--------------------------------------------------------------------------------


                     U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                   -----------


                                   FORM 10-QSB


                                   -----------


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


                For the quarterly period ended September 30, 2007


                                   -----------


                         Commission file number 0-11973


                 CAPITAL REALTY INVESTORS-II LIMITED PARTNERSHIP
             Organized pursuant to the Laws of the State of Maryland


                                   -----------


        Internal Revenue Service - Employer Identification No. 52-1321492

                 11200 Rockville Pike, Rockville, Maryland 20852

                                 (301) 468-9200

                                   -----------



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

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


--------------------------------------------------------------------------------
<PAGE>


                 CAPITAL REALTY INVESTORS-II LIMITED PARTNERSHIP

                              INDEX TO FORM 10-QSB

                    FOR THE QUARTER ENDED SEPTEMBER 30, 2007



                                                                           Page

Part I - FINANCIAL INFORMATION

Item 1.  Financial Statements

         Balance Sheets
           - September 30, 2007 and December 31, 2006.......................  1

         Statements of Operations and Accumulated Losses
           - for the three and nine months ended September 30, 2007
             and 2006.......................................................  2

         Statements of Cash Flows
           - for the nine months ended September 30, 2007 and 2006..........  3

         Notes to Financial Statements
           - September 30, 2007 and 2006....................................  4

Item 2.  Management's Discussion and Analysis of Financial Condition
           and Results of Operations........................................ 13

Item 3.  Controls and Procedures............................................ 15


Part II - OTHER INFORMATION

Item 3.  Defaults Upon Senior Securities.................................... 16

Item 5.  Other Information.................................................. 16

Item 6.  Exhibits........................................................... 16

Signature .................................................................. 17



<PAGE>
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements


                 CAPITAL REALTY INVESTORS-II LIMITED PARTNERSHIP

                                 BALANCE SHEETS


                                     ASSETS

<TABLE>
<CAPTION>
                                                            September 30,   December 31,
                                                                2007           2006
                                                            -------------   ------------
                                                             (Unaudited)
<S>                                                         <C>             <C>
Investment in partnerships held for sale ................   $    352,705    $    392,643
Cash and cash equivalents ...............................      4,670,638       4,845,857
Other assets ............................................         20,464         117,806
                                                            ------------    ------------

   Total assets .........................................   $  5,043,807    $  5,356,306
                                                            ============    ============




                        LIABILITIES AND PARTNERS' CAPITAL



Due on investments in partnerships ......................   $  1,400,000    $  1,400,000
Accrued interest payable ................................      3,098,762       3,004,262
Accounts payable and accrued expenses ...................        166,976         147,849
                                                            ------------    ------------

   Total liabilities ....................................      4,665,738       4,552,111
                                                            ------------    ------------

Commitments and contingencies

Partners' capital:

  Capital paid in:
    General Partners ....................................          2,000           2,000
    Limited Partners ....................................     50,015,000      50,015,000
                                                            ------------    ------------

                                                              50,017,000      50,017,000

  Less:
    Accumulated distributions to partners ...............    (34,752,903)    (34,752,903)
    Offering costs ......................................     (5,278,980)     (5,278,980)
    Accumulated losses ..................................     (9,607,048)     (9,180,922)
                                                            ------------    ------------

      Total partners' capital ...........................        378,069         804,195
                                                            ------------    ------------

      Total liabilities and partners' capital ...........   $  5,043,807    $  5,356,306
                                                            ============    ============
</TABLE>


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

                                       -1-

<PAGE>
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements


                 CAPITAL REALTY INVESTORS-II LIMITED PARTNERSHIP

                            STATEMENTS OF OPERATIONS

                             AND ACCUMULATED LOSSES

                                   (Unaudited)

<TABLE>
<CAPTION>

                                                    For the three months ended    For the nine months ended
                                                            September 30,               September 30,
                                                    ---------------------------   ---------------------------
                                                        2007           2006           2007           2006
                                                    ------------   ------------   ------------   ------------
<S>                                                 <C>            <C>            <C>            <C>
Share of (loss) income from partnerships ........   $    (1,197)   $    (3,090)   $   (39,938)   $    11,643
                                                    -----------    -----------    -----------    -----------
Other revenue and expenses:

  Revenue:
    Interest ....................................        62,760         65,543        189,885        183,031
                                                    -----------    -----------    -----------    -----------

  Expenses:
    Management fee ..............................        62,499         62,499        187,497        187,497
    General and administrative ..................        50,868         48,398        182,638        178,754
    Professional fees ...........................        41,813         29,163        111,438         87,488
    Interest ....................................        31,500         31,500         94,500         94,500
                                                    -----------    -----------    -----------    -----------

                                                        186,680        171,560        576,073        548,239
                                                    -----------    -----------    -----------    -----------

      Total other revenue and expenses ..........      (123,920)      (106,017)      (386,188)      (365,208)
                                                    -----------    -----------    -----------    -----------

Loss before additional gain on
  disposition of investment in partnerships .....      (125,117)      (109,107)      (426,126)      (353,565)

Additional gain on disposition of
  investment in partnerships, net of
  disposition fees ..............................          --            5,819           --          103,972
                                                    -----------    -----------    -----------    -----------

Net loss ........................................      (125,117)      (103,288)      (426,126)      (249,593)

Accumulated losses, beginning of period .........    (9,481,931)    (8,796,052)    (9,180,922)    (8,649,747)
                                                    -----------    -----------    -----------    -----------

Accumulated losses, end of period ...............   $(9,607,048)   $(8,899,340)   $(9,607,048)   $(8,899,340)
                                                    ===========    ===========    ===========    ===========


Net loss allocated
  to General Partners (1.51%) ...................   $    (1,889)   $    (1,560)   $    (6,435)   $    (3,769)
                                                    ===========    ===========    ===========    ===========

Net loss allocated
  to Initial and Special Limited Partners (1.49%)   $    (1,864)   $    (1,539)   $    (6,349)   $    (3,719)
                                                    ===========    ===========    ===========    ===========

Net loss allocated
  to Additional Limited Partners (97%) ..........   $  (121,364)   $  (100,189)   $  (413,342)   $  (242,105)
                                                    ===========    ===========    ===========    ===========

Net loss per unit of
  Additional Limited Partner Interest,
  based on 49,910 units outstanding .............   $     (2.43)   $     (2.01)   $     (8.28)   $     (4.85)
                                                    ===========    ===========    ===========    ===========

</TABLE>

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

                                       -2-
<PAGE>
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements


                 CAPITAL REALTY INVESTORS-II LIMITED PARTNERSHIP

                            STATEMENTS OF CASH FLOWS

                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                For the nine months ended
                                                                                       September 30,
                                                                                --------------------------
                                                                                   2007            2006
                                                                                -----------    -----------
<S>                                                                             <C>             <C>
Cash flows from operating activities:
  Net loss ..................................................................   $  (426,126)   $  (249,593)

  Adjustments to reconcile net loss to net cash used in operating activities:
    Share of loss (income) from partnerships ................................        39,938        (11,643)
    Additional gain on disposition of investment in partnerships ............          --         (103,972)

    Changes in assets and liabilities:
      Decrease (increase) in other assets ...................................        97,342        (20,034)
      Increase in accrued interest receivable on advances ...................          --           (1,122)
      Increase in accrued interest payable ..................................        94,500         94,500
      Increase (decrease) in accounts payable and accrued expenses ..........        19,127        (23,982)
                                                                                -----------    -----------

        Net cash used in operating activities ...............................      (175,219)      (315,846)
                                                                                -----------    -----------

Cash flows from investing activities:
  Receipt of distributions from partnerships ................................          --           21,918
  Collection of sale proceeds ...............................................          --          901,665
                                                                                -----------    -----------

        Net cash provided by investing activities ...........................          --          923,583
                                                                                -----------    -----------

Cash flows used in financing activities:
  Tax distribution on behalf of Additional Limited Partners .................          --         (252,862)
                                                                                -----------    -----------

Net (decrease) increase in cash and cash equivalents ........................      (175,219)       354,875

Cash and cash equivalents, beginning of period ..............................     4,845,857      4,647,720
                                                                                -----------    -----------

Cash and cash equivalents, end of period ....................................   $ 4,670,638    $ 5,002,595
                                                                                ===========    ===========

</TABLE>

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

                                       -3-

<PAGE>
                 CAPITAL REALTY INVESTORS-II LIMITED PARTNERSHIP

                          NOTES TO FINANCIAL STATEMENTS

                           September 30, 2007 and 2006

                                   (Unaudited)


1.   BASIS OF PRESENTATION

     In the opinion of C.R.I.,  Inc. (CRI), the Managing  General  Partner,  the
accompanying unaudited financial statements reflect all adjustments,  consisting
of normal recurring accruals, necessary for a fair presentation of the financial
position of Capital Realty Investors-II Limited Partnership (the Partnership) as
of September 30, 2007,  and the results of its operations for the three and nine
month periods ended September 30, 2007 and 2006, and its cash flows for the nine
month periods ended  September 30, 2007 and 2006.  The results of operations for
the interim periods ended September 30, 2007, are not necessarily  indicative of
the results to be expected for the full year.

     The  accompanying  unaudited  financial  statements  have been  prepared in
conformity with accounting principles generally accepted in the United States of
America (US GAAP) and with the instructions to Form 10-QSB.  Certain information
and accounting policies and footnote  disclosures normally included in financial
statements  prepared in conformity  with US GAAP have been  condensed or omitted
pursuant to such instructions.  These condensed  financial  statements should be
read in conjunction with the financial  statements and notes thereto included in
the Partnership's annual report on Form 10-KSB at December 31, 2006.


2.   PLAN OF LIQUIDATION AND DISSOLUTION

     On February 4, 2004, the  Partnership  filed a Definitive  Proxy  Statement
pursuant to Section 14(a) of the Securities  Exchange Act of 1934, and mailed it
to limited partners to solicit consents for approval of the following:

(1)  The sale of all of the  Partnership's  assets  and the  dissolution  of the
     Partnership  pursuant to a Plan of  Liquidation  and  Dissolution,  and the
     amendment of the Partnership's  Limited Partnership Agreement to permit the
     Managing General Partner, CRI, to be eligible to receive increased property
     disposition  fees from the  Partnership  on the same basis as such fees may
     currently be paid to Local General  Partners,  real estate brokers or other
     third party intermediaries employed to sell Partnership properties,  to the
     extent that CRI markets and sells the Partnership's  properties  instead of
     such persons (a "Disposition Fee");

(2)  The amendment of the Partnership's  Limited Partnership Agreement to permit
     CRI to be eligible to receive a partnership  liquidation  fee in the amount
     of $500,000,  payable only if the Managing General Partner is successful in
     liquidating all of the Partnership's  investments within 36 months from the
     date the liquidation is approved [March 22, 2004], in recognition  that one
     or more of the properties in which the Partnership  holds an interest might
     not be  saleable  to  parties  not  affiliated  with the  respective  Local
     Partnership  due to the amount and/or terms of their  current  indebtedness
     (the "Partnership Liquidation Fee"); and

(3)  To authorize the Managing General Partner, in its sole discretion, to elect
     to extend the period  during  which  Consents  of Limited  Partners  may be
     solicited and voted,  but not beyond sixty (60) days from the date that the
     Consent Solicitation Statement was sent to the Limited Partners.

The matters for which consent was solicited are collectively  referred to as the
"Liquidation."

                                      -4-

<PAGE>
                 CAPITAL REALTY INVESTORS-II LIMITED PARTNERSHIP

                          NOTES TO FINANCIAL STATEMENTS

                           September 30, 2007 and 2006

                                   (Unaudited)


2.   PLAN OF LIQUIDATION AND DISSOLUTION - Continued

     The record date for voting was  December  31,  2003,  and the final  voting
deadline  was March 22,  2004.  A  tabulation  of votes  received  by the voting
deadline follows.

<TABLE>
<CAPTION>
                                             FOR                  AGAINST                ABSTAIN                 TOTAL
                                      ------------------     ------------------     -------------------     -------------------
                                      Units of               Units of               Units of                Units of
                                      limited                limited                limited                 limited
                                      partner                partner                partner                 partner
         Description                  interest   Percent     interest   Percent     interest    Percent     Interest    Percent
         -----------                  --------   -------     --------   -------     --------    -------     --------    -------
         <S>                          <C>        <C>         <C>        <C>         <C>         <C>         <C>         <C>
         Sale, dissolution and
           five percent
           Disposition Fee             28,699     57.6%       1,264       2.5%         268        0.5%       30,231      60.6%

         $500,000 Partnership
           Liquidation Fee             25,841     51.8%       3,546       7.1%         844        1.7%       30,231      60.6%

         Extension of
           solicitation period         27,975     56.1%       1,767       3.5%         489        1.0%       30,231      60.6%

</TABLE>

     The  Partnership  was not  liquidated  within 36 months  from the  approved
liquidation  date of March 22, 2004,  therefore no liquidation  fee was taken by
the Managing General Partner. The Managing General Partner is continuing towards
liquidation of all the Partnership's investments.

     There can be no assurance that the Liquidation  will be completed  pursuant
to the Plan of Liquidation and Dissolution.


3.   NEW ACCOUNTING PRONOUNCEMENTS

     In September  2006, the Securities and Exchange  Commission  ("SEC") issued
Staff  Accounting  Bulletin  No.  108,  "Considering  the  Effects of Prior Year
Misstatements   when   Quantifying   Misstatements  in  Current  Year  Financial
Statements" ("SAB No. 108"). SAB No. 108 requires quantification of errors using
both  a  balance  sheet  approach  and  an  income  statement  approach  in  the
determination  of  materiality  in  relation to a  misstatement.  SAB No. 108 is
effective  the first  fiscal year ending after  November  15,  2006.  Management
believes SAB No. 108 will not have any impact on the Partnership.

     In September  2006, the Financial  Accounts  Standards  Board (FASB) issued
SFAS No. 157, Fair Value Measurements ("SFAS No. 157"). SFAS No. 157 establishes
a formal framework for measuring fair value under generally accepted  accounting
principles.  Although SFAS No. 157 applies  (amends) the  provisions of existing
FASB  and  AICPA  pronouncements,  it  does  not  require  any  new  fair  value
measurements,  nor  does it  establish  valuation  standards.  SFAS  No.  157 is
effective for fiscal years  beginning  after  November 15, 2007.  Management has
determined that SFAS No. 157 will have no material impact to the Partnership.

                                      -5-


<PAGE>
                 CAPITAL REALTY INVESTORS-II LIMITED PARTNERSHIP

                          NOTES TO FINANCIAL STATEMENTS

                           September 30, 2007 and 2006

                                   (Unaudited)


4.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS

a.   Due on investments in partnerships and accrued interest payable
     ---------------------------------------------------------------

                                    Westgate
                                    --------

     The Partnership defaulted on its one remaining purchase money note, related
to Westgate  Limited Dividend Housing  Association  (Westgate),  on September 1,
2003,  when the note (as extended)  matured and was not paid. The default amount
included   principal  and  accrued   interest  of  $1,400,000  and   $2,584,492,
respectively.  As of  November  7,  2007,  principal  and  accrued  interest  of
$1,400,000  and  $3,111,621,  respectively,  were due. In  conjunction  with the
approved Plan of Liquidation  and Dissolution of the  Partnership,  the Managing
General  Partner is  currently  negotiating  the sale of the  property  owned by
Westgate and seeking the consent of the  noteholders to accept the proceeds from
such sale as a discounted  payoff of the purchase  money  note's  principal  and
accrued  interest.  The  discounted  payoff  would  result  in  cancellation  of
indebtedness  income to the Limited Partners,  which would be taxed at a federal
tax rate of up to 35 percent.  There can be no assurance that a sale of Westgate
and discounted payoff of the purchase money note will occur.

     Interest  expense on the  Partnership's  Westgate  purchase  money note was
$31,500 and $94,500 for each of the three and nine month periods ended September
30, 2007 and 2006,  respectively.  The accrued  interest payable on the purchase
money note of  $3,098,762  and  $3,004,262 as of September 30, 2007 and December
31, 2006, respectively, is in default.

     Due to  the  possible  sale  of  the  property  related  to  Westgate,  the
Partnership's  basis in the Local  Partnership,  along with the net  unamortized
amount of acquisition fees and property  purchase costs,  which totaled $352,705
and $392,643 as of September 30, 2007 and December 31, 2006,  respectively,  has
been   reclassified  to  investment  in  partnerships   held  for  sale  in  the
accompanying balance sheets.

b.   Completed sales
     ---------------

                                   Chevy Chase
                                   -----------

     On November 22, 2005, the property owned by Chevy Chase Park,  Ltd.  (Chevy
Chase) was sold. Gross cash proceeds received in 2005 by the Partnership totaled
$6,814,125.  The sale  resulted  in net gain on  disposition  of  investment  in
partnerships of $5,238,173 for financial  statement purposes and a total gain of
$7,115,800 for federal tax purposes in 2005. The  Partnership  accrued  $23,208,
which is included in gain on disposition of investment in  partnerships in 2005,
for additional  sale proceeds  receivable  related to the sale, of which $18,909
was received in March 2006 and $4,299 was received in April 2006.  In 2006,  net
gain on  disposition  of  investment  in  partnerships  was  reduced  by $11,604
relating to additional  expenses  incurred.  In accordance with the terms of the
Partnership Agreement,  in November 2005 the Managing General Partner was paid a
disposition fee of $435,000  related to the sale. The fee was netted against the
related gain on disposition of investment in partnerships.

                                      -6-

<PAGE>
                 CAPITAL REALTY INVESTORS-II LIMITED PARTNERSHIP

                          NOTES TO FINANCIAL STATEMENTS

                           September 30, 2007 and 2006

                                   (Unaudited)


4.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued

                                 Four Winds West
                                 ---------------

     As of October 31, 2006, the  Partnership's  interest in Four Winds West was
transferred to an affiliate of the local managing general partner.  The transfer
resulted in loss on  disposition  of investment in  partnerships  of $12,567 for
financial statement purposes and a total gain of $587,569 for federal income tax
purposes.  In March  2007,  the  Partnership  received  a cash  distribution  of
$12,305,  which was accrued and  included  in other  income in the  accompanying
financial statements at December 31, 2006.

                                 Posada Vallarta
                                 ---------------

     On December  12,  2005,  the property  owned by Posada  Associates  Limited
Partnership  (Posada Vallarta) was sold. Gross cash proceeds received in 2005 by
the Partnership totaled $3,930,457. The sale resulted in net gain on disposition
of investment in partnerships of $3,111,832 for financial statement purposes and
a total gain of $13,057,662 for federal tax purposes in 2005. In accordance with
the terms of the Partnership  Agreement,  in December 2005 the Managing  General
Partner was paid a disposition  fee of $1,118,625  related to the sale.  The fee
was  netted   against  the  related  gain  on   disposition   of  investment  in
partnerships.  The Partnership  accrued  $300,000,  which is included in gain on
disposition of investment in  partnerships in 2005, for additional sale proceeds
received  in March  2006.  During  the first  quarter of 2006,  the  Partnership
recorded gain on disposition of investment in partnerships of $113,617, of which
$54,035  was  received  in March 2006 and  $59,582  was  received in April 2006.
During  the  second  quarter  of 2006,  gain on  disposition  of  investment  in
partnerships  was reduced by $3,861  relating to additional  expenses  incurred.
During the third quarter of 2006, the  Partnership  recorded gain in disposition
of investment in  partnerships  of $5,819,  of which $4,989 was received in July
2006 and $830 was received in September 2006. During the fourth quarter of 2006,
gain on disposition of investment in partnerships was reduced by $474.

                                   Troy Manor
                                   ----------

     On  December  31,  2006,  the  Partnership's  interest  in Troy  Manor  was
transferred to an affiliate of the local managing general partner.  The transfer
resulted in no gain or loss for financial statement purposes and a total gain of
$633,155  for  federal  income tax  purposes.  In March  2007,  the  Partnership
received a cash  distribution  of $7,425 which was accrued and included in other
income in the accompanying financial statements at December 31, 2006.

c.   Assets held for sale
     --------------------

                                  Golden Acres
                                  ------------

     On April 24, 2007, a contract for the sale of the Partnership's interest in
Golden Acres was signed. The Partnership's  basis in Golden Acres, which totaled
$0 at both  September 30, 2007 and December 31, 2006, has been  reclassified  to
investment in partnerships held for sale in the accompanying balance sheets. The
sale is  scheduled  to close  during  the fourth  quarter  of 2007.  There is no
assurance that a sale will occur.

                                      -7-

<PAGE>
                 CAPITAL REALTY INVESTORS-II LIMITED PARTNERSHIP

                          NOTES TO FINANCIAL STATEMENTS

                           September 30, 2007 and 2006

                                   (Unaudited)


4.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued

                                Orangewood Plaza
                                ----------------

     On December 28, 2006, a contract for the sale of the Partnership's interest
in Orangewood Plaza was signed.  The  Partnership's  basis in Orangewood  Plaza,
which  totaled $0 at both  September  30, 2007 and December  31, 2006,  has been
reclassified  to investment in  partnerships  held for sale in the  accompanying
balance  sheets.  The sale is scheduled  to close  during the fourth  quarter of
2007. There is no assurance that the sale will occur.

                                    Westgate
                                    --------

     See Note 4.a., above.

d.   Summarized financial information
     --------------------------------

     Combined statements of operations for the three and five Local Partnerships
in which  the  Partnership  was  invested  as of  September  30,  2007 and 2006,
respectively,   follow.   The  combined   statements  have  been  compiled  from
information  supplied  by the  management  agents  of  the  properties  and  are
unaudited.  The information for each of the periods is presented  separately for
those Local Partnerships  which have positive  investment basis (equity method),
and for those Local  Partnerships  which have cumulative losses in excess of the
amount of the  Partnership's  investments  in those Local  Partnerships  (equity
method  suspended).  Appended  after  the  combined  statements  is  information
concerning the Partnership's  share of income from partnerships  related to cash
distributions  recorded  as income,  and related to the  Partnership's  share of
income from Local Partnerships.

                                      -8-
<PAGE>
                 CAPITAL REALTY INVESTORS-II LIMITED PARTNERSHIP

                          NOTES TO FINANCIAL STATEMENTS

                           September 30, 2007 and 2006

                                   (Unaudited)


4.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued


                        COMBINED STATEMENTS OF OPERATIONS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                  For the three months ended
                                                                         September 30,
                                                  ----------------------------------------------------------
                                                             2007                             2006
                                                  -------------------------        -------------------------
                                                    Equity                           Equity
                                                    Method        Suspended          Method        Suspended
                                                  ----------      ---------        ----------      ---------
         <C>                                      <C>             <C>              <C>             <C>
         Number of Local Partnerships                 1               2                2               3
                                                      =               =                =               =

         Revenue:
           Rental                                 $  170,430      $ 106,934        $  233,100      $ 209,221
           Other                                       7,723          5,394             9,070          1,820
                                                  ----------      ---------        ----------      ---------

             Total revenue                           178,153        112,328           242,170        211,041
                                                  ----------      ---------        ----------      ---------

         Expenses:
           Operating                                 147,657        176,964           187,872        158,299
           Interest                                   (8,966)        10,247             5,078         31,682
           Depreciation and amortization              40,684         27,176            51,915         40,651
                                                  ----------      ---------        ----------      ---------

             Total expenses                          179,375        214,387           244,865        230,632
                                                  ----------      ---------        ----------      ---------

         Net loss                                 $   (1,222)     $(102,059)       $   (2,695)     $ (19,591)
                                                  ==========      =========        ==========      =========

         Partnership's share of
           Local Partnership net
           loss                                       (1,197)            --            (2,712)            --

         Miscellaneous                                    --             --                --           (378)
                                                  -------------------------        -------------------------

         Share of loss from partnerships                  $(1,197)                          $(3,090)
                                                          =======                           =======
</TABLE>

                                      -9-


<PAGE>
                 CAPITAL REALTY INVESTORS-II LIMITED PARTNERSHIP

                          NOTES TO FINANCIAL STATEMENTS

                           September 30, 2007 and 2006

                                   (Unaudited)


4.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued


                        COMBINED STATEMENTS OF OPERATIONS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                   For the nine months ended
                                                                          September 30,
                                                  ----------------------------------------------------------
                                                             2007                             2006
                                                  -------------------------        -------------------------
                                                    Equity                           Equity
                                                    Method        Suspended          Method        Suspended
                                                  ----------      ---------        ----------      ---------
         <C>                                      <C>             <C>              <C>             <C>
         Number of Local Partnerships                 1               2                2               3
                                                      =               =                =               =

         Revenue:
           Rental                                 $  509,166      $ 320,801        $  694,031      $ 627,663
           Other                                      23,472         16,181            32,338          5,459
                                                  ----------      ---------        ----------      ---------

             Total revenue                           532,638        336,982           726,369        633,122
                                                  ----------      ---------        ----------      ---------

         Expenses:
           Operating                                 478,243        530,892           558,248        474,898
           Interest                                  (26,899)        30,740            15,235         95,045
           Depreciation and amortization             122,051         81,527           155,746        121,953
                                                  ----------      ---------        ----------      ---------


             Total expenses                          573,395        643,159           729,229        691,896
                                                  ----------      ---------        ----------      ---------



         Net loss                                 $  (40,757)     $(306,177)       $   (2,860)     $ (58,774)
                                                  ==========      =========        ==========      =========

         Cash distributions                       $       --      $      --        $    6,305      $  15,613
                                                  ==========      =========        ==========      =========

         Cash distributions recorded
           as reduction of investments
           in partnerships                        $       --      $      --        $    6,305      $      --
                                                  ==========      =========        ==========      =========

         Cash distributions recorded
           as income                              $       --      $      --        $      --      $   15,613

         Partnership's share of Local
           Partnership net loss                      (39,938)            --           (2,848)             --

         Miscellaneous                                    --             --               --          (1,122)
                                                 --------------------------        -------------------------

         Share of (loss) income from
           partnerships                                   $(39,938)                        $11,643
                                                          ========                         =======

</TABLE>

     Cash  distributions  received from Local Partnerships which have investment
basis (equity method) are recorded as a reduction of investments in partnerships
and as cash  receipts  on the  respective  balance  sheets.  Cash  distributions
received from Local  Partnerships  which have cumulative losses in excess of the
amount of the  Partnership's  investments  in those Local  Partnerships  (equity
method  suspended)  are  recorded  as share of income from  partnerships  on the
respective  statements  of  operations  and as cash  receipts on the  respective
balance sheets.  As of September 30, 2007 and 2006, the  Partnership's  share of
cumulative losses to date for two of three and three of five Local Partnerships,
respectively,  exceeded  the amount of the  Partnership's  investments  in those
Local   Partnerships  by  $1,312,044  and  $1,032,411,   respectively.   As  the
Partnership has no further  obligation to advance funds or provide  financing to
these  Local  Partnerships,  the excess  losses have not been  reflected  in the
accompanying financial statements.

                                      -10-
<PAGE>
                 CAPITAL REALTY INVESTORS-II LIMITED PARTNERSHIP

                          NOTES TO FINANCIAL STATEMENTS

                           September 30, 2007 and 2006

                                   (Unaudited)


5.   RELATED PARTY TRANSACTIONS

     In accordance with the terms of the Partnership Agreement,  the Partnership
is obligated to reimburse the Managing  General  Partner for its direct expenses
in connection with managing the  Partnership.  The Partnership  paid $37,964 and
$137,313  for the  three  and nine  month  periods  ended  September  30,  2007,
respectively,  and $38,295  and  $121,953  for the three and nine month  periods
ended  September  30, 2006,  respectively,  to the Managing  General  Partner as
direct  reimbursement of expenses  incurred on behalf of the  Partnership.  Such
expenses are included in general and administrative expenses in the accompanying
statements of operations.

     In accordance with the terms of the Partnership Agreement,  the Partnership
is obligated to pay the Managing General Partner an annual incentive  management
fee  (Management  Fee) after all other expenses of the Partnership are paid. The
Partnership  paid the Managing  General  Partner a Management Fee of $62,499 for
each of the three month periods ended  September 30, 2007 and 2006, and $187,497
for each of the nine month periods ended September 30, 2007 and 2006.

     In  accordance  with the  terms of a  Definitive  Proxy  Statement  for the
Liquidation and Dissolution of the Partnership,  which was approved on March 22,
2004,  by holders of a majority of the Units of Limited  Partner  Interest,  the
Managing  General  Partner  may  receive  property  disposition  fees  from  the
Partnership  on the  same  basis  as such  fees  may be paid  to  Local  General
Partners,  real estate brokers or other third party  intermediaries  employed to
sell  Partnership  properties,  to the  extent  that CRI  markets  and sells the
Partnership's  properties instead of such persons. In January 2005, the Managing
General Partner was paid disposition fees in the amount of $1,210,408 related to
the sales of Country  Place I and II in December  2004,  which were  accrued and
netted against the related gain on disposition of investments in partnerships at
December  31,  2004.  In June 2005,  the  Managing  General  Partner  was paid a
disposition  fee of  $757,642  related to the sale of Mercy  Terrace,  which was
netted against the related gain on  disposition of investments in  partnerships.
On November 28, 2005, the Managing General Partner was paid a disposition fee of
$435,000,  related to the sale of the property  owned by Chevy Chase,  which was
netted against the related gain on disposition of investment in  partnerships in
2005. On December 14, 2005, the Managing  General Partner was paid a disposition
fee of $1,118,625, related to the sale of the property owned by Posada Vallarta,
which was netted  against the  related  gain on  disposition  of  investment  in
partnerships in 2005.

     In addition,  the Managing  General Partner was authorized  pursuant to the
approved proxy statement to receive a partnership  liquidation fee in the amount
of $500,000,  payable  only if the Managing  General  Partner is  successful  in
liquidating all of the Partnership's  investments within 36 months from the date
the liquidation was approved.  As the liquidation was not completed by March 22,
2007, the Managing General Partner did not earn the liquidation fee.


6.   CASH DISTRIBUTIONS

           On April 4, 2006, the Partnership made a tax distribution of $252,862
(approximately $7.20 per Unit) on behalf of Additional Limited Partners who were
not residents of Ohio.

                                      -11-

<PAGE>
                 CAPITAL REALTY INVESTORS-II LIMITED PARTNERSHIP

                          NOTES TO FINANCIAL STATEMENTS

                           September 30, 2007 and 2006

                                   (Unaudited)


7.   CASH CONCENTRATION RISK

     Financial   instruments  that   potentially   subject  the  Partnership  to
concentrations of risk consist primarily of cash. The Partnership  maintains two
cash  accounts  with the same bank.  The  balances  are  insured by the  Federal
Deposit  Insurance  Corporation  up to $100,000.  As of September 30, 2007,  the
uninsured portion of the cash balances was $4,823,508.

                                      # # #

                                      -12-
<PAGE>
Part I. FINANCIAL INFORMATION
Item 2. Management's Discussion Analysis of Financial Condition
          and Results of Operations


     Capital  Realty  Investors-II   Limited   Partnership's  (the  Partnership)
Management's  Discussion  and  Analysis of  Financial  Condition  and Results of
Operations  section  is  based  on  the  financial   statements,   and  contains
information  that  may  be  considered  forward  looking,  including  statements
regarding  the effect of  governmental  regulations.  Actual  results may differ
materially from those  described in the forward  looking  statements and will be
affected  by  a  variety  of  factors  including  national  and  local  economic
conditions,  the  general  level of  interest  rates,  governmental  regulations
affecting  the  Partnership  and  interpretations  of  those  regulations,   the
competitive  environment in which the Partnership operates, and the availability
of working capital.

                          Critical Accounting Policies
                          ----------------------------

     The  Partnership has disclosed its selection and application of significant
accounting  policies in Note 1 of the notes to financial  statements included in
the  Partnership's  annual  report on Form  10-KSB at  December  31,  2006.  The
Partnership  accounts for its investments in partnerships  (Local  Partnerships)
using the equity  method  because the  Partnership  is a limited  partner in the
Local  Partnerships.  As such, the Partnership has no control over the selection
and application of accounting  policies,  or the use of estimates,  by the Local
Partnerships.  Environmental  and operational  trends,  events and uncertainties
that  might  affect the  properties  owned by the Local  Partnerships  would not
necessarily have a significant  impact on the  Partnership's  application of the
equity method of accounting,  since the equity method has been suspended for two
Local  Partnerships  which have cumulative losses in excess of the amount of the
Partnership's investments in those Local Partnerships.

                          New Accounting Pronouncements
                          -----------------------------

     In September  2006, the Securities and Exchange  Commission  ("SEC") issued
Staff  Accounting  Bulletin  No.  108,  "Considering  the  Effects of Prior Year
Misstatements   when   Quantifying   Misstatements  in  Current  Year  Financial
Statements" ("SAB No. 108"). SAB No. 108 requires quantification of errors using
both  a  balance  sheet  approach  and  an  income  statement  approach  in  the
determination  of  materiality  in  relation to a  misstatement.  SAB No. 108 is
effective  the first  fiscal year ending after  November  15,  2006.  Management
believes SAB No. 108 will not have any impact on the Partnership.

     In September  2006, the Financial  Accounts  Standards  Board (FASB) issued
SFAS No. 157, Fair Value Measurements ("SFAS No. 157"). SFAS No. 157 establishes
a formal framework for measuring fair value under generally accepted  accounting
principles.  Although SFAS No. 157 applies  (amends) the  provisions of existing
FASB  and  AICPA  pronouncements,  it  does  not  require  any  new  fair  value
measurements,  nor  does it  establish  valuation  standards.  SFAS  No.  157 is
effective for fiscal years  beginning  after  November 15, 2007.  Management has
determined that SFAS No. 157 will have no material impact to the Partnership.

                       Plan of Liquidation and Dissolution
                       -----------------------------------

     On February 4, 2004, the Partnership  filed a Definitive  Proxy  Statement,
pursuant to Section  14(a) of the  Securities  Exchange Act of 1934,  to solicit
consent for, among other things, the sale of all of the Partnership's assets and
the  dissolution  of the  Partnership  pursuant  to a Plan  of  Liquidation  and
Dissolution.  As of the voting  deadline,  March 22, 2004, the holders of 28,699
units of limited partner interest (57.6%) voted "for" such sale and dissolution.

                                      -13-
<PAGE>
Part I. FINANCIAL INFORMATION
Item 2. Management's Discussion Analysis of Financial Condition
          and Results of Operations - Continued


                                     General
                                     -------

     Some of the rental properties owned by the Local  Partnerships are financed
by state and federal housing agencies.  The Managing General Partner has sold or
refinanced,  and will continue to sell, certain properties  pursuant to programs
developed by these agencies.  These programs may include opportunities to sell a
property to a qualifying  purchaser  who would agree to maintain the property as
low to moderate  income  housing.  The  Managing  General  Partner  continues to
monitor  certain state housing  agency  programs,  and/or  programs  provided by
certain  lenders,  to ascertain  whether the properties would qualify within the
parameters  of a given  program  and whether  these  programs  would  provide an
appropriate economic benefit to the Limited Partners of the Partnership.

     The Managing  General  Partner  continues to seek  strategies  to deal with
affordable  housing  requirements.  While the Managing  General  Partner  cannot
predict the  outcome for any  particular  property  at this time,  the  Managing
General  Partner will  continue to work with the Local  Partnerships  to develop
strategies that maximize the benefits to investors.

                          Financial Condition/Liquidity
                          -----------------------------

     The Partnership's liquidity, with unrestricted cash resources of $4,670,638
as of  September  30,  2007,  is expected to be adequate to meet its current and
anticipated operating cash needs. As of November 7, 2007, there were no material
commitments for capital  expenditures.  The Managing  General Partner  currently
intends  to retain all of the  Partnership's  remaining  undistributed  cash for
operating  cash  reserves  pending  further  distributions  under  its  Plan  of
Liquidation and Dissolution.

     The  Partnership's  remaining  obligation with respect to its investment in
Westgate Tower Limited Dividend Housing Associates (Westgate),  in the form of a
nonrecourse purchase money note which matured September 1, 2003, has a principal
balance of  $1,400,000  plus accrued  interest of $3,098,762 as of September 30,
2007,  and is payable in full upon the earliest of: (i) sale or  refinancing  of
the respective Local Partnership's rental property;  (ii) payment in full of the
respective Local Partnership's permanent loan; or (iii) maturity.

     The  purchase  money note,  which is  nonrecourse  to the  Partnership,  is
secured by the Partnership's  interest in the Westgate Local Partnership,  which
owns Westgate Tower Apartments. The underlying property does not have sufficient
appreciation  and equity to enable the  Partnership  to pay the  purchase  money
note's principal and accrued interest.  In conjunction with the approved Plan of
Liquidation and Dissolution of the Partnership,  the Managing General Partner is
currently negotiating the sale of the property owned by Westgate and seeking the
consent of the  noteholders  to accept the proceeds of such sale as a discounted
payoff  of the  purchase  money  note's  principal  and  accrued  interest.  The
discounted  payoff would result in cancellation  of  indebtedness  income to the
Limited  Partners,  which  would  be  taxed  at a  federal  tax rate of up to 35
percent. There can be no assurance that a sale of Westgate and discounted payoff
of the purchase money note will occur.

     The Managing  General Partner has received  consent from a majority of Unit
Holders  for the  liquidation  of the  Partnership.  (See Note 2 of the notes to
financial  statements  contained in Part I, Item 1,  hereof.) It is  anticipated
that  the  Partnership's  obligation,  discussed  above,  would  be  retired  in
conjunction  with  such  Liquidation.   There  can  be  no  assurance  that  the
Liquidation  will  be  completed   pursuant  to  the  Plan  of  Liquidation  and
Dissolution.

                                      -14-
<PAGE>
Part I. FINANCIAL INFORMATION
Item 2. Management's Discussion Analysis of Financial Condition
          and Results of Operations - Continued


     The Partnership closely monitors its cash flow and liquidity position in an
effort to ensure that sufficient  cash is available for operating  requirements.
For the nine month period ended September 30, 2007,  existing cash resources was
adequate  to support  operating  cash  requirements.  Cash and cash  equivalents
decreased  $175,219  during the nine month  period  ended  September  30,  2007,
primarily due to operating expenses paid in cash.

     On April 4, 2006,  the  Partnership  made a tax  distribution  of  $252,862
(approximately $7.20 per Unit) on behalf of Additional Limited Partners who were
not residents of Ohio.

                              Results of Operations
                              ---------------------

     The  Partnership's  net loss for the three month period ended September 30,
2007  increased  from the  corresponding  period  in 2006,  primarily  due to an
increase in  professional  fees relating to higher audit costs and a decrease in
gain on disposition of investment in partnerships.

     The  Partnership's  net loss for the nine month period ended  September 30,
2007  increased  from  the  corresponding  period  in 2006,  primarily  due to a
decrease in gain on  disposition  of investment in  partnerships,  a decrease in
share of income from partnerships, primarily due to higher operating expenses at
one  property,  and  increases  in  general  and  administrative   expenses  and
professional fees, partially offset by an increase in interest revenue.  General
and  administrative  fees increased  primarily due to higher reimbursed  payroll
costs. Professional fees increased primarily due to higher audit costs. Interest
revenue increased due to higher rates.

     For financial reporting purposes, the Partnership,  as a limited partner in
the Local  Partnerships,  does not record losses from the Local  Partnerships in
excess of its  investment  to the  extent  that the  Partnership  has no further
obligation to advance funds or provide financing to the Local Partnerships. As a
result,  the  Partnership's  share of income from partnerships for the three and
nine month periods ended  September 30, 2007, did not include losses of $101,029
and $303,086,  respectively,  compared to excluded losses of $19,369 and $58,106
for the three and nine month periods ended September 30, 2006, respectively.

     No other  significant  changes in the  Partnership's  operations have taken
place during the three month period ended September 30, 2007.


Item 3. Controls and Procedures

     In October 2007,  representatives  of the Managing  General  Partner of the
Partnership  carried out an  evaluation of the  effectiveness  of the design and
operation of the Partnership's  disclosure controls and procedures,  pursuant to
Exchange Act Rules  13a-15 and 15d-15.  The  Managing  General  Partner does not
expect that the  Partnership's  disclosure  controls and procedures will prevent
all error and all fraud.  A control  system,  no matter how well  conceived  and
operated,  can provide only  reasonable  assurance  that the  objectives  of the
control system are met. Further, the design of a control system must reflect the
fact that there are resource  constraints,  and the benefits of controls must be
considered relative to their costs.  Because of the inherent  limitations in all
control systems,  no evaluation of controls can provide absolute  assurance that
all control issues have been detected.  These inherent  limitations  include the
realities that judgments in  decision-making  can be faulty, and that breakdowns
can occur  because  of simple  error or  mistake.  The  design of any  system of
controls also is based in part upon certain  assumptions about the likelihood of
future  events,  and there can be no  assurance  that any design will succeed in
achieving its stated goals under all  potential  future  conditions.  Over time,
controls may become inadequate  because of changes in conditions,  or the degree
of compliance  with the policies or procedures may  deteriorate.  Because of the
inherent  limitations in a cost-effective  control system,  misstatements due to


<PAGE>
Part I. FINANCIAL INFORMATION
Item 3. Controls and Procedures - Continued


error or  fraud  may  occur  and not be  detected.  Based  on the  October  2007
evaluation,  and subject to the foregoing,  the Principal  Executive Officer and
Principal Financial Officer concluded that the Partnership's disclosure controls
and  procedures are effective as of the end of the period covered by this report
to alert them in a timely  manner to any  material  information  relating to the
Partnership that must be included in the Partnership's periodic SEC filings, and
particularly  during  the  period in which  this  report is being  prepared.  In
addition,  there have been no significant changes in the Partnership's  internal
control over financial  reporting that occurred  during the  Partnership's  most
recent fiscal quarter that have materially affected, or are reasonably likely to
materially affect, the Partnership's internal control over financial reporting.


Part II. OTHER INFORMATION
Item 3. Defaults Upon Senior Securities


     See Note 3.a. of the notes to  financial  statements  contained  in Part I,
Item 1, hereof,  for  information  concerning the  Partnership's  default on one
purchase money note.


Item 5. Other Information

     There has not been any information  required to be disclosed in a report on
Form 8-K during the quarter ended September 30, 2007, but not reported,  whether
or not otherwise required by this Form 10-QSB at September 30, 2007.

     There  is no  established  market  for the  purchase  and  sale of units of
additional limited partner interest (Units) in the Partnership, although various
informal  secondary market services exist. Due to the limited markets,  however,
investors may be unable to sell or otherwise dispose of their Units.

                                Cash Distribution
                                -----------------

     On April 4, 2006,  the  Partnership  made a tax  distribution  of  $252,862
(approximately $7.20 per Unit) on behalf of Additional Limited Partners who were
not residents of Ohio.


Item 6. Exhibits

Exhibit No.       Description
-----------       -----------

31.1              Certification of Principal Executive Officer, pursuant to
                  18 U.S.C. Section 1350, as adopted pursuant to Section 302
                  of the Sarbanes-Oxley Act of 2002.

31.2              Certification of Principal Financial Officer, pursuant to
                  18 U.S.C. Section 1350, as adopted pursuant to Section 302
                  of the Sarbanes-Oxley Act of 2002.

32                Certification of Principal Executive Officer and Principal
                  Financial Officer, pursuant to 18 U.S.C. Section 1350, as
                  adopted pursuant to Section 906 of the Sarbanes-Oxley Act
                  of 2002.

All other Items are not applicable.

                                      -16-
<PAGE>
                                    SIGNATURE


     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.


                            CAPITAL REALTY INVESTORS-II LIMITED
                              PARTNERSHIP
                            ----------------------------------------------------
                            (Registrant)

                            by: C.R.I., Inc.
                                ------------------------------------------------
                                Managing General Partner




November 7, 2007                by:  /s/ H. William Willoughby
----------------                     -------------------------------------------
DATE                                 H. William Willoughby,
                                     Director, President, Secretary,
                                       Principal Financial Officer,
                                       and Principal Accounting Officer


                                      -17-