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 March 31, 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 ___

                         PART I - FINANCIAL INFORMATION


ITEM 1.     FINANCIAL STATEMENTS


                  DAVIDSON DIVERSIFIED REAL ESTATE II, L.P.

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

                                 March 31, 2005

<TABLE>
<CAPTION>


Assets
<S>                                                                          <C>
   Cash and cash equivalents                                                 $ 432
   Receivables and deposits                                                      536
   Restricted escrows                                                             86
   Other assets                                                                  518
   Investment properties:
      Land                                                    $ 1,953
      Buildings and related personal property                   49,116
                                                                51,069
      Less accumulated depreciation                            (25,768)       25,301
                                                                            $ 26,873

Liabilities and Partners' Deficit

Liabilities
   Accounts payable                                                          $ 241
   Tenant security deposit liabilities                                           131
   Accrued property taxes                                                        343
   Other liabilities                                                             298
   Due to affiliates (Note B)                                                  8,770
   Mortgage notes payable                                                     22,268

Partners' Deficit
   General partners                                            $ (221)
   Limited partners (1,224.25 units issued and
      outstanding)                                              (4,957)       (5,178)
                                                                            $ 26,873


         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
                                                                   March 31,
                                                              2005            2004
Revenues:
<S>                                                         <C>             <C>
  Rental income                                             $ 1,556         $ 1,442
  Other income                                                   133             166
  Casualty gain (Note C)                                          --               9
       Total revenues                                          1,689           1,617

Expenses:
  Operating                                                      867             793
  General and administrative                                      67              62
  Depreciation                                                   632             524
  Interest                                                       413             356
  Property taxes                                                  90             123
       Total expenses                                          2,069           1,858

Net loss                                                     $ (380)         $ (241)

Net loss allocated to general partners (2%)                   $ (8)           $ (5)
Net loss allocated to limited partners (98%)                    (372)           (236)

                                                             $ (380)         $ (241)

Net loss per limited partnership unit                      $ (303.86)      $ (192.77)

         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 three months
   ended March 31, 2005                     --            (8)        (372)      (380)

Partners' deficit at
   March 31, 2005                     1,224.25        $ (221)     $(4,957)   $(5,178)

         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>

                                                                   Three Months Ended
                                                                        March 31,
                                                                     2005     2004

Cash flows from operating activities:
<S>                                                                <C>         <C>
  Net loss                                                         $ (380)     $ (241)
  Adjustments to reconcile net loss to net cash
   provided by operating activities:
     Depreciation                                                      632         524
     Amortization of discounts and loan costs                           41          27
     Casualty gain                                                      --          (9)
     Change in accounts:
      Receivables and deposits                                          33         300
      Other assets                                                     (90)       (196)
      Accounts payable                                                  87        (135)
      Tenant security deposit liabilities                               (9)         (4)
      Accrued property taxes                                           (85)        (71)
      Other liabilities                                               (156)         15
      Due to affiliates                                                 85         (27)
         Net cash provided by operating activities                     158         183
Cash flows from investing activities:
  Property improvements and replacements                              (213)        (86)
  Insurance proceeds received                                           --           9
         Net cash used in investing activities                        (213)        (77)
Cash flows from financing activities:
  Advances from affiliates                                              --         145
  Payments on advances from affiliates                                  --        (648)
  Payments on mortgage notes payable                                  (209)       (149)
         Net cash used in financing activities                        (209)       (652)

Net decrease in cash and cash equivalents                             (264)       (546)
Cash and cash equivalents at beginning of period                       696         746

Cash and cash equivalents at end of period                          $ 432       $ 200

Supplemental disclosure of cash flow information:
  Cash paid for interest                                            $ 279       $ 291

Supplemental disclosure of non-cash activity:
  Property improvements and replacements in accounts payable        $ 52        $ --

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 March 31, 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  months ended March 31, 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  $83,000 and $81,000 for the
three months ended March 31, 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  $67,000 and
$45,000 for the three months ended March 31, 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
three months ended March 31, 2005 are fees  related to  construction  management
services   provided  by  an  affiliate  of  the  Managing   General  Partner  of
approximately  $14,000.  There were no such fees during the three  months  ended
March  31,  2004.  The fees are  calculated  based on a  percentage  of  current
additions to investment properties.

In accordance  with the  Partnership  Agreement,  the Managing  General  Partner
advanced the  Partnership  approximately  $145,000 during the three months ended
March 31, 2004,  to cover  operational  expenses and to assist in the closing of
the  refinancing  required at Reflections  Apartments.  The  Partnership  repaid
approximately  $648,000 during the same period. At March 31, 2005, the amount of
the  outstanding  loans  and  accrued  interest  was  approximately  $8,770,000.
Interest  is  charged  at prime  plus 1%, or 6.75% at March 31,  2005.  Interest
expense was approximately $138,000 and $110,000 for the three months ended March
31, 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 March 31, 2005 and is
included in other  liabilities in the accompanying  consolidated  balance sheet.
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 three months  ended March 31, 2005,  the
Partnership  was charged by AIMCO and its affiliates  approximately  $49,000 for
hazard insurance coverage and fees associated with policy claims administration.
Additional  charges  will be  incurred by the  Partnership  during 2005 as other
insurance policies renew later in the year. The Partnership was charged by AIMCO
and its  affiliates  approximately  $85,000  for  insurance  coverage  and  fees
associated with policy claims  administration during the year ended December 31,
2004.

Note C - Casualty Gain

During  the  three  months  ended  March  31,  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 three months ended March
31, 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 first quarter of 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 tax years 2002,  2003
and 2004.  For the first quarter of 2005,  the property tax accrual was based on
the settled value.

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.

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.  The Managing General Partner and its affiliates
are  currently  scheduled  to file an answer to  Objector's  petition on May 18,
2005.

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  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  responding to a
call  while  "on-call."  The  defendants  have  filed an answer  to the  amended
complaint  denying the substantive  allegations.  Oral argument  relating to the
certification  of the  collective  action  took  place  on May 12,  2005 and the
parties await a ruling from the Court. 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,  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  and  operation  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  eliminate,  or at least  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") is conducting a 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   include  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, and tax credit  transactions.
At the end of the first quarter of 2005, the SEC added certain tender offers for
limited partnership interests as an area of investigation.  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.



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
three months ended March 31, 2005 and 2004:

                                                     Average Occupancy
                                                      2005       2004
      Big Walnut Apartments
         Columbus, Ohio (1)                           70%         86%
      The Trails Apartments
         Nashville, Tennessee (2)                     95%         92%
      Reflections Apartments
         Indianapolis, Indiana (3)                    90%         81%

(1)   The Managing  General Partner  attributes the decrease in occupancy at Big
      Walnut Apartments to a slow economy in the Columbus, Ohio area.

(2)   The Managing  General Partner  attributes the increase in occupancy at The
      Trails Apartments to a new pricing structure, which is more competitive in
      the local market.

(3)   The  Managing  General  Partner  attributes  the  increase in occupancy at
      Reflections  Apartments to the  completion of a major  renovation  project
      during  2003.  The project  enhanced  the  appearance  of the  property to
      attract desirable 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  months  ended  March  31,  2005 was
approximately  $380,000  compared to net loss of approximately  $241,000 for the
three  months  ended  March 31,  2004.  The  increase  in net loss was due to an
increase in total expenses  partially  offset by an increase in total  revenues.
The increase in total  expenses is due to increases in  operating,  depreciation
and interest  expenses  partially  offset by a decrease in property tax expense.
Operating  expenses  increased due to an increase in property expense  partially
offset by a decrease in advertising  expense.  Property expense increased due to
an increase in payroll and related benefits at all of the investment  properties
partially  offset by a decrease in utility costs at  Reflections  and Big Walnut
Apartments. Advertising expense decreased due to a decrease in marketing efforts
at  Reflections   Apartments  after   completion  of  the  renovation   project.
Depreciation  expense  increased  due to fixed  assets being placed into service
over the past  year at  Reflections  Apartments  as a result  of the  renovation
project.  Interest expense  increased due to higher average loan balances 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 tax
expense  decreased due to the successful appeal of the property value assessment
at Reflections Apartments.

Total revenues increased due to an increase in rental income partially offset by
a decrease  in other  income.  Rental  income  increased  due to an  increase in
occupancy at Reflections and The Trails  Apartments,  an increase in the average
rental  rates at all of the  investment  properties,  and a decrease in bad debt
expense at Reflections and Big Walnut Apartments  partially offset by a decrease
in occupancy at Big Walnut  Apartments.  Other income decreased due to decreases
in lease cancellation fees at Big Walnut and Reflections  Apartments and in late
charges at Reflections Apartments.

Included in general and administrative expenses for the three months ended March
31, 2005 and 2004 are management  reimbursements to the Managing General Partner
as allowed  under the  Partnership  Agreement.  Also  included  in  general  and
administrative  expenses are the costs  associated with the quarterly and annual
communications  with  investors  and  regulatory  agencies  and the annual audit
required by the Partnership Agreement.

During  the  three  months  ended  March  31,  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 three months ended March
31, 2004.

Liquidity and Capital Resources

At  March  31,  2005,  the  Partnership   had  cash  and  cash   equivalents  of
approximately  $432,000  compared to  approximately  $200,000 at March 31, 2004.
Cash and cash equivalents  decreased  approximately  $264,000 since December 31,
2004 due to  approximately  $213,000 of cash used in  investing  activities  and
approximately  $209,000 of cash used in financing activities partially offset by
approximately  $158,000 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  properties.  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  three  months  ended  March 31,  2005,  the  Partnership  completed
approximately   $113,000  of  capital  expenditures  at  Big  Walnut  Apartments
consisting  of furniture  and fixtures and floor  covering  replacements.  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
replacement reserves and anticipated cash flow generated by the property.

The Trails Apartments

During  the  three  months  ended  March 31,  2005,  the  Partnership  completed
approximately   $69,000  of  capital   expenditures  at  The  Trails  Apartments
consisting  primarily of fire safety 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.

Reflections Apartments

During  the  three  months  ended  March 31,  2005,  the  Partnership  completed
approximately   $39,000  of  capital  expenditures  at  Reflections   Apartments
consisting  primarily of floor covering  replacements.  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
or from  Partnership  reserves.  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  $13,106,000
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  $9,795,000
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  $145,000 during the three months ended
March 31, 2004,  to cover  operational  expenses and to assist in the closing of
the  refinancing  required at Reflections  Apartments.  The  Partnership  repaid
approximately  $648,000 during the same period. At March 31, 2005, the amount of
the  outstanding  loans  and  accrued  interest  was  approximately  $8,770,000.
Interest  is  charged  at prime  plus 1%, or 6.75% at March 31,  2005.  Interest
expense was approximately $138,000 and $110,000 for the three months ended March
31, 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 three months ended March 31, 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 March 31, 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  53.63% of
the  outstanding  Units at March 31, 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 53.63% 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.

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.  The Managing General Partner and its affiliates
are  currently  scheduled  to file an answer to  Objector's  petition on May 18,
2005.

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  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  responding to a
call  while  "on-call."  The  defendants  have  filed an answer  to the  amended
complaint  denying the substantive  allegations.  Oral argument  relating to the
certification  of the  collective  action  took  place  on May 12,  2005 and the
parties await a ruling from the Court. 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: May 13, 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:  May 13, 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: May 13, 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 March
31, 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:  May 13, 2005


                                           /s/Stephen B. Waters
                                    Name:  Stephen B. Waters
                                    Date:  May 13, 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.