<PAGE>   1
                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549


                                    FORM 10-Q


                Quarterly Report Pursuant to Section 13 or 15(d)
                     of the Securities Exchange Act of 1934

                  For the Quarterly Period Ended MARCH 31, 1998

                         Commission File Number 0-13112

                        REAL ESTATE ASSOCIATES LIMITED VI
                       (A California Limited Partnership)

                  I.R.S. Employer Identification No. 95-3778627

                         9090 WILSHIRE BLVD., SUITE 201
                            BEVERLY HILLS, CA. 90211

                         Registrant's Telephone Number,
                       Including Area Code (310) 278-2191



Indicate by check mark whether the registrant (1) has filed all documents and
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding twelve months (or for such shorter period that
the registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.

                                 Yes [X] No [ ]



<PAGE>   2



                        REAL ESTATE ASSOCIATES LIMITED VI
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                               INDEX TO FORM 10-Q

                      FOR THE QUARTER ENDED MARCH 31, 1998

<TABLE>
<CAPTION>


PART I.  FINANCIAL INFORMATION
<S>                                                                                      <C>

      Item 1.  Financial Statements

                  Consolidated Balance Sheets,
                        March 31, 1998 and December 31, 1997 ...............................1

                  Consolidated Statements of Operations,
                        Three Months Ended, March 31, 1998 and 1997.........................2

                  Consolidated Statement of Partners' Deficiency
                        Three Months Ended March 31, 1998 ..................................3

                  Consolidated Statements of Cash Flows
                        Three Months Ended March 31, 1998 and 1997 .........................4

                  Notes to Consolidated Financial Statements ...............................5

      Item 2.  Management's Discussion and Analysis of Financial
                  Condition and Results of Operation ......................................12


PART II.  OTHER INFORMATION

      Item 1.  Legal Proceedings ..........................................................15

      Item 6.  Exhibits and Reports on Form 8-K ...........................................15

      Signatures ..........................................................................16
</TABLE>



<PAGE>   3
                        REAL ESTATE ASSOCIATES LIMITED VI
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                                 BALANCE SHEETS

                      MARCH 31, 1998 AND DECEMBER 31, 1997

                                     ASSETS
<TABLE>
<CAPTION>
                                                                      1998                 1997
                                                                  (Unaudited)            (Audited)
                                                                  ------------          ------------

<S>                                                               <C>                   <C>         
INVESTMENTS IN LIMITED PARTNERSHIPS (Note 2)                      $  6,012,451          $  5,885,699

RENTAL PROPERTY, net of accumulated depreciation (Note 1)            2,972,435             3,016,049

CASH AND CASH EQUIVALENTS (Note 1)                                   6,523,970             6,611,690

CASH, restricted (Note 3)                                               38,465                38,465

OTHER ASSETS                                                           242,196               174,284
                                                                  ------------          ------------

TOTAL ASSETS                                                      $ 15,789,517          $ 15,726,187
                                                                  ============          ============

             LIABILITIES AND PARTNERS' DEFICIENCY

LIABILITIES:
Mortgage note payable related to property (Notes 3 and 7)         $  4,828,404          $  4,828,404
Notes payable and amounts due for partnership
interests (Notes 4 and 7)                                            5,795,000             5,795,000
Accrued interest payable (Notes 4 and 7)                             6,219,167             6,103,244
Accounts payable                                                       165,259               117,968
Other liabilities                                                       38,465                38,465
                                                                  ------------          ------------

                                                                    17,046,295            16,883,081
                                                                  ------------          ------------

COMMITMENTS AND CONTINGENCIES (Notes 2, 5 and 6)

PARTNERS' DEFICIENCY:
General partners                                                      (363,500)             (362,758)
Limited partners                                                      (893,021)             (794,136)
                                                                  ------------          ------------

                                                                    (1,256,778)           (1,156,894)
                                                                  ------------          ------------

TOTAL LIABILITIES AND PARTNERS' DEFICIENCY                        $ 15,789,517          $ 15,726,187
                                                                  ============          ============
</TABLE>


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


                                       1
<PAGE>   4
                        REAL ESTATE ASSOCIATES LIMITED VI
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                      CONSOLIDATED STATEMENTS OF OPERATIONS
               FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                              1998               1997
                                                            ---------          ---------
<S>                                                         <C>                <C>      
RENTAL OPERATIONS:
     Revenues                                               $ 274,405          $ 263,374
                                                            ---------          ---------

      Expenses:
         General and administrative                            22,125             24,212    
         Operating                                             90,438            105,549
         Depreciation and amortization (Note 1)                43,614             43,614
         Interest                                             121,155            121,155
                                                            ---------          ---------

                                                              277,332            294,530
                                                            ---------          ---------

LOSS FROM RENTAL OPERATIONS                                    (2,927)           (31,156)
                                                            ---------          ---------

PARTNERSHIP OPERATIONS:
    Interest income                                            76,323             63,216
                                                            ---------          ---------

    Expenses:
         Management fees - general partner (Note 5)           125,556            125,274
         General and administrative                           167,099             82,273
         Interest                                             133,425            129,913
                                                            ---------          ---------
                                                              426,080            337,460
                                                            ---------          ---------

LOSS FROM PARTNERSHIP OPERATIONS                             (349,757)          (274,244)
                                                            ---------          ---------

EQUITY IN INCOME OF LIMITED
      PARTNERSHIPS AND AMORTIZATION
      OF ACQUISITION COSTS                                    182,000            149,000

DISTRIBUTIONS FROM LIMITED
      PARTNERSHIPS RECOGNIZED AS
      INCOME (Note 2)                                          70,800             70,800
                                                            ---------          ---------

NET LOSS                                                    $ (99,884)         $ (85,600)
                                                            =========          =========

NET INCOME (LOSS) PER LIMITED
     PARTNERSHIP INTEREST (Note 1)                          $      (6)         $      (5)
                                                            =========          =========
</TABLE>

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


                                       2
<PAGE>   5
              REAL ESTATE ASSOCIATES LIMITED VI AND SUBSIDIARIES
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                 CONSOLIDATED STATEMENTS OF PARTNERS' DEFICIENCY
                    FOR THE THREE MONTHS ENDED MARCH 31, 1998
                                   (Unaudited)
<TABLE>
<CAPTION>

                                             General            Limited
                                            Partners           Partners                Total
                                          -----------          -----------          -----------

<S>                                       <C>                  <C>                  <C>         
PARTNERSHIP INTERESTS                                               16,810
                                                               ===========


DEFICIENCY,
      January 1, 1998                     $  (362,758)         $  (794,136)         $(1,156,894)

    Net loss for the three months
    ended March 31, 1998                         (999)             (98,885)             (99,884)
                                          -----------          -----------          -----------

DEFICIENCY,
       March 31, 1998                     $  (363,757)         $  (893,021)         $(1,256,778)
                                          ===========          ===========          ===========
</TABLE>



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




                                       3
<PAGE>   6
               REAL ESTATE ASSOCIATES LIMITED VI AND SUBSIDIARIES
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
               FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                      1998                 1997
                                                                  -----------          -----------
<S>                                                               <C>                  <C>         
CASH FLOWS FROM OPERATING ACTIVITIES:
      Net  loss                                                   $   (99,884)         $   (85,600)
      Adjustments to reconcile net loss to net
      cash used in operating activities:
      Equity in income of limited partnerships
      and amortization of acquisition costs                          (182,000)            (149,000)
      Depreciation and amortization                                    43,614               43,614
      Increase in other assets                                        (67,912)                  (1)
      Increase in accrued interest payable                            115,923               76,700
      (Decrease) increase in accounts payable                          47,291               24,011
      Increase in restricted cash                                           0               (1,750)
                                                                  -----------          -----------

      Net cash used in operating activities                          (142,968)             (92,026)

CASH FLOWS FROM INVESTING ACTIVITIES:
      Distributions to limited partnerships recognized as
      a return of capital                                              55,248              100,020
                                                                  -----------          -----------


NET (DECREASE) INCREASE IN CASH AND  CASH EQUIVALENTS                 (87,720)               7,994

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                      6,611,690            5,849,983
                                                                  -----------          -----------

CASH AND CASH EQUIVALENTS, END OF PERIOD                          $ 6,523,970          $ 5,857,977
                                                                  ===========          ===========

SUPPLEMENTAL DISCLOSURE OF
      CASH FLOW INFORMATION:
      Cash paid during the period year for interest               $    17,502          $   174,368
                                                                  ===========          ===========
</TABLE>


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


                                       4
<PAGE>   7



                        REAL ESTATE ASSOCIATES LIMITED VI
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                 MARCH 31, 1998


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

      GENERAL

      The information contained in the following notes to the financial
      statements is condensed from that which would appear in the audited annual
      financial statements; accordingly, the financial statements included
      herein should be reviewed in conjunction with the financial statements and
      related notes thereto contained in the annual report for the year ended
      December 31, 1997 prepared by Real Estate Associates Limited VI and
      Subsidiaries (the "Partnership"). Accounting measurements at interim dates
      inherently involve greater reliance on estimates than at year end. The
      results of operations for the interim periods presented are not
      necessarily indicative of the results for the entire year.

      In the opinion of the Partnership, the accompanying unaudited financial
      statements contain all adjustments (consisting primarily of normal
      recurring accruals) necessary to present fairly the financial position of
      the Partnership at March 31, 1998 and the results of operations and
      changes in cash flows for the three months then ended.

      The general partners have a 1 percent interest in profits and losses of
      the Partnership. The limited partners have the remaining 99 percent
      interest which is allocated in proportion to their respective individual
      investments. National Partnership Investments Corp. (NAPICO) is the
      corporate general partner of the Partnership. NAPICO is a wholly owned
      subsidiary of Casden Investment Corporation, which is wholly owned by Alan
      I. Casden.

      USE OF ESTIMATES

      The preparation of financial statements in conformity with generally
      accepted accounting principles requires management to make estimates and
      assumptions that affect the reported amounts of assets and liabilities and
      disclosure of contingent assets and liabilities at the date of the
      financial statements and reported amounts of revenues and expenses during
      the reporting period. Actual results could differ from those estimates.

      PRINCIPLES OF CONSOLIDATION

      The consolidated financial statements include the accounts of Real Estate
      Associates Limited VI and its majority-owned general partnerships. All
      significant intercompany accounts and transactions have been eliminated in
      consolidation.

      METHOD OF ACCOUNTING FOR INVESTMENT IN THE UNCONSOLIDATED LIMITED
      PARTNERSHIPS

      The investments in unconsolidated limited partnerships are accounted for
      on the equity method. Acquisition, selection and other costs related to
      the acquisition of the projects are capitalized as part of the investment
      account and are being amortized on a straight line basis over the
      estimated lives of the underlying assets, which is generally 30 years.



                                        5

<PAGE>   8


                        REAL ESTATE ASSOCIATES LIMITED VI
                       (A CALIFORNIA LIMITED PARTNERSHIP)

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                                 MARCH 31, 1998


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

      NET LOSS PER LIMITED PARTNERSHIP INTEREST

      Net loss per limited partnership interest was computed by dividing the
      limited partners' share of net loss by the number of limited partnership
      interests outstanding during the year. The number of limited partnership
      interests was 16,810 for the periods presented.

      CASH AND CASH EQUIVALENTS

      Cash and cash equivalents consist of unrestricted cash and bank
      certificates of deposit with maturities of three months or less.
      Restricted cash consist of tenants' security and escrow deposits and
      mortgage impounds. The Partnership has its cash and cash equivalents on
      deposit primarily with two high credit quality financial institutions.
      Such cash and cash equivalents are in excess of the FDIC insurance limit.

      INCOME TAXES

      No provision has been made for income taxes in the accompanying financial
      statements since such taxes, if any, are the liability of the individual
      partners.

      RENTAL PROPERTY AND DEPRECIATION

      Rental property is stated at cost. Depreciation is provided on the
      straight-line and accelerated methods over the estimated useful lives of
      the buildings and equipment. Pursuant to a purchase agreement in which the
      Partnership acquired its interest from withdrawing general partners,
      certain rental property was revalued to reflect the purchase price.

      Substantially all of the apartment units are leased on a month-to-month
      basis.

      IMPAIRMENT OF LONG-LIVED ASSETS

      The Partnership reviews long-lived assets to determine if there has been
      any permanent impairment whenever events or changes in circumstances
      indicate that the carrying amount of the asset may not be recoverable. If
      the sum of the expected future cash flows is less than the carrying amount
      of the assets, the Partnership recognizes an impairment loss.


                                        6

<PAGE>   9


                        REAL ESTATE ASSOCIATES LIMITED VI
                       (A CALIFORNIA LIMITED PARTNERSHIP)

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                                 MARCH 31, 1998


NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS

      The Partnership holds limited partnership interests in 27 local limited
      partnerships and a general partner interest in one general partnership. In
      addition, REAL VI holds a general partner interest in Real Estate
      Associates III ("REA III"), a California general partnership. NAPICO is
      also a general partner in REA III. REA III, in turn, holds limited partner
      interests in seven local limited partnerships. In total, therefore, the
      Partnership holds interests, either directly or indirectly through REA
      III, in 34 limited partnerships and one general partnership which own
      residential rental projects consisting of 2,832 apartment units. The
      mortgage loans of these projects are insured by the United States
      Department of Housing and Urban Development ("HUD") or state governmental
      agencies.

      The Partnership, as a limited partner, is entitled to between 90 percent
      and 99 percent of the profits and losses of the limited partnerships it
      has invested in directly. The Partnership is also entitled to 99.9 percent
      of the profits and losses of REA III. REA III holds a 99 percent interest
      in each of the limited partnerships in which it has invested.

      As of March 31, 1998, the Partnership is obligated, if certain conditions
      are met, to invest an additional $90,500 in its investee partnerships at
      various times in the future. This amount has not been recorded as a
      liability in the accompanying financial statements.

      Equity in losses of unconsolidated limited partnerships is recognized in
      the financial statements until the limited partnership investment account
      is reduced to a zero balance or to a negative amount equal to further
      capital contributions required. Losses incurred after the limited
      partnership investment account is reduced to zero are not recognized.

      Distributions from the unconsolidated limited partnerships are accounted
      for as a return of capital until the investment balance is reduced to
      zero. Subsequent distributions received are recognized as income.

      The following is a summary of the investment in unconsolidated limited
      partnerships for the three months ended March 31, 1998:

<TABLE>
<CAPTION>
      <S>                                                          <C>        
      Balance, beginning of period                                 $ 5,885,669
      Equity in income of limited partnerships                         212,000
      Amortization of acquisition costs                                (30,000)
      Cash distributions recognized as a return of capital             (55,248)
                                                                   -----------
          Balance, end of period                                   $ 6,012,451
                                                                   ===========
</TABLE>



                                       7

<PAGE>   10


                        REAL ESTATE ASSOCIATES LIMITED VI
                       (A CALIFORNIA LIMITED PARTNERSHIP)

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                                 MARCH 31, 1998


NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIP (CONTINUED)

      The following are unaudited combined estimated statements of operations
      for the three months ended March 31, 1998 and 1997 of the unconsolidated
      limited partnerships in which the Partnership has investments:
<TABLE>
<CAPTION>

                                     Three months         Three months
                                         ended                ended
                                    March 31, 1998       March 31, 1997
                                     -----------          -----------
      <S>                            <C>                  <C>        
      Revenues:
          Rental and other           $ 5,230,000          $ 5,311,000
                                     -----------          -----------

      Expenses:
          Depreciation                   898,000              899,000
          Interest                     1,289,000            2,078,000
          Operating expenses           3,529,000            2,803,000
                                     -----------          -----------

      Total expenses                   5,716,000            5,780,000
                                     -----------          -----------

               Net loss              $  (486,000)         $  (469,000)
                                     ===========          ===========
</TABLE>

      NAPICO, or one of its affiliates, is the general partner and property
      management agent for certain of the limited partnerships included above.

      One of the limited partnerships (Drexel Park III) sold its property on May
      1, 1997, upon the necessary regulatory approval from the Maryland
      Community Development Agency. Drexel Park III was sold for $2,450,000.
      After payment of closing costs, the limited partnership received net
      proceeds of approximately $733,000, which were distributed to the
      Partnership. The investment balance as of December 31, 1996 was $597,000.

      Under recent adopted law and policy, HUD has determined not to renew
      housing assistance payments contracts ("HAP Contracts") on a long term
      basis on the existing terms. In connection with renewals of the HAP
      Contracts under such new law and policy, the amount of rental assistance
      payments under renewed HAP Contracts will be based on market rentals
      instead of above market rentals, which was generally the case under
      existing HAP Contracts. As a result, existing HAP Contracts that are
      renewed in the future on projects insured by the Federal Housing
      Administration of HUD ("FHA") will not provide sufficient cash flow to
      permit owners of properties to meet the debt service requirements of these
      existing FHA-insured mortgages. In order to address the reduction in
      payments under HAP Contracts as a result of this new policy, the
      Multi-family Assisted Housing Reform and Affordability Act of 1997
      ("MAHRAA"), which was adopted in October 1997, provides for the
      restructuring of mortgage loans insured by the FHA with respect to
      properties subject to HAP Contracts that have been renewed under the new
      policy. The restructured loans will be held by the current lender or
      another lender. Under MAHRAA, an FHA-insured mortgage loan can be
      restructured to reduce the annual debt service on such loan. There can be
      no assurance that the Partnership will be permitted to restructure its
      mortgage


                                        8

<PAGE>   11


                        REAL ESTATE ASSOCIATES LIMITED VI
                       (A CALIFORNIA LIMITED PARTNERSHIP)

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                                 MARCH 31, 1998



NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIP (CONTINUED)

      indebtedness pursuant to the new HUD rules implementing MAHRAA or that the
      Partnership would choose to restructure such mortgage indebtedness if it
      were eligible to participate in the MAHRAA program. It should be noted
      that there are uncertainties as to the economic impact on the Partnership
      of the combination of the reduced payments under the HAP Contracts and the
      restructuring of the existing FHA-insured mortgage loans under MAHRAA.
      Accordingly, the General Partners are unable to predict with certainty
      their impact on the Partnership's future cash flow.

      As a result of the foregoing, the Partnership is undergoing an extensive
      review of properties for disposition to the REIT as set forth below,
      refinancing or re-engineering alternatives for the properties in which the
      limited partnerships have invested and are subject to HUD mortgage and
      rental subsidy programs. The Partnership has incurred expenses in
      connection with this review by various third party professionals,
      including accounting, legal, valuation, structural and engineering costs,
      which amounted to approximately $224,000 as of March 31, 1998, including
      approximately $97,000 for the three months ended March 31, 1998.

      A real estate investment trust ("REIT") organized by an affiliate of
      NAPICO has advised the Partnership that it intends to make a proposal to
      purchase from the Partnership certain of the limited partnership interests
      held for investment by the Partnership.

      The REIT proposes to purchase such limited partner interests for cash,
      which it plans to raise in connection with a private placement of its
      equity securities. The purchase is subject to, among other things, (i)
      consummation of such private placement by the REIT; (ii) the purchase of
      the general partner interests in the local limited partnerships by the
      REIT; (iii) the approval of HUD and certain state housing finance -
      agencies; (iv) the consent of the limited partners to the sale of the
      local limited partnership interests held for investment by REAL VI; and
      (v) the consummation of a minimum number of purchase transactions with
      other NAPICO affiliated partnerships. As of March 31, 1998, the REIT had
      completed buy-out negotiations with a majority of the general partners of
      the local limited partnerships.

      A proxy is contemplated to be sent to the limited partners setting forth
      the terms and conditions of the purchase of the limited partners'
      interests held for investment by the Partnership, together with certain
      amendments to the Partnership Agreement and other disclosures of various
      conflicts of interest in connection with the transaction.

NOTE 3 - MORTGAGE NOTE PAYABLE

      The mortgage note has an interest rate of 8.78 percent per annum, with
      principal and interest payments due monthly. The note matures in September
      2006.

      The note is collateralized by the underlying rental property.



                                        9

<PAGE>   12


                        REAL ESTATE ASSOCIATES LIMITED VI
                       (A CALIFORNIA LIMITED PARTNERSHIP)

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                                 MARCH 31, 1998


NOTE 4 - NOTES PAYABLE

      Certain of the Partnership's investments involved purchases of partnership
      interests from partners who subsequently withdrew from the operating
      partnership. The purchase of these interests provides for additional cash
      payments of approximately $325,000 based upon specified events as outlined
      in the purchase agreements. Such amounts have been recorded as
      liabilities. In addition, the Partnership is obligated on non-recourse
      notes payable of $5,470,000 which bear interest at 9.5 or 10 percent per
      annum and have principal maturities ranging from December 1999 to December
      2012. Effective January 1, 1997, the interest rates for two notes
      totalling $2,810,000 changed to 10 percent per terms of the note. The
      notes and related interest are payable from cash flow generated from
      operations of the related rented properties as defined in the notes. These
      obligations are collateralized by the Partnership's investments in the
      limited partnerships. Unpaid interest is due at maturity of the notes.

NOTE 5 - MANAGEMENT FEES AND EXPENSES DUE TO GENERAL PARTNER

      Under the terms of the Restated Certificate and Agreement of Limited
      Partnership, the Partnership is obligated to NAPICO for an annual
      management fee of approximately .4 percent of the original invested assets
      of the limited partnerships. Invested assets are defined as the costs of
      acquiring project interests, including the proportionate amount of the
      mortgage loans related to the Partnership's interests in the capital
      accounts of the respective partnerships. This fee was approximately
      $126,000 and $125,000 for the three months ended March 31, 1998 and 1997,
      respectively.

      The Partnership reimburses NAPICO for certain expenses. The reimbursement
      to NAPICO was approximately $12,800 and $11,400 for the three months ended
      March 31, 1998 and 1997, and is included in general and administrative
      expenses.

NOTE 6 - CONTINGENCIES

      The corporate general partner of the Partnership is involved in various
      lawsuits and have also been named defendants in other lawsuits arising
      from transactions in the ordinary course of business. In the opinion of
      management and the corporate general partner, the claims will not result
      in any material liability to the Partnership.

      The Partnership has assessed the potential impact of the Year 2000
      computer systems issue on its operations. The Partnership believes that no
      significant actions are required to be taken by the Partnership to address
      the issue and that the impact of the Year 2000 computer systems issue will
      not materially affect the Partnership's future operating results or
      financial condition.



                                       10

<PAGE>   13


                        REAL ESTATE ASSOCIATES LIMITED VI
                       (A CALIFORNIA LIMITED PARTNERSHIP)

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                                 MARCH 31, 1998



NOTE 7 - FAIR VALUE OF FINANCIAL INSTRUMENTS

      Statement of Financial Accounting Standards No. 107, "Disclosure about
      Fair Value of Financial Instruments," requires disclosure of fair value
      information about financial instruments, when it is practicable to
      estimate that value. The mortgage notes payable are insured by HUD and are
      collateralized by the rental properties. The notes payable are
      collateralized by the Partnership's investments in investee limited
      partnerships and are payable only out of cash distributions from the
      investee partnerships. The operations generated by the property and
      investee limited partnerships are subject to various government rules,
      regulations and restrictions which make it impracticable to estimate the
      fair value of the mortgage note payable and the notes payable and related
      accrued interest. The carrying amount of other assets and liabilities
      reported on the balance sheets that require such disclosure approximates
      fair value due to their short-term maturity.



                                       11

<PAGE>   14



                        REAL ESTATE ASSOCIATES LIMITED VI
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                                 MARCH 31, 1998


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

      LIQUIDITY AND CAPITAL RESOURCES

      The Partnership's primary sources of funds include interest income on
      short term investments and distributions from limited partnerships in
      which the Partnership has invested.

      The Partnership has committed as of March 31, 1998 to investments in
      limited partnerships requiring additional capital contributions of
      $90,500. The Partnership normally makes its capital contributions to the
      local limited partnerships in stages, over a period of two to five years,
      with each contribution due on a specified date, provided that certain
      conditions regarding construction or operation of the project have been
      fulfilled. The Partnership has no significant commitments once the capital
      contributions have been made.

      RESULTS OF OPERATIONS

      Rental operations consist primarily of rental income and depreciation
      expense, debt service, and normal operating expenses to maintain the
      properties. Variances in rental operations from the prior year to the
      current year relate to the sale of the Drexel Property.

      Partnership revenues consist primarily of interest income earned on
      certificates of deposit and other temporary investment of funds not
      required for investment in local partnerships.

      Operating expenses consist primarily of recurring general and
      administrative expenses and professional fees for services rendered to the
      Partnership. In addition, an annual Partnership management fee in an
      amount equal to .4 percent of invested assets is payable to the corporate
      general partner.

      The Partnership accounts for its investments in the local limited
      partnerships on the equity method, thereby adjusting its investment
      balance by its proportionate share of the income or loss of the local
      limited partnerships. Losses incurred after the limited partnership
      investment account is reduced to zero are not recognized in accordance
      with the equity accounting method.

      Distributions received from limited partnerships are recognized as return
      of capital until the investment balance has been reduced to zero or to a
      negative amount equal to future capital contributions required. Subsequent
      distributions received are recognized as income.

      Except for certificates of deposit and money market funds, the
      Partnership's investments are entirely from interests in other limited and
      general partnerships owning government assisted projects. Funds
      temporarily not required for such investments in projects are invested
      providing interest income as reflected in the statement of operations.
      These funds can be converted to cash to meet obligations as they arise.
      The Partnership intends to continue investing available funds in this
      manner.


                                       12

<PAGE>   15



                        REAL ESTATE ASSOCIATES LIMITED VI
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                                 MARCH 31, 1998


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

      RESULTS OF OPERATIONS (CONTINUED)

      Under recent adopted law and policy, HUD has determined not to renew
      housing assistance payments contracts ("HAP Contracts") on a long term
      basis on the existing terms. In connection with renewals of the HAP
      Contracts under such new law and policy, the amount of rental assistance
      payments under renewed HAP Contracts will be based on market rentals
      instead of above market rentals, which was generally the case under
      existing HAP Contracts. As a result, existing HAP Contracts that are
      renewed in the future on projects insured by the Federal Housing
      Administration of HUD ("FHA") will not provide sufficient cash flow to
      permit owners of properties to meet the debt service requirements of these
      existing FHA-insured mortgages. In order to address the reduction in
      payments under HAP Contracts as a result of this new policy, the
      Multi-family Assisted Housing Reform and Affordability Act of 1997
      ("MAHRAA"), which was adopted in October 1997, provides for the
      restructuring of mortgage loans insured by the FHA with respect to
      properties subject to HAP Contracts that have been renewed under the new
      policy. The restructured loans will be held by the current lender or
      another lender. Under MAHRAA, an FHA-insured mortgage loan can be
      restructured to reduce the annual debt service on such loan. There can be
      no assurance that the Partnership will be permitted to restructure its
      mortgage indebtedness pursuant to the new HUD rules implementing MAHRAA or
      that the Partnership would choose to restructure such mortgage
      indebtedness if it were eligible to participate in the MAHRAA program. It
      should be noted that there are uncertainties as to the economic impact on
      the Partnership of the combination of the reduced payments under the HAP
      Contracts and the restructuring of the existing FHA-insured mortgage loans
      under MAHRAA. Accordingly, the General Partners are unable to predict with
      certainty their impact on the Partnership's future cash flow.

      As a result of the foregoing, the Partnership is undergoing an extensive
      review of properties for disposition to the REIT as set forth below,
      refinancing or re-engineering alternatives for the properties in which the
      limited partnerships have invested and are subject to HUD mortgage and
      rental subsidy programs. The Partnership has incurred expenses in
      connection with this review by various third party professionals,
      including accounting, legal, valuation, structural and engineering costs,
      which amounted to approximately $224,000 as of March 31, 1998, including
      approximately $97,000 in general and administrative expenses for the 
      three months ended March 31, 1998.

      A real estate investment trust ("REIT") organized by an affiliate of
      NAPICO has advised the Partnership that it intends to make a proposal to
      purchase from the Partnership certain of the limited partnership interests
      held for investment by the Partnership.

      The REIT proposes to purchase such limited partner interests for cash,
      which it plans to raise in connection with a private placement of its
      equity securities. The purchase is subject to, among other things, (i)
      consummation of such private placement by the REIT; (ii) the purchase of
      the general partner interests in the local limited partnerships by the
      REIT; (iii) the approval of HUD and certain state housing finance
      agencies; (iv) the consent of the limited partners to the sale of the
      local limited partnership interests held for investment by REAL VI; and
      (v) the consummation of a minimum number



                                       13

<PAGE>   16



                        REAL ESTATE ASSOCIATES LIMITED VI
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                                 MARCH 31, 1998


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

      RESULTS OF OPERATIONS (CONTINUED)

      of purchase transactions with other NAPICO affiliated partnerships. As of
      March 31, 1998, the REIT had completed buy-out negotiations with a
      majority of the general partners of the local limited partnerships.

      A proxy is contemplated to be sent to the limited partners setting forth
      the terms and conditions of the purchase of the limited partners'
      interests held for investment by the Partnership, together with certain
      amendments to the Partnership Agreement and other disclosures of various
      conflicts of interest in connection with the transaction.

      The Partnership has assessed the potential impact of the Year 2000
      computer systems issue on its operations. The Partnership believes that no
      significant actions are required to be taken by the Partnership to address
      the issue and that the impact of the Year 2000 computer systems issue will
      not materially affect the Partnership's future operating results or
      financial condition.



                                       14

<PAGE>   17



                        REAL ESTATE ASSOCIATES LIMITED VI
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                                 MARCH 31, 1998


PART II.  OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

The Partnership's general partner is involved in various lawsuits. None of these
lawsuits are related to the Partnership.


ITEM 5.  OTHER INFORMATION

On October 20, 1997 the Partnership became aware of an unsolicited tender offer
from Equity Resources Fund XXI (the "Buyer") to buy up to 400 units of limited
partnership interests (the "Units") in the Partnership for a price of $250 per
Unit. The Buyer did not contact the Corporate General Partner prior to
commencing its tender offer. By letter dated October 30, 1997, the Corporate
General Partner advised limited partners that it had determined not to take a
position with respect to the tender offer but cautioned limited partners to
consider certain items before determining whether to tender their Units to the
Buyer. A copy of the letter is attached as an Exhibit to this form 10-Q.


ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

      (a) No exhibits are required per the provision of item 7 of regulation
          S-K.


                                       15

<PAGE>   18


                        REAL ESTATE ASSOCIATES LIMITED VI
                             (A LIMITED PARTNERSHIP)

                                 MARCH 31, 1998


                                   SIGNATURES


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


                             REAL ESTATE ASSOCIATES LIMITED VI AND
                             SUBSIDIARIES (a California limited partnership)


                             By: National Partnership Investments
                                 Corp., General Partner


                                 /s/ BRUCE NELSON
                                 ------------------------------------------
                                 Bruce Nelson
                                 President


                             Date: May 18, 1998
                                   --------------


                                 /s/ CHARLES H. BOXENBAUM
                                 ------------------------------------------
                                 Charles H. Boxenbaum
                                 Chief Executive Officer



                             Date: May 18, 1998
                                   --------------




                                       16