FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549



             [ 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


                         Commission file number: 0-14207


                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP
             (Exact name of registrant as specified in its charter)


                   California                          33-0016355
        (State or other jurisdiction of             (I.R.S. Employer
        incorporation or organization)            Identification  No.)

     400 South El Camino Real, Suite 1100
             San Mateo, California                        94402
             (Address of principal                     (Zip Code)
              executive offices)

                                 (650) 343-9300
              (Registrant's telephone number, including area code)

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 ______


         Total number of units outstanding as of March 31, 1998: 76,842




                                  Page 1 of 14
<PAGE>


PART 1.  FINANCIAL INFORMATION


Item 1.  Financial Statements


                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                           Consolidated Balance Sheets
                    (in thousands, except units outstanding)
                                   (Unaudited)

                                                       March 31,    December 31,
                                                          1998          1997
                                                       ---------      ---------

Assets
Investments in real estate:
  Rental property, net of accumulated depreciation
    of $11,776 and $11,474 at March 31, 1998
    and December 31, 1997, respectively                 $ 32,524      $ 32,659
  Land held for development, net                           2,735         4,666
  Rental property held for sale, net                      10,181        10,179
  Land held for sale, net                                  3,994         2,310
                                                        --------      --------

     Total real estate investments                        49,434        49,814

Cash and cash equivalents                                    957           788
Restricted cash                                              369           369
Accounts and interest receivable                             361           286
Deferred financing costs and other fees, net of
  accumulated amortization of $1,112 and $1,039 at
  March 31, 1998 and December 31, 1997,
  respectively                                             1,371         1,373
Prepaid expenses and other assets                            822           771
                                                        --------      --------

     Total assets                                       $ 53,314      $ 53,401
                                                        ========      ========









                                  - continued -



                                  Page 2 of 14
<PAGE>


                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                     Consolidated Balance Sheets - continued
                    (in thousands, except units outstanding)
                                   (Unaudited)

                                                       March 31,    December 31,
                                                          1998           1997
                                                       ---------      ---------

Liabilities and Partners' Equity (Deficit)
Liabilities:
  Notes payable                                         $ 21,941      $ 22,004
  Accounts payable and accrued expenses                      828           565
  Interest payable                                            83            66
                                                        --------      --------

     Total liabilities                                    22,852        22,635
                                                        --------      --------

Commitments and contingent liabilities (see Note 4)

Partners' equity (deficit):
  General partners                                          (891)         (891)
  Limited partners, 76,842 and 77,054 limited
    partnership units outstanding at
    March 31, 1998 and December 31, 1997, respectively    31,353        31,657
                                                        --------      --------

     Total partners' equity                               30,462        30,766
                                                        --------      --------

     Total liabilities and partners' equity             $ 53,314      $ 53,401
                                                        ========      ========














                 See accompanying notes to financial statements.


                                  Page 3 of 14
<PAGE>


                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                      Consolidated Statements of Operations
          (in thousands, except per unit amounts and units outstanding)
                                   (Unaudited)


                                                          Three months ended
                                                               March 31,
                                                           1998         1997
                                                        --------      -------
Revenues:
  Rental income                                         $  1,910      $ 1,539
  Interest and other income                                   10            8
                                                        --------      -------

    Total revenues                                         1,920        1,547
                                                        --------      -------

Expenses:
  Operating                                                  823          712
  Interest expense                                           508          393
  Depreciation and amortization                              347          391
  Loss on sale of land                                        11           --
  Expenses associated with land held for development         139          177
  General and administrative expenses                        310          316
                                                        --------      -------

    Total expenses                                         2,138        1,989
                                                        --------      -------

Net loss                                                $   (218)     $  (442)
                                                        ========      =======


Net loss per limited partnership unit                   $  (2.83)     $ (5.54)
                                                        ========      =======


Weighted average number of limited
  partnership units outstanding during
  each period used to compute net loss
  per limited partnership unit                            76,940       79,846
                                                         =======      =======







                 See accompanying notes to financial statements.




                                  Page 4 of 14
<PAGE>


                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

              Consolidated Statements of Partners' Equity (Deficit)
               For the three months ended March 31, 1998 and 1997
                                 (in thousands)
                                   (Unaudited)




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

Balance at December 31, 1997               $   (891)      $ 31,657     $ 30,766

Retirement of limited partnership units          --            (86)         (86)

Net loss                                         --           (218)        (218)
                                           --------       --------     --------

Balance at March 31, 1998                  $   (891)      $ 31,353     $ 30,462
                                           ========       ========     ========



Balance at December 31, 1996               $   (891)      $ 35,550     $ 34,659

Net loss                                        ---           (442)        (442)
                                           --------       --------     --------

Balance at March 31, 1997                  $   (891)      $ 35,108     $ 34,217
                                           ========       ========     ========















                 See accompanying notes to financial statements.




                                  Page 5 of 14
<PAGE>


                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

              Consolidated Statements of Cash Flows (in thousands)
                                   (Unaudited)

                                                             Three months ended
                                                                  March 31,
                                                               1998      1997
                                                            ---------  ---------

Cash flows from operating activities:
  Net loss                                                   $  (218)   $  (442)
  Adjustments to reconcile net loss to net cash
  provided by operating activities:
    Depreciation and amortization                                347        391
    Amortization of loan fees, included in interest expense       28         14
    Loss on sale of land                                          11         --
    Changes in certain assets and liabilities:
      Accounts and interest receivable                           (75)       164
      Deferred financing costs and other fees                    (71)      (150)
      Prepaid expenses and other assets                          (51)        55
      Accounts payable and accrued expenses                      263        149
      Interest payable                                            17         29
                                                             -------    -------

  Net cash provided by operating activities                      251        210
                                                             -------    -------

Cash flows from investing activities:
  Net proceeds from sale of land                                 241         --
  Net additions to real estate and property development costs   (174)    (1,481)
                                                             -------    -------

  Net cash provided by (used for) investing activities            67     (1,481)
                                                             -------    -------

Cash flows from financing activities:
  Net loan proceeds                                               --      2,200
  Notes payable principal payments                               (63)       (58)
  Purchase and retirement of limited partnership units           (86)        --

  Net cash provided by (used for) financing activities          (149)     2,142
                                                             -------    -------

Net increase in cash and cash equivalents                        169        871

Cash and cash equivalents at beginning of period                 788         97
                                                             -------    -------

Cash and cash equivalents at end of period                   $   957    $   968
                                                             =======    =======

Supplemental disclosure of cash flow information:
  Cash paid for interest                                     $   463    $   350
                                                             =======    =======


                 See accompanying notes to financial statements.




                                  Page 6 of 14
<PAGE>


                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                                 March 31, 1998
                                   (Unaudited)


Note 1.   THE PARTNERSHIP AND ITS SIGNIFICANT ACCOUNTING POLICIES

In the opinion of Rancon Financial Corporation ("RFC") and Daniel Lee Stephenson
(the  "Sponsors")  and  Glenborough   Corporation   (successor  by  merger  with
Glenborough   Inland  Realty   Corporation)("Glenborough"),   the   accompanying
unaudited  financial  statements  contain all  adjustments  (consisting  of only
normal  accruals)  necessary to present fairly the financial  position of Rancon
Realty Fund IV, A California Limited Partnership (the "Partnership") as of March
31, 1998 and  December  31,  1997,  and the related  statements  of  operations,
changes in partners'  equity and cash flows for the three months ended March 31,
1998 and 1997.

Effective  January 1, 1995,  RFC  entered  into an  agreement  with  Glenborough
whereby  RFC  sold to  Glenborough  the  contract  to  perform  the  rights  and
responsibilities  under RFC's  agreement with the  Partnership and other related
Partnerships (collectively, the "Rancon Partnerships") to perform or contract on
the Partnership's behalf, for financial, accounting, data processing, marketing,
legal,  investor  relations,  asset and  development  management  and consulting
services for the  Partnership for a period of ten years or until the liquidation
of the  Partnership,  whichever  comes  first.  Effective  January 1, 1998,  the
agreement was amended to eliminate  Glenborough's  responsibility  for providing
investor relations services. According to the contract, the Partnership will pay
Glenborough for its services as follows:  (i) a specified  asset  administration
fee which is fixed for five years subject to reduction in the year following the
sale of assets ($806,000 in 1998); (ii) sales fees of 2% for improved properties
and 4% for land;  (iii) a refinancing  fee of 1% and (iv) a management fee of 5%
of gross rental  receipts.  As part of this agreement,  Glenborough will perform
certain tasks for the General Partner of the Rancon  Partnerships and RFC agreed
to cooperate with Glenborough,  should Glenborough  attempt to obtain a majority
vote of the limited partners to substitute itself as the General Partner for the
Rancon Partnerships. Glenborough is not an affiliate of RFC or the Partnership.

Consolidation  - In  order  to  satisfy  certain  lender  requirements  for  the
Partnership's  1996 loan secured by Service  Retail Center,  Promotional  Retail
Center,  and Carnegie  Business Center I, Rancon Realty Fund IV Tri-City Limited
Partnership,  a Delaware limited  partnership  ("RRF IV Tri-City") was formed in
April,  1996. The three properties  securing the loan were contributed to RRF IV
Tri-City  by the  Partnership.  The  limited  partner of RRF IV  Tri-City is the
Partnership  and  the  general  partner  is  Rancon  Realty  Fund  IV,  Inc.,  a
corporation  wholly owned by the Partnership.  Since the Partnership  indirectly
owns 100% of RRF IV Tri-City,  the financial  statements of RRF IV Tri-City have
been consolidated with those of the Partnership.  All intercompany  balances and
transactions have been eliminated in consolidation.





                                  Page 7 of 14
<PAGE>

                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                                 March 31, 1998
                                   (Unaudited)


Note 2.   REFERENCE TO 1997 AUDITED FINANCIAL STATEMENTS

These  unaudited  financial  statements  should be read in conjunction  with the
Notes  to  Financial  Statements  included  in the  December  31,  1997  audited
financial statements.

Note 3.   SALE OF REAL ESTATE

On January 27, 1998,  the  Partnership  sold one of the three  remaining  Rancon
Towne  Village  lots in  Temecula,  California  to an  unaffiliated  entity  for
$270,000.  The  Partnership  recognized  an $11,000 loss on the sale and the net
proceeds of $241,000 were added to the Partnership's operating cash reserves.

Note 4.   COMMITMENTS AND CONTINGENT LIABILITIES

The Partnership is contingently  liable for subordinated real estate commissions
payable to the  Sponsor in the amount of  $643,000  at March 31,  1998 for sales
that transpired in previous years. The subordinated real estate  commissions are
payable only after the Limited  Partners  have received  distributions  equal to
their original invested capital plus a cumulative  non-compounded  return of six
percent per annum on their adjusted invested capital.

Note 5.   NOTES PAYABLE

Included in notes  payable at March 31, 1998 is a  $5,820,000  note (the "Note")
secured by the Shadowridge  Woodbend Apartment  complex,  which matured on April
15,  1998.  On March  28,  1998,  the  Partnership  entered  into a  Forbearance
Agreement with the lender.  The Forbearance  Agreement  provides that the lender
will  forebear  exercising  remedies  from March 28, 1998  through July 15, 1998
provided  that certain  terms and  conditions  are met. The monthly  payments of
principal  and interest as well as the interest rate will remain the same during
the  forbearance  period and the entire  remaining  loan balance must be paid in
full by July 15, 1998. The Partnership expects to sell the Shadowridge  Woodbend
Apartment  complex  prior to July 15, 1998 and  pay-off  this Note with the sale
proceeds.

Note 6.   SUBSEQUENT EVENT

On May 5, 1998, a potential  third-party  buyer entered into a contract with the
Partnership  for  the  purchase  of  the  Shadowridge  Woodbend  Apartments  for
$16,075,000  with a close of escrow by June 11, 1998.  The net book value of the
property is $10,181,000 at March 31, 1998, therefore no provision for impairment
in investment in real estate is required.





                                  Page 8 of 14
<PAGE>


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

LIQUIDITY  AND CAPITAL RESOURCES

At March 31, 1998, the Partnership had cash of $957,000 (exclusive of restricted
cash).  The  remainder  of the  Partnership's  assets  consist  primarily of its
investments in real estate,  totaling  approximately  $49,434,000 which includes
$32,524,000  in rental  properties,  $4,671,000  of land  held for  development,
$10,181,000  of rental  property  held for sale and  $2,058,000 of land held for
sale.

Operationally,  the  Partnership's  primary  source  of funds  consists  of cash
provided by its rental activities.  Other sources of funds may include permanent
financing,   construction   financing,   property  sales,   interest  income  on
certificates  of  deposit  and other  deposits  of funds  invested  temporarily,
pending their use in the development of properties.

A majority of the  Partnership's  assets are located within the Inland Empire, a
submarket  of  Southern  California,  and have  been  directly  affected  by the
economic weakness of the region.  Management believes,  however, that the market
has  flattened and is no longer  falling in terms of sales prices.  While prices
have not increased  significantly,  the Southern  California  real estate market
appears to be  improving.  Management  continues  to  evaluate  the real  estate
markets in which the Partnership's  assets are located in an effort to determine
the  optimal  time to dispose of them and  realize  their  maximum  value.  Cash
generated  from  property  sales may be  utilized  in the  development  of other
properties or distributed to the partners.

Tri-City

The  Partnership  currently  owns  the  following  properties  in  the  Tri-City
Corporate  Center  area  within  the Inland  Empire  submarket  of the  Southern
California region:

           Property                            Type                  Square Feet
  ----------------------------   ----------------------------------  -----------
  One Vanderbilt                 Four story office building             73,730
  Two Vanderbilt                 Four story office building             69,046
  Carnegie Business Center I     Two R&D buildings                      62,539
  Service Retail Center          Two retail buildings                   20,780
  Promotional Retail Center      Four strip center retail buildings     66,265
  Inland Regional Center         Two story office building              81,079
  TGI Friday's                   Restaurant                              9,386
  Circuit City                   Retail building                        39,123

The  Partnership  also owns  approximately  26 acres of  unimproved  land in the
Tri-City area.

Management is currently in the process of evaluating  the potential  sale of the
Tri-City  assets.  Management has ordered an appraisal  from CB  Commercial,  an
econometric forecast of future


                                  Page 9 of 14
<PAGE>


value from CB  Commercial  and an analysis  by Arlen  Capital of the Real Estate
Investment  Trust  ("REIT")  market  to  determine  if it is better to offer the
Tri-City assets for sale in 1998 or 1999.

Shadowridge Woodbend Apartments

The  Shadowridge  Woodbend  Apartment  complex,  a  240-unit  complex  in Vista,
California  is  currently  under  contract  to be sold for  $16,075,000  with an
estimated  closing  date  of  June  11,  1998.  Since  December  31,  1997,  the
Partnership has classified this property as real estate held for sale and ceased
depreciation on the property effective January 1, 1998. Since the net book value
of the property is $10,181,000 at March 31, 1998, no provision for impairment in
investment in real estate is required.

Lake Elsinore

Lake  Elsinore is 24.8 acres of  undeveloped  land,  commercially  zoned in Lake
Elsinore,  Riverside County,  California.  During the first quarter of 1998, the
Partnership  began  marketing  this  land  for  sale.  On  April  24,  1998  the
Partnership entered into a contract with a third party buyer for the sale of the
land for  $4,500,000.  The sale is  expected  to close in the fourth  quarter of
1998. Accordingly, the Partnership has classified this property as land held for
sale on the accompanying  consolidated balance sheet as of March 31, 1998. Since
the net book value of the property is $1,936,000 at March 31, 1998, no provision
for impairment in investment in real estate is required.

Perris

Perris is 17.14 acres of unimproved  land near Perris Lake in Perris,  Riverside
County,  California.  There has been no  development  of the Perris  property to
date.  The property is being  marketed  for sale to retail users and  interested
developers.

Temecula

Final map  approval  was  received  January  2, 1996 to divide the 12.4 acres of
undeveloped  commercial property in Temecula,  California into twelve parcels to
accommodate  retail  and  commercial  development.  Through  January  1998,  the
Partnership sold ten parcels in six transactions,  totaling  approximately  10.2
acres for an aggregate sales price of $2,529,000.

General

The $75,000 or 20%  increase in accounts and  interest  receivable  at March 31,
1998  compared  to  December  31,  1997  is  a  result  of  tenant   improvement
reimbursements due from a tenant at March 31, 1998. The Partnership received the
reimbursement in April 1998.

The $263,000 or 47% increase in accounts  payable and accrued  expenses at March
31, 1998 from  December 31, 1997 is primarily due to the accrual of property tax
expenses which are payable in April 1998.


                                 Page 10 of 14
<PAGE>


Management  believes  that the  Partnership's  cash balance as of March 31, 1998
together with the cash from operations,  sales and financing, will be sufficient
to  finance  the   Partnership's  and  properties'   continued   operations  and
development  plans.  However,  there can be no assurance that the  Partnership's
results of  operations  will not fluctuate in the future and at times affect its
ability to meet its operating requirements.

RESULTS OF OPERATIONS

Revenues

Rental  income for the three months ended March 31, 1998  increased  $371,000 or
24% over the three months  ended March 31,  1997,  primarily as a result of: (i)
the  commencement  of the Circuit  City  operating  lease in May 1997,  (ii) the
acquisition  of the TGI  Friday's  property  in  February  1997  and  (iii)  the
significant increase in occupancy at Two Vanderbilt.  These sources of increased
revenue were slightly  offset with a decrease in rental income  associated  with
the loss of two  tenants  at  Carnegie  Business  Center  I over the past  year.
Management is currently marketing these spaces for lease.

Occupancy rates at the  Partnership's  Tri-City  properties as of March 31, 1998
and 1997 were as follows:

                                                        March 31,
                                                     1998        1997
                                                  ---------   ---------

      One Vanderbilt                                  85%         88%
      Two Vanderbilt                                  93%         63%
      Service Retail Center                          100%        100%
      Carnegie Business Center I                      69%         90%
      Promotional Retail Center-Phase I              100%         97%
      Inland Regional Center                         100%        100%
      TGI Friday's                                   100%        100%
      Circuit City                                   100%         N/A

As of March 31,  1998,  tenants at Tri-City  occupying  substantial  portions of
leased rental space included: (i) Inland Empire Health Plan with a lease through
March 2002; (ii) CompUSA with a lease through August 2003; (iii) ITT Educational
Services with a lease which expires in December 2004; (iv) PetsMart with a lease
through January 2009; (v) Inland Regional Center with a lease through July 2009;
and Circuit City with a lease through  January 2018.  These six tenants,  in the
aggregate,  occupied  approximately  238,000  square feet of the  422,000  total
leasable square feet at Tri-City and account for approximately 56% of the rental
income  generated  at  Tri-City  and  41% of the  total  rental  income  for the
Partnership during the first quarter of 1998.





                                 Page 11 of 14
<PAGE>



Expenses:

Operating expenses increased $111,000 or 16% during the three months ended March
31,  1998  compared  to the three  months  ended  March 31, 1997 due to: (i) the
addition of TGI Friday's as an  operating  property in February  1997;  (ii) the
addition of Circuit  City as an  operating  property in May 1997;  and (iii) the
receipt of prior year tax refunds during the first quarter of 1997.

Interest expense  increased  $115,000 or 29% during the three months ended March
31,  1998  compared  to  the  three  months  ended  March  31,  1997  due to the
Partnership's  increased  permanent debt to finance selected properties over the
past year.

Depreciation and amortization  decreased  $45,000 or 12% during the three months
ended March 31, 1998 compared to the three months ended March 31, 1997 primarily
due  to  ceasing  depreciation  on  the  Shadowridge  Woodbend  Apartments  upon
classification of the property as rental property held for sale (non-depreciable
property) effective December 31, 1997.

During the three months ended March 31, 1998, the Partnership recognized $11,000
in loss on the January 1998 sale of one lot in Rancon Towne Village.

Expenses  associated with undeveloped  land decreased  $37,000 or 21% during the
three months  ended March 31, 1998  compared to the three months ended March 31,
1997 primarily due to a reduction in property tax expense as a result of the ten
lots of Rancon Towne Village sold since July 1997.

Year 2000 Compliance

The Partnership  utilizes a number of computer  software  programs and operating
systems across its entire organization, including applications used in financial
business systems and various  administrative  functions.  To the extent that the
Partnership's  software  applications  contain  a source  code that is unable to
appropriately interpret the upcoming calendar year "2000" and beyond, some level
of  modification,  or replacement of such  applications  will be necessary.  The
Partnership has completed its  identification  of applications  that are not yet
"Year 2000"  compliant and has commenced  modification  or  replacement  of such
applications,  as necessary.  Given the information known at this time about the
Partnership's  systems that are  non-compliant,  coupled with the  Partnership's
ongoing,  normal  course-of-business  efforts to  upgrade  or  replace  critical
systems,  as necessary,  management does not expect "Year 2000" compliance costs
to have any material  adverse impact on the  Partnership's  liquidity or ongoing
results of  operations.  No  assurance  can be given,  however,  that all of the
Partnership's  systems will be "Year 2000" compliant or that compliance costs or
the  impact of the  Partnership's  failure to achieve  substantial  "Year  2000"
compliance will not have a material adverse effect on the  Partnership's  future
liquidity or results of operations.




                                 Page 12 of 14
<PAGE>


Part II. OTHER INFORMATION


Item 1.  Legal Proceedings

         None.

Item 2.  Changes in Securities

         Not applicable.

Item 3.  Defaults Upon Senior Securities

         Not applicable.

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

         None.

Item 5.  Other Information

         None.

Item 6.  Exhibits and Reports on Form 8-K

         (a)  Exhibits:

              #27 - Financial Data Schedule

         (b)  Reports on Form 8-K:

              None.




                                 Page 13 of 14
<PAGE>


                                   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.


                                              RANCON REALTY FUND IV,
                                              a California Limited Partnership
                                              (Registrant)




Date: May 14, 1998                    By:     /s/ Daniel L. Stephenson
                                              ------------------------
                                              Daniel L. Stephenson
                                              Chief Executive Officer and
                                              Chief Financial Officer of
                                              Rancon Financial Corporation,
                                              General Partner of
                                              Rancon Realty Fund IV,
                                              a California Limited Partnership















                                 Page 14 of 14
<PAGE>