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, 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
                                     0-19144
                          ----------------------------


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

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


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


        Registrant's telephone number
        (including area code)                          (407) 650-1000


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                        10-16


Part II

    Other Information                                          17


<PAGE>



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

                                                                              September 30,            December 31,
                                                                                   1998                    1997
                                                                             -----------------       ------------------
<S> <C>
                           ASSETS

Land and buildings on operating leases, less
    accumulated depreciation of $3,472,247
    and $3,327,334                                                                $18,673,683             $20,785,684
Net investment in direct financing leases                                           3,944,272               4,708,841
Investment in joint ventures                                                        4,848,127               1,130,139
Cash and cash equivalents                                                           1,353,864               1,614,759
Restricted cash                                                                            --                 709,227
Receivables, less allowance for doubtful
    accounts of $341,604 and $363,410                                                  31,765                 157,989
Prepaid expenses                                                                        4,463                   4,235
Lease costs, less accumulated
    amortization of $6,768 and $5,581                                                  10,932                  12,119
Accrued rental income, less allowance for
    doubtful accounts of $9,697 in 1998 and 1997                                      762,705                 843,345
Other assets                                                                           26,731                  26,731
                                                                             -----------------       -----------------

                                                                                  $29,656,542             $29,993,069
                                                                             =================       =================


                     LIABILITIES AND PARTNERS' CAPITAL

Accounts payable                                                              $         9,130         $        14,138
Accrued construction costs payable                                                         --                 125,000
Accrued and escrowed real estate taxes payable                                         18,117                  38,025
Due to related parties                                                                  5,250                  32,019
Distributions payable                                                                 787,500                 787,500
Rents paid in advance                                                                  27,598                  57,663
                                                                             -----------------       -----------------
       Total liabilities                                                              847,595               1,054,345

Minority interest                                                                     143,546                 144,475

Partners' capital                                                                  28,665,401              28,794,249
                                                                             -----------------       -----------------

                                                                                  $29,656,542             $29,993,069
                                                                             =================       =================

</TABLE>



                 See accompanying notes to 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,
                                                             1998            1997            1998             1997
                                                         -------------    ------------    ------------     ------------
<S> <C>
Revenues:
    Rental income from operating leases                    $  601,109      $  603,263      $1,884,112       $1,889,623
    Adjustments to accrued rental income                           --              --        (155,528 )             --
    Earned income from direct
       financing leases                                       106,936          98,328         363,720          369,865
    Contingent rental income                                    4,882           7,946          39,361           34,554
    Interest and other income                                  25,316          43,483          92,998           76,748
                                                         -------------    ------------     -----------     ------------
                                                              738,243         753,020       2,224,663        2,370,790
                                                         -------------    ------------     -----------     ------------

Expenses:
    General operating and administrative                       42,989          41,177         129,031          113,543
    Bad debt expense                                               --              --          12,854           13,102
    Professional services                                       6,494           6,030          23,285           17,569
    Real estate taxes                                              --           1,790              --           11,754
    State and other taxes                                          --              --          10,392            8,968
    Depreciation and amortization                             114,253         117,383         344,306          359,714
                                                         -------------    ------------     -----------     ------------
                                                              163,736         166,380         519,868          524,650
                                                         -------------    ------------     -----------     ------------

Income Before Minority Interest in Loss
    (Income) of Consolidated Joint Venture,
    Equity in Earnings of Unconsolidated
    Joint Ventures and Gain on Sale of Land
    and Buildings                                             574,507         586,640       1,704,795        1,846,140

Minority Interest in Loss (Income) of
    Consolidated Joint Venture                                 (4,133 )         1,715         (28,673 )          5,783

Equity in Earnings of Unconsolidated
    Joint Ventures                                             94,509          24,723         212,408          194,079

Gain on Sale of Land and Buildings                                 --         626,804         345,122          547,027
                                                         -------------    ------------     -----------     ------------

Net Income                                                $   664,883      $1,239,882      $2,233,652       $2,593,029
                                                         =============    ============     ===========     ============

Allocation of Net Income:
    General partners                                      $     6,649      $    7,692      $   20,455       $   21,492
    Limited partners                                          658,234       1,232,190       2,213,197        2,571,537
                                                         -------------    ------------     -----------     ------------

                                                          $   664,883      $1,239,882      $2,233,652       $2,593,029
                                                         =============    ============     ===========     ============

Net Income Per Limited Partner Unit                       $      9.40      $    17.60      $    31.62       $    36.74
                                                         =============    ============     ===========     ============

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

                 See accompanying notes to financial statements.

                                       2
<PAGE>




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


<TABLE>
<CAPTION>

                                                 Nine Months Ended                Year Ended
                                                   September 30,                  December 31,
                                                        1998                         1997
                                             ---------------------------        ----------------
<S> <C>
  General partners:
      Beginning balance                             $     229,363                $     204,010
      Net income                                           20,455                       25,353
                                                  ----------------              ---------------
                                                          249,818                      229,363
                                                  ----------------              ---------------
  Limited partners:
      Beginning balance                                28,564,886                   28,840,357
      Net income                                        2,213,197                    2,874,529
      Distributions ($33.75 and
         $45.00 per limited partner
         unit, respectively)                           (2,362,500 )                 (3,150,000 )
                                                  ----------------              ---------------
                                                       28,415,583                   28,564,886
                                                  ----------------              ---------------

  Total partners' capital                             $28,665,401                  $28,794,249
                                                  ================              ===============
</TABLE>


                 See accompanying notes to financial statements.

                                       3
<PAGE>


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

<TABLE>
<CAPTION>

                                                                          Nine Months Ended
                                                                            September 30,
                                                                    1998                    1997
                                                                --------------          --------------
<S> <C>
Increase (Decrease) in Cash and Cash
   Equivalents:

      Net Cash Provided by Operating Activities                  $  2,445,813            $  2,375,171
                                                               ---------------         ---------------

      Cash Flows from Investing Activities:
         Proceeds from sale of land and buildings                   2,832,253               4,003,985
         Additions to land and buildings on
             operating leases                                        (125,000 )            (1,112,647 )
         Investment in joint ventures                              (3,716,209 )                    --
         Return of capital from joint venture                              --                  69,997
         Decrease (increase) in restricted cash                       697,650              (2,400,061 )
         Payment of lease costs                                        (3,300 )                (3,300 )
                                                               ---------------         ---------------
                Net cash provided by (used in)
                   investing activities                              (314,606 )               557,974
                                                               ---------------         ---------------

      Cash Flows from Financing Activities:
         Distributions to limited partners                         (2,362,500 )            (2,432,500 )
         Distributions to holder of minority interest                 (29,602 )                (8,832 )
                                                               ---------------         ---------------
                Net cash used in financing activities              (2,392,102 )            (2,441,332 )
                                                               ---------------         ---------------

Net Increase (Decrease) in Cash and Cash Equivalents                 (260,895 )               491,813

Cash and Cash Equivalents at Beginning of Period                    1,614,759               1,127,930
                                                               ---------------         ---------------

Cash and Cash Equivalents at End of Period                       $  1,353,864          $  1,619,743
                                                               ===============         ===============

Supplemental Schedule of Non-Cash Financing
   Activities:

      Distributions declared and unpaid at end of period        $     787,500           $     787,500
                                                               ===============         ===============
</TABLE>



                 See accompanying notes to 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, 1998 and 1997


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,  1998,  may not be
         indicative  of the  results  that may be  expected  for the year ending
         December  31, 1998.  Amounts as of December  31, 1997,  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, 1997.

         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.

         In May  1998,  the  Financial  Accounting  Standards  Board  reached  a
         consensus in EITF 98-9, entitled "Accounting for Contingent Rent in the
         Interim Financial  Periods."  Adoption of this consensus did not have a
         material effect on the Partnership's  financial  position or results of
         operations.

2.       Land and Buildings:

         In January 1998, the Partnership sold its property in Deland,  Florida,
         to the  tenant  for  $1,250,000  and  received  net sales  proceeds  of
         $1,234,122,  resulting  in a gain of $345,122 for  financial  reporting
         purposes.  This property was originally  acquired by the Partnership in
         October  1989  and had a cost of  approximately  $1,000,000,  excluding
         acquisition fees and miscellaneous acquisition expenses; therefore, the
         Partnership sold the property for  approximately  $234,100 in excess of
         its original purchase price.

         In February  1998,  the  Partnership  sold its  property in  Melbourne,
         Florida, for $590,000 and received net sales proceeds of $552,910.  Due
         to the fact that during 1997, the Partnership recorded an allowance for
         loss of $158,239 for this property,  no gain or loss was recognized for
         financial reporting purposes in February 1998, relating to the sale.


                                       5
<PAGE>


                            CNL INCOME FUND VI, LTD.
                         (A Florida Limited Partnership)
               NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
           Quarters and Nine Months Ended September 30, 1998 and 1997


2.       Land and Buildings - Continued:

         In February 1998, the Partnership  sold its property in Liverpool,  New
         York, for $157,500 and received net sales proceeds of $145,221.  Due to
         the fact that in prior years the Partnership  recorded an allowance for
         loss of $181,970 for this property,  no gain or loss was recognized for
         financial reporting purposes in February 1998, relating to the sale.

         In June 1998, the Partnership sold its property in Bellevue,  Nebraska,
         and received  sales  proceeds of $900,000.  Due to the fact that during
         1998,  the  Partnership  wrote off $155,528 in accrued  rental  income,
         representing   a  portion  of  the  accrued   rental  income  that  the
         Partnership had recognized since the inception of the lease relating to
         the  straight-lining  of future  scheduled rent increases in accordance
         with  generally  accepted  accounting  principles,  no gain or loss was
         recorded for financial reporting purposes in June 1998 relating to this
         sale.  This  property was  originally  acquired by the  Partnership  in
         December  1989  and had a cost  of  approximately  $899,500,  excluding
         acquisition fees and miscellaneous acquisition expenses; therefore, the
         Partnership sold the property for  approximately  $500 in excess of its
         original purchase price.

3.       Net Investment in Direct Financing Leases:

         In February  and June 1998,  the  Partnership  sold its  properties  in
         Melbourne, Florida and Bellevue, Nebraska,  respectively, for which the
         building  portions had been classified as direct financing  leases.  In
         connection  therewith,  the gross  investments  (minimum lease payments
         receivable and estimated  residual values) and unearned income relating
         to these properties were removed from the accounts (see Note 2).

4.       Investment in Joint Ventures:

         In January 1998, the Partnership  contributed  $558,064 and $694,806 to
         acquire a 34.74%  interest  and a 46.2%  interest,  respectively,  in a
         property  in  Overland  Park,   Kansas,  and  a  property  in  Memphis,
         Tennessee,  respectively,  as tenants-in-common  with affiliates of the
         general partners. In June 1998, the Partnership  contributed $1,250,350
         to acquire an 85.07% interest in a property in Fort Myers,  Florida, as
         tenants-in-common  with  an  affiliate  of the  general  partners.  The
         Partnership  accounts for its investments in these properties using the
         equity method since the Partnership shares control with affiliates, and
         amounts relating to its investments are included in investment in joint
         ventures.


                                       6
<PAGE>


                            CNL INCOME FUND VI, LTD.
                         (A Florida Limited Partnership)
               NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
           Quarters and Nine Months Ended September 30, 1998 and 1997


4.       Investment in Joint Ventures - Continued:

         In  April  1998,   the   Partnership   entered  into  a  joint  venture
         arrangement,  Melbourne Joint Venture, with an affiliate of the general
         partners,  to  construct  and  hold  one  restaurant  property.  As  of
         September  30,  1998,  the  Partnership  had  contributed  $314,011  to
         purchase land and pay construction costs relating to the property owned
         by  the  joint  venture.  The  Partnership  has  agreed  to  contribute
         approximately  $212,300 in additional  construction  costs to the joint
         venture.  The Partnership  will have an approximate 50 percent interest
         in the  profits  and  losses  of the  joint  venture.  The  Partnership
         accounts  for its  investment  in this joint  venture  under the equity
         method since the Partnership shares control with the affiliate.

         In  September  1998,  the  Partnership  entered  into a  joint  venture
         arrangement,  Warren  Joint  Venture,  with an affiliate of the general
         partners to hold one restaurant property. As of September 30, 1998, the
         Partnership  had  contributed  $898,092 to the joint venture to acquire
         the  restaurant  property.  As of September 30, 1998,  the  Partnership
         owned  approximately a 64 percent interest in the profits and losses of
         the joint venture.  The Partnership accounts for its investment in this
         joint  venture  under the equity  method since the  Partnership  shares
         control with the affiliate.

         Auburn Joint Venture, Show Low Joint Venture,  Asheville Joint Venture,
         Melbourne  Joint Venture,  Warren Joint Venture and the Partnership and
         affiliates  as  tenants-in-common  in five  separate  tenancy-in-common
         arrangements, each own and lease one



                                       7
<PAGE>


                            CNL INCOME FUND VI, LTD.
                         (A Florida Limited Partnership)
               NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
           Quarters and Nine Months Ended September 30, 1998 and 1997

4.       Investment in Joint Ventures - Continued:

         property  to  an  operator  of  national   fast-food  and  family-style
         restaurants.  The following presents the combined,  condensed financial
         information  for the joint  ventures  and the five  properties  held as
         tenants-in-common with affiliates at:
<TABLE>
<CAPTION>

                                                       September 30,           December 31,
                                                            1998                   1997
                                                     -------------------    -------------------
<S> <C>
                   Land and buildings on
                       operating leases, less
                       accumulated depreciation           $  8,793,422           $  4,568,842
                   Net investment in direct
                       financing leases                      3,338,134                911,559
                   Cash                                         31,598                  7,991
                   Receivables                                  20,370                 22,230
                   Accrued rental income                       215,813                160,197
                   Other assets                                  1,178                    414
                   Liabilities                                 181,530                  7,557
                   Partners' capital                        12,218,985              5,663,676
                   Revenues                                    771,965                471,627
                   Gain on sale of land
                       and building                                 --                488,372
                   Net income                                  672,525                889,883
</TABLE>

         The Partnership  recognized income totalling  $212,048 and $194,079 for
         the nine months ended September 30, 1998 and 1997,  respectively,  from
         these joint  ventures,  $94,509 and $24,723 of which was earned  during
         the quarters ended September 30, 1998 and 1997, respectively.


                                       8
<PAGE>


                            CNL INCOME FUND VI, LTD.
                         (A Florida Limited Partnership)
               NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
           Quarters and Nine Months Ended September 30, 1998 and 1997


6.       Concentration of Credit Risk:

         The  following  schedule  presents  total rental and earned income from
         individual  lessees,  each  representing  more than ten  percent of the
         Partnership's   total   rental  and  earned   income   (including   the
         Partnership's  share of total  rental  and  earned  income  from  joint
         ventures and the properties held as tenants-in-common with affiliates),
         for at least one of the nine month periods ended September 30:

                                                     1998            1997
                                                 -------------   -------------

                    Golden Corral Corporation        $515,995        $513,408
                    Mid-America Corporation           329,639         329,639
                    IHOP Properties, Inc.             325,863              --
                    Restaurant Management
                        Services, Inc.                312,956         376,597

         The  following  schedule  presents  total rental and earned income from
         individual  restaurant chains,  each representing more than ten percent
         of the  Partnership's  total rental and earned  income  (including  the
         Partnership's  share of total  rental  and  earned  income  from  joint
         ventures and the properties held as tenants-in-common with affiliates),
         for at least one of the nine month periods ended September 30:

                                                     1998            1997
                                                 -------------   -------------

                    Golden Corral Family
                        Steakhouse Restaurants       $515,995        $513,408
                    Burger King                       341,006         382,532
                    IHOP                              325,863              --

         Although  the  Partnership's   properties  are  geographically  diverse
         throughout the United States and the  Partnership's  lessees  operate a
         variety of restaurant concepts,  default by any one of these lessees or
         restaurant chains could significantly  impact the results of operations
         of the Partnership. However, the general partners believe that the risk
         of such a default is reduced due to the  essential or important  nature
         of these properties for the on-going operations of the lessees.






                                       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, 1998, the Partnership owned 41 Properties,  which
included six Properties  owned by joint  ventures in which the  Partnership is a
co-venturer and five Properties owned with affiliates as tenants-in-common.

Liquidity and Capital Resources

         During  the  nine  months  ended  September  30,  1998  and  1997,  the
Partnership  generated cash from  operations  (which includes cash received from
tenants,  distributions  from joint  ventures,  and  interest  and other  income
received,  less  cash paid for  expenses)  of  $2,445,813  and  $2,375,171.  The
increase in cash from  operations for the nine months ended  September 30, 1998,
is primarily a result of changes in the Partnership's working capital.

         Other  sources and uses of capital  included the  following  during the
nine months ended September 30, 1998.

         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 paid $125,000 during the
nine months  ended  September  30, 1998,  in  renovation  costs,  which had been
incurred and accrued as construction costs payable at December 31, 1997.

         In January 1998, the  Partnership  used the net sales proceeds from the
1997 sale of several  Properties to acquire a Property in Overland Park, Kansas,
and a Property in Memphis,  Tennessee,  as tenants-in-common  with affiliates of
the  general  partners.  In  connection  therewith,   the  Partnership  and  the
affiliates entered into separate  agreements whereby each co-venturer will share
in the  profits  and losses of each  Property in  proportion  to its  applicable
percentage  interest.  As of September 30, 1998, the Partnership had contributed
$558,064 and $694,806 to own a 34.74% and 46.2% interest,  respectively,  in the
Properties in Overland Park, Kansas, and Memphis, Tennessee, respectively.

         In January 1998, the Partnership sold its Property in Deland,  Florida,
to the tenant,  for  $1,250,000  and received net sales  proceeds of $1,234,122,
resulting in a gain of $345,122 for financial reporting purposes.  This Property
was  originally  acquired by the  Partnership  in October 1989 and had a cost of
approximately   $1,000,000,   excluding   acquisition  fees  and   miscellaneous
acquisition  expenses;   therefore,   the  Partnership  sold  the  Property  for
approximately  $234,100 in excess of its original  purchase price. In June 1998,
the Partnership

                                       10
<PAGE>


Liquidity and Capital Resources - Continued

reinvested  $1,250,350  of the net sales  proceeds  in a Property in Fort Myers,
Florida,  with an affiliate of the general  partners as  tenants-in-common.  The
general partners believe that the transaction, or a portion thereof, relating to
the sale of the Property in Deland,  Florida,  and the  reinvestment  of the net
sales  proceeds,  will qualify as a like-kind  exchange  transaction for federal
income tax purposes. However, the Partnership will distribute amounts sufficient
to enable the limited partners to pay federal and state income taxes, if any (at
a level reasonably assumed by the general partners), resulting from the sale.

         In February  1998,  the  Partnership  sold its  Property in  Melbourne,
Florida,  for $590,000 and received net sales  proceeds of $552,910.  Due to the
fact that  during  1997,  the  Partnership  recorded  an  allowance  for loss of
$158,239  for  this  Property,  no gain or loss  was  recognized  for  financial
reporting  purposes in February  1998,  relating to the sale. In April 1998, the
Partnership  contributed a portion of the net sales proceeds in Melbourne  Joint
Venture,  with an affiliate of the general  partners,  to construct and hold one
restaurant  Property.  As of September 30, 1998, the Partnership had contributed
$314,011 to purchase land and pay  construction  costs  relating to the property
owned  by  the  joint  venture.   The   Partnership  has  agreed  to  contribute
approximately  $212,300 in additional  construction  costs to the joint venture.
The Partnership  expects to have a 50 percent interest in the profits and losses
of the joint venture.

         In addition,  in February  1998, the  Partnership  sold its Property in
Liverpool,  New York,  for $157,500 and received net sales proceeds of $145,221.
Due to the fact that in prior years the  Partnership  recorded an allowance  for
loss of $181,970 for this Property, no gain or loss was recognized for financial
reporting  purposes in February  1998,  relating  to the sale.  The  Partnership
intends to reinvest the net sales  proceeds from the sale of this Property in an
additional Property.

         In June 1998, the Partnership sold its Property in Bellevue,  Nebraska,
to a third party and received sales  proceeds of $900,000.  Due to the fact that
during  1998 the  Partnership  wrote off  $155,528  in  accrued  rental  income,
representing  a portion of the accrued  rental income that the  Partnership  had
recognized since the inception of the lease relating to the  straight-lining  of
future scheduled rent increases in accordance with generally accepted accounting
principles,  no gain or loss was recorded for  financial  reporting  purposes in
June 1998 relating to this sale.  This Property was  originally  acquired by the
Partnership in December 1989 and had a cost of approximately $899,500, excluding
acquisition  fees  and  miscellaneous   acquisition  expenses;   therefore,  the
Partnership sold the Property for  approximately  $500 in excess of its original
purchase price. In September 1998, the Partnership  contributed  $898,094 of the
net sales proceeds in Warren Joint Venture.  The  Partnership has an approximate
64 percent  interest in the profits and losses of Warren  Joint  Venture and the
remaining  interest in this joint venture is held by an affiliate of the general
partners.

         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, 1998,  the  Partnership  had
$1,353,864 invested in such short-term  investments as compared to $1,614,759 at
December 31, 1997. The decrease in cash and cash equivalents during the nine

                                       11
<PAGE>


Liquidity and Capital Resources - Continued

months ended  September  30, 1998, is primarily  attributable  to the payment of
construction  costs accrued at December 31, 1997,  relating to the Partnership's
Property located in Greensburg, Indiana, as described above. The funds remaining
at September 30, 1998,  after payment of  distributions  and other  liabilities,
will be used to meet the  Partnership's  working  capital and other needs and to
acquire additional Properties.

         Total liabilities of the Partnership,  including distributions payable,
decreased to $847,595 at September  30, 1998,  from  $1,054,345  at December 31,
1997,  primarily as the result of a decrease in construction  costs payable as a
result of the  payment  during  the nine  months  ended  September  30,  1998 of
construction  costs accrued at December 31, 1997,  relating to the Partnership's
Property in Greensburg, Indiana, as described above. The decrease in liabilities
was also partially due to a decrease in rents paid in advance and amounts due to
related  parties at September  30, 1998,  as compared to December 31, 1997.  The
general partners believe the Partnership has sufficient cash on hand to meet the
Partnership's current working capital needs.

         Based 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, 1998 and 1997 ($787,500 for each of the quarters  ended  September
30, 1998 and 1997).  This  represents  distributions  for each  applicable  nine
months  of  $33.75  per unit  ($11.25  per unit for each of the  quarters  ended
September 30, 1998 and 1997). No distributions were made to the general partners
for the quarters and nine months ended  September  30, 1998 and 1997. No amounts
distributed to the limited partners for the nine months ended September 30, 1998
and 1997, 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 general  partners  have been  informed by CNL  American  Properties
Fund, Inc.  ("APF"),  an affiliate of the general  partners,  that it intends to
significantly  increase its asset base by proposing to acquire affiliates of the
general partners which have similar restaurant  property  portfolios,  including
the Partnership. APF is a real estate investment trust whose primary business is
the ownership of restaurant properties leased on a long-term, "triple-net" basis
to  operators  of national  and regional  restaurant  chains.  Accordingly,  the
general  partners  anticipate  that  APF  will  make an  offer  to  acquire  the
Partnership  in  exchange  for  securities  of APF.  The general  partners  have
recently retained  financial and legal advisors to assist them in evaluating and
negotiating  any offer that may be proposed by APF.  However,  at this time, APF
has made no such offer. In the event that an offer is made, the general partners
will  evaluate it and if the general  partners  believe  that the offer is worth
pursuing,  the general partners will promptly inform the limited  partners.  Any
agreement  to sell the  Partnership  would be  subject  to the  approval  of the
limited partners in accordance with the terms of the partnership agreement.

         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.


                                       12
<PAGE>


Liquidity and Capital Resources - Continued

         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, 1997, the  Partnership  and
its consolidated joint venture,  Caro Joint Venture,  owned and leased 38 wholly
owned Properties (including four Properties which were sold in 1997), and during
the nine months ended September 30, 1998, the Partnership and Caro Joint Venture
owned and leased 35 wholly owned  Properties  (including four  Properties  which
were sold in 1998) to operators of fast-food and family-style restaurant chains.
In  connection  therewith,   the  Partnership  and  Caro  Joint  Venture  earned
$2,092,304  and $2,259,488  during the nine months ended  September 30, 1998 and
1997,  respectively,  in rental income from operating leases (net of adjustments
to accrued  rental income) and earned income from direct  financing  leases from
these Properties,  $708,045 and $701,591 of which was earned during the quarters
ended  September  30, 1998 and 1997,  respectively.  The  decrease in rental and
earned income for the nine months ended  September 30, 1998 was partially due to
a  decrease  in  rental  and  earned  income  as a result  of the  sales of four
Properties  during 1997 and the sales of four Properties during 1998. During the
nine  months  ended  September  30,  1998,  the  decrease  in rental  income was
partially offset by an increase in rental income, 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 and the reinvestment of the net
sales  proceeds  from  the  1997  sales  of two  Properties  in  two  additional
Properties, one in each of Elgin, Illinois and Manassas, Virginia, in 1997.

         The  decrease  in rental and earned  income for the nine  months  ended
September 30, 1998 was  partially  offset by an increase in rental income due to
the fact that during the nine months ended  September 30, 1997, the  Partnership
increased  its  allowance  for doubtful  accounts  for the  Property  located in
Greensburg,  Indiana, due to financial difficulties the tenant was experiencing.
No such allowance was recorded  during the nine months ended September 30, 1998,
due to the fact that in October 1997 a new tenant began  operating this Property
for which rent  commenced in October 1997.  In addition,  the decrease in rental
and earned  income for the nine months ended  September  30, 1998 was  partially
offset by the fact that during the nine months ended  September  30,  1998,  the
Partnership's consolidated joint venture collected and recognized as income past
due rental  amounts for which the  Partnership  had  previously  established  an
allowance for doubtful accounts.

         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.  For
the nine months ended September 30, 1998, the Partnership  owned and leased five
Properties  indirectly through joint venture arrangements and five Properties as
tenants-in-common  with  affiliates  of  the  general  partners.  In  connection
therewith,  during  the nine  months  ended  September  30,  1998 and 1997,  the
Partnership  earned  $212,408 and $194,079,  respectively,  attributable  to net
income earned by these joint ventures,

                                       13
<PAGE>


Results of Operations - Continued

$94,509 and $24,723 of which was earned for the  quarters  ended  September  30,
1998 and 1997, respectively. The increase in net income earned by joint ventures
during the quarter and nine months ended  September 30, 1998, as compared to the
quarter and nine months ended  September  30, 1997, is primarily due to the fact
that in 1998, the Partnership reinvested the net sales proceeds it received from
the 1997 and 1998 sales of the Properties in Whitehall,  Michigan;  Plattsmouth,
Nebraska and Deland, Florida, in additional Properties in Overland Park, Kansas;
Memphis,  Tennessee  and Fort Myers,  Florida,  with  affiliates  of the general
partners  as  tenants-in-common.  The  increase  in net  income  earned by joint
ventures  during the nine months ended  September  30, 1998,  as compared to the
nine months ended  September 30, 1997,  is partially  offset by 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.  Show  Low  Joint  Venture
reinvested the majority of the net sales  proceeds in a replacement  Property in
June 1997.

         During at least one of the nine  months  ended  September  30, 1998 and
1997, four of the Partnership's lessees,  Golden Corral Corporation,  Restaurant
Management Services,  Inc., Mid-America  Corporation and IHOP Properties,  Inc.,
each contributed more than ten percent of the Partnership's  total rental income
(including rental income from the Partnership's  consolidated  joint venture and
the  Partnership's   share  of  the  rental  income  from  Properties  owned  by
unconsolidated  joint  ventures in which the  Partnership  is a co-venturer  and
Properties  owned with  affiliates  as  tenants-in-common).  As of September 30,
1998,  Golden Corral  Corporation  and IHOP  Properties  Inc., were each lessees
under leases relating to five restaurants,  Restaurant Management Services, Inc.
was the lessee  under  leases  relating  to seven  restaurants  and  Mid-America
Corporation  was the lessee under  leases  relating to four  restaurants.  It is
anticipated  that,  based on the minimum annual rental payments  required by the
leases,  these four  lessees  each will  continue  to  contribute  more than ten
percent of the  Partnership's  total rental  income during the remainder of 1998
and subsequent years. In addition, three Restaurant Chains, Golden Corral Family
Steakhouse  Restaurants,  IHOP and Burger King, each accounted for more than ten
percent of the Partnership's total rental income during at least one of the nine
months  ended  September  30,  1998  and  1997   (including  the   Partnership's
consolidated joint venture and the Partnership's share of the rental income from
the Properties owned by  unconsolidated  joint ventures in which the Partnership
is a co-venturer  and Properties  owned with  affiliates as  tenants-in-common).
During the remainder of 1998 and in subsequent  years,  it is  anticipated  that
these three  Restaurant  Chains each will  continue to account for more than ten
percent of the  Partnership's  total rental income to which the  Partnership  is
entitled  under  the  terms of the  leases.  Any  failure  of these  lessees  or
Restaurant Chains could materially affect the Partnership's income.

         Operating expenses,  including  depreciation and amortization  expense,
were  $519,868 and $524,650  for the nine months  ended  September  30, 1998 and
1997,  respectively,  $163,736  and  $166,380  of which  were  incurred  for the
quarters ended September 30, 1998 and 1997.


                                       14
<PAGE>


Results of Operations - Continued

         As a  result  of the  sale  of the  Property  in  Deland,  Florida,  as
described above in "Liquidity and Capital Resources," the Partnership recognized
a gain of  $345,122  during  the nine  months  ended  September  30,  1998,  for
financial  reporting  purposes.  As a result of the sales of the  Properties  in
Naples,  Florida;  Plattsmouth,  Nebraska, and Venice,  Florida, 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.

         In May  1998,  the  Financial  Accounting  Standards  Board  reached  a
consensus in EITF 98-9, entitled  "Accounting for Contingent Rent in the Interim
Financial Periods." Adoption of this consensus did not have a material effect on
the Partnership's financial position or results of operations.

         The Year 2000 problem is the result of information  technology  systems
and embedded  systems  (products which are made with  microprocessor  (computer)
chips such as HVAC systems,  physical  security  systems and elevators)  using a
two-digit  format,  as  opposed  to four  digits,  to  indicate  the year.  Such
information  technology and embedded systems may be unable to properly recognize
and process date-sensitive information beginning January 1, 2000.

         The  Partnership  does  not have any  information  technology  systems.
Affiliates  of the general  partners  provide all services  requiring the use of
information  technology  systems  pursuant to a  management  agreement  with the
Partnership.  The maintenance of embedded systems,  if any, at the Partnership's
properties is the  responsibility of the tenants of the properties in accordance
with the terms of the Partnership's  leases. The general partners and affiliates
have  established  a  team  dedicated  to  reviewing  the  internal  information
technology systems used in the operation of the Partnership, and the information
technology  and  embedded  systems  and the Year  2000  compliance  plans of the
Partnership's  tenants,   significant  suppliers,   financial  institutions  and
transfer agent.

         The  information  technology  infrastructure  of the  affiliates of the
general  partners  consists of a network of personal  computers and servers that
were  obtained   from  major   suppliers.   The   affiliates   utilize   various
administrative  and financial  software  applications on that  infrastructure to
perform the business functions of the Partnership.  The inability of the general
partners  and  affiliates  to identify  and timely  correct  material  Year 2000
deficiencies  in  the  software  and/or   infrastructure   could  result  in  an
interruption in, or failure of, certain of the Partnership's business activities
or operations.  Accordingly,  the general partners and affiliates have requested
and are evaluating  documentation from the suppliers of the affiliates regarding
the Year  2000  compliance  of  their  products  that  are used in the  business
activities or operations of the  Partnership.  The costs expected to be incurred
by the general  partners and  affiliates to become Year 2000  compliant  will be
incurred by the general  partners and  affiliates;  therefore,  these costs will
have no impact on the Partnership's financial position or results of operations.


                                       15
<PAGE>


Results of Operations - Continued

         The  Partnership  has  material  third  party  relationships  with  its
tenants,  financial  institutions and transfer agent. The Partnership depends on
its  tenants  for  rents  and  cash  flows,   its  financial   institutions  for
availability  of cash and its  transfer  agent to  maintain  and track  investor
information.  If any of these third parties are unable to meet their obligations
to the  Partnership  because of the Year 2000  deficiencies,  such a failure may
have a material impact on the  Partnership.  Accordingly,  the general  partners
have requested and are evaluating  documentation from the Partnership's tenants,
financial  institutions,   and  transfer  agent  relating  to  their  Year  2000
compliance  plans.  At this time,  the general  partners  have not yet  received
sufficient   certifications   to  be  assured   that  the   tenants,   financial
institutions,  and  transfer  agent  have fully  considered  and  mitigated  any
potential material impact of the Year 2000 deficiencies.  Therefore, the general
partners do not, at this time, know of the potential costs to the Partnership of
any  adverse  impact  or effect of any Year  2000  deficiencies  by these  third
parties.

         The general  partners  currently  expect that all year 2000  compliance
testing  and any  necessary  remedial  measures  on the  information  technology
systems used in the business  activities and operations of the Partnership  will
be completed prior to June 30, 1999.  Based on the progress the general partners
and affiliates  have made in identifying and addressing the  Partnership's  Year
2000 issues and the plan and timeline to complete the  compliance  program,  the
general  partners  do  not  foresee   significant   risks  associated  with  the
Partnership's  Year 2000 compliance at this time.  Because the general  partners
and affiliates  are still  evaluating the status of the systems used in business
activities  and  operations  of the  Partnership  and the  systems  of the third
parties with which the Partnership  conducts its business,  the general partners
have not yet  developed  a  comprehensive  contingency  plan and are  unable  to
identify "the most  reasonably  likely worst case scenario" at this time. As the
general partners identify  significant  risks related to the Partnership's  Year
2000 compliance or if the Partnership's Year 2000 compliance  program's progress
deviates  substantially from the anticipated timeline, the general partners will
develop appropriate contingency plans.


                                       16
<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, 1998.

                                       17
<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 10th day of November, 1998.


                           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)