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 September 30, 1997

                                       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
                                     0-19144


                            CNL Income Fund VI, Ltd.
             (Exact name of registrant as specified in its charter)


           Florida                                   59-2922954
    (State or other juris-                        (I.R.S. Employer
   diction of incorporation                      Identification No.)
      or organization)


400 E. South Street, #500
Orlando, Florida                                        32801
   (Address of principal                             (Zip Code)
     executive offices)


Registrant's telephone number
   (including area code)                           (407) 422-1574


Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Sections 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements
for the past 90 days.   Yes     X      No


<PAGE>









                                    CONTENTS




Part I                                                     Page

  Item 1.  Financial Statements:

    Condensed Balance Sheets                               1

    Condensed Statements of Income                         2

    Condensed Statements of Partners' Capital              3

    Condensed Statements of Cash Flows                     4

    Notes to Condensed Financial Statements                5-9

  Item 2.  Management's Discussion and Analysis
             of Financial Condition and
             Results of Operations                         10-17

Part II

  Other Information                                        18


<PAGE>



                            CNL INCOME FUND VI, LTD.
                         (A Florida Limited Partnership)
                            CONDENSED BALANCE SHEETS


                                    September 30,            December 31,
           ASSETS                       1997                     1996
                                    -------------            -----------

Land and buildings on operating
  leases, less accumulated
  depreciation and allowance for
  loss on land and building          $19,546,096              $21,105,355
Net investment in direct
  financing leases                     3,729,326                4,659,024
Investment in joint ventures           1,049,411                  997,016
Cash and cash equivalents              1,619,743                1,127,930
Restricted cash                        3,392,257                  977,756
Receivables, less allowance for
  doubtful accounts of $273,873
  and $115,892                            75,819                  174,983
Prepaid expenses                           9,982                    1,163
Lease costs, less accumulated
  amortization of $5,108 and
  $3,691                                  12,592                   14,009
Accrued rental income, less
  allowance for doubtful
  accounts of $9,697 in 1997
  and 1996                               956,917                1,045,319
Other assets                              26,731                   26,731
                                     -----------              -----------

                                     $30,418,874              $30,129,286
                                     ===========              ===========

LIABILITIES AND PARTNERS' CAPITAL

Accounts payable                     $    10,694              $    18,161
Accrued construction costs payable       125,000                       -
Accrued and escrowed real estate
  taxes payable                           24,727                   11,338
Due to related parties                    16,583                    2,633
Distributions payable                    787,500                  857,500
Rents paid in advance                     29,507                   30,705
                                     -----------              -----------
    Total liabilities                    994,011                  920,337

Commitment (Note 7)

Minority interest                        149,967                  164,582

Partners' capital                     29,274,896               29,044,367
                                     -----------              -----------

                                     $30,418,874              $30,129,286
                                     ===========              ===========



            See accompanying notes to condensed financial statements.

                                        1

<PAGE>



                            CNL INCOME FUND VI, LTD.
                         (A Florida Limited Partnership)
                         CONDENSED STATEMENTS OF INCOME

<TABLE>
<CAPTION>

                                                           Quarter Ended                   Nine Months Ended
                                                           September 30,                     September 30,
                                                     1997             1996              1997             1996
                                                  ----------       ----------        ----------       ----------
<S> <C>
Revenues:
  Rental income from
    operating leases                                $603,263         $699,760        $1,889,623       $2,090,179
  Earned income from direct
    financing leases                                  98,328          138,280           369,865          419,663
  Contingent rental income                             7,946            4,786            34,554           15,286
  Interest and other income                           43,483            8,785            76,748           35,384
                                                  ----------       ----------        ----------       ----------
                                                     753,020          851,611         2,370,790        2,560,512
                                                  ----------       ----------        ----------       ----------

Expenses:
  General operating and
    administrative                                    41,177           39,121           113,543          125,933
  Bad debt expense                                        -                -             13,102               -
  Professional services                                6,030            6,287            17,569           21,650
  Real estate taxes                                    1,790            3,833            11,754            3,833
  State and other taxes                                   -                -              8,968            8,128
  Depreciation and
    amortization                                     117,383          121,131           359,714          363,393
                                                  ----------       ----------        ----------       ----------
                                                     166,380          170,372           524,650          522,937
                                                  ----------       ----------        ----------       ----------

Income Before Minority
  Interest in Loss (Income)
  of Consolidated Joint
  Venture, Equity in
  Earnings of Unconsoli-
  dated Joint Ventures and
  Gain on Sale of Land and
  Buildings                                          586,640          681,239         1,846,140        2,037,575

Minority Interest in Loss
  (Income) of Consolidated
  Joint Venture                                        1,715           (5,191)            5,783          (16,260)

Equity in Earnings of
  Unconsolidated Joint
  Ventures                                            24,723           24,363           194,079           70,940

Gain on Sale of Land
  and Buildings                                      626,804               -            547,027               -
                                                  ----------       ----------        ----------       ---------

Net Income                                        $1,239,882       $  700,411        $2,593,029       $2,092,255
                                                  ==========       ==========        ==========       ==========

Allocation of Net Income:
  General partners                                $    7,692       $    7,004        $   21,492       $   20,922
  Limited partners                                 1,232,190          693,407         2,571,537        2,071,333
                                                  ----------       ----------        ----------       ----------

                                                  $1,239,882       $  700,411        $2,593,029       $2,092,255
                                                  ==========       ==========        ==========       ==========

Net Income Per Limited
  Partner Unit                                    $    17.60       $     9.91        $    36.74       $    29.59
                                                  ==========       ==========        ==========       ==========

Weighted Average Number
  of Limited Partner Units
  Outstanding                                         70,000           70,000            70,000           70,000
                                                  ==========       ==========        ==========       ==========
</TABLE>


            See accompanying notes to condensed financial statements.

                                        2

<PAGE>



                            CNL INCOME FUND VI, LTD.
                         (A Florida Limited Partnership)
                    CONDENSED STATEMENTS OF PARTNERS' CAPITAL

                                Nine Months Ended             Year Ended
                                  September 30,              December 31,
                                       1997                      1996
                                -----------------            ------------

General partners:
  Beginning balance                $   204,010               $   175,673
  Net income                            21,492                    28,337
                                   -----------               -----------
                                       225,502                   204,010
                                   -----------               -----------

Limited partners:
  Beginning balance                 28,840,357                29,285,093
  Net income                         2,571,537                 2,775,264
  Distributions ($33.75 and
    $46.00 per limited partner
    unit, respectively)             (2,362,500)               (3,220,000)
                                   -----------               -----------
                                    29,049,394                28,840,357
                                   -----------               -----------

Total partners' capital            $29,274,896               $29,044,367
                                   ===========               ===========





            See accompanying notes to condensed financial statements.

                                        3

<PAGE>



                            CNL INCOME FUND VI, LTD.
                         (A Florida Limited Partnership)
                       CONDENSED STATEMENTS OF CASH FLOWS

                                                      Nine Months Ended
                                                        September 30,
                                             1997                  1996
                                         -----------            ----------

Increase (Decrease) in Cash and Cash
  Equivalents:

    Net Cash Provided by Operating
      Activities                         $ 2,375,171            $ 2,511,446
                                         -----------            -----------

    Cash Flows from Investing
      Activities:
        Proceeds from sale of land
          and buildings                    4,003,985                     -
        Additions to land and
          buildings on operating
          leases                          (1,112,647)                    -
        Investment in joint ventures              -                (173,650)
        Return of capital from joint
          venture                             69,997                 27,560
        Collections on mortgage note
          receivable                              -                   3,033
        Increase in restricted cash       (2,400,061)                    -
        Payment of lease costs                (3,300)                (3,300)
                                         -----------            -----------
            Net cash provided by (used
              in) investing activities       557,974               (146,357)
                                         -----------            -----------

    Cash Flows from Financing
      Activities:
        Distributions to limited
          partners                        (2,432,500)            (2,362,500)
        Distributions to holder of
          minority interest                   (8,832)               (13,437)
                                         -----------            -----------
            Net cash used in financing
              activities                  (2,441,332)            (2,375,937)
                                         -----------            -----------

Net Increase (Decrease) in Cash and
  Cash Equivalents                           491,813                (10,848)

Cash and Cash Equivalents at Beginning
  of Period                                1,127,930              1,120,999
                                         -----------            -----------

Cash and Cash Equivalents at End of
  Period                                 $ 1,619,743            $ 1,110,151
                                         ===========            ===========

Supplemental Schedule of Non-Cash
  Financing Activities:

    Distributions declared and unpaid
      at end of period                   $   787,500            $   787,500
                                         ===========            ===========

            See accompanying notes to condensed financial statements.

                                        4

<PAGE>



                            CNL INCOME FUND VI, LTD.
                         (A Florida Limited Partnership)
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
           Quarters and Nine Months Ended September 30, 1997 and 1996


1.       Basis of Presentation:

         The accompanying  unaudited  condensed  financial  statements have been
         prepared in accordance  with the  instructions  to Form 10-Q and do not
         include  all  of the  information  and  note  disclosures  required  by
         generally  accepted  accounting  principles.  The financial  statements
         reflect all adjustments,  consisting of normal  recurring  adjustments,
         which are, in the opinion of management,  necessary to a fair statement
         of the results for the interim periods presented. Operating results for
         the  quarter and nine  months  ended  September  30,  1997,  may not be
         indicative  of the  results  that may be  expected  for the year ending
         December  31, 1997.  Amounts as of December  31, 1996,  included in the
         financial   statements,   have  been  derived  from  audited  financial
         statements as of that date.

         These unaudited financial statements should be read in conjunction with
         the financial statements and notes thereto included in Form 10-K of CNL
         Income Fund VI, Ltd. (the  "Partnership")  for the year ended  December
         31, 1996.

         The Partnership accounts for its 66 percent interest in the accounts of
         Caro Joint Venture using the  consolidation  method.  Minority interest
         represents the minority joint venture partner's  proportionate share of
         the  equity  in  the  Partnership's  consolidated  joint  venture.  All
         significant   intercompany   accounts   and   transactions   have  been
         eliminated.

2.       Land and Buildings:

         Land and buildings on operating leases consisted of the following at:

                                           September 30,         December 31,
                                               1997                 1996

                  Land                       $ 9,252,486         $10,364,275
                  Buildings                   13,459,326          13,983,253
                                             -----------         -----------
                                              22,711,812          24,347,528
                  Less accumulated
                    depreciation              (3,213,693)         (3,165,150)
                                             -----------         -----------
                                              19,498,119          21,182,378

                  Construction in process        125,000                  -
                                             -----------         ----------
                                              19,623,119          21,182,378
                  Less allowance for loss
                    on land and building         (77,023)            (77,023)
                                             -----------         -----------

                                             $19,546,096         $21,105,355
                                             ===========         ===========

                                       5
                                           

<PAGE>



                            CNL INCOME FUND VI, LTD.
                         (A Florida Limited Partnership)
               NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
           Quarters and Nine Months Ended September 30, 1997 and 1996


2.       Land and Buildings - Continued:

         In February  1997,  the  Partnership  reinvested the net sales proceeds
         from the sale of the property in Dallas, Texas, in December 1996, along
         with additional funds, in a Bertucci's  Property in Marietta,  Georgia,
         for a total cost of approximately $1,112,600.

         In June 1997, the Partnership established an allowance for loss on land
         and  building in the amount of $76,540  and wrote- off  accrued  rental
         income of $3,237 for financial  reporting  purposes for the property in
         Whitehall,  Michigan.  The allowance for the property  represented  the
         difference between (i) the property's  carrying value at June 30, 1997,
         plus the accrued  rental  income that the  Partnership  had  recognized
         since the beginning of the renewal  option of the lease relating to the
         straight-lining  of future  scheduled rent increases minus (ii) the net
         realizable  value  of  $629,888  received  as  net  sales  proceeds  in
         conjunction with the sale of the property in July 1997. The Partnership
         sold this  property in July 1997,  to an  unrelated  third  party,  for
         $665,000  and  received  net  sales   proceeds  (net  of  $2,981  which
         represents  amounts  due to the  former  tenant for  prorated  rent) of
         $626,907,  resulting in a total loss of $79,777 for financial reporting
         purposes.  Since the Partnership had previously recorded a loss on land
         and building  relating to the  anticipated  sale of this  property,  no
         additional loss was recognized in July 1997 as a result of the sale.

         In addition, in July 1997, the Partnership sold its property in Naples,
         Florida,  to an unrelated third party,  for $1,530,000 and received net
         sales  proceeds  (net of $9,945  which  represents  amounts  due to the
         former tenant for prorated rent) of $1,477,780,  resulting in a gain of
         $186,550 for financial reporting purposes. This property was originally
         acquired  by the  Partnership  in  December  1989  and  had a  cost  of
         approximately $1,083,900,  excluding acquisition fees and miscellaneous
         acquisition expenses;  therefore, the partnership sold the property for
         approximately $403,800 in excess of its original purchase price.

         In July 1997, the Partnership entered into a new lease for the property
         in Greensburg, Indiana, with a new tenant to operate the property as an
         Arby's restaurant.  In connection therewith, the Partnership has agreed
         to fund up to $125,000 in renovation  costs, of which $125,000 in costs
         had  been  incurred  and  accrued  as  construction  in  process  as of
         September 30, 1997.


                                        6

<PAGE>



                            CNL INCOME FUND VI, LTD.
                         (A Florida Limited Partnership)
               NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
           Quarters and Nine Months Ended September 30, 1997 and 1996


2.       Land and Buildings - Continued:

         In  September  1997,  the  Partnership  sold its  property  in  Venice,
         Florida,  to an unrelated third party,  for $1,245,000 and received net
         sales  proceeds  (net of $5,048  which  represents  amounts  due to the
         former tenant for prorated rent) of $1,201,648,  resulting in a gain of
         $283,853 for financial reporting purposes. This property was originally
         acquired  by  the  Partnership  in  August  1989  and  had  a  cost  of
         approximately $1,032,400,  excluding acquisition fees and miscellaneous
         acquisition expenses;  therefore, the Partnership sold the property for
         approximately $174,300 in excess of its original purchase price.

3.       Net investment in Direct Financing Leases:

         In July 1997, the Partnership sold its property in Naples, Florida, for
         which the building  portion had been  classified as a direct  financing
         lease. In connection  therewith,  the gross  investment  (minimum lease
         payments  receivable and estimated residual values) and unearned income
         relating to this  property  were removed from the accounts and the gain
         from the sale  relating to this  property was reflected in income (Note
         2).

         In  addition,  in July  1997,  the  Partnership  sold its  property  in
         Plattsmouth,  Nebraska,  to the tenant,  for  $700,000 and received net
         sales  proceeds  (net of  escrow  fees  paid of  $1,750)  of  $697,650,
         resulting in a gain of $156,401 for financial reporting purposes.  This
         property was originally acquired by the Partnership in January 1990 and
         had a cost of approximately  $561,000,  excluding  acquisition fees and
         miscellaneous acquisition expenses; therefore, the Partnership sold the
         property for approximately  $138,400 in excess of its original purchase
         price.

4.       Investment in Joint Ventures:

         In January 1997, Show Low Joint Venture,  in which the Partnership owns
         a 36 percent  interest,  sold its property to the tenant for  $970,000,
         resulting in a gain to the joint venture of approximately  $360,000 for
         financial reporting purposes.  The property was originally  contributed
         to Show  Low  Joint  Venture  in  July  1990  and  had a total  cost of
         approximately  $663,500,  excluding  acquisition fees and miscellaneous
         acquisition  expenses;  therefore,  the joint venture sold the property
         for approximately $306,500 in excess of its original purchase price.



                                        7

<PAGE>



                            CNL INCOME FUND VI, LTD.
                         (A Florida Limited Partnership)
               NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
           Quarters and Nine Months Ended September 30, 1997 and 1996


4.       Investment in Joint Ventures - Continued:

         In June 1997,  Show Low Joint  Venture  reinvested  $782,413 of the net
         sales proceeds in a Darryl's property in Greensboro, North Carolina. As
         of September  30, 1997,  the  Partnership  and the other joint  venture
         partner had received approximately $70,000 and $124,400,  respectively,
         representing a return of capital,  for the remaining  unreinvested  net
         sales proceeds.  As of September 30, 1997, the  Partnership  owned a 36
         percent interest in the profits and losses of the joint venture.

         The following presents the combined,  condensed  financial  information
         for all of the Partnership's investments in joint ventures at:
                                                 September 30,   December 31,
                                                     1997            1996
                  Land and buildings on
                    operating leases, less
                    accumulated depreciation      $3,127,157     $3,463,093
                  Net investment in direct
                    financing leases                 915,157        401,650
                  Cash                                26,186         11,177
                  Receivables                             -          21,826
                  Accrued rental income              195,466        191,594
                  Other assets                           527         44,380
                  Liabilities                         24,253         10,221
                  Partners' capital                4,240,240      4,123,499
                  Revenues                           340,306        528,092
                  Gain on sale                       360,002             -
                  Net income                         644,096        436,981

         The Partnership  recognized  income totalling  $194,079 and $70,940 for
         the nine months ended September 30, 1997 and 1996,  respectively,  from
         these joint  ventures,  $24,723 and $24,363 of which was earned  during
         the quarters ended September 30, 1997 and 1996, respectively.

5.       Receivables:

         In June 1997, the  Partnership  terminated the lease with the tenant of
         the property in  Greensburg,  Indiana.  In  connection  therewith,  the
         Partnership  accepted a  promissory  note from this  former  tenant for
         $13,077  for  amounts  relating  to past  due  real  estate  taxes  the
         Partnership had incurred as a result of the former  tenant's  financial
         difficulties.  The promissory  note, which is  uncollateralized,  bears
         interest at a rate of ten percent per annum,  and is being collected in
         36 monthly  installments.  Receivables at September 30, 1997,  included
         $13,407 of such amounts, including accrued interest of $330.


                                        8

<PAGE>



                            CNL INCOME FUND VI, LTD.
                         (A Florida Limited Partnership)
               NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
           Quarters and Nine Months Ended September 30, 1997 and 1996


6.       Restricted Cash:

         As of September 30, 1997, the net sales proceeds of $3,377,078 from the
         sales of the properties in Naples, Florida; Plattsmouth,  Nebraska; and
         Venice,  Florida,  plus accrued interest of $15,179, were being held in
         interest-bearing  escrow  accounts  pending the release of funds by the
         escrow  agent  to  acquire  additional  properties  on  behalf  of  the
         Partnership.

7.       Commitment:

         In  September  1997,  CNL Income Fund VI, Ltd. and CNL Income Fund VII,
         Ltd.,  as  tenants-in-common,  entered  into a sales  contract  with an
         unrelated  third  party to sell the Jack in the Box  property  in Yuma,
         Arizona in which the Partnership  owned a 51.67% interest.  The sale of
         this property occurred in October 1997 (see Note 8).

8.       Subsequent Event:

         In October  1997,  CNL Income  Fund VI,  Ltd.  and CNL Income Fund VII,
         Ltd.,  as  tenants-in-common,  sold the property in Yuma,  Arizona,  in
         which the  Partnership  owned a 51.67%  interest,  for  $1,010,000  and
         received net sales  proceeds of $982,025,  resulting in a gain,  to the
         tenancy-in-common,  of approx- mately $128,400 for financial  reporting
         purposes.  The Partnership  intends to reinvest its proportionate share
         of the net sales proceeds in an additional property.


                                        9

<PAGE>



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

         CNL Income  Fund VI,  Ltd.  (the  "Partnership")  is a Florida  limited
partnership  that was organized on August 17, 1988, to acquire for cash,  either
directly or through  joint  venture  arrangements,  both newly  constructed  and
existing restaurant  properties,  as well as land upon which restaurants were to
be constructed, which are leased primarily to operators of selected national and
regional  fast-food  and  family-style  restaurant  chains  (collectively,   the
"Properties").  The leases are  triple-net  leases,  with the lessees  generally
responsible  for all repairs and  maintenance,  property  taxes,  insurance  and
utilities.  As of  September  30, 1997,  the  Partnership  owned 39  Properties,
including four Properties  owned by joint ventures in which the Partnership is a
co-venturer and two Properties owned with affiliates as tenants-in-common.

Liquidity and Capital Resources

         The  Partnership's  primary source of capital for the nine months ended
September  30, 1997 and 1996,  was cash from  operations  (which  includes  cash
received from tenants, distributions from joint ventures, and interest and other
income  received,  less  cash  paid for  expenses).  Cash  from  operations  was
$2,375,171 and $2,511,446 for the nine months ended September 30, 1997 and 1996,
respectively.  The  decrease in cash from  operations  for the nine months ended
September 30, 1997, is primarily a result of changes in income and expenses,  as
discussed  below in "Results of  Operations",  and changes in the  Partnership's
working capital.

         Other  sources and uses of capital  included the  following  during the
nine months ended September 30, 1997.

         In January 1997, Show Low Joint Venture,  in which the Partnership owns
a 36 percent interest,  sold its Property to the tenant for $970,000,  resulting
in a gain to the joint venture of approximately $360,000 for financial reporting
purposes.  The Property was originally  contributed to Show Low Joint Venture in
July 1990 and had a total cost of approximately $663,500,  excluding acquisition
fees and miscellaneous  acquisition expenses;  therefore, the joint venture sold
the  Property  for  approximately  $306,500 in excess of its  original  purchase
price. In June 1997, Show Low Joint Venture reinvested $782,413 of the net sales
proceeds in a Darryl's Property in Greensboro,  North Carolina.  As of September
30,  1997,  the  Partnership  and the other joint  venture  partner had received
approximately  $70,000  and  $124,400,  respectively,  representing  a return of
capital, for the remaining unreinvested net sales proceeds.

         In February  1997,  the  Partnership  reinvested the net sales proceeds
from the sale of the Property in Dallas,  Texas,  in December  1996,  along with
additional  funds, in a Bertucci's  Property in Marietta,  Georgia,  for a total
cost of approximately $1,112,600.

                                       10

<PAGE>



Liquidity and Capital Resources - Continued

         In July 1997, the Partnership sold its Property in Whitehall, Michigan,
to an unrelated  third party,  for $665,000 and received net sales proceeds (net
of $2,981 which  represents  amounts due to the former tenant for prorated rent)
of $626,907, resulting in a loss of $79,777 for financial reporting purposes, as
discussed below in "Results of Operations".  The net sales proceeds are expected
to be reinvested in a replacement Property.

         In addition, in July 1997, the Partnership sold its Property in Naples,
Florida,  to an unrelated  third party,  for  $1,530,000  and received net sales
proceeds  (net of $9,945 which  represents  amounts due to the former tenant for
prorated  rent) of  $1,477,780,  resulting in a gain of $186,550  for  financial
reporting purposes.  This Property was originally acquired by the Partnership in
December 1989 and had a cost of approximately $1,083,900,  excluding acquisition
fees and miscellaneous acquisition expenses; therefore, the Partnership sold the
Property for approximately $403,800 in excess of its original purchase price. As
of  September  30,  1997,  the net sales  proceeds of  $1,477,780  plus  accrued
interest  of  $10,547  were  being held in an  interest-bearing  escrow  account
pending  the  release  of funds by the escrow  agent to  acquire  an  additional
Property.  The  general  partners  believe  that the  transaction,  or a portion
thereof,  relating  to the sale of the  Property  in  Naples,  Florida,  and the
reinvestment  of the  proceeds  will be  structured  to qualify  as a  like-kind
exchange transaction for federal income tax purposes.

         In  addition,  in July  1997,  the  Partnership  sold its  Property  in
Plattsmouth,  Nebraska,  to the tenant,  for  $700,000  and  received  net sales
proceeds  (net of escrow  fees of $1,750) of  $697,650,  resulting  in a gain of
$156,401 for financial reporting purposes. This Property was originally acquired
by the  Partnership  in January 1990 and had a cost of  approximately  $561,000,
excluding acquisition fees and miscellaneous  acquisition  expenses;  therefore,
the Partnership  sold the Property for  approximately  $138,400 in excess of its
original  purchase  price.  As of September 30, 1997,  the net sales proceeds of
$697,650 plus accrued interest of $5,124 were being held in an  interest-bearing
escrow  account  pending the release of funds by the escrow  agent to acquire an
additional  Property.  The general partners  believe that the transaction,  or a
portion thereof, relating to the sale of the Property in Plattsmouth,  Nebraska,
and  the  reinvestment  of the  proceeds  will be  structured  to  qualify  as a
like-kind exchange transaction for federal income tax purposes.

         In July 1997, the Partnership entered into a new lease for the Property
in Greensburg,  Indiana,  with a new tenant to operate the Property as an Arby's
restaurant.  In connection  therewith,  the Partnership has agreed to fund up to
$125,000 in renovation  costs,  of which $125,000 in costs had been incurred and
accrued as  construction  in process as of September 30, 1997.  The  renovations
were completed in October 1997, at which time rent commenced.



                                       11

<PAGE>



Liquidity and Capital Resources - Continued

         In  September  1997,  the  Partnership  sold its  Property  in  Venice,
Florida,  to an unrelated  third party,  for  $1,245,000  and received net sales
proceeds  (net of $5,048 which  represents  amounts due to the former tenant for
prorated  rent) of  $1,201,648,  resulting in a gain of $283,853  for  financial
reporting purposes.  This Property was originally acquired by the Partnership in
August 1989 and had a cost of approximately  $1,032,400,  excluding  acquisition
fees and miscellaneous acquisition expenses; therefore, the Partnership sold the
Property for approximately $174,300 in excess of its original purchase price. As
of September 30, 1997, the net sales  proceeds of  $1,201,648,  less escrow fees
(net of accrued interest) of $492, were being held in an interest-bearing escrow
account  pending  the  release  of  funds by the  escrow  agent  to  acquire  an
additional  Property.  The general partners  believe that the transaction,  or a
portion thereof,  relating to the sale of the Property in Venice,  Florida,  and
the  reinvestment  of the proceeds  will be structured to qualify as a like-kind
exchange transaction for federal income tax purposes.

         In  September  1997,  CNL Income Fund VI, Ltd. and CNL Income Fund VII,
Ltd.,  as  tenants-in-common,  entered into a sales  contract  with an unrelated
third party to sell the Jack in the Box Property in Yuma,  Arizona, in which the
Partnership  owned a 51.67% interest.  In October 1997, CNL Income Fund VI, Ltd.
and CNL Income Fund VII, Ltd., as tenants-in-common,  sold the Property in Yuma,
Arizona,  in which the Partnership  owned a 51.67% interest,  for $1,010,000 and
received  net  sales  proceeds  of  $982,025,   resulting  in  a  gain,  to  the
tenancy-in-common,  of approximately  $128,400 for financial reporting purposes.
The  Partnership  intends to reinvest its  proportionate  share of the net sales
proceeds in an additional Property.

         Currently,  rental income from the Partnership's Properties is invested
in money market accounts or other short-term,  highly liquid investments pending
the  Partnership's  use of such  funds to pay  Partnership  expenses  or to make
distributions  to the  partners.  At September  30, 1997,  the  Partnership  had
$1,619,743 invested in such short-term  investments as compared to $1,127,930 at
December 31, 1996.  The  increase in cash and cash  equivalents  during the nine
months ended  September 30, 1997, is primarily due to the receipt of $626,907 in
net sales proceeds from the sale of the Property in Whitehall,  Michigan in July
1997.  This  increase  is  partially  offset  by a  decrease  in cash  and  cash
equivalents  due  to  the  Partnership  investing  approximately  $134,900  in a
Bertucci's  Property,  as described  above. The funds remaining at September 30,
1997, after payment of distributions and other liabilities, will be used to meet
the Partnership's working capital and other needs.

         Total liabilities of the Partnership,  including distributions payable,
increased to $994,011 at September 30, 1997, from $920,337 at December 31, 1996,
primarily as the result of the  Partnership  accruing  renovation  costs for the
property in Greensburg, Indiana in connection with the new lease entered into in
July 1997. The increase in liabilities was partially offset by a decrease in

                                       12

<PAGE>



Liquidity and Capital Resources - Continued

liabilities  as a result of the  Partnership's  accruing a special  distribution
payable to the limited  partners of $70,000 at December 31, 1996, which was paid
in January 1997. The general  partners  believe the  Partnership  has sufficient
cash on hand to meet the Partnership's current working capital needs.

         Based  primarily  on cash from  operations,  the  Partnership  declared
distributions  to the limited partners of $2,362,500 for each of the nine months
ended  September  30, 1997 and 1996  ($787,500  for each of the  quarters  ended
September 30, 1997 and 1996). This represents  distributions for each applicable
nine months of $33.75 per unit ($11.25 per unit for each applicable quarter). No
distributions were made to the general partners for the quarters and nine months
ended  September 30, 1997 and 1996. No amounts  distributed or to be distributed
to the limited  partners for the nine months ended  September 30, 1997 and 1996,
are  required  to be or have  been  treated  by the  Partnership  as a return of
capital  for  purposes of  calculating  the  limited  partners'  return on their
adjusted  capital  contributions.  The  Partnership  intends to continue to make
distributions of cash available to the limited partners on a quarterly basis.

         The Partnership's  investment strategy of acquiring Properties for cash
and  leasing  them under  triple-net  leases to  operators  who  generally  meet
specified financial  standards  minimizes the Partnership's  operating expenses.
The general partners believe that the leases will continue to generate cash flow
in excess of operating expenses.

         The general  partners have the right,  but not the obligation,  to make
additional capital  contributions if they deem it appropriate in connection with
the operations of the Partnership.

Results of Operations

         During the nine months ended  September 30, 1996, the  Partnership  and
its consolidated joint venture,  Caro Joint Venture,  owned and leased 38 wholly
owned  Properties  (including one Property in Dallas,  Texas,  which was sold in
December  1996),  and during the nine  months  ended  September  30,  1997,  the
Partnership  and Caro Joint Venture owned and leased 38 wholly owned  Properties
(including  three  Properties,  one in each  of  Naples,  Florida;  Plattsmouth,
Nebraska; and Whitehall, Michigan, which were sold in July 1997 and one Property
in Venice,  Florida, which was sold in September 1997) to operators of fast-food
and family-style restaurant chains. In connection therewith, the Partnership and
Caro Joint Venture earned $2,259,488 and $2,509,842 during the nine months ended
September  30, 1997 and 1996,  respectively,  in rental  income  from  operating
leases and earned  income from direct  financing  leases from these  Properties,
$701,591 and $838,040 of which was earned  during the quarters  ended  September
30,  1997  and  1996,   respectively.   Rental  and  earned   income   decreased
approximately  $91,300 and  $144,900  during the  quarter and nine months  ended
September 30, 1997, respectively, as compared to the

                                       13

<PAGE>



Results of Operations - Continued

quarter and nine months ended September 30, 1996,  respectively,  as a result of
the sale of the Property in Dallas,  Texas, in December 1996, and as a result of
the sales during 1997 of the Properties in Whitehall, Michigan; Naples, Florida;
Plattsmouth,  Nebraska  and  Venice,  Florida.  During  the  nine  months  ended
September 30, 1997,  the decrease in rental  income was  partially  offset by an
increase of approximately $27,500 and $65,800 during the quarter and nine months
ended September 30, 1997, respectively, due to the reinvestment of the net sales
proceeds from the 1996 sale of the Property in Dallas,  Texas,  in a Property in
Marietta,  Georgia,  in February 1997. The general  partners believe that rental
and earned  income will further  increase  when the net sales  proceeds from the
sales of the Properties in Whitehall,  Michigan;  Naples, Florida;  Plattsmouth,
Nebraska; and Venice, Florida, are reinvested in replacement Properties.

         The  decrease in rental  income is also  attributable  to the fact that
during the quarter and nine months ended  September 30, 1997, the  Partnership's
consolidated  joint venture  established an allowance for doubtful  accounts for
rental amounts unpaid by the tenant of the Property in Caro,  Michigan totalling
approximately $17,300 and $65,400,  respectively,  due to financial difficulties
the tenant is experiencing. No such allowance was established during the quarter
and nine months ended September 30, 1996. The Partnership's  consolidated  joint
venture will continue to pursue  collection of past due rental amounts  relating
to this Property and will recognize such amounts as income if collected.

         In  addition,  the  decrease  in rental  and earned  income  during the
quarter and nine months ended September 30, 1997, as compared to the quarter and
nine months ended  September 30, 1996,  is also  partially  attributable  to the
Partnership  increasing  its  allowance for doubtful  accounts by  approximately
$21,800 and $65,500,  respectively,  for rental amounts relating to the Hardee's
Property  located in  Greensburg,  Indiana,  due to financial  difficulties  the
tenant is experiencing. No such allowance was established during the quarter and
nine months ended September 30, 1996. In June 1997, the  Partnership  terminated
the lease with the former tenant as discussed  above in  "Liquidity  and Capital
Resources". The Partnership does not intend to continue to pursue the collection
of these rental and other  amounts due from the former  tenant unless the former
tenant  defaults under the promissory  note,  described  above in "Liquidity and
Capital  Resources".  The general  partners believe that rental income from this
Property  will  increase  during the remainder of 1997 as a result of renovating
this  Property  into an Arby's,  for which rent  commenced in October  1997,  as
discussed above in "Liquidity and Capital Resources".

         In addition,  rental and earned income decreased during the quarter and
nine  months  ended   September  30,  1997,  as  a  result  of  the  Partnership
establishing an allowance for doubtful  accounts during such periods,  totalling
approximately $24,900 and $48,900,  respectively, for rental amounts relating to
the Property located

                                       14

<PAGE>



Results of Operations - Continued

in Melbourne, Florida, due to financial difficulties the tenant is experiencing.
The  Partnership  will continue to pursue  collection of past due rental amounts
relating  to this  Property  and  will  recognize  such  amounts  as  income  if
collected.

         In addition, rental and earned income decreased by approximately $9,800
and  $29,300  during the  quarter  and nine months  ended  September  30,  1997,
respectively,  as a result of the fact that in December  1996, the tenant ceased
operations and vacated the Property in Liverpool,  New York. The  Partnership is
currently  seeking  either a replacement  tenant or purchaser for this Property.
Rental  and earned  income are  expected  to remain at reduced  amounts  until a
replacement tenant or purchaser of this Property is located.

         The  decrease  in rental and earned  income for the nine  months  ended
September  30,  1997 was  partially  offset by an  increase in rental and earned
income due to the fact that during the nine months ended  September 30, 1997 and
1996, the Partnership collected and recorded as income approximately $18,600 and
$5,300, respectively,  in rental payment deferrals for the two Properties leased
by the same tenant in Chester,  Pennsylvania,  and Orlando, Florida. Previously,
the  Partnership  had  established an allowance for doubtful  accounts for these
amounts.

         For the nine months ended  September 30, 1997 and 1996, the Partnership
also earned  $34,554 and $15,286,  respectively,  in contingent  rental  income,
$7,946 and $4,786 of which was earned  during the quarters  ended  September 30,
1997 and 1996, respectively. The increase in contingent rental income during the
quarters and nine months ended September 30, 1997, is primarily  attributable to
an  increase  in gross  sales of certain  restaurant  Properties  requiring  the
payment of contingent rental income.

         During  the  nine  months  ended  September  30,  1997  and  1996,  the
Partnership  earned  $76,748 and  $35,384,  respectively,  in interest and other
income,  $43,483  and  $8,785 of which was  earned  during  the  quarters  ended
September  30, 1997 and 1996,  respectively.  The increase in interest and other
income  during the  quarter  and nine  months  ended  September  30,  1997,  was
primarily attributable to interest earned on the net sales proceeds received and
held in escrow  relating  to the sales of the  Properties  in  Naples,  Florida;
Plattsmouth, Nebraska and Venice, Florida.

         For the nine months ended  September  30, 1996,  the  Partnership  also
owned and leased three Properties  indirectly through joint venture arrangements
and two  Properties  as  tenants-in-common  with  an  affiliate  of the  general
partners.  For the nine months ended September 30, 1997, the  Partnership  owned
and  leased  four  Properties  indirectly  through  joint  venture  arrangements
(including  one  Property in Show Low Joint  Venture,  which was sold in January
1997) and two Properties as  tenants-in-common  with an affiliate of the general
partners.  In connection  therewith,  during the nine months ended September 30,
1997 and 1996, the Partnership earned

                                       15

<PAGE>



Results of Operations - Continued

$194,079 and $70,940,  respectively,  attributable to net income earned by these
joint  ventures,  $24,723  and $24,363 of which was earned  during the  quarters
ended  September  30, 1997 and 1996,  respectively.  The  increase in net income
earned by joint  ventures  during the nine months ended  September  30, 1997, as
compared to the nine months ended  September 30, 1996 is primarily  attributable
to the  fact  that in  January  1997,  Show Low  Joint  Venture,  in  which  the
Partnership  owns a 36  percent  interest,  recognized  a gain of  approximately
$360,000  for  financial  reporting  purposes  as a  result  of the  sale of its
Property  in  January  1997,  as  described  above  in  "Liquidity  and  Capital
Resources".  Show Low Joint  Venture  reinvested  the  majority of the net sales
proceeds in a replacement Property in June 1997.

         Operating expenses,  including  depreciation and amortization  expense,
were  $524,650 and $522,937  for the nine months  ended  September  30, 1997 and
1996,  respectively,  of which  $166,380  and  $170,372  were  incurred  for the
quarters  ended  September  30,  1997 and 1996,  respectively.  The  increase in
operating  expenses during the nine months ended September 30, 1997, as compared
to the nine months ended  September  30, 1996, is partially due to the fact that
the Partnership's  consolidated joint venture recorded bad debt expense and real
estate tax expense of approximately  $19,900 relating to the Property located in
Caro, Michigan,  representing past due rental and other amounts. The Partnership
intends to continue to pursue the collection of such amounts.

         The  increase  in  operating  expenses  during  the nine  months  ended
September  30,  1997 was  partially  offset by, and the  decrease  in  operating
expenses during the quarter ended September 30, 1997, was primarily attributable
to, the decrease in  depreciation  expense  which  resulted from the sale of the
Property  in  Dallas,  Texas  in  December  1996,  the sale of the  Property  in
Whitehall, Michigan in July 1997 and the sale of the Property in Venice, Florida
in September 1997. The decrease in depreciation  expense was partially offset by
an increase in depreciation expense attributable to the purchase of the Property
in Marietta,  Georgia,  in February  1997.  The  increase in operating  expenses
during the nine months ended September 30, 1997, was also partially  offset by a
decrease in accounting and administrative expenses associated with operating the
Partnership and its Properties.

         As a  result  of  the  sales  of the  Properties  in  Naples,  Florida;
Plattsmouth, Nebraska, and Venice, Florida, as discussed above in "Liquidity and
Capital  Resources,"  the  Partnership  recognized a gain of $626,804 during the
quarter and nine months  ended  September  30,  1997,  for  financial  reporting
purposes.  The gain for the nine months ended  September 30, 1997, was partially
offset by a loss of $79,777 for financial reporting purposes, resulting from the
July 1997 sale of the Property in  Whitehall,  Michigan,  as described  above in
"Liquidity and Capital Resources",  for which the Partnership had established an
allowance  for  loss on land and  building  in the  amount  of  $76,540  and had
written-off  accrued rental income of $3,237 for financial reporting purposes in
June

                                       16

<PAGE>



Results of Operations - Continued

1997. The allowance for the Property  represented the difference between (i) the
Property's  carrying value at June 30, 1997, plus the accrued rental income that
the Partnership had recognized  since the beginning of the renewal option of the
lease relating to the  straight-lining  of future scheduled rent increases minus
(ii) the net  realizable  value of $629,888  received  as net sales  proceeds in
conjunction  with the sale of the Property in July 1997.  Since the  Partnership
had previously  recorded a loss on land and building relating to the anticipated
sale of this  Property,  no  additional  loss was  recognized  in July 1997 as a
result of the sale. No  Properties  were sold during the quarter and nine months
ended September 30, 1996.


                                       17

<PAGE>



                           PART II. OTHER INFORMATION


Item 1.           Legal Proceedings.  Inapplicable.

Item 2.           Changes in Securities.  Inapplicable.

Item 3.           Defaults upon Senior Securities.  Inapplicable.

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

                  Inapplicable.

Item 5.           Other Information.  Inapplicable.

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

                  (a)      Exhibits - None.

                  (b)      No reports on Form 8-K were filed  during the quarter
                           ended September 30, 1997.

                                       18

<PAGE>


                                   SIGNATURES


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

         DATED this 11th day of November, 1997.


                            CNL INCOME FUND VI, LTD.

                            By:      CNL REALTY CORPORATION
                                     General Partner


                                     By:      /s/ James M. Seneff, Jr.
                                              -----------------------------
                                              JAMES M. SENEFF, JR.
                                              Chief Executive Officer
                                              (Principal Executive Officer)


                                     By:      /s/ Robert A. Bourne
                                              ------------------------------
                                              ROBERT A. BOURNE
                                              President and Treasurer
                                              (Principal Financial and
                                              Accounting Officer)