage of additions to investment properties.

In accordance  with the  Partnership  Agreement,  the Managing  General  Partner
advanced the  Partnership  approximately  $197,000 and $405,000  during the nine
months  ended  September  30,  2005 and  2004,  respectively,  to cover  capital
improvements  and  operational  expenses  for 2005 and 2004 and to assist in the
closing of the  refinancing  required at  Reflections  Apartments  in 2004.  The
Partnership repaid approximately $682,000 during the nine months ended September
30, 2004. At September 30, 2005, the amount of the outstanding loans and accrued
interest  was  approximately  $9,291,000  and is included in due to  affiliates.
Interest is charged at prime plus 1%, or 7.75% at September  30, 2005.  Interest
expense was  approximately  $462,000  and  $326,000  for the nine  months  ended
September  30, 2005 and 2004,  respectively.  The  Managing  General  Partner is
considering the remedies it can pursue including  accelerating  repayment of the
outstanding loans it has made to the Partnership.

The  Partnership  accrued a real estate  commission due to the Managing  General
Partner of $48,000  upon the sale of Shoppes at River Rock during the year ended
December 31, 1999. Approximately $18,000 is accrued at September 30, 2005 and is
included in other  liabilities.  Payment of the remaining accrued  commission is
subordinate to the limited  partners  receiving their original  invested capital
plus a cumulative  non-compounded annual return of 8% on their adjusted invested
capital.

The  Partnership  insures its properties up to certain  limits through  coverage
provided by AIMCO which is  generally  self-insured  for a portion of losses and
liabilities  related to workers  compensation,  property  casualty  and  vehicle
liability. The Partnership insures its properties above the AIMCO limits through
insurance  policies  obtained  by  AIMCO  from  insurers  unaffiliated  with the
Managing  General  Partner.  During the nine months ended September 30, 2005 and
2004,  the  Partnership  was charged by AIMCO and its  affiliates  approximately
$102,000 and $85,000,  respectively,  for insurance coverage and fees associated
with policy claims administration.

Note C - Casualty Gain

During  the nine  months  ended  September  30,  2004,  a net  casualty  gain of
approximately  $9,000 was recorded at Big Walnut  Apartments.  The casualty gain
related  to a fire that  occurred  at Big Walnut  Apartments  that  damaged  two
apartments  in March  2003.  The gain was the  result  of  additional  insurance
proceeds of approximately $9,000 received during the nine months ended September
30, 2004.

Note D - Indiana Property Taxes

During 2003,  the state of Indiana  implemented a  reassessment  of property tax
values.  During 2004,  the  Partnership  successfully  appealed  the  reassessed
property tax value of Reflections  Apartments.  In the state of Indiana property
tax bills are paid one year in arrears.  Thus,  the 2003 property tax bills were
received and paid in 2004.  Due to the  Partnership's  appeal of the  reassessed
property value, the property tax accrual for the nine months ended September 30,
2004 was based on the property tax value as estimated by a third party  property
tax  specialist.  During  September  2004, the Partnership was successful in its
appeal and the assessed value of Reflections  Apartments was reduced for the tax
years 2002,  2003 and 2004.  For the nine months ended  September 30, 2005,  the
property tax accrual was based on the settled value.
<PAGE>
Note E - Contingencies

In March 1998, several putative unit holders of limited partnership units of the
Partnership  commenced an action  entitled  Rosalie  Nuanes,  et al. v. Insignia
Financial Group, Inc., et al. (the "Nuanes action") in the Superior Court of the
State of  California  for the  County  of San  Mateo.  The  plaintiffs  named as
defendants,  among others,  the  Partnership,  its Managing  General Partner and
several of their  affiliated  partnerships  and corporate  entities.  The action
purported  to  assert  claims  on  behalf  of a class of  limited  partners  and
derivatively  on behalf  of a number  of  limited  partnerships  (including  the
Partnership)  that are named as nominal  defendants,  challenging,  among  other
things,  the  acquisition  of  interests  in certain  Managing  General  Partner
entities by Insignia Financial Group, Inc.  ("Insignia") and entities that were,
at one  time,  affiliates  of  Insignia;  past  tender  offers  by the  Insignia
affiliates to acquire limited partnership units;  management of the partnerships
by the  Insignia  affiliates;  and the series of  transactions  which  closed on
October 1, 1998 and February 26, 1999 whereby  Insignia and Insignia  Properties
Trust,  respectively,  were merged into AIMCO.  The plaintiffs  sought  monetary
damages and equitable relief, including judicial dissolution of the Partnership.
In addition,  during the third quarter of 2001, a complaint  captioned Heller v.
Insignia  Financial  Group (the  "Heller  action")  was filed  against  the same
defendants  that are named in the  Nuanes  action.  On or about  August 6, 2001,
plaintiffs filed a first amended  complaint.  The Heller action was brought as a
purported derivative action, and asserted claims for, among other things, breach
of fiduciary  duty,  unfair  competition,  conversion,  unjust  enrichment,  and
judicial  dissolution.  On January 28, 2002, the trial court granted  defendants
motion to strike the complaint. Plaintiffs took an appeal from this order.

On January 8, 2003,  the parties filed a  Stipulation  of Settlement in proposed
settlement of the Nuanes  action and the Heller  action.  On June 13, 2003,  the
court granted final approval of the settlement and entered  judgment in both the
Nuanes and Heller actions. On August 12, 2003, an objector ("Objector") filed an
appeal (the "Appeal")  seeking to vacate and/or reverse the order  approving the
settlement and entering  judgment  thereto.  On May 4, 2004 the Objector filed a
second appeal  challenging  the court's use of a referee and its order requiring
Objector to pay those fees.

On March 21, 2005, the Court of Appeals issued opinions in both pending appeals.
With regard to the settlement and judgment entered thereto, the Court of Appeals
vacated  the trial  court's  order and  remanded  to the trial court for further
findings  on the basis that the "state of the record is  insufficient  to permit
meaningful  appellate  review".  With regard to the second appeal,  the Court of
Appeals  reversed the order requiring the Objector to pay referee fees. On April
26, 2005,  the Court of Appeals  lifted the stay of a pending  appeal related to
the Heller action and the trial court's order striking the  complaint.  On April
28, 2005, the Objector  filed a Petition for Review with the California  Supreme
Court in connection with the opinion vacating the order approving settlement and
remanding for further  findings.  On June 10, 2005 the California  Supreme Court
denied  Objector's  Petition for Review and the Court of Appeals sent the matter
back to the trial court on June 21,  2005.  The parties  intend to ask the trial
court to make further findings in connection with settlement consistent with the
Court of Appeal's  remand order.  With respect to the related Heller appeal,  on
July 28, 2005,  the Court of Appeals  reversed the trial court's order  striking
the first amended complaint.

On August 18, 2005,  Objector and his counsel filed a motion to  disqualify  the
trial court based on a peremptory challenge and filed a motion to disqualify for
cause on October 17, 2005. On or about October 13, 2005 Objector  filed a motion
to  intervene  and on or about  October  19,  2005  filed  both a motion to take
discovery  relating to the adequacy of plaintiffs as derivative  representatives
and a motion to dissolve the anti-suit injunction in connection with settlement.
On October 27, 2005, the Court denied Objector's peremptory challenge and struck
Objector's motion to disqualify for cause. No hearing has been set on Objector's
remaining motions. On November 3, 2005, Objector and his counsel filed a writ of
mandate to the Court of Appeals challenging the court's October 27, 2005 order.

The  Managing  General  Partner  does  not  anticipate  that  any  costs  to the
Partnership, whether legal or settlement costs, associated with these cases will
be material to the Partnership's overall operations.

AIMCO  Properties  L.P.  and NHP  Management  Company,  both  affiliates  of the
Managing  General  Partner,  are  defendants  in a  lawsuit  alleging  that they
willfully  violated  the Fair Labor  Standards  Act  ("FLSA")  by failing to pay
maintenance  workers  overtime for all hours worked in excess of forty per week.
The  complaint,  filed in the United States  District  Court for the District of
Columbia,  attempts  to bring a  collective  action  under the FLSA and seeks to
certify state subclasses in California,  Maryland, and the District of Columbia.
Specifically,  the  plaintiffs  contend  that  AIMCO  Properties  L.P.  and  NHP
Management Company failed to compensate  maintenance  workers for time that they
were  required  to be  "on-call".  Additionally,  the  complaint  alleges  AIMCO
Properties  L.P. and NHP  Management  Company  failed to comply with the FLSA in
compensating maintenance workers for time that they worked in excess of 40 hours
in a week. In June 2005 the Court conditionally  certified the collective action
on both the on-call and overtime issues,  which allows the plaintiffs to provide
notice of the  collective  action to all  non-exempt  maintenance  workers  from
August 7, 2000 through the present. Those employees will have the opportunity to
opt-in to the collective action,  and AIMCO Properties,  L.P. and NHP Management
Company will have the  opportunity to move to decertify the  collective  action.
Because the court denied  plaintiffs'  motion to certify  state  subclasses,  on
September  26,  2005,  the  plaintiffs  filed  a  class  action  with  the  same
allegations in the Superior Court of California (Contra Costa County).  Although
the outcome of any  litigation is  uncertain,  AIMCO  Properties,  L.P. does not
believe that the ultimate  outcome  will have a material  adverse  effect on its
consolidated  financial  condition  or results  of  operations.  Similarly,  the
Managing  General Partner does not believe that the ultimate outcome will have a
material adverse effect on the Partnership's consolidated financial condition or
results of operations.

The  Partnership  is unaware  of any other  pending  or  outstanding  litigation
matters  involving  it or its  investment  properties  that are not of a routine
nature arising in the ordinary course of business.

Environmental

Various  Federal,  state and local laws subject  property owners or operators to
liability for management,  and the costs of removal or  remediation,  of certain
hazardous  substances  present on a property.  Such laws often impose  liability
without regard to whether the owner or operator knew of, or was responsible for,
the release or presence of the  hazardous  substances.  The  presence of, or the
failure to manage or remedy properly,  hazardous substances may adversely affect
occupancy at affected  apartment  communities and the ability to sell or finance
affected properties.  In addition to the costs associated with investigation and
remediation  actions  brought by government  agencies,  and potential  fines, or
penalties  imposed by such  agencies in  connection  therewith,  the presence of
hazardous  substances on a property could result in claims by private plaintiffs
for personal injury, disease, disability or other infirmities. Various laws also
impose  liability for the cost of removal,  remediation or disposal of hazardous
substances  through a  licensed  disposal  or  treatment  facility.  Anyone  who
arranges for the disposal or treatment of hazardous  substances  is  potentially
liable  under such laws.  These laws often impose  liability  whether or not the
person arranging for the disposal ever owned or operated the disposal  facility.
In connection  with the ownership,  operation and management of its  properties,
the Partnership  could  potentially be liable for  environmental  liabilities or
costs associated with its properties.

Mold

The Partnership is aware of lawsuits  against owners and managers of multifamily
properties asserting claims of personal injury and property damage caused by the
presence of mold, some of which have resulted in substantial  monetary judgments
or settlements. The Partnership has only limited insurance coverage for property
damage loss claims  arising from the  presence of mold and for  personal  injury
claims related to mold exposure. Affiliates of the Managing General Partner have
implemented a national  policy and  procedures to prevent or eliminate mold from
its properties  and the Managing  General  Partner  believes that these measures
will  minimize  the  effects  that mold could have on  residents.  To date,  the
Partnership  has not  incurred  any material  costs or  liabilities  relating to
claims of mold exposure or to abate mold  conditions.  Because the law regarding
mold is unsettled and subject to change the Managing General Partner can make no
assurance  that  liabilities  resulting from the presence of or exposure to mold
will  not have a  material  adverse  effect  on the  Partnership's  consolidated
financial condition or results of operations.

SEC Investigation

The  Central  Regional  Office of the  United  States  Securities  and  Exchange
Commission (the "SEC")  continues its formal  investigation  relating to certain
matters.  Although  the staff of the SEC is not limited in the areas that it may
investigate,  AIMCO believes the areas of  investigation  have included  AIMCO's
miscalculated   monthly  net  rental  income  figures  in  third  quarter  2003,
forecasted  guidance,  accounts  payable,  rent  concessions,   vendor  rebates,
capitalization of payroll and certain other costs, tax credit transactions,  and
tender offers for limited  partnership  interests.  AIMCO is cooperating  fully.
AIMCO is not able to predict when the investigation will be resolved. AIMCO does
not believe that the ultimate outcome will have a material adverse effect on its
consolidated  financial  condition  or results  of  operations.  Similarly,  the
Managing  General Partner does not believe that the ultimate outcome will have a
material adverse effect on the Partnership's consolidated financial condition or
results of operations.

<PAGE>

ITEM 2.     MANAGEMENT'S DISCUSSION AND ANALYSIS OF PLAN OF OPERATION

The matters discussed in this report contain certain forward-looking statements,
including, without limitation, statements regarding future financial performance
and the effect of government  regulations.  Actual results may differ materially
from those described in the forward-looking statements and will be affected by a
variety of risks and factors including,  without limitation:  national and local
economic  conditions;  the terms of  governmental  regulations  that  affect the
Registrant and interpretations of those regulations; the competitive environment
in which the Registrant operates;  financing risks, including the risk that cash
flows from operations may be insufficient to meet required payments of principal
and interest;  real estate risks, including variations of real estate values and
the general  economic  climate in local markets and  competition  for tenants in
such markets;  litigation,  including  costs  associated  with  prosecuting  and
defending  claims  and  any  adverse   outcomes,   and  possible   environmental
liabilities.   Readers  should  carefully  review  the  Partnership's  financial
statements and the notes thereto,  as well as the risk factors  described in the
documents  the  Partnership  files  from  time to time with the  Securities  and
Exchange Commission.

The Partnership's  investment  properties consist of three apartment  complexes.
The following  table sets forth the average  occupancy of the properties for the
nine months ended September 30, 2005 and 2004:

                                                     Average Occupancy
                                                      2005       2004
      Big Walnut Apartments
         Columbus, Ohio (1)                           72%         81%
      The Trails Apartments
         Nashville, Tennessee                         94%         95%
      Reflections Apartments
         Indianapolis, Indiana (2)                    92%         87%

(1)   The Managing  General Partner  attributes the decrease in occupancy at Big
      Walnut  Apartments to an effort to improve  resident  quality and security
      issues in the  surrounding  area along with the slow economy in the market
      area.

(2)   The  Managing  General  Partner  attributes  the  increase in occupancy at
      Reflections  Apartments to the  completion of a major  renovation  project
      during 2003 and increased  training of sales staff.  The project  enhanced
      the appearance of the property to attract tenants.

The  Partnership's  financial  results depend upon a number of factors including
the  ability to attract  and  maintain  tenants  at the  investment  properties,
interest  rates on mortgage  loans,  costs  incurred  to operate the  investment
properties,  general  economic  conditions  and weather.  As part of the ongoing
business plan of the  Partnership,  the Managing  General  Partner  monitors the
rental market environment of its investment properties to assess the feasibility
of increasing rents,  maintaining or increasing  occupancy levels and protecting
the Partnership  from increases in expenses.  As part of this plan, the Managing
General  Partner  attempts  to  protect  the  Partnership  from  the  burden  of
inflation-related  increases in expenses by increasing  rents and  maintaining a
high overall  occupancy  level.  However,  the Managing  General Partner may use
rental  concessions  and  rental  rate  reductions  to offset  softening  market
conditions, accordingly, there is no guarantee that the Managing General Partner
will be able to  sustain  such a plan.  Further,  a number of  factors  that are
outside the control of the  Partnership  such as the local economic  climate and
weather can adversely or positively affect the Partnership's financial results.

Results of Operations

The  Partnership's  net loss for the three and nine months ended  September  30,
2005 was approximately $357,000 and $1,209,000,  respectively, compared to a net
loss of approximately  $198,000 and $832,000 for the three and nine months ended
September  30,  2004,  respectively.  The increase in net loss for the three and
nine months  ended  September  30, 2005 is due to an increase in total  expenses
partially offset by an increase in total revenues.

Total  expenses for the three months ended  September 30, 2005  increased due to
increases in depreciation,  interest and property tax expenses, partially offset
by a decrease in  operating  expense.  Total  expenses for the nine months ended
September  30, 2005  increased  due to  increases  in  operating,  depreciation,
interest,  and property tax expenses  partially  offset by a decrease in general
and  administrative  expense.  Operating  expense  for the  three  months  ended
September  30, 2005  decreased  due to a decrease in  property  and  maintenance
expenses.  Property  expense  for the three  months  ended  September  30,  2005
decreased  due to a decrease  in utility  costs at Big Walnut  Apartments  and a
decrease  in  payroll  and  related  benefits  at  Big  Walnut   Apartments  and
Reflections Apartments. Maintenance expense decreased for the three month period
due to a  decrease  in  contract  labor  costs  at  Big  Walnut  Apartments  and
Reflections  Apartments,  partially  offset by a decrease in operating  expenses
capitalized  as  part  of the  renovation  project  at  Reflections  Apartments.
Operating  expense for the nine month period ended  September 30, 2005 increased
due to an  increase  in  property  expenses  partially  offset by  decreases  in
advertising and maintenance expense. Property expenses for the nine months ended
September 30, 2005 increased due to increases in payroll and related benefits at
all of the investment properties.  Advertising expense for the nine months ended
September  30,  2005  decreased  due to  decreases  in  newspaper  and  curbside
advertising  at  Reflections  Apartments  partially  offset  by an  increase  in
periodical usage at Big Walnut Apartments.  Maintenance expense for both periods
decreased  due to decreases  in expenses at  Reflections  Apartments  due to the
completion of the rehabilitation project in 2004.  Depreciation expense for both
periods  increased  due to fixed  assets being placed into service over the past
year at Big Walnut Apartments and Reflections  Apartments.  Interest expense for
both  periods  increased  due to  higher  average  balances  on loans  due to an
affiliate  of the  Managing  General  Partner  in 2005  and an  increase  in the
variable interest rate on the mortgage at Big Walnut Apartments.  Property taxes
increased for both periods due to an adjustment to property tax expense  related
to capitalized  assets from the redevelopment of Reflections  Apartments and the
adjustments  reflected  in 2004 for refunds of prior year taxes as a result of a
successful appeal at Reflections Apartments.

Total revenues for the three month period increased due to an increase in rental
income. Total revenues for the nine month period increased due to an increase in
rental income  partially offset by decreases in other income and a casualty gain
recorded in 2004. Rental income increased for both periods due to an increase in
occupancy at Reflections Apartments,  an increase in the average rental rates at
The Trails  Apartments and  Reflections  Apartments,  and a decrease in bad debt
expense at Reflections Apartments partially offset by a decrease in occupancy at
Big Walnut and The Trails  Apartments  and a decrease in the average rental rate
at Big Walnut  Apartments.  Other income decreased for the nine month period due
to a decrease in late charges at Reflections  Apartments and a decrease in lease
cancellation fees at Big Walnut Apartments.
<PAGE>
General and administrative expenses for the nine months ended September 30, 2005
decreased due to Tennessee  franchise taxes paid in 2004 partially  offset by an
increase in the management  reimbursements  to the Managing  General Partner and
the cost of the annual audit.  Included in general and  administrative  expenses
for  the  nine  months  ended   September  30,  2005  and  2004  are  management
reimbursements  to the Managing General Partner as allowed under the Partnership
Agreement. Also included in general and administrative expenses for both periods
are costs associated with the quarterly and annual communications with investors
and  regulatory  agencies  and the  annual  audit  required  by the  Partnership
Agreement.

During  the nine  months  ended  September  30,  2004,  a net  casualty  gain of
approximately  $9,000 was recorded at Big Walnut  Apartments.  The casualty gain
was related to a fire that  occurred at Big Walnut  Apartments  that damaged two
apartments  in March  2003.  The gain was the  result  of  additional  insurance
proceeds of approximately $9,000 received during the nine months ended September
30, 2004.

Liquidity and Capital Resources

At  September  30,  2005,  the  Partnership  had cash and  cash  equivalents  of
approximately $439,000 compared to approximately $252,000 at September 30, 2004.
Cash and cash equivalents  decreased  approximately  $257,000 since December 31,
2004 due to  approximately  $954,000 of cash used in  investing  activities  and
approximately  $356,000 of cash used in financing activities partially offset by
approximately $1,053,000 of cash provided by operating activities.  Cash used in
investing activities consisted of property  improvements and replacements.  Cash
used in financing  activities  consisted of principal  payments on the mortgages
encumbering the Partnership's investment properties partially offset by advances
received  from  affiliates  of the Managing  General  Partner.  The  Partnership
invests its working capital reserves in interest bearing accounts.

The sufficiency of existing  liquid assets to meet future  liquidity and capital
expenditure   requirements   is  directly   related  to  the  level  of  capital
expenditures required at the Partnership's properties to adequately maintain the
physical  assets and other operating needs of the Partnership and to comply with
Federal,  state,  and local  legal and  regulatory  requirements.  The  Managing
General  Partner  monitors  developments  in the  area of legal  and  regulatory
compliance.  For example,  the  Sarbanes-Oxley  Act of 2002 mandates or suggests
additional compliance measures with regard to governance,  disclosure, audit and
other areas.  In light of these changes,  the  Partnership  expects that it will
incur higher expenses related to compliance.  Capital  improvements  planned for
each of the Partnership's properties are detailed below.

Big Walnut Apartments

During the nine months ended  September  30,  2005,  the  Partnership  completed
approximately   $413,000  of  capital  expenditures  at  Big  Walnut  Apartments
consisting  primarily of electrical  upgrades,  plumbing  fixtures,  parking lot
upgrades, and appliance and floor covering replacements. These improvements were
funded from  operating  cash flow and advances from an affiliate of the Managing
General Partner.  The Partnership  regularly  evaluates the capital  improvement
needs of the property.  While the  Partnership  has no material  commitments for
property improvements and replacements, certain routine capital expenditures are
anticipated  during 2005. Such capital  expenditures will depend on the physical
condition of the property as well as replacement  reserves and anticipated  cash
flow generated by the property.

The Trails Apartments

During the nine months ended  September  30,  2005,  the  Partnership  completed
approximately   $422,000  of  capital  expenditures  at  The  Trails  Apartments
consisting  primarily of vinyl siding  replacement,  electrical  upgrades,  fire
safety  upgrades,   structural  upgrades,   and  floor  covering  and  appliance
replacements.  These  improvements  were  funded  from  operating  cash flow and
advances  from an affiliate of the Managing  General  Partner.  The  Partnership
regularly  evaluates the capital  improvement  needs of the property.  While the
Partnership  has  no  material   commitments  for  property   improvements   and
replacements,  certain routine capital expenditures are anticipated during 2005.
Such capital  expenditures will depend on the physical condition of the property
as well as anticipated cash flow generated by the property.

Reflections Apartments

During the nine months ended  September  30,  2005,  the  Partnership  completed
approximately   $117,000  of  capital  expenditures  at  Reflections  Apartments
consisting  primarily of floor covering  replacements,  major  landscaping,  and
structural  upgrades.  These  improvements were funded from operating cash flow.
The  Partnership  regularly  evaluates  the  capital  improvement  needs  of the
property.  While  the  Partnership  has no  material  commitments  for  property
improvements  and  replacements,   certain  routine  capital   expenditures  are
anticipated  during 2005. Such capital  expenditures will depend on the physical
condition  of the  property as well as  anticipated  cash flow  generated by the
property.

Capital expenditures will be incurred only if cash is available from operations,
from  Partnership  reserves or from  advances  from an affiliate of the Managing
General  Partner.  To the extent that capital  improvements  are completed,  the
Partnership's  distributable  cash flow,  if any, may be  adversely  affected at
least in the short term.

The  Partnership's  assets are thought to be sufficient for any near-term  needs
(exclusive  of  capital   improvements)   of  the   Partnership.   The  mortgage
indebtedness  encumbering  Reflections  Apartments of approximately  $12,970,000
matures  in  January  2029 at  which  time  the  loan is  scheduled  to be fully
amortized.  The  mortgage  note has a call option which allows for the lender to
declare  the  outstanding  principal  of the loan due and payable on February 1,
2009  and on every  fifth  anniversary  thereafter.  The  mortgage  indebtedness
encumbering  The Trails and Big Walnut  Apartments of  approximately  $9,587,000
matures  in 2007 and 2009 at which  time  balloon  payments  are  required.  The
Managing General Partner has the option to extend the maturity on the Big Walnut
Apartments  loan for another  five years.  The  Managing  General  Partner  will
attempt to refinance and/or sell the properties prior to such maturity dates. If
the  properties  cannot  be  refinanced  or sold for a  sufficient  amount,  the
Partnership may risk losing such properties through foreclosure.

In accordance  with the  Partnership  Agreement,  the Managing  General  Partner
advanced the  Partnership  approximately  $197,000 and $405,000  during the nine
months  ended  September  30,  2005 and  2004,  respectively,  to cover  capital
improvements  and  operational  expenses  for 2005 and 2004 and to assist in the
closing of the  refinancing  required at  Reflections  Apartments  in 2004.  The
Partnership repaid approximately $682,000 during the nine months ended September
30, 2004. At September 30, 2005, the amount of the outstanding loans and accrued
interest was approximately $9,291,000.  Interest is charged at prime plus 1%, or
7.75% at September 30, 2005.  Interest  expense was  approximately  $462,000 and
$326,000 for the nine months ended  September  30, 2005 and 2004,  respectively.
The Managing General Partner is considering the remedies it can pursue including
accelerating repayment of the outstanding loans it has made to the Partnership.

Pursuant to the Partnership Agreement,  the term of the Partnership is scheduled
to expire on December 31, 2008. Accordingly,  prior to such date the Partnership
will need to either  sell the  investment  properties  or extend the term of the
Partnership.

No cash  distributions were made during the nine months ended September 30, 2005
or 2004.  Future  cash  distributions  will  depend  on the  levels  of net cash
generated from  operations,  and the timing of debt  maturities,  property sales
and/or  refinancings.  The  Partnership's  cash  available for  distribution  is
reviewed  on a monthly  basis.  In light of the  significant  amounts due to the
Managing  General Partner at September 30, 2005, it is not anticipated  that the
Partnership will make any distributions in the foreseeable future.

Other

In addition to its indirect  ownership of the  managing  and  associate  general
partner  interest in the  Partnership,  AIMCO and its  affiliates  owned  656.50
limited  partnership units ("Units") in the Partnership  representing  53.62% of
the  outstanding  Units at  September  30,  2005.  A number of these  Units were
acquired  pursuant  to  tender  offers  made by AIMCO or its  affiliates.  It is
possible that AIMCO or its affiliates will acquire  additional Units in exchange
for cash or a  combination  of cash and  units in AIMCO  Properties,  L.P.,  the
operating  partnership  of AIMCO,  either  through  private  purchases or tender
offers. Pursuant to the Partnership Agreement, unitholders holding a majority of
the Units are  entitled to take action with respect to a variety of matters that
include, but are not limited to, voting on certain amendments to the Partnership
Agreement and voting to remove the Managing General Partner.  As a result of its
ownership of 53.62% of the outstanding  Units, AIMCO is in a position to control
all such voting decisions with respect to the Partnership. Although the Managing
General  Partner  owes  fiduciary   duties  to  the  limited   partners  of  the
Partnership, the Managing General Partner also owes fiduciary duties to AIMCO as
its sole stockholder.  As a result,  the duties of the Managing General Partner,
as managing  general  partner,  to the Partnership and its limited  partners may
come into conflict with the duties of the Managing  General  Partner to AIMCO as
its sole stockholder.

Critical Accounting Policies and Estimates

The consolidated financial statements are prepared in accordance with accounting
principles   generally  accepted  in  the  United  States,   which  require  the
Partnership to make estimates and assumptions.  The Partnership believes that of
its significant  accounting policies,  the following may involve a higher degree
of judgment and complexity.

Impairment of Long-Lived Assets

Investment  properties  are  recorded at cost,  less  accumulated  depreciation,
unless  considered  impaired.  If  events  or  circumstances  indicate  that the
carrying  amount of a property may be  impaired,  the  Partnership  will make an
assessment of its  recoverability  by estimating  the  undiscounted  future cash
flows,  excluding  interest  charges,  of the property.  If the carrying  amount
exceeds the aggregate  future cash flows,  the  Partnership  would  recognize an
impairment  loss to the extent the carrying amount exceeds the fair value of the
property.

Real  property  investments  are  subject  to varying  degrees of risk.  Several
factors  may  adversely  affect  the  economic  performance  and  value  of  the
Partnership's investment properties.  These factors include, but are not limited
to,  changes  in the  national,  regional  and  local  economic  climate;  local
conditions,  such as an oversupply of multifamily  properties;  competition from
other available  multifamily property owners and changes in market rental rates.
Any adverse changes in these factors could cause impairment of the Partnership's
assets.

Revenue Recognition

The Partnership generally leases apartment units for twelve-month terms or less.
The Partnership will offer rental concessions during particularly slow months or
in response  to heavy  competition  from other  similar  complexes  in the area.
Rental income attributable to leases, net of any concessions, is recognized on a
straight-line  basis over the term of the lease.  The Partnership  evaluates all
accounts  receivable  from  residents and  establishes  an allowance,  after the
application of security deposits,  for accounts greater than 30 days past due on
current tenants and all receivables due from former tenants.

ITEM 3.     CONTROLS AND PROCEDURES

(a) Disclosure Controls and Procedures.  The Partnership's management,  with the
participation of the principal executive officer and principal financial officer
of the Managing  General  Partner,  who are the equivalent of the  Partnership's
principal executive officer and principal financial officer,  respectively,  has
evaluated  the  effectiveness  of  the  Partnership's  disclosure  controls  and
procedures (as such term is defined in Rules  13a-15(e) and 15d-15(e)  under the
Securities  Exchange Act of 1934, as amended (the "Exchange Act")) as of the end
of the period covered by this report.  Based on such  evaluation,  the principal
executive  officer  and  principal  financial  officer of the  Managing  General
Partner, who are the equivalent of the Partnership's principal executive officer
and principal  financial officer,  respectively,  have concluded that, as of the
end of such period,  the  Partnership's  disclosure  controls and procedures are
effective.

(b) Internal Control Over Financial  Reporting.  There have not been any changes
in the Partnership's  internal control over financial reporting (as such term is
defined in Rules  13a-15(f)  and  15d-15(f)  under the Exchange  Act) during the
fiscal quarter to which this report relates that have  materially  affected,  or
are reasonably likely to materially affect,  the Partnership's  internal control
over financial reporting.
<PAGE>
                           PART II - OTHER INFORMATION

ITEM 1.     LEGAL PROCEEDINGS

In March 1998, several putative unit holders of limited partnership units of the
Partnership  commenced an action  entitled  Rosalie  Nuanes,  et al. v. Insignia
Financial Group, Inc., et al. (the "Nuanes action") in the Superior Court of the
State of  California  for the  County  of San  Mateo.  The  plaintiffs  named as
defendants,  among others,  the  Partnership,  its Managing  General Partner and
several of their  affiliated  partnerships  and corporate  entities.  The action
purported  to  assert  claims  on  behalf  of a class of  limited  partners  and
derivatively  on behalf  of a number  of  limited  partnerships  (including  the
Partnership)  that are named as nominal  defendants,  challenging,  among  other
things,  the  acquisition  of  interests  in certain  Managing  General  Partner
entities by Insignia Financial Group, Inc.  ("Insignia") and entities that were,
at one  time,  affiliates  of  Insignia;  past  tender  offers  by the  Insignia
affiliates to acquire limited partnership units;  management of the partnerships
by the  Insignia  affiliates;  and the series of  transactions  which  closed on
October 1, 1998 and February 26, 1999 whereby  Insignia and Insignia  Properties
Trust,  respectively,  were merged into AIMCO.  The plaintiffs  sought  monetary
damages and equitable relief, including judicial dissolution of the Partnership.
In addition,  during the third quarter of 2001, a complaint  captioned Heller v.
Insignia  Financial  Group (the  "Heller  action")  was filed  against  the same
defendants  that are named in the  Nuanes  action.  On or about  August 6, 2001,
plaintiffs filed a first amended  complaint.  The Heller action was brought as a
purported derivative action, and asserted claims for, among other things, breach
of fiduciary  duty,  unfair  competition,  conversion,  unjust  enrichment,  and
judicial  dissolution.  On January 28, 2002, the trial court granted  defendants
motion to strike the complaint. Plaintiffs took an appeal from this order.

On January 8, 2003,  the parties filed a  Stipulation  of Settlement in proposed
settlement of the Nuanes  action and the Heller  action.  On June 13, 2003,  the
court granted final approval of the settlement and entered  judgment in both the
Nuanes and Heller actions. On August 12, 2003, an objector ("Objector") filed an
appeal (the "Appeal")  seeking to vacate and/or reverse the order  approving the
settlement and entering  judgment  thereto.  On May 4, 2004 the Objector filed a
second appeal  challenging  the court's use of a referee and its order requiring
Objector to pay those fees.

On March 21, 2005, the Court of Appeals issued opinions in both pending appeals.
With regard to the settlement and judgment entered thereto, the Court of Appeals
vacated  the trial  court's  order and  remanded  to the trial court for further
findings  on the basis that the "state of the record is  insufficient  to permit
meaningful  appellate  review".  With regard to the second appeal,  the Court of
Appeals  reversed the order requiring the Objector to pay referee fees. On April
26, 2005,  the Court of Appeals  lifted the stay of a pending  appeal related to
the Heller action and the trial court's order striking the  complaint.  On April
28, 2005, the Objector  filed a Petition for Review with the California  Supreme
Court in connection with the opinion vacating the order approving settlement and
remanding for further  findings.  On June 10, 2005 the California  Supreme Court
denied  Objector's  Petition for Review and the Court of Appeals sent the matter
back to the trial court on June 21,  2005.  The parties  intend to ask the trial
court to make further findings in connection with settlement consistent with the
Court of Appeal's  remand order.  With respect to the related Heller appeal,  on
July 28, 2005,  the Court of Appeals  reversed the trial court's order  striking
the first amended complaint.

On August 18, 2005,  Objector and his counsel filed a motion to  disqualify  the
trial court based on a peremptory challenge and filed a motion to disqualify for
cause on October 17, 2005. On or about October 13, 2005 Objector  filed a motion
to  intervene  and on or about  October  19,  2005  filed  both a motion to take
discovery  relating to the adequacy of plaintiffs as derivative  representatives
and a motion to dissolve the anti-suit injunction in connection with settlement.
On October 27, 2005, the Court denied Objector's peremptory challenge and struck
Objector's motion to disqualify for cause. No hearing has been set on Objector's
remaining motions. On November 3, 2005, Objector and his counsel filed a writ of
mandate to the Court of Appeals challenging the court's October 27, 2005 order.

The  Managing  General  Partner  does  not  anticipate  that  any  costs  to the
Partnership, whether legal or settlement costs, associated with these cases will
be material to the Partnership's overall operations.

AIMCO  Properties  L.P.  and NHP  Management  Company,  both  affiliates  of the
Managing  General  Partner,  are  defendants  in a  lawsuit  alleging  that they
willfully  violated  the Fair Labor  Standards  Act  ("FLSA")  by failing to pay
maintenance  workers  overtime for all hours worked in excess of forty per week.
The  complaint,  filed in the United States  District  Court for the District of
Columbia,  attempts  to bring a  collective  action  under the FLSA and seeks to
certify state subclasses in California,  Maryland, and the District of Columbia.
Specifically,  the  plaintiffs  contend  that  AIMCO  Properties  L.P.  and  NHP
Management Company failed to compensate  maintenance  workers for time that they
were  required  to be  "on-call".  Additionally,  the  complaint  alleges  AIMCO
Properties  L.P. and NHP  Management  Company  failed to comply with the FLSA in
compensating maintenance workers for time that they worked in excess of 40 hours
in a week. In June 2005 the Court conditionally  certified the collective action
on both the on-call and overtime issues,  which allows the plaintiffs to provide
notice of the  collective  action to all  non-exempt  maintenance  workers  from
August 7, 2000 through the present. Those employees will have the opportunity to
opt-in to the collective action,  and AIMCO Properties,  L.P. and NHP Management
Company will have the  opportunity to move to decertify the  collective  action.
Because the court denied  plaintiffs'  motion to certify  state  subclasses,  on
September  26,  2005,  the  plaintiffs  filed  a  class  action  with  the  same
allegations in the Superior Court of California (Contra Costa County).  Although
the outcome of any  litigation is  uncertain,  AIMCO  Properties,  L.P. does not
believe that the ultimate  outcome  will have a material  adverse  effect on its
consolidated  financial  condition  or results  of  operations.  Similarly,  the
Managing  General Partner does not believe that the ultimate outcome will have a
material adverse effect on the Partnership's consolidated financial condition or
results of operations.

ITEM 5.     OTHER INFORMATION

            None.

ITEM 6.     EXHIBITS

            See Exhibit Index.


<PAGE>


                                   SIGNATURES



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



                                    DAVIDSON DIVERSIFIED REAL ESTATE II, L.P.


                                    By:   Davidson Diversified Properties, Inc.
                                          Its Managing General Partner

                                    By:   /s/Martha L. Long
                                          Martha L. Long
                                          Senior Vice President

                                    By:   /s/Stephen B. Waters
                                           Stephen B. Waters
                                           Vice President

                                    Date: November 14, 2005
<PAGE>


                   DAVIDSON DIVERSIFIED REAL ESTATE II, LP
                                  EXHIBIT INDEX

Exhibit Number    Description of Exhibit

     3            Partnership  Agreement  dated  June 11,  1984,  as  amended is
                  incorporated  by reference to Exhibit A to the  Prospectus  of
                  the  Registrant  dated  October  16,  1984 as  filed  with the
                  Commission pursuant to Rule 424(b) under the Act.

      3B          Amendment No. 1 to the  Partnership  Agreement dated August 1,
                  1985  is  incorporated  by  reference  to  Exhibit  3B to  the
                  Registrant's  Annual  Report on Form 10-K for the fiscal  year
                  ended December 31, 1985.

      4           Certificate  of Limited  Partnership  dated  June 11,  1984 is
                  incorporated  by  reference  to Exhibit 4 to the  Registrant's
                  Annual Report on Form 10-K for the fiscal year ended  December
                  31, 1987.

      4A          Certificate of Amendment to Limited Partnership dated July 17,
                  1984  is  incorporated  by  reference  to  Exhibit  4A to  the
                  Registrant's  Annual  Report on Form 10-K for the fiscal  year
                  ended December 31, 1987.

      4B          Restated  Certificate of Limited  Partnership dated October 5,
                  1984  is  incorporated  by  reference  to  Exhibit  4B to  the
                  Registrant's  Annual  Report on Form 10-K for the fiscal  year
                  ended December 31, 1987.

     10I          Contract  for Sale of Real  Estate for Big  Walnut  Apartments
                  dated December 6, 1984 between Community  Development Company,
                  an Ohio limited  partnership and Tennessee  Trust Company,  as
                  Trustee is  incorporated  by reference to Exhibit 10(b) to the
                  Registrant's Current Report on Form 8-K dated March 28, 1985.

     10J          Assignment of Contract for Sale of Real Estate dated March 22,
                  1985  between  Tennessee  Trust  Company,   Trustee,  and  the
                  Registrant,  relating to assignment of Purchase  Agreement for
                  Big Walnut  Apartments is incorporated by reference to Exhibit
                  10(a) to the  Registrant's  Current  Report  on Form 8-K dated
                  March 28, 1985.

     10K          Contract  for Sale of Real  Estate for The  Trails  Apartments
                  dated July 31, 1985 between  Trails of  Nashville  Associates,
                  Ltd., a Tennessee limited  partnership by reference to Exhibit
                  10(b) to the  Registrant's  Current  Report  on Form 8-K dated
                  August 30, 1985.

     10L          Assignment  of Contract  for Sale of Real Estate  dated August
                  28, 1985 between  Tennessee Trust Company,  as Trustee and the
                  Registrant,  relating to  assignment  of Contract  for Sale of
                  Real  Estate  for The Trails  Apartments  is  incorporated  by
                  reference to Exhibit 10(a) to the Registrant's  Current Report
                  on Form 8-K dated August 30, 1985.

     10M          Contract  for  Sale  of Real  Estate  for  Greensprings  Manor
                  Apartments dated July 15, 1985 between Greensprings Apartments
                  Associates, an Indiana limited partnership and Tennessee Trust
                  Company,  as Trustee,  is incorporated by reference to Exhibit
                  20(d) to the  Registrant's  Current  Report  on Form 8-K dated
                  August 30, 1985.

     10N          Assignment  of Contract for Sale of Real Estate dated August
                  28, 1985 between  Tennessee  Trust  Company,  as Trustee and
                  the Registrant,  relating to assignment of Contract for Sale
                  of  Real  Estate  for   Greensprings   Manor  Apartments  is
                  incorporated   by   reference   to  Exhibit   10(c)  to  the
                  Registrant's  Current  Report on Form 8-K dated  August  30,
                  1985.

     10W          Deed of Trust and Security  Agreement  dated  December 1, 1984
                  between  Trails of  Nashville  Associates,  Ltd.,  and Capital
                  Holding  Corporation  relating  to The  Trails  Apartments  is
                  incorporated by reference to Exhibit 10QQ to the  Registrant's
                  Annual Report on Form 10-K for the fiscal year ended  December
                  31, 1985.

     10X          Note  dated   December  28,  1984   executed  by  Trails  of
                  Nashville  Associates,   Ltd.,  payable  to  The  Industrial
                  Development   Board  of  the   Metropolitan   Government  of
                  Nashville  and  Davidson   County  relating  to  The  Trails
                  Apartments is  incorporated  by reference to Exhibit 10RR to
                  the  Registrant's  Annual Report on Form 10-K for the fiscal
                  year ended December 31, 1985.

     10GG         Assignment   of  Limited   Partnership   Interest  of  Freeman
                  Equities,  Limited,  dated December 31, 1991 between  Davidson
                  Diversified Properties, Inc. and Insignia Jacques-Miller, L.P.
                  is   incorporated   by  reference  to  Exhibit  10KKK  to  the
                  Registrant's  Annual  Report on Form 10-K for the fiscal  year
                  ended December 31, 1991.

     10HH         Assignment of General Partner  Interests of Freeman  Equities,
                  Limited,  dated December 31, 1991 between Davidson Diversified
                  Properties,  Inc. and MAE GP  Corporation is  incorporated  by
                  reference to Exhibit 10LLL to the  Registrant's  Annual Report
                  on Form 10-K for the fiscal year ended December 31, 1991.

     10II         Stock  certificate,  dated December 31, 1991 showing ownership
                  of 1,000 shares of Davidson  Diversified  Properties,  Inc. by
                  MAE GP  Corporation  is  incorporated  by reference to Exhibit
                  10MMM to the  Registrant's  Annual Report on Form 10-K for the
                  fiscal year ended December 31, 1991.

     10OO         Multifamily  Note secured by a Mortgage or Deed of Trust dated
                  September  16,  2002,  between  Big  Walnut,   L.P.  and  GMAC
                  Commercial  Mortgage  Corporation,  a California  Corporation,
                  related to Big Walnut  Apartments is incorporated by reference
                  to the exhibit filed with the Form 10-QSB dated  September 30,
                  2002.

     10.6         Promissory   Note  dated   December  11,  2003  between  AIMCO
                  Greenspring L.P., a Delaware limited  partnership,  and Golden
                  American  Life  Insurance  Company,  a  Delaware   corporation
                  incorporated by reference to the  Registrant's  Current Report
                  on Form 8-K dated December 11, 2003.

     10.7         Mortgage, Security Agreement,  Financing Statement and Fixture
                  Filing dated December 11, 2003 between AIMCO Greenspring L.P.,
                  a  Delaware  limited  partnership,  and Golden  American  Life
                  Insurance  Company,  a Delaware  corporation  incorporated  by
                  reference to the Registrant's Current Report on Form 8-K dated
                  December 11, 2003.

     10.8         Assignment of Rents and Leases dated December 11, 2003 between
                  AIMCO  Greenspring L.P., a Delaware limited  partnership,  and
                  Golden American Life Insurance Company, a Delaware corporation
                  incorporated by reference to the  Registrant's  Current Report
                  on Form 8-K dated December 11, 2003.

     31.1         Certification  of  equivalent  of  Chief  Executive  Officer
                  pursuant     to     Securities     Exchange     Act    Rules
                  13a-14(a)/15d-14(a),  as Adopted  Pursuant to Section 302 of
                  the Sarbanes-Oxley Act of 2002.

     31.2         Certification  of  equivalent  of  Chief  Financial  Officer
                  pursuant     to     Securities     Exchange     Act    Rules
                  13a-14(a)/15d-14(a),  as Adopted  Pursuant to Section 302 of
                  the Sarbanes-Oxley Act of 2002.

     32.1         Certification of the equivalent of the Chief Executive Officer
                  and Chief  Financial  Officer  Pursuant  to 18 U.S.C.  Section
                  1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley
                  Act of 2002.

     99A          Agreement  of  Limited  Partnership  for  Big  Walnut,  L.P.
                  between Davidson Diversified  Properties,  Inc. and Davidson
                  Diversified  Real Estate II, L.P. entered into on August 23,
                  1991 is  incorporated  by  reference  to Exhibit  99A to the
                  Registrant's  Annual  Report on Form  10-KSB  for the fiscal
                  year ended December 31, 1992.



<PAGE>



Exhibit 31.1
                                  CERTIFICATION

I, Martha L. Long, certify that:


1.    I  have  reviewed  this  quarterly  report  on  Form  10-QSB  of  Davidson
      Diversified Real Estate II, L.P.;

2.    Based on my knowledge,  this report does not contain any untrue  statement
      of a material fact or omit to state a material fact  necessary to make the
      statements made, in light of the circumstances under which such statements
      were made,  not  misleading  with  respect  to the period  covered by this
      report;

3.    Based on my  knowledge,  the  financial  statements,  and other  financial
      information  included  in this  report,  fairly  present  in all  material
      respects the financial condition,  results of operations and cash flows of
      the small  business  issuer as of, and for, the periods  presented in this
      report;

4.    The  small  business  issuer's  other  certifying  officer(s)  and  I  are
      responsible  for  establishing  and  maintaining  disclosure  controls and
      procedures (as defined in Exchange Act Rules  13a-15(e) and 15d-15(e)) for
      the small business issuer and have:

      (a)   Designed such  disclosure  controls and  procedures,  or caused such
            disclosure   controls  and  procedures  to  be  designed  under  our
            supervision,  to ensure that  material  information  relating to the
            small business issuer, including its consolidated  subsidiaries,  is
            made  known to us by  others  within  those  entities,  particularly
            during the period in which this report is being prepared;

      (b)   Evaluated  the   effectiveness   of  the  small  business   issuer's
            disclosure  controls and procedures and presented in this report our
            conclusions about the  effectiveness of the disclosure  controls and
            procedures, as of the end of the period covered by this report based
            on such evaluation; and

      (c)   Disclosed in this report any change in the small  business  issuer's
            internal  control over financial  reporting that occurred during the
            small  business  issuer's  most  recent  fiscal  quarter  (the small
            business  issuer's  fourth  fiscal  quarter in the case of an annual
            report) that has  materially  affected,  or is reasonably  likely to
            materially affect, the small business issuer's internal control over
            financial reporting; and

5.    The  small  business  issuer's  other  certifying  officer(s)  and I  have
      disclosed,  based on our most recent  evaluation of internal  control over
      financial reporting, to the small business issuer's auditors and the audit
      committee of the small  business  issuer's  board of directors (or persons
      performing the equivalent functions):

      (a)   All significant  deficiencies and material  weaknesses in the design
            or operation of internal control over financial  reporting which are
            reasonably  likely to adversely  affect the small business  issuer's
            ability  to  record,   process,   summarize  and  report   financial
            information; and

      (b)   Any fraud,  whether or not  material,  that  involves  management or
            other  employees who have a significant  role in the small  business
            issuer's internal control over financial reporting.

Date:  November 14, 2005

                                    /s/Martha L. Long
                                    Martha L. Long
                                    Senior Vice President of
                                    Davidson Diversified
                                    Properties, Inc., equivalent
                                    of the chief executive officer
                                    of the Partnership


<PAGE>


Exhibit 31.2
                                  CERTIFICATION

I, Stephen B. Waters, certify that:


1.    I  have  reviewed  this  quarterly  report  on  Form  10-QSB  of  Davidson
      Diversified Real Estate II, L.P.;

2.    Based on my knowledge,  this report does not contain any untrue  statement
      of a material fact or omit to state a material fact  necessary to make the
      statements made, in light of the circumstances under which such statements
      were made,  not  misleading  with  respect  to the period  covered by this
      report;

3.    Based on my  knowledge,  the  financial  statements,  and other  financial
      information  included  in this  report,  fairly  present  in all  material
      respects the financial condition,  results of operations and cash flows of
      the small  business  issuer as of, and for, the periods  presented in this
      report;

4.    The  small  business  issuer's  other  certifying  officer(s)  and  I  are
      responsible  for  establishing  and  maintaining  disclosure  controls and
      procedures (as defined in Exchange Act Rules  13a-15(e) and 15d-15(e)) for
      the small business issuer and have:

      (a)   Designed such  disclosure  controls and  procedures,  or caused such
            disclosure   controls  and  procedures  to  be  designed  under  our
            supervision,  to ensure that  material  information  relating to the
            small business issuer, including its consolidated  subsidiaries,  is
            made  known to us by  others  within  those  entities,  particularly
            during the period in which this report is being prepared;

      (b)   Evaluated  the   effectiveness   of  the  small  business   issuer's
            disclosure  controls and procedures and presented in this report our
            conclusions about the  effectiveness of the disclosure  controls and
            procedures, as of the end of the period covered by this report based
            on such evaluation; and

      (c)   Disclosed in this report any change in the small  business  issuer's
            internal  control over financial  reporting that occurred during the
            small  business  issuer's  most  recent  fiscal  quarter  (the small
            business  issuer's  fourth  fiscal  quarter in the case of an annual
            report) that has  materially  affected,  or is reasonably  likely to
            materially affect, the small business issuer's internal control over
            financial reporting; and

5.    The  small  business  issuer's  other  certifying  officer(s)  and I  have
      disclosed,  based on our most recent  evaluation of internal  control over
      financial reporting, to the small business issuer's auditors and the audit
      committee of the small  business  issuer's  board of directors (or persons
      performing the equivalent functions):

      (a)   All significant  deficiencies and material  weaknesses in the design
            or operation of internal control over financial  reporting which are
            reasonably  likely to adversely  affect the small business  issuer's
            ability  to  record,   process,   summarize  and  report   financial
            information; and

      (b)   Any fraud,  whether or not  material,  that  involves  management or
            other  employees who have a significant  role in the small  business
            issuer's internal control over financial reporting.

Date: November 14, 2005
                                    /s/Stephen B. Waters
                                    Stephen B. Waters
                                    Vice President of Davidson
                                    Diversified Properties, Inc.,
                                    equivalent of the chief
                                    financial officer of the
                                    Partnership


<PAGE>



Exhibit 32.1


                          Certification of CEO and CFO
                       Pursuant to 18 U.S.C. Section 1350,
                             As Adopted Pursuant to
                Section 906 of the Sarbanes-Oxley Act of 2002



In connection with the Quarterly  Report on Form 10-QSB of Davidson  Diversified
Real  Estate II,  L.P.  (the  "Partnership"),  for the  quarterly  period  ended
September 30, 2005 as filed with the Securities  and Exchange  Commission on the
date hereof  (the  "Report"),  Martha L. Long,  as the  equivalent  of the chief
executive  officer of the Partnership,  and Stephen B. Waters, as the equivalent
of the chief  financial  officer  of the  Partnership,  each  hereby  certifies,
pursuant to 18 U.S.C.  Section 1350,  as adopted  pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002, that, to the best of his knowledge:

      (1)   The Report fully complies with the  requirements of Section 13(a) or
            15(d) of the Securities Exchange Act of 1934; and

      (2)   The  information  contained in the Report  fairly  presents,  in all
            material respects, the financial condition and results of operations
            of the Partnership.


                                           /s/Martha L. Long
                                    Name:  Martha L. Long
                                    Date:  November 14, 2005


                                           /s/Stephen B. Waters
                                    Name:  Stephen B. Waters
                                    Date:  November 14, 2005

This  certification is furnished with this Report pursuant to Section 906 of the
Sarbanes-Oxley  Act of 2002 and shall not be deemed filed by the Partnership for
purposes of Section 18 of the Securities Exchange Act of 1934, as amended.