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


                                    FORM 10-Q



[x]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
     EXCHANGE ACT OF 1934


     For the quarterly period ended       June 30, 1998
                                    --------------------------------------------


                                       OR

[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

     For the transition period from ______________ to_____________
     Commission file number  0-14007
                           ----------




                        MCNEIL REAL ESTATE FUND XX, L.P.
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)



         California                                    33-0050225
--------------------------------------------------------------------------------
(State or other jurisdiction of                       (I.R.S. Employer
incorporation or organization)                         Identification No.)



             13760 Noel Road, Suite 600, LB70, Dallas, Texas, 75240
--------------------------------------------------------------------------------
               (Address of principal executive offices) (Zip code)



Registrant's telephone number, including area code       (972) 448-5800
                                                   -----------------------------


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


<PAGE>
                          PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS
------- --------------------

                        MCNEIL REAL ESTATE FUND XX, L.P.

                                 BALANCE SHEETS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                           June 30,          December 31,
                                                                             1998                1997
                                                                        --------------      --------------
ASSETS
-------

Real estate investments:
<S>                                                                     <C>                  <C>          
   Land.....................................................            $      392,000       $     392,000
   Buildings and improvements...............................                 3,903,427           3,882,558
                                                                        --------------       -------------
                                                                             4,295,427           4,274,558
   Less:  Accumulated depreciation..........................                (1,410,186)         (1,290,949)
                                                                        --------------       -------------
                                                                             2,885,241           2,983,609

Mortgage loan investments, net of allowance of
   $792,013 at December 31, 1997............................                 2,251,665           3,268,712
Mortgage loan investments - affiliate, net of allowance
   of $130,000 at December 31, 1997.........................                         -           3,600,076
Cash and cash equivalents ..................................                 6,334,552           1,824,293
Cash segregated for security deposits.......................                    26,305              27,405
Interest and other accounts receivable......................                    27,866             140,025
Escrow deposits.............................................                   107,846             162,652
Deferred borrowing costs, net of accumulated
   amortization of $68,188 and $60,222 at June 30,
   1998 and December 31, 1997, respectively.................                    93,306             101,272
Prepaid expenses and other assets...........................                     4,200               4,200
                                                                        --------------       -------------
                                                                        $   11,730,981       $  12,112,244
                                                                        ==============       =============

LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
------------------------------------------

Mortgage note payable, net..................................            $    2,640,692       $   2,666,814
Accounts payable and other accrued expenses.................                    35,167              61,994
Accrued property taxes......................................                    77,938             137,050
Payable to affiliates.......................................                   288,409             203,444
Deferred revenue............................................                     3,863              27,229
Security deposits and deferred rental revenue...............                    27,840              29,494
                                                                        --------------       -------------
                                                                             3,073,909           3,126,025
                                                                        --------------       -------------

Partners' equity (deficit):
   Limited  partners  - 60,000 limited partnership units
     authorized;  49,512 limited partnership units issued
     and outstanding at June 30, 1998 and 
     December 31, 1997......................................                 8,942,005           9,282,684
   General Partner..........................................                  (284,933)           (296,465)
                                                                        --------------       -------------
                                                                             8,657,072           8,986,219
                                                                        --------------       -------------
                                                                        $   11,730,981       $  12,112,244
                                                                        ==============       =============
</TABLE>

The  financial  information  included  herein has been  prepared  by  management
without audit by independent public accountants.

                 See accompanying notes to financial statements.
<PAGE>
                        McNEIL REAL ESTATE FUND XX, L.P.

                            STATEMENTS OF OPERATIONS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                        Three Months Ended        Six Months Ended
                                            June 30,                  June 30,
                                    -----------------------   -----------------------
                                       1998         1997         1998         1997
                                    ----------   ----------   ----------   ----------
Revenue:
<S>                                 <C>          <C>          <C>          <C>       
   Rental revenue ...............   $  309,192   $  327,275   $  646,880   $  657,911
   Interest income on mortgage
    loan investments ............       69,284       62,495      138,780      130,252
   Interest income on mortgage
    loan investments - affiliate             -       15,305      108,214       30,442
   Other interest income ........       62,949       32,747       85,112       69,800
   Gain on extinguishment of
    mortgage loan investment ....    1,025,833            -    1,025,833            -
                                    ----------   ----------   ----------   ----------
      Total revenue .............    1,467,258      437,822    2,004,819      888,405
                                    ----------   ----------   ----------   ----------

Expenses:
   Interest .....................       60,994       61,844      122,298      123,975
   Depreciation .................       59,792       59,437      119,237      145,024
   Property taxes ...............       41,046       44,820       77,938       89,239
   Personnel costs ..............       33,277       35,600       74,074       77,462
   Utilities ....................       19,950       20,023       40,175       39,639
   Repairs and maintenance ......       28,402       19,482       57,278       69,308
   Property management
    fees - affiliates ...........       15,038       16,597       30,032       32,823
   Other property operating
    expenses ....................       15,583       18,241       36,292       46,274
   General and administrative ...      114,765       21,680      163,200       56,464
   General and administrative -
    affiliates ..................       66,726       67,178      131,126      131,935
                                    ----------   ----------   ----------   ----------
      Total expenses ............      455,573      364,902      851,650      812,143
                                    ----------   ----------   ----------   ----------

Net income ......................   $1,011,685   $   72,920   $1,153,169   $   76,262
                                    ==========   ==========   ==========   ==========

Net income allocable
   to limited partners ..........   $1,001,568   $   72,190   $1,141,637   $   75,499
Net income allocable
   to General Partner ...........       10,117          730       11,532          763
                                    ----------   ----------   ----------   ----------
Net income ......................   $1,011,685   $   72,920   $1,153,169   $   76,262
                                    ==========   ==========   ==========   ==========

Net income per limited
   partnership unit .............   $    20.23   $     1.46   $    23.06   $     1.52
                                    ==========   ==========   ==========   ==========

Distributions per limited
   partnership unit .............   $        -   $        -   $    29.94   $    15.15
                                    ==========   ==========   ==========   ==========
</TABLE>


The  financial  information  included  herein has been  prepared  by  management
without audit by independent public accountants.

                 See accompanying notes to financial statements.
<PAGE>
                        MCNEIL REAL ESTATE FUND XX, L.P.

                    STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
                                   (Unaudited)

                 For the Six Months Ended June 30, 1998 and 1997

<TABLE>
<CAPTION>
                                                                                                   Total
                                                     General                 Limited              Partners'
                                                     Partner                 Partners          Equity (Deficit)
                                                  --------------          --------------       ----------------
<S>                                               <C>                     <C>                   <C>          
Balance at December 31, 1996..............        $    (318,863)          $  10,315,277         $   9,996,414

Net income................................                  763                  75,499                76,262

Distributions to limited partners.........                    -                (749,994)             (749,994)
                                                  -------------           -------------         -------------

Balance at June 30, 1997..................        $    (318,100)          $   9,640,782         $   9,322,682
                                                  =============           =============         =============



Balance at December 31, 1997..............        $    (296,465)          $   9,282,684         $   8,986,219

Net income................................               11,532               1,141,637             1,153,169

Distributions to limited partners.........                    -              (1,482,316)           (1,482,316)
                                                  -------------           -------------         -------------

Balance at June 30, 1998..................        $    (284,933)          $   8,942,005         $   8,657,072
                                                  =============           =============         =============

</TABLE>


The  financial  information  included  herein has been  prepared  by  management
without audit by independent public accountants.

                 See accompanying notes to financial statements.

<PAGE>
                        MCNEIL REAL ESTATE FUND XX, L.P.

                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)

                Increase (Decrease) in Cash and Cash Equivalents


<TABLE>
<CAPTION>
                                                          Six Months Ended
                                                               June 30,
                                                    ---------------------------
                                                        1998          1997
                                                    ------------   ------------

Cash flows from operating activities:
<S>                                                 <C>            <C>        
   Cash received from tenants ...................   $   682,464    $   674,778
   Cash paid to suppliers .......................      (399,169)      (361,511)
   Cash paid to affiliates ......................       (76,193)      (192,710)
   Interest received ............................       220,723        207,023
   Interest received from affiliate .............       184,958         24,443
   Interest paid ................................      (110,294)      (112,663)
   Property taxes paid ..........................          (281)       (19,644)
   Property taxes escrowed ......................       (81,300)       (61,600)
                                                    -----------    -----------
Net cash provided by operating activities .......       420,908        158,116
                                                    -----------    -----------

Cash flows from investing activities:
   Additions to real estate investments .........       (20,869)       (43,923)
   Collection of principal on mortgage loan
     investments ................................        50,880         67,528
   Proceeds from payoff of mortgage loan
     investment .................................     1,992,000              -
   Collection of principal on mortgage loan
     investments - affiliate ....................         9,126              -
   Proceeds from payoff of mortgage loan
     investments - affiliate ....................     3,570,896              -
                                                    -----------    -----------
Net cash provided by investing activities .......     5,602,033         23,605
                                                    -----------    -----------

Cash flows from financing activities:
   Principal payments on mortgage note payable...       (30,366)       (27,996)
   Distributions to limited partners ............    (1,482,316)      (749,994)
                                                    -----------    -----------
Net cash used in financing activities ...........    (1,512,682)      (777,990)
                                                    -----------    -----------

Net increase (decrease) in cash and cash
    equivalents .................................     4,510,259       (596,269)

Cash and cash equivalents at beginning of
   period .......................................     1,824,293      3,188,257
                                                    -----------    -----------

Cash and cash equivalents at end of period ......   $ 6,334,552    $ 2,591,988
                                                    ===========    ===========
</TABLE>


The  financial  information  included  herein has been  prepared  by  management
without audit by independent public accountants.

                 See accompanying notes to financial statements.

<PAGE>
                        MCNEIL REAL ESTATE FUND XX, L.P.

                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)

              Reconciliation of Net Income to Net Cash Provided by
                              Operating Activities

<TABLE>
<CAPTION>
                                                       Six Months Ended
                                                            June 30,
                                                  --------------------------
                                                      1998          1997
                                                  -----------    -----------
<S>                                               <C>            <C>        
Net income ....................................   $ 1,153,169    $    76,262
                                                  -----------    -----------

Adjustments to reconcile net income to net cash
   provided  by  operating  activities:
   Depreciation ...............................       119,237        145,024
   Amortization of deferred borrowing costs ...         7,966          7,473
   Amortization of discount on mortgage note
     payable ..................................         4,244          4,029
   Gain on extinguishment of mortgage
     loan investment ..........................    (1,025,833)             -
   Changes in assets and liabilities:
     Cash segregated for security deposits ....         1,100         17,776
     Interest and other accounts receivable ...       112,159          2,159
     Escrow deposits ..........................        54,806         59,688
     Prepaid expenses and other assets ........             -         (2,313)
     Accounts payable and other accrued
       expenses ...............................       (26,827)       (57,219)
     Accrued property taxes ...................       (59,112)       (61,362)
     Payable to affiliates ....................        84,965        (27,952)
     Deferred revenue .........................        (3,312)        (3,312)
     Security deposits and deferred rental
       revenue ................................        (1,654)        (2,137)
                                                  -----------    -----------

       Total adjustments ......................      (732,261)        81,854
                                                  -----------    -----------

Net cash provided by operating activities .....   $   420,908    $   158,116
                                                  ===========    ===========

</TABLE>



The  financial  information  included  herein has been  prepared  by  management
without audit by independent public accountants.

                 See accompanying notes to financial statements.
<PAGE>
                        MCNEIL REAL ESTATE FUND XX, L.P.

                          Notes to Financial Statements
                                  June 30, 1998
                                   (Unaudited)

NOTE 1.
-------

McNeil  Real  Estate  Fund  XX,  L.P.  (the  "Partnership"),  formerly  known as
Southmark  Income  Investors,  Ltd., was organized on July 19, 1984 as a limited
partnership  under the  provisions of the  California  Revised  Uniform  Limited
Partnership Act. The general partner of the Partnership is McNeil Partners, L.P.
(the "General Partner"), a Delaware limited partnership,  an affiliate of Robert
A. McNeil  ("McNeil").  The principal  place of business for the Partnership and
the General Partner is 13760 Noel Road, Suite 600, Dallas, Texas 75240.

In the opinion of management,  the financial  statements reflect all adjustments
necessary for a fair  presentation of the Partnership's  financial  position and
results  of  operations.  All  adjustments  were of a normal  recurring  nature.
However,  the results of  operations  for the six months ended June 30, 1998 are
not  necessarily  indicative  of the results to be expected  for the year ending
December 31, 1998.

NOTE 2.
-------

The  financial  statements  should  be read in  conjunction  with the  financial
statements  contained in the  Partnership's  Annual  Report on Form 10-K for the
year  ended  December  31,  1997,  and the  notes  thereto,  as  filed  with the
Securities and Exchange  Commission,  which is available upon request by writing
to McNeil Real Estate Fund XX, L.P.,  c/o McNeil Real Estate  Management,  Inc.,
Investor Services, 13760 Noel Road, Suite 600, LB70, Dallas, Texas 75240.

NOTE 3.
-------

Certain prior period amounts have been  reclassified to conform with the current
period presentation.

NOTE 4.
-------

The  Partnership  pays property  management fees equal to 5% of the gross rental
receipts for its properties to McNeil Real Estate Management,  Inc.  ("McREMI"),
an affiliate of the General Partner, for providing property management services.

Under the terms of its partnership agreement, the Partnership pays a disposition
fee to an  affiliate  of the General  Partner  equal up to 3% of the gross sales
price  for  brokerage  services  performed  in  connection  with the sale of the
Partnership's  properties,  provided,  however,  that in no event shall all real
estate  commissions  (including the disposition  fee) paid to all persons exceed
the amount customarily charged in similar arms-length  transactions.  The fee is
due and payable at the time the sale closes.  The Partnership  incurred $124,500
of such  fees  during  1997  in  connection  with  the  sale of 1130  Sacramento
Condominiums.  This amount represents 2.65% of the gross sales price. These fees
have not yet  been  paid by the  Partnership  and are  included  in  payable  to
affiliates on the Balance Sheets at June 30, 1998 and December 31, 1997.

<PAGE>
The  Partnership  reimburses  McREMI  for  its  costs,  including  overhead,  of
administering the Partnership's affairs.

The  Partnership  is paying an asset  management  fee  which is  payable  to the
General  Partner.  Through 1999, the asset management fee is calculated as 1% of
the  Partnership's  tangible asset value.  Tangible asset value is determined by
using the greater of (i) an amount calculated by applying a capitalization  rate
of 9% to the annualized net operating  income of each property,  (ii) a value of
$10,000 per apartment  unit or (iii) on 1130  Sacramento,  the net book value of
the  property  is used to arrive  at the  property  tangible  asset  value.  The
property  tangible  asset  value is then  added to the book  value of all  other
assets  excluding  intangible  items.   The fee percentage  decreases subsequent
to 1999.

Compensation  and  reimbursements  paid to or  accrued  for the  benefit  of the
General Partner and its affiliates are as follows:

                                               Six Months Ended
                                                   June 30,
                                            ---------------------
                                               1998        1997

Property management fees ..............     $ 30,032     $ 32,823
Charged to general and administrative -
   affiliates:
   Partnership administration .........       55,101       55,744
   Asset management fee ...............       76,025       76,191
                                            --------     --------
                                            $161,158     $164,758
                                            ========     ========

Payable to affiliates at June 30, 1998 and December 31, 1997 consisted primarily
of unpaid property  management fees,  disposition fees,  Partnership general and
administrative  expenses and asset  management fees and are due and payable from
current operations.

NOTE 5.
-------

The  Partnership's  mortgage loan  investments - affiliate were secured by first
and second  liens on Fort Meigs  Plaza  Shopping  Center,  which was owned by an
affiliate of the General  Partner.  On April 20, 1998, Fort Meigs Plaza was sold
to a  non-affiliate  for a gross sales price of $3.8  million.  The  Partnership
received  $3,615,353  as  payment  in  full  for  both  principal  and  interest
receivable on the loans,  which  represents the available cash proceeds from the
sale of the property.

NOTE 6.
-------

The  mortgage  loan  investment  secured by  Idlewood  Nursing  Home  matured in
February  1998. On May 1, 1998, the  Partnership  received $2.4 million from the
borrower as payment in full for both  principal  and interest  receivable on the
loan (the actual balance of the loan was greater than the book value). Since the
Partnership  owned an 83%  participation  interest in the note,  $408,000 of the
$2.4 million  settlement was paid to the owner of the remaining 17% of the note.
As a result of this transaction, the Partnership recognized a $1,025,833 gain on
extinguishment  of  mortgage  loan  investment,  which  represents  the net cash
received in excess of the book value of the loan.
<PAGE>
ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
-------  ---------------------------------------------------------------
         RESULTS OF OPERATIONS
         ---------------------

FINANCIAL CONDITION
-------------------

There has been no  significant  change in the  operations  of  Sterling  Springs
Apartments; 1130 Sacramento Condominiums was sold in August 1997.

The  Partnership  reported net income of $1,153,169  for the first six months of
1998 as  compared  to  $76,262  for the same  period in 1997.  Revenues  in 1998
increased to $2,004,819  from $888,405 in 1997,  while expenses were $851,650 in
1998 as compared to $812,143 in 1997.

Net cash provided by operating  activities was $420,908 for the six months ended
June 30, 1998. The Partnership expended $20,869 for capital  improvements,  made
$30,366 in  principal  payments on its  mortgage  note  payable and  distributed
$1,482,316  to the limited  partners.  After  receiving a total of $5,622,902 of
principal  on  mortgage  loan   investments  and  mortgage  loan  investments  -
affiliate,  cash and cash equivalents totaled $6,334,552 at June 30, 1998, a net
increase of $4,510,259 from the balance at December 31, 1997.

RESULTS OF OPERATIONS
---------------------

Revenue:

Total  revenue  increased by  $1,029,436  and  $1,116,414  for the three and six
months  ended June 30,  1998,  respectively,  as compared to the same periods in
1997. The increase was mainly due to a gain on  extinguishment  of mortgage loan
investment, as discussed below.

In 1993, the  Partnership  acquired a second lien loan on a property owned by an
affiliate.  The  Partnership  purchased  the first lien loan on this property in
December  1997.  Both loans were repaid by the borrower in April 1998.  Interest
income on  mortgage  loan  investments  -  affiliate  decreased  by $15,305  and
increased  by  $77,772  for the  three  and  six  month  ended  June  30,  1998,
respectively,  as compared to the same periods in 1997. The overall increase was
due to the first six months of 1997  including  interest on the second lien loan
only.  1998  includes  interest  on both the first and second  lien  loans.  The
decrease  in the second  quarter  was due to both of the loans  being  repaid in
April 1998.

The first and second  quarters of 1997 include  interest on the second lien loan
only.  The first quarter of 1998 includes  interest on both the first and second
lien loans. No interest income related to these loans was recorded in the second
quarter of 1998 as it was determined to be uncollectible.

Other  interest  income  increased  by $30,202 and $15,312 for the three and six
months  ended June 30,  1998,  respectively,  as compared to the same periods in
1997.  The  increase  was  the  result  of an  increase  in cash  available  for
short-term  investment  in the  second  quarter  of 1998  due to  payoff  of the
Idlewood Nursing Home mortgage loan investment and the Fort Meigs Plaza mortgage
loan investments - affiliate.


<PAGE>
In the second quarter of 1998, the  Partnership  recognized a $1,025,833 gain on
extinguishment of mortgage loan investment related to the payoff of the Idlewood
Nursing Home loan. The gain represents the cash payoff received in excess of the
book value of the mortgage loan  investment.  No such gain was recognized in the
first six months of 1997.

Expenses:

Total expenses for the three and six month periods ended June 30, 1998 increased
by $90,671 and $39,507,  respectively,  as compared to the same periods in 1997.
The  increase  was  mainly due to an  increase  in  general  and  administrative
expenses, partially offset by decreases in depreciation, property taxes, repairs
and maintenance and other property operating expenses, as discussed below.

Depreciation  expense for the three and six months ended June 30, 1998 increased
by $355 and decreased by $25,787,  respectively, in relation to the same periods
in 1997.  The overall  decrease was due to 1130  Sacramento  Condominiums  being
classified  as an asset  held for sale by the  Partnership  effective  April 15,
1997. In accordance with the Financial Accounting Standards Board's Statement of
Financial  Accounting  Standards  No. 121,  "Accounting  for the  Impairment  of
Long-Lived  Assets and for Long-Lived Assets to be Disposed Of," the Partnership
ceased  recording  depreciation  on the  asset at the time it was  placed on the
market for sale.

Property  taxes  decreased  by $3,774  and  $11,301  for the three and six month
periods  ended June 30, 1998,  respectively,  in relation to the same periods in
1997, mainly due to the sale of 1130 Sacramento in the third quarter of 1997.

Repairs and  maintenance  expense  increased  by $8,920 for the three months and
decreased  by $12,030 for the six months  ended June 30, 1998 as compared to the
same  periods in 1997.  The overall  decrease  was mainly  attributable  to 1130
Sacramento, which was sold in August 1997. This decrease was partially offset by
an increase in costs  incurred to maintain the  appearance  of Sterling  Springs
Apartments in the second quarter of 1998 in an effort to increase occupancy.

In the three and six  months  ended  June 30,  1998,  other  property  operating
expenses decreased by $2,658 and $9,982,  respectively,  as compared to the same
periods in 1997. The decrease was mainly due to a $5,000  deductible paid by the
Partnership in the first quarter of 1997 for a minor tenant claim settled by the
Partnership's insurance carrier.

General and  administrative  expenses  increased by $93,085 and $106,736 for the
three and six months ended June 30, 1998, respectively,  in relation to the same
periods  in 1997.  The  increase  was mainly  due to costs  incurred  to explore
alternatives to maximize the value of the Partnership (see Liquidity and Capital
Resources).

LIQUIDITY AND CAPITAL RESOURCES
-------------------------------

The Partnership  generated $420,908 of cash through operating activities for the
first six months of 1998 as compared to $158,116  generated during the first six
months  of 1997.  The  increase  in 1998 was  partially  due to an  increase  in
interest  received from an affiliate  relating to the Fort Meigs Plaza loan (see
discussion  of increase  in  interest  income on  mortgage  loan  investments  -
affiliate,  above). In addition, there was a decrease in cash paid to affiliates
in 1998.


<PAGE>
In May 1998,  the  Partnership  received a net  $1,992,000  from the borrower as
payment  in  full  for  both  principal  and  interest  receivable  on  its  83%
participation interest in the Idlewood Nursing Home mortgage loan investment.

In April 1998,  the  Partnership  received  $3,570,896  to payoff the  principal
balance of the Fort Meigs Plaza mortgage loan investments - affiliate.

The  Partnership  distributed  $1,482,316  and $749,994 to the limited  partners
during the six months  ended June 30, 1998 and 1997,  respectively.  In light of
the discussions  relating to the sale transaction as disclosed,  the Partnership
is  presently  deferring  any  decision  with respect to the amount or timing of
distributions to limited partners.

Short-term liquidity:

At June 30, 1998, the Partnership  held cash and cash equivalents of $6,334,552.
This  balance   provides  a  reasonable   level  of  working   capital  for  the
Partnership's immediate needs in operating its remaining property.

In 1998, the operation of Sterling Springs  Apartments,  the Partnership's  only
remaining  property,  is expected to provide  sufficient  positive cash flow for
normal  operations.  Management  will perform routine repairs and maintenance on
the  property to  preserve  and  enhance  its value and  competitiveness  in the
market.  Capital improvements to the Partnership's property in 1998 are expected
to be funded from operations of the property.

The  mortgage  loan  investment  secured by  Idlewood  Nursing  Home  matured in
February  1998. On May 1, 1998, the  Partnership  received $2.4 million from the
borrower as payment in full for both  principal  and interest  receivable on the
loan (the actual balance of the loan was greater than the book value). Since the
Partnership  owned an 83%  participation  interest in the note,  $408,000 of the
$2.4 million settlement was paid to the owner of the remaining 17% of the note.

The first and second lien mortgage loan investments - affiliate  secured by Fort
Meigs  Plaza  matured  in  March  1998 and  September  1997,  respectively.  The
borrowing  partnership  sold the property to a  non-affiliate  in April 1998 for
$3.8 million.  The Partnership  received  $3,615,353 as payment in full for both
principal and interest receivable on the loans.

For 1998,  management  expects  that cash from  operations  of its  property and
principal and interest collections on the mortgage loan investments,  along with
the  present  balance  of  cash  and  cash  equivalents  held,  will  allow  the
Partnership to meet its obligations as they come due.

Long-term liquidity:

The  Partnership's  property,  Sterling Springs  Apartments,  is encumbered with
mortgage debt. The mortgage is not due until 2003.

While the outlook for  maintenance of adequate levels of liquidity is favorable,
should  operations  deteriorate and present cash resources be  insufficient  for
current needs,  the Partnership  would require other sources of working capital.
No such sources have been identified.  The Partnership has no established  lines
of  credit  from  outside  sources.  Other  possible  actions  to  resolve  cash
deficiencies  include  refinancings,  deferral  of capital  expenditures  on the
Partnership's  property except where  improvements  are expected to increase the
competitiveness  and  marketability  of the property,  arranging  financing from
affiliates or the ultimate sale of the property.




<PAGE>
As   previously   announced,    the   Partnership   has   retained   PaineWebber
("PaineWebber"),  Incorporated  as its  exclusive  financial  advisor to explore
alternatives  to  maximize  the  value  of the  Partnership  including,  without
limitation,  a  transaction  in  which  limited  partnership  interests  in  the
Partnership are converted into cash. The Partnership,  through PaineWebber,  has
provided  financial and other information to interested parties and is currently
conducting  discussions  with one such party in an attempt to reach a definitive
agreement  with respect to a sale  transaction.  It is possible that the General
Partner  and its  affiliates  will  receive  non-cash  consideration  for  their
ownership  interests in connection  with any such  transaction.  There can be no
assurance that any such agreement will be reached nor the terms thereof.

Forward-Looking Information:

Within this document,  certain  statements are made as to the expected occupancy
trends,  financial  condition,  results  of  operations,  and cash  flows of the
Partnership  for  periods  after  June 30,  1998.  All of these  statements  are
forward-looking  statements  made pursuant to the safe harbor  provisions of the
Private  Securities  Litigation  Reform Act of 1995.  These  statements  are not
historical  and  involve  risks  and  uncertainties.  The  Partnership's  actual
occupancy trends, financial condition, results of operations, and cash flows for
future  periods may differ  materially  due to several  factors.  These  factors
include,  but are not limited to, the  Partnership's  ability to control  costs,
make necessary  capital  improvements,  negotiate the sale or refinancing of its
property,  collect  payments  on its  mortgage  loan  investment  and respond to
changing economic and competitive factors.

Other Information:

Management  has begun to review its  information  technology  infrastructure  to
identify any systems that could be affected by the year 2000  problem.  The year
2000 problem is the result of computer  programs  being written using two digits
rather  than  four to  define  the  applicable  year.  Any  programs  that  have
time-sensitive  software may recognize a date using "00" as the year 1900 rather
than  the  year  2000.   This  could   result  in  major   systems   failure  or
miscalculations.  The information  systems used by the Partnership for financial
reporting and  significant  accounting  functions  were made year 2000 compliant
during  recent  systems  conversions.  The  Partnership  is in  the  process  of
evaluating the computer systems at its property. The Partnership also intends to
communicate with suppliers, financial institutions and others to coordinate year
2000 issues.  Management  believes that the remediation of any outstanding  year
2000  conversion  issues  will not have a  material  or  adverse  effect  on the
Partnership's operations.





<PAGE>
                           PART II. OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS
-------  -----------------

James F.  Schofield,  Gerald C. Gillett,  Donna S. Gillett,  Jeffrey  Homburger,
Elizabeth Jung,  Robert Lewis, and Warren Heller et al. v. McNeil Partners L.P.,
McNeil Investors,  Inc., McNeil Real Estate Management,  Inc., Robert A. McNeil,
Carole J. McNeil,  McNeil Pacific  Investors Fund 1972, Ltd., McNeil Real Estate
Fund IX,  Ltd.,  McNeil Real  Estate  Fund X, Ltd.,  McNeil Real Estate Fund XI,
Ltd.,  McNeil  Real Estate Fund XII,  Ltd.,  McNeil Real Estate Fund XIV,  Ltd.,
McNeil Real Estate Fund XV, Ltd.,  McNeil Real Estate Fund XX, L.P., McNeil Real
Estate Fund XXI, L.P.,  McNeil Real Estate Fund XXII,  L.P.,  McNeil Real Estate
Fund XXIV,  L.P.,  McNeil Real Estate  Fund XXV,  L.P.,  McNeil Real Estate Fund
XXVI, L.P., and McNeil Real Estate Fund XXVII,  L.P., et al. - Superior Court of
the State of California for the County of Los Angeles,  Case No. BC133799 (Class
and Derivative Action Complaint).

The action involves  purported  class and derivative  actions brought by limited
partners of each of the fourteen limited partnerships that were named as nominal
defendants as listed above (the  "Partnerships").  Plaintiffs allege that McNeil
Investors, Inc., its affiliate McNeil Real Estate Management,  Inc. and three of
their senior officers and/or directors (collectively, the "Defendants") breached
their  fiduciary  duties and certain  obligations  under the respective  Amended
Partnership  Agreement.  Plaintiffs  allege that  Defendants  have rendered such
Units highly illiquid and  artificially  depressed the prices that are available
for Units on the resale market.  Plaintiffs also allege that Defendants  engaged
in a course of conduct to prevent the  acquisition  of Units by an  affiliate of
Carl  Icahn  by  disseminating  purportedly  false,  misleading  and  inadequate
information.  Plaintiffs  further allege that Defendants  acted to advance their
own personal  interests at the expense of the Partnerships'  public unit holders
by failing to sell Partnership  properties and failing to make  distributions to
unitholders.

On December 16, 1996, the Plaintiffs filed a consolidated and amended complaint.
Plaintiffs  are suing for breach of  fiduciary  duty,  breach of contract and an
accounting,  alleging,  among other things, that the management fees paid to the
McNeil affiliates over the last six years are excessive,  that these fees should
be reduced retroactively and that the respective Amended Partnership  Agreements
governing the Partnerships are invalid.

Defendants  filed a demurrer to the  consolidated  and amended  complaint  and a
motion to strike on February 14, 1997,  seeking to dismiss the  consolidated and
amended complaint in all respects.  A hearing on Defendant's demurrer and motion
to strike  was held on May 5,  1997.  The Court  granted  Defendants'  demurrer,
dismissing  the  consolidated  and  amended  complaint  with leave to amend.  On
October  31,  1997,  the  Plaintiffs  filed a second  consolidated  and  amended
complaint.  The case has  been  stayed  pending  settlement  discussions.  While
actively working toward a final resolution, there can be no assurances regarding
settlement.

<PAGE>

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K
-------  --------------------------------

(a)      Exhibits.

         Exhibit
         Number                     Document Description
         --------                   ---------------------

         4.                         Amended and  Restated  Limited   Partnership
                                    Agreement     dated    March    30,    1992.
                                    (Incorporated  by  reference  to the Current
                                    Report of the  registrant  on Form 8-K dated
                                    March 30, 1992, as filed on April 10, 1992).

         11.                        Statement   regarding   computation  of  Net
                                    Income per  Limited  Partnership  Unit:  Net
                                    income  per  limited   partnership  unit  is
                                    computed by dividing net income allocated to
                                    the limited partners by the weighted average
                                    number   of   limited    partnership   units
                                    outstanding.  Per unit  information has been
                                    computed based on 49,512 limited partnership
                                    units outstanding in 1998 and 1997.

         27.                        Financial  Data  Schedule  for  the  quarter
                                    ended June 30, 1998.

(b)      Reports on Form 8-K. A Form 8-K with  respect to Item 2 dated April 20,
         1998 was filed on May 5, 1998  regarding  the  payoff of the Fort Meigs
         Plaza  mortgage loan  investments - affiliate and the Idlewood  Nursing
         Home mortgage loan investment.



<PAGE>


                        MCNEIL REAL ESTATE FUND XX, L.P.

                                   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:



                               McNEIL REAL ESTATE FUND XX, L.P.

                               By:  McNeil Partners, L.P., General Partner

                                    By: McNeil Investors, Inc., General Partner


August 14, 1998                     By: /s/  Ron K. Taylor
---------------                        -----------------------------------------
Date                                    Ron K. Taylor
                                        President and Director of McNeil 
                                         Investors, Inc.
                                        (Principal Financial Officer)




August 14, 1998                     By: /s/  Carol A. Fahs
---------------                        -----------------------------------------
Date                                    Carol A. Fahs
                                        Vice President of McNeil Investors, Inc.
                                        (Principal Accounting Officer)