FORM 10-Q--QUARTERLY REPORT UNDER SECTION 13 OR 15(D)
                     OF THE SECURITIES EXCHANGE ACT OF 1934


                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 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 0-14187


                CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES/3
             (Exact name of registrant as specified in its charter)

               California                                       94-2940208
     (State or other jurisdiction of                        (I.R.S. Employer
      incorporation or organization)                        Identification No.)

One Insignia Financial Plaza, P.O. Box 1089
      Greenville, South Carolina                                  29602
(Address of principal executive offices)                         (Zip Code)

                                 (864) 239-1000
              (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


                         PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

a)
                CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES/3

                                 BALANCE SHEETS
                        (in thousands, except unit data)



                                                     March 31,    December 31,
                                                       1998          1997
Assets                                              (Unaudited)      (Note)
  Cash and cash equivalents                         $  6,591      $  5,054
  Receivables and deposits                               937           960
  Investments                                            105           105
  Restricted escrows                                   1,756         2,141
  Other assets                                           915           974
  Investment properties:
     Land                                             12,371        12,371
     Building and related personal property           51,181        50,955
                                                      63,552        63,326
     Less accumulated depreciation                   (16,164)      (15,474)
                                                      47,388        47,852
                                                    $ 57,692      $ 57,086

Liabilities and Partners' Capital (Deficit)

Liabilities
   Accounts payable                                 $    179      $    172
   Tenant security deposit liabilities                   464           460
   Accrued property taxes                                282           264
   Other liabilities                                     392           440
   Mortgage notes payable                             30,525        30,525
                                                      31,842        31,861
Partners' Capital (Deficit)
   General partner's                                    (583)         (589)
   Limited partners' (383,033 units outstanding)      26,433        25,814
                                                      25,850        25,225
                                                    $ 57,692      $ 57,086


Note: The balance sheet at December 31, 1997 has been derived from the audited
      financial statements at that date but does not include all the information
      and footnotes required by generally accepted accounting principles for
      complete financial statements

                  See Accompanying Notes to Financial Statements

b)
                CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES/3
                            STATEMENTS OF OPERATIONS
                                  (Unaudited)
                        (in thousands, except unit data)



                                                    Three Months Ended
                                                         March 31,
                                                    1998           1997
Revenues:
  Rental income                                   $ 3,571        $ 3,337
  Other income                                        260            390
  Gain on casualty event                               --             21
     Total revenues                                 3,831          3,748

Expenses:
  Operating                                         1,548          1,569
  General and administrative                          160            121
  Depreciation                                        703            691
  Interest                                            579            579
  Property taxes                                      216            232
     Total expenses                                 3,206          3,192


Net income                                        $   625        $   556

Net income allocated to general partner (1%)      $     6        $     6

Net income allocated to limited partners (99%)        619            550
                                                  $   625        $   556

Net income per limited partnership unit           $  1.62        $  1.44


                 See Accompanying Notes to Financial Statements


c)
                CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES/3

              STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
                                  (Unaudited)

                         (in thousands, except unit data)




<TABLE>
<CAPTION>
                                      Limited
                                     Partnership     General     Limited
                                       Units         Partner's   Partners'       Total
<S>                                  <C>            <C>          <C>           <C>
Original capital contributions        383,033        $     1      $95,758       $95,759

Partners' capital (deficit) at
  December 31, 1996                   383,033        $  (443)     $37,739       $37,296

Net income for the three months
  ended March 31, 1997                     --              6          550           556

Partners' capital (deficit) at
  March 31, 1997                      383,033        $  (437)     $38,289       $37,852

Partners' capital (deficit) at
  December 31, 1997                   383,033        $  (589)     $25,814       $25,225

Net income for the three months
  ended March 31, 1998                     --              6          619           625

Partners' capital (deficit) at
  March 31, 1998                      383,033        $  (583)     $26,433       $25,850
<FN>
                 See Accompanying Notes to Financial Statements
</FN>
</TABLE>


d)
                CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES/3

                            STATEMENTS OF CASH FLOWS
                                  (Unaudited)
                                 (in thousands)
<TABLE>
<CAPTION>
                                                             Three Months Ended
                                                                  March 31,
                                                             1998          1997
<S>                                                       <C>           <C>
Cash flows from operating activities:
  Net income                                               $  625        $   556
  Adjustments to reconcile net income to
    net cash provided by operating activities:
    Depreciation                                              703            691
    Amortization of lease commissions and
      loan costs                                               39             34
    Gain on casualty event                                     --            (21)
    Loss on disposal of property                               58             41
    Change in accounts:
      Receivables and deposits                                 23             86
      Other assets                                             20             (4)
      Accounts payable                                          7           (291)
      Tenant security deposit liabilities                       4             12
      Accrued property taxes                                   18            125
      Other liabilities                                       (48)           (96)

         Net cash provided by operating activities          1,449          1,133

Cash flows from investing activities:
  Property improvements and replacements                     (297)          (475)
  Net receipts from restricted escrows                        385            230

         Net cash provided by (used in)
            investing activities                               88           (245)

Cash flows from financing activities:
  Loan costs paid                                              --             (8)

         Net cash used in financing activities                 --             (8)

Net increase in cash and cash equivalents                   1,537            880

Cash and cash equivalents at beginning of period            5,054         15,813

Cash and cash equivalents at end of period                 $6,591        $16,693

Supplemental disclosure of cash flow information:
  Cash paid for interest                                   $  549        $   549

<FN>
                 See Accompanying Notes to Financial Statements
</FN>
</TABLE>

                CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES/3

                      STATEMENTS OF CASH FLOWS (Continued)
                                  (Unaudited)


SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITY


Casualty Event

During the first quarter of 1997, as a result of a fire at Hidden Cove by the
Lake Apartments, investment properties, accounts receivable and accounts payable
were adjusted $26,000, $135,000 and $140,000, respectively, for non-cash
activity.


                 See Accompanying Notes to Financial Statements

e)
                CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES/3

                         NOTES TO FINANCIAL STATEMENTS
                                  (Unaudited)


NOTE A - BASIS OF PRESENTATION

The accompanying unaudited financial statements of Consolidated Capital
Institutional Properties/3 (the "Partnership") have been prepared in accordance
with generally accepted accounting principles for interim financial information
and with the instructions to Form 10-Q and Article 10 of Regulation S-X.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
In the opinion of ConCap Equities, Inc. (the "General Partner"), all adjustments
(consisting of normal recurring accruals) considered necessary for a fair
presentation have been included. Operating results for the three month period
ended March 31, 1998, are not necessarily indicative of the results that may be
expected for the fiscal year ending December 31, 1998.  For further information,
refer to the financial statements and footnotes thereto included in the
Partnership's annual report on Form 10-K for the fiscal year ended December 31,
1997.

Certain reclassifications have been made to the 1997 information to conform to
the 1998 presentation.

NOTE B - RELATED PARTY TRANSACTIONS

The Partnership has no employees and is dependent on the General Partner and its
affiliates for the management and administration of all partnership activities.
The General Partner is wholly-owned by Insignia Properties Trust ("IPT"), which
is an affiliate of Insignia Financial Group, Inc. ("Insignia").  The Limited
Partnership Agreement ("Partnership Agreement") provides for payments to
affiliates for property management services based on a percentage of revenue.
The Partnership Agreement also provides for reimbursement to the General Partner
and its affiliates for costs incurred in connection with administration of
Partnership activities. The following payments were paid to affiliates of the
General Partner during each of the three month periods ending March 31, 1998 and
1997 (in thousands):

                                                               1998        1997

Property management fees (included in operating expenses)     $ 191       $ 177
Reimbursements for services of affiliates, including
 $13,000 and $20,000 of construction services
 reimbursements in 1998 and 1997, respectively
 (included in investment properties, general and
 administrative expenses and operating expenses)                103         108

Additionally, the Partnership paid $11,000 and $16,000 during the three months
ended March 31, 1998 and 1997, respectively, to an affiliate of the General
Partner for lease commissions at the Partnership's commercial properties. These
lease commissions are included in other assets and are amortized over the terms
of the respective leases.

From the period of January 1997 to August 1997, the Partnership insured its
properties under a master policy through an agency affiliated with the General
Partner with an insurer unaffiliated with the General Partner.  An affiliate of
the General Partner acquired, in the acquisition of a business, certain
financial obligations from an insurance agency which was later acquired by the
agent who placed the master policy. The agent assumed the financial obligations
to the affiliate of the General Partner which received payments on these
obligations from the agent.  The amount of the Partnership's insurance premiums
that accrued to the benefit of the affiliate of the General Partner by virtue of
the agent's obligations was not significant.

During December 1997, Insignia affiliates (the "Purchaser") commenced tender
offers for limited partnership interests in ten real estate limited partnerships
(including the Partnership) in which various Insignia affiliates act as general
partner.  The Purchaser offered to purchase up to 145,000 of the outstanding
units of limited partnership interest in the Partnership, at $85 per Unit, net
to the seller in cash, upon the terms and subject to the conditions set forth in
the Offer to Purchase dated December 31, 1997 (the "Offer to Purchase") and the
related Assignment of Partnership Interest attached as Exhibits (a)(1) and 
(a)(2), respectively, to the Tender Offer Statement on Schedule 14D-1 originally
filed with the Securities and Exchange Commission on December 31, 1997.  Because
of the existing and potential future conflicts of interest (described in the 
Partnership's Statements on Schedule 14D-9 filed with the Securities and 
Exchange Commission), neither the Partnership nor the General Partner 
expressed any opinion as to the Offer to Purchase and made no recommendation as 
to whether unit holders should tender their units in response to the Offer to 
Purchase.  In addition, because of these conflicts of interest, the manner in 
which the Purchaser votes its limited partner interest in the Partnership may 
not always be consistent with the best interests of the other limited partners.
During the first quarter of 1998, Insignia Properties, L.P. acquired an 
additional 47,865.5 units in the Partnership as a result of the aforementioned 
tender offer.

On March 17, 1998, Insignia entered into an agreement to merge its national
residential property management operations, and its controlling interest in IPT,
with Apartment Investment and Management Company ("AIMCO"), a publicly traded
real estate investment trust.  The closing, which is anticipated to happen in
the third quarter of 1998, is subject to customary conditions, including
government approvals and the approval of Insignia's shareholders.  If the
closing occurs, AIMCO will then control the General Partner of the Partnership.

NOTE C - COMMITMENT

The Partnership is required by the Partnership Agreement to maintain working
capital reserves for contingencies of not less than 5% of Net Invested Capital,
as defined in the Partnership Agreement.  Reserves, including cash and
securities available for sale totaling approximately $6.7 million were greater
than the reserve requirement of approximately $3.4 million at March 31, 1998.

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

The Partnership's investment properties consist of eight apartment complexes and
two commercial properties.  The following table sets forth the average occupancy
of the properties for each of the three months ended March 31, 1998 and 1997:


                                                        Average
                                                       Occupancy
Property                                            1998       1997

Cedar Rim                                           98%         94%
  New Castle, Washington

City Heights                                        93%        95%
  Seattle, Washington

Corporate Center                                    97%        96%
  Tampa, Florida

Hidden Cove by the Lake                             92%        94%
  Belleville, Michigan

Lamplighter Park                                    96%        93%
  Bellevue, Washington

Park Capitol                                        92%        99%
  Salt Lake City, Utah

Sandpiper I and II                                  96%        94%
  St. Petersburg, Florida

South City Business Center                          93%        89%
  Chula Vista, California

Tamarac Village I, II, III, IV                      96%        93%
  Denver, Colorado

Williamsburg Manor                                  97%        97%
  Cary, North Carolina

The General Partner attributes the increase in occupancy at Cedar Rim to the
property's improved appearance resulting from the painting of all the buildings
during 1997 and improved market conditions.  The decrease in occupancy at Park
Capitol is due to increased local residential construction coupled with low
interest rates.  The increase in occupancy at Tamarac Village is attributed
to property renovations performed in 1997.  South City Business Center's
occupancy increase is due to a stronger local market in 1998 and efforts to
improve the tenant profile by enforcing appearance requirements in leases.

The Partnership realized net income of $625,000 for the three months ended March
31, 1998, compared to $556,000 for the three months ended March 31, 1997.  The
increase in net income is primarily attributable to increased rental income
resulting from overall improved occupancy and increased rental rates.  This
increase was offset by decreased interest and other income due to reduced
interest income on lower average cash balances in 1998 and decreased tenant
charges including deposit forfeitures, cleaning fees and application fees.  Cash
balances declined as a result of distributions paid to the partners in 1997.
Also offsetting the increase in rental revenue was a casualty gain of $21,000
relating to fire damage at Hidden Cove by the Lake Apartments that was recorded
in 1997. The fire damaged ten units in one building at the complex.  The units
affected were primarily smoke and water damaged and the restoration was
completed in the second quarter of 1997.

Total expenses remained stable for the three months ended March 31, 1998
compared to the same period in 1997.  Included in operating expense for the
three months ended March 31, 1998 was $65,000 in major repairs and maintenance
compared to $127,000 in 1997.  The 1998 expenses include exterior building and
gutter repairs, exterior painting, and landscaping.  The 1997 expenses were
comprised primarily of exterior renovations, exterior painting, and landscaping.
General and administrative expenses increased due to increased printing and
mailing costs related to the timing of the printing and mailing of the
Partnership's annual reports.

As part of the ongoing business plan of the Partnership, the General Partner
monitors the rental market environment of each of its investment properties to
assess the feasibility of increasing rents, maintaining or increasing occupancy
levels and protecting the Partnership from increases in expenses.  As part of
this plan, the General Partner attempts to protect the Partnership from the
burden of inflation-related increases in expenses by increasing rents and
maintaining a high overall occupancy level.  However, due to changing market
conditions, which can result in the use of rental concessions and rental
reductions to offset softening market conditions, there is no guarantee that the
General Partner will be able to sustain such a plan.

At March 31, 1998, the Partnership held unrestricted cash of approximately
$6,591,000 compared to approximately $16,693,000 at March 31, 1997.  The net
increase in cash and cash equivalents for the three months ended March 31, 1998
is $1,537,000 compared to a net increase of $880,000 for the three months ended
March 31, 1997.  Net cash provided by operating activities increased primarily
due to decreased cash used for accounts payable in 1998 due to the timing of
payments and to increased total revenues, as discussed above.  Net cash provided
by investing activities increased due to decreased property improvements and
replacements and increased withdrawals from restricted escrows in 1998.

The sufficiency of existing liquid assets to meet future liquidity and capital
expenditure requirements is directly related to the level of capital
expenditures required at the various properties to adequately maintain the
physical assets and other operating needs of the Partnership.  Such assets are
currently thought to be sufficient for any near-term needs of the Partnership.
The notes payable of $30,525,000 have maturity dates ranging from 2003 to 2005,
at which time the individual properties will be refinanced or sold.  The
mortgage notes payable are nonrecourse and are secured by pledges of the
respective properties. All notes require prepayment penalties if repaid prior to
maturity and prohibit resale of the properties subject to existing indebtedness.
There were no distributions paid during the first three months of 1998 or 1997.
Future cash distributions will depend on the levels of net cash generated from
operations, property sales, and the availability of cash reserves.  Currently,
the General Partner anticipates that a distribution of cash flow from operations
will be made in the fourth quarter of 1998.

In the fourth quarter of 1997, the General Partner received a non-binding letter
of intent from an unaffiliated party interested in pursuing the purchase of
Lamplighter Park Apartments.  The potential purchaser chose not to buy
Lamplighter Park and forfeited its $25,000 non-refundable deposit pursuant to
the terms and conditions of the letter of intent.

Year 2000

The Partnership is dependent upon the General Partner and Insignia for
management and administrative services.  Insignia has completed an assessment
and will have to modify or replace portions of its software so that its computer
systems will function properly with respect to dates in the year 2000 and
thereafter (the "Year 2000 Issue").  The project is estimated to be completed
not later than December 31, 1998, which is prior to any anticipated impact on
its operating systems.  The General Partner believes that with modifications to
existing software and conversions to new software, the Year 2000 Issue will not
pose significant operational problems for its computer systems. However, if such
modifications and conversions are not made, or are not completed timely, the
Year 2000 Issue could have a material impact on the operations of the
Partnership.

Other

Certain items discussed in this quarterly report may constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995 (the "Reform Act") and as such may involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance
or achievements of the Partnership to be materially different from any future
results, performance or achievements expressed or implied by such forward-
looking statements.  Such forward-looking statements speak only as of the date
of this quarterly report.  The Partnership expressly disclaims any obligation or
undertaking to release publicly any updates of revisions to any forward-looking
statements contained herein to reflect any change in the Partnership's
expectations with regard thereto or any change in events, conditions or
circumstances on which any such statement is based.


                          PART II - OTHER INFORMATION


ITEM 1.  LEGAL PROCEEDINGS

In March 1998, several putative unit holders of limited partnership units of the
Partnership commenced an action entitled Rosalie Nuanes, et al. v. Insignia
financial Group, Inc., et al. in Superior Court of the State of California for
the County of San Mateo.  The Plaintiffs named as defendants, among others, the
Partnership, the General Partner and several of their affiliated partnerships
and corporate entities. The complaint purports to assert claims on behalf of a
class of limited partners and derivatively on behalf of a number of limited
partnerships (including the Partnership) which are named as nominal defendants,
challenging the acquisition by Insignia and its affiliates of interests in
certain general partner entities, past tender offers by Insignia affiliates to
acquire limited partnership units, the management of partnerships by Insignia
affiliates as well as a recently announced agreement between Insignia and AIMCO.
The complaint seeks monetary damages and equitable relief, including judicial
dissolution of the Partnership.  The General Partner was only recently served
with the complaint which it believes to be without merit, and intends to
vigorously defend the action.


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

      (a) Exhibits:

          Exhibit 27, Financial Data Schedule, is filed as an exhibit to this
          report.

      (b) Reports on Form 8-K:

          None filed during the quarter ended 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.



                             CONSOLIDATED CAPITAL INSTITUTIONAL
                             PROPERTIES/3

                             By:CONCAP EQUITIES, INC.
                                Its General Partner
 


                             By:/s/William H. Jarrard, Jr.
                                William H. Jarrard, Jr.
                                President and Director



                             By:/s/Ronald Uretta
                                Ronald Uretta
                                Vice President/Treasurer


                             Date: May 6, 1998