UNITED STATES
                  SECURITIES AND EXCHANGE COMMISSION
                        WASHINGTON, DC.  20549
                                   
                               FORM 10-Q
                                   
(Mark One)

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

For the quarterly period ended             March 31, 1998
                               ---------------------------------------
                                   
                                  or

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

For the transition period from __________________ to _________________

Commission file number                0-14934
                       -----------------------------------------------
                       DIVERSIFIED HISTORIC INVESTORS
----------------------------------------------------------------------
        (Exact name of registrant as specified in its charter)

       Pennsylvania                                      23-2312037
-------------------------------                    ------------------- 
(State or other jurisdiction of                       (I.R.S. Employer
incorporation or organization                      Identification No.)

               1609 Walnut Street, Philadelphia, PA  19103
----------------------------------------------------------------------
    (Address of principal executive offices)              (Zip Code)

Registrant's telephone number, including area code  (215) 557-9800

                                      N/A
----------------------------------------------------------------------
 (Former name, former address and former fiscal year, if changed since
                             last report)

Indicate  by  check  mark whether the Registrant  (1)  has  filed  all
reports  required to be filed by Section 13 or 15(d) of the Securities
Exchange  Act  of  1934 during the preceding 12 months  (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>
                    PART I - FINANCIAL INFORMATION

Item 1.        Financial Statements.

             Consolidated Balance Sheets - March 31, 1998 (unaudited)
             and December 31, 1997
             Consolidated Statements of Operations - Three Months
             Ended March 31, 1998 and 1997 (unaudited)
             Consolidated Statements of Cash Flows - Three Months
             Ended March 31, 1998 and 1997 (unaudited)
             Notes to Consolidated Financial Statements (unaudited)

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

(1)    Liquidity

                      At  March  31,  1998,  Registrant  had  cash  of
approximately  $4,524.   Cash  generated  from  operations   is   used
primarily  to fund operating expenses and debt service.  If cash  flow
proves  to  be insufficient, the Registrant will attempt to  negotiate
with   the  various  lenders  in  order  to  remain  current  on   all
obligations.  The Registrant is not aware of any additional sources of
liquidity.

                     As  of  March 31, 1998, Registrant had restricted
cash  of  $44,330  consisting primarily  of  funds  held  as  security
deposits,   replacement  reserves  and  escrows  for  taxes.    As   a
consequence of these restrictions as to use, Registrant does not  deem
these funds to be a source of liquidity.

                     In  recent  years  the  Registrant  has  realized
significant losses, including the foreclosure of five properties and a
portion  of  a  sixth  property, due to the properties'  inability  to
generate sufficient cash flow to pay their operating expenses and debt
service.  The Registrant has first mortgages in place in each  of  its
remaining  three properties that are basically "cash-flow"  mortgages,
requiring all available cash after payment of operating expenses to be
paid to the first mortgage holder.  Therefore it is unlikely that  any
cash  will  be  available to the Registrant to  pay  its  general  and
administrative  expenses,  to  pay  debt  service  on   the   past-due
subordinate mortgage with respect to the Third Quarter or to  pay  any
debt  service  on  the two accrual mortgages with  respect  to  Wistar
Alley.

                     It  is the Registrant's intention to continue  to
hold  the  properties until they can no longer meet the  debt  service
requirements  (or with respect to the Third Quarter and Wistar  Alley,
the  lender seeks payment on the past due mortgage) and the properties
are  foreclosed, or the market value of the properties increases to  a
point  where they can be sold at a price which is sufficient to  repay
the underlying indebtedness.

               (2)  Capital Resources

                     Due  to the relatively recent rehabilitations  of
the   properties,  any  capital  expenditures  needed  are   generally
replacement  items  and  are funded out of  cash  from  operations  or
replacement  reserves, if any.  The Registrant is  not  aware  of  any
factors  which would cause historical capital expenditures levels  not
to   be   indicative  of  capital  requirements  in  the  future   and
accordingly,  does  not believe that it will have to  commit  material
resources  to capital investment for the foreseeable future.   If  the
need  for  capital expenditures does arise, the first mortgage  holder
for  Third Quarter, Wistar Alley and Smythe Stores has agreed to  fund
capital expenditures at terms similar to the first mortgage.

                      The  Registrant  will  seek  to  refinance   the
outstanding  mortgages  on Third Quarter and Wistar  Alley  which  are
scheduled to mature in October 1998.  There can be no assurances  that
such  financing will be available and, if not, the properties will  be
marketed  for  sale.  Failure to obtain refinancing  could  result  in
foreclosure on and loss of these properties.

               (3)  Results of Operations

                     During  the  first  quarter of  1998,  Registrant
incurred a net loss of $219,378 ($18.71 per limited partnership  unit)
compared  to  a  net loss of $238,338 ($20.32 per limited  partnership
unit) for the same period in 1997.

                     Rental income increased $15,066 from $101,611  in
the first quarter of 1996 to $116,677 in the same period in 1997.  The
increase  resulted from an increase in rental income at  Wistar  Alley
due  to  an increase in average occupancy (87% to 94%) and an increase
at Smythe Stores due to an increase in the average rental rates.

                     Expense for rental operations decreased by $6,560
from  $108,233 in the first quarter of 1997 to $101,673  in  the  same
period in 1998.  Expenses for rental operations decreased due a slight
overall  decrease  in  the operating expenses  at  all  three  of  the
properties.

                      Losses  incurred  during  the  quarter  at   the
Registrant's three properties amounted to $193,000, compared to a loss
of approximately $210,000 for the same period in 1997.

                     In the first quarter of 1998, Registrant incurred
a  loss  of $95,000 at the Smythe Stores Condominium complex including
$18,000 of depreciation expense, compared to a loss of $105,000 in the
first quarter of 1997, including $18,000 of depreciation expense.  The
decrease in the loss from the first quarter of 1997 to the same period
in  1998 is due to an increase in rental income due to an increase  in
the average rental rates.

                     In the first quarter of 1998, Registrant incurred
a  loss  of $55,000 at Third Quarter Apartments, including $18,000  of
depreciation expense, compared to a loss of $55,000 including  $18,000
of  depreciation expense in the first quarter of 1997.  There were  no
significant changes in the rental income or the operating expenses  at
the  property  from the first quarter of 1997 to the  same  period  in
1998.

                     In the first quarter of 1998, Registrant incurred
a  loss  of $43,000 at Wistar Alley, including $22,000 of depreciation
expense,   compared  to  a  loss  of  $50,000  including  $21,000   of
depreciation  expense in the first quarter of 1997.  The  decrease  in
the loss from the first quarter of 1997 to the same period in 1998  is
mainly  the result of an increase in rental income due to an  increase
in average occupancy (87% to 94%).
<PAGE>

                    DIVERSIFIED HISTORIC INVESTORS
                 (a Pennsylvania limited partnership)
                                   
                      CONSOLIDATED BALANCE SHEETS
                                   
                                Assets

                                        March 31, 1998        December 31, 1997
                                          (Unaudited)
Rental properties, at cost:                                          
Land                                      $  310,833              $  310,833
Buildings and improvements                 5,721,048               5,721,048
Furniture and fixtures                       128,329                 128,329
                                           ---------               ---------
                                           6,160,210               6,160,210
Less - Accumulated depreciation           (3,114,678)             (3,056,549)
                                           ---------               ---------
                                           3,045,532               3,103,661
                                                                     
Cash and cash equivalents                      4,524                     710
Restricted cash                               44,330                  68,887
Accounts receivable                           14,132                  12,469
Other  assets  (net  of  amortization   of                           
$30,510    at   March   31,    1998    and                           
December 31, 1997)                                 0                       0
                                           ---------               --------- 
       Total                             $ 3,108,518             $ 3,185,727
                                           =========               =========

                   Liabilities and Partners' Equity

Liabilities:
Debt obligations                         $ 5,877,488             $ 5,877,215
Accounts payable:                                                    
       Trade                                 411,131                 373,122
       Related parties                       371,815                 362,739
Interest payable                           1,321,379               1,230,141
Accrued liabilities                            4,555                   2,537
Tenant security deposits                      39,503                  37,948
                                           ---------               --------- 
       Total liabilities                   8,025,871               7,883,702
                                           ---------               --------- 
Partners' equity                          (4,917,353)             (4,697,975)
                                           ---------               ---------  
       Total                             $ 3,108,518             $ 3,185,727
                                           =========               =========

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

                    DIVERSIFIED HISTORIC INVESTORS
                 (a Pennsylvania limited partnership)
                                   
                 CONSOLIDATED STATEMENTS OF OPERATIONS
          For the Three Months Ended March 31, 1998 and 1997
                              (Unaudited)


                                         Three months            Three months
                                             Ended                   Ended
                                        March 31, 1998          March 31, 1997
                                      
Revenues:                                                                  
Rental income                           $   116,677             $   101,611
Interest income                                 240                     145
                                            -------                 ------- 
       Total revenues                       116,917                 101,756
                                                                           
Costs and expenses:                                                        
Rental operations                           101,673                 108,233
General and administrative                   17,460                  17,460
Interest                                    159,033                 157,191
Depreciation and amortization                58,129                  57,210
                                            -------                 -------  
       Total costs and expenses             336,295                 340,094
                                            -------                 -------  
Net loss                               ($   219,378)           ($   238,338)
                                            =======                 ======= 

Net loss per limited partnership unit   ($    18.71)           ($     20.32)
                                            =======                 =======

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

                    DIVERSIFIED HISTORIC INVESTORS
                 (a Pennsylvania limited partnership)
                                   
                 CONSOLIDATED STATEMENTS OF CASH FLOWS
          For the Three Months Ended March 31, 1998 and 1997
                              (Unaudited)

                                                           Three months ended
                                                                March 31,
                                                            1998         1997
Cash flows from operating activities:                                         
 Net loss                                              ($ 219,378)  ($ 238,338)
 Adjustments to reconcile net loss to net                                     
 cash provided by (used in) operating activities:
 Depreciation and amortization                             58,129       57,210
 Changes in assets and liabilities:                                           
 Decrease in restricted cash                               24,557       24,824
 (Increase) decrease in accounts receivable                (1,663)      13,459
 Increase in accounts payable - trade                      38,013       37,424
 Increase in accounts payable - related parties             9,076        9,040
 Increase in interest payable                              91,238       80,768
 Increase (decrease) in accrued liabilities                 2,014       (2,975)
 Increase (decrease) in tenant security deposits            1,555       (2,302)
                                                          -------      ------- 
Net cash provided by (used in) operating activities         3,541      (20,890)
                                                          -------      ------- 
Cash flows from investing activities:                                         
 Capital expenditures                                           0       (5,072)
                                                          -------      ------- 
Net cash used in investing activities                           0       (5,072)
                                                          -------      -------
Cash flows from financing activities:                                         
 Proceeds from debt financing                                 273       22,676
                                                          -------      ------- 
Net cash provided by financing activities                     273       22,676
                                                          -------      -------  
Increase (decrease) in cash and cash equivalents            3,814       (3,286)
                                                                              
Cash and cash equivalents at beginning of period              710        4,017
                                                          -------      ------- 
Cash and cash equivalents at end of period               $  4,524     $    731
                                                          =======      ======= 

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

                   DIVERSIFIED HISTORIC INVESTORS
                 (a Pennsylvania limited partnership)

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                              (Unaudited)


NOTE 1 - BASIS OF PRESENTATION

The   unaudited  consolidated  financial  statements  of   Diversified
Historic  Investors  (the "Registrant") and related  notes  have  been
prepared  pursuant to the rules and regulations of the Securities  and
Exchange  Commission.  Accordingly, certain information  and  footnote
disclosures  normally  included in financial  statements  prepared  in
accordance  with  generally accepted accounting principles  have  been
omitted  pursuant  to  such rules and regulations.   The  accompanying
consolidated financial statements and related notes should be read  in
conjunction with the audited financial statements in Form 10-K of  the
Registrant, and notes thereto, for the year ended December 31, 1997.

The  information furnished reflects, in the opinion of management, all
adjustments, consisting of normal recurring accruals, necessary for  a
fair presentation of the results of the interim periods presented.

                      PART II - OTHER INFORMATION

Item 1.        Legal Proceedings

                To  the best of its knowledge, Registrant is not party
to,  nor  is any of its property the subject of, any pending  material
legal proceedings.

Item 4.        Submission of Matters to a Vote of Security Holders

                No matter was submitted during the quarter covered  by
this report to a vote of security holders.

Item 6.        Exhibits and Reports on Form 8-K

               (a)  Exhibit    Document


                      3        Registrant's  Amended and Restated  Certificate
                               of   Limited   Partnership  and  Agreement   of
                               Limited  Partnership, previously filed as  part
                               of    Amendment    No.   2   of    Registrant's
                               Registration  Statement  on  Form   S-11,   are
                               incorporated herein by reference.
                                                
                     21        Subsidiaries  of the Registrant are  listed  in
                               Item  2.  Properties on Form  10-K,  previously
                               filed and incorporated herein by reference.

               (b)  Reports on Form 8-K:

                    No  reports  were  filed  on  Form  8-K  during  the
                    quarter ended March 31, 1998.
<PAGE>                  
                                   
                              SIGNATURES

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

Date:  May 29, 1998          DIVERSIFIED HISTORIC INVESTORS
       ------------
                             By: Diversified Historic Advisors, General Partner
                                         
                                 By: EPK, Inc., Partner
                                             
                                     By: /s/ Spencer Wertheimer
                                         -----------------------
                                         SPENCER WERTHEIMER,
                                         President and Treasurer