SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

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

                  For the quarterly period ended June 30, 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                           33-0061355
         (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 June 30, 1998: 76,788




                                  Page 1 of 15
<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)

                                                        June 30,    December 31,
                                                         1998          1997

Assets
Investments in real estate:
  Rental property, net of accumulated depreciation
    of $12,081 and $11,474 at June 30, 1998
    and December 31, 1997, respectively               $  32,275      $  32,659
  Land held for development, net                          2,877          4,666
  Rental property held for sale, net                         --         10,179
  Land held for sale, net                                 3,994          2,310
                                                      ---------      ---------

    Total real estate investments                        39,146         49,814

Cash and cash equivalents                                10,464            788
Restricted cash                                             369            369
Accounts and interest receivable                            169            286
Deferred financing costs and other fees, net of
  accumulated amortization of $1,066 and $1,039
  at June 30, 1998 and December 31, 1997,
  respectively                                            1,404          1,373
Prepaid expenses and other assets                           881            771
                                                      ---------      ---------

    Total assets                                      $  52,433      $  53,401
                                                      =========      =========











                                  - continued -


                                  Page 2 of 15
<PAGE>



                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

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

                                                      June 30,      December 31,
                                                        1998            1997

Liabilities and Partners' Equity (Deficit)
Liabilities:
  Notes payable                                       $  16,082      $  22,004
  Accounts payable and accrued expenses                     596            565
  Interest payable                                           64             66
                                                      ---------      ---------

    Total liabilities                                    16,742         22,635
                                                      ---------      ---------

Commitments and contingent liabilities (see Note 4)

Partners' equity (deficit):
  General partners                                         (618)          (891)
  Limited partners, 76,788 and 77,054 limited
    partnership units outstanding at June 30, 1998
    and December 31, 1997, respectively                  36,309         31,657
                                                      ---------      ---------

    Total partners' equity                               35,691         30,766
                                                      ---------      ---------

    Total liabilities and partners' equity            $  52,433      $  53,401
                                                      =========      =========















                 See accompanying notes to financial statements.




                                  Page 3 of 15
<PAGE>




<TABLE>
<CAPTION>
                                 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         Six months ended
                                               June 30,                 June 30,
                                         ---------------------    --------------------
                                            1998        1997         1998       1997
                                         ---------   ---------    ---------   --------
<S>                                      <C>         <C>          <C>         <C>
Revenues:
  Rental income                          $   1,784   $   1,748    $   3,694   $   3,287
  Interest and other income                     13           3           23          11
  Gain on sale of rental property            5,468          --        5,468          --
                                         ---------   ---------    ---------   ---------

    Total revenues                           7,265       1,751        9,185       3,298
                                         ---------   ---------    ---------   ---------

Expenses:
  Operating                                    733         758        1,556       1,470
  Interest expense                             475         468          983         861
  Depreciation and amortization                346         429          693         820
  Provision for impairment of land
    held for sale                               --         378           --         378
  Loss on sale of land                          --          --           11          --
  Expenses associated with
    land held for development                  141         148          280         325
  General and administrative                   338         325          648         641
                                         ---------   ---------    ---------   ---------

    Total expenses                           2,033       2,506        4,171       4,495
                                         ---------   ---------    ---------   ---------

Net income (loss)                        $   5,232   $    (755)   $   5,014   $  (1,197)
                                         =========   =========    =========   =========



Net income (loss) per limited
  partnership unit                       $   64.55   $   (9.45)   $   61.67   $  (14.99)
                                         =========   =========    =========   =========

Weighted average number of limited
  partnership units outstanding during
  each period used to compute net income
  (loss) per limited partnership unit       76,821      79,846       76,881      79,846
                                         =========   =========    =========   =========
</TABLE>



                 See accompanying notes to financial statements.




                                  Page 4 of 15
<PAGE>



                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

              Consolidated Statements of Partners' Equity (Deficit)
                 For the six months ended June 30, 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          --         (89)          (89)

Net income                                      273       4,741         5,014
                                            -------    --------     ---------

Balance at June 30, 1998                    $  (618)   $ 36,309     $  35,691
                                            =======    ========     =========




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

Net loss                                         --      (1,197)       (1,197)
                                            -------    --------     ---------

Balance at June 30, 1997                    $  (891)   $ 34,353     $  33,462
                                            =======    ========     =========
















                 See accompanying notes to financial statements.




                                  Page 5 of 15
<PAGE>


<TABLE>
<CAPTION>

                                 RANCON REALTY FUND IV,
                            A CALIFORNIA LIMITED PARTNERSHIP

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

                                                                    Six months ended
                                                                        June 30,
                                                                  1998           1997
                                                               ---------      ---------

<S>                                                            <C>            <C>
Cash flows from operating activities:
  Net income (loss)                                            $   5,014      $  (1,197)
  Adjustments to reconcile net income (loss) to net cash
   provided by (used for) operating activities:
     Net gain on sale of real estate                              (5,457)            --
     Depreciation and amortization                                   693            820
     Amortization of loan fees, included in interest expense          52             48
     Provision for impairment of land held for sale                   --            378
     Changes in certain assets and liabilities:
       Accounts and interest receivable                              117            151
       Deferred financing costs and other fees                      (169)          (272)
       Prepaid expenses and other assets                            (110)            78
       Accounts payable and accrued expenses                          80           (109)
       Interest payable                                               (2)            18
                                                               ---------      ---------

  Net cash provided by (used for) operating activities               218            (85)
                                                               ---------      ---------

Cash flows from investing activities:
  Net proceeds from sale of real estate                           15,847             --
  Net additions to real estate and property development costs       (378)        (3,837)
                                                               ---------      ---------

  Net cash provided by (used for) investing activities            15,469         (3,837)
                                                               ---------      ---------

Cash flows from financing activities:
  Net loan proceeds                                                   --          6,500
  Increase in restricted cash, net                                    --           (269)
  Payment of loan fees                                                --           (122)
  Notes payable principal payments                                (5,922)        (1,621)
  Purchase and retirement of limited partnership units               (89)            --
                                                               ---------      ---------

  Net cash provided by (used for) financing activities            (6,011)         4,488
                                                               ---------      ---------

Net increase in cash and cash equivalents                          9,676            566

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

Cash and cash equivalents at end of period                     $  10,464      $     663
                                                               =========      =========
</TABLE>



                                  - continued -




                                  Page 6 of 15
<PAGE>



<TABLE>
<CAPTION>

                                 RANCON REALTY FUND IV,
                            A CALIFORNIA LIMITED PARTNERSHIP

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

                                                                   Six months ended
                                                                        June 30,
                                                                  1998          1997
                                                                --------      --------



<S>                                                             <C>           <C>
Supplemental disclosure of cash flow information:
  Cash paid for interest                                        $    933      $     795
                                                                ========      =========

Supplemental disclosure of additions to real estate
  and property development costs:
    Purchase price of real estate                               $     --      $  (1,750)
    Reduction of note receivable                                      --            405
    Additions to real estate and property development costs         (378)        (2,492)
                                                                --------      ---------

Net additions to real estate and property development costs     $   (378)     $  (3,837)
                                                                ========      =========

Supplemental disclosure of non-cash refinancing activity:
  New financing $                                                     --      $   7,700
  Original financing paid off in escrow                               --         (1,200)
                                                                --------      ---------

Net loan proceeds                                               $     --      $   6,500
                                                                ========      =========
</TABLE>
















                 See accompanying notes to financial statements.




                                  Page 7 of 15
<PAGE>



                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                                  June 30, 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 June
30, 1998 and December 31, 1997, and the related statements of operations for the
three and six months ended June 30, 1998 and 1997,  and the changes in partners'
equity (deficit) and cash flows for the six months ended June 30, 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 and Preferred Partnership Services,  Inc. ("PPS"), a
California Corporation  unaffiliated with the Partnership,  contracted to assume
these services.  According to the Glenborough 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 of the Rancon  Partnerships.  Glenborough  is not an affiliate of RFC or
the Partnership.

During the first half of 1998,  a total of 266  limited  partnership  units were
repurchased and retired as a result of the Partnership's offer to redeem limited
partnership  units. As of June 30, 1998,  there were 76,788 limited  partnership
units outstanding.

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 RRF IV, Inc., a corporation  wholly owned
by the  Partnership.  Since  the 


                                  Page 8 of 15
<PAGE>

                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                                  June 30, 1998
                                   (Unaudited)

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.

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.  INVESTMENTS IN 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.

On June 4, 1998, the Partnership  sold the Shadowridge  Woodbend  Apartments,  a
240-unit  complex  in  Vista,   California,   to  an  unaffiliated   entity  for
$16,075,000.  The  Partnership  recognized  a gain  on the  sale  of the  rental
property of $5,468,000 and realized net proceeds of $9,806,000.

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 June 30, 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.





                                  Page 9 of 15
<PAGE>




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

LIQUIDITY AND CAPITAL RESOURCES

At June  30,  1998,  the  Partnership  had  cash of  $10,464,000  (exclusive  of
restricted  cash)  which  includes  $9,806,000  of net  cash  proceeds  from the
Shadowridge  Woodbend  Apartment  sale.  Management  is currently  analyzing the
Partnership's cash flow requirements and its ability to make a distribution from
the sale proceeds.  The remainder of the Partnership's  assets consist primarily
of its  investments in real estate,  totaling  approximately  $39,146,000  which
includes  $32,275,000  of  rental  properties,   $2,877,000  of  land  held  for
development and $3,994,000 of land held for sale.

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

A majority of the  Partnership's  assets are located within the Inland Empire, a
submarket of Southern California, which, despite recent economic growth has been
affected  by  recent  business  mergers.  Management  believes  that  while  the
commercial  real estate market  continues to improve in the Inland  Empire,  new
construction may soon begin to constrain rent and price increases.

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.

The Partnership's  general partner is currently in the process of evaluating the
fair market value of the Tri-City assets. The general partner and management are
evaluating  appraisals prepared by CB Commercial and other market information in
an effort to  determine  the  optimal  time to dispose of its assets and realize
their maximum value.


                                 Page 10 of 15
<PAGE>




Lake Elsinore

The  Partnership  owns  24.8  acres of  undeveloped  land  (referred  to as Lake
Elsinore)  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.

Perris

The Partnership  owns 17.14 acres of unimproved land near Perris Lake in Perris,
Riverside  County,  California  (referred  to as  Perris).  There  has  been  no
development  of the Perris  property to date. The property is being marketed for
sale to retail users and interested  developers.  Accordingly,  this property is
classified  as land  held  for  sale on the  accompanying  consolidated  balance
sheets.

Temecula

The  Partnership  owns two parcels of  unimproved  land in Temecula,  California
which are being marketed for sale.  Accordingly,  this property is classified as
land held for sale on the accompanying consolidated balance sheet.

General Matters

The  $10,179,000  decrease in rental  property held for sale and the  $9,676,000
increase in cash at June 30, 1998 from December 31, 1997 is primarily due to the
June 4, 1998 sale of the Shadowridge  Woodbend  Apartments  ("Shadowridge").  In
addition,  the $5,922,000 decrease in notes payable is largely due to the payoff
of the note secured by Shadowridge.

The $117,000 or 41% decrease in accounts  and  interest  receivable  at June 30,
1998 compared to December 31, 1997 is due to the collection of December 31, 1997
tenant receivables and the reimbursement  from a tenant for tenant  improvements
during the first quarter of 1998.

The  $110,000 or 14%  increase in prepaid  expenses and other assets at June 30,
1998  compared  to December  31,  1997 is  primarily  due to the  prepayment  of
premiums for annual pollution liability insurance coverage.

Other than the aforementioned, the Partnership knows of no demands, commitments,
events or uncertainties  that might effect its liquidity or capital resources in
any material  respect.  The effect of inflation  on the  Partnership's  business
should be no greater than its effect on the economy as a whole.


                                 Page 11 of 15
<PAGE>


RESULTS OF OPERATIONS

Revenues

Rental  income  for the six and  three  months  ended  June 30,  1998  increased
$407,000 or 12% and $36,000 or 2% over the six and three  months  ended June 30,
1997,  respectively,  primarily  as a result of the  increased  occupancy at One
Vanderbilt,  Two Vanderbilt and Promotional  Retail Center. The overall increase
in revenue was offset with a decrease in rental income  resulting  from the June
1998  sale of  Shadowridge  and the loss of an  18,000  square  foot  tenant  at
Carnegie Business Center I following a business merger.

Occupancy rates at the Partnership's Tri-City properties as of June 30, 1998 and
1997 were as follows:

                                                   June 30,
                                            1998             1997
                                          --------         -------

One Vanderbilt                                97%             90%
Two Vanderbilt                                93%             90%
Service Retail Center                         95%            100%
Carnegie Business Center I                    72%             81%
Promotional Retail Center-Phase I            100%             97%
Inland Regional Center                       100%            100%
TGI Friday's                                 100%            100%
Circuit City                                 100%            100%

As of June 30,  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 (vi) Circuit City with a lease through January 2018.  These six tenants,  in
the  aggregate,  occupy  approximately  238,000 square feet of the 422,000 total
leasable square feet at Tri-City and account for approximately 55% of the rental
income  generated  at  Tri-City  and  43%  of the  total  rental  income  of the
Partnership during the first half of 1998.

Interest income increased $12,000 or 109% and $10,000 or 333% during the six and
three months ended June 30, 1998 compared to the six and three months ended June
30, 1997,  respectively,  due to interest  earned on an $80,000 note received as
part of a settlement  agreement with a former tenant. The note bears interest at
10% per annum commencing January 1, 1998.

Expenses

Operating  expenses increased $86,000 or 6% during the six months ended June 30,
1998 over the six months  ended June 30,  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.


                                 Page 12 of 15
<PAGE>


Interest expense increased  $122,000 or 14% during the six months ended June 30,
1998 compared to the same period in 1997, due to the increased permanent debt to
finance certain properties over the past year.

Depreciation  and  amortization  decreased  $127,000  or 15% and  $83,000 or 19%
during the six and three  months  ended June 30,  1998  compared  to the six and
three  months  ended  June 30,  1997,  respectively,  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.

Provision for impairment of land held for sale was recorded in the first quarter
of 1997 in the  amount  of  $378,000  due to  management's  conclusion  that the
carrying  value  of the  Partnership's  investment  in  land  held  for  sale in
Temecula, California was in excess of its fair value.

Expenses associated with land held for development  decreased $45,000 or 14% and
$7,000 or 5% for the six and three  months  ended June 30, 1998  compared to the
six and three months ended June 30, 1997, respectively, due in large part to the
reduction  in  property  tax  expense as a result of the sale of ten  parcels in
Rancon Towne Village since July 1997.

General and  administrative  expenses  remained  stable during the six and three
months  ended June 30, 1998  compared to the six and three months ended June 30,
1997.  This was due to a reduction in asset  administration  fees resulting from
land sales in 1997 which was offset by increases in professional fees due to the
special  appraisals,  analyses and forecasts  ordered by management to assist in
determining the optimal time to market the properties for sale.

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 13 of 15
<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:

          Registrant  filed a Current  Report on Form  8-K,  dated  July 6, 1998
          reporting the sale of the Shadowridge Woodbend Apartments,  a 240 unit
          apartment  complex  in  Vista,  California.  Also  included  were  the
          pro-forma financial statements.




                                 Page 14 of 15
<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: August 12, 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




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