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 June 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 or other jurisdiction           (I.R.S. Employer
of incorporation or organiza-          Identification No.)
tion)


400 E. South Street
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                          10-15

Part II

  Other Information                                         16


<PAGE>



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


                                         June 30,               December 31,
           ASSETS                          1998                     1997
                                       -----------              --------

Land and buildings on operating
  leases, less accumulated
  depreciation of $3,358,406
  and $3,327,334                       $18,787,524             $20,785,684
Net investment in direct
  financing leases                       3,958,994               4,708,841
Investment in joint ventures             3,869,197               1,130,139
Cash and cash equivalents                1,433,338               1,614,759
Restricted cash                            903,697                 709,227
Receivables, less allowance for
  doubtful accounts of $336,917
  and $363,410                              51,942                 157,989
Prepaid expenses                             9,154                   4,235
Lease costs, less accumulated
  amortization of $6,356 and
  $5,581                                    11,344                  12,119
Accrued rental income, less
  allowance for doubtful
  accounts of $9,697 in 1998
  and 1997                                 739,429                 843,345
Other assets                                26,731                  26,731
                                       -----------             -----------

                                       $29,791,350             $29,993,069
                                       ===========             ===========

LIABILITIES AND PARTNERS' CAPITAL

Accounts payable                       $    15,519             $    14,138
Accrued construction costs payable              -                  125,000
Accrued and escrowed real estate
  taxes payable                             18,782                  38,025
Due to related parties                       4,267                  32,019
Distributions payable                      787,500                 787,500
Rents paid in advance                       29,269                  57,663
                                       -----------             -----------
    Total liabilities                      855,337               1,054,345

Minority interest                          147,995                 144,475

Partners' capital                       28,788,018              28,794,249
                                       -----------             -----------

                                       $29,791,350             $29,993,069
                                       ===========             ===========







            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                      Six Months Ended
                                                              June 30,                           June 30,
                                                      1998           1997               1998             1997
                                                    --------       --------          ----------       ----------
<S> <C>
Revenues:
  Rental income from
    operating leases                                $495,424       $646,799          $1,127,475       $1,286,360
  Earned income from direct
    financing leases                                 132,575        126,623             256,784          271,537
  Contingent rental income                             2,089          7,672              34,479           26,608
  Interest and other income                           31,006         17,982              67,682           33,265
                                                    --------       --------          ----------       ----------
                                                     661,094        799,076           1,486,420        1,617,770
                                                    --------       --------          ----------       ----------

Expenses:
  General operating and
    administrative                                    40,577         37,661              86,042           72,366
  Bad debt expense                                    12,854         13,102              12,854           13,102
  Professional services                               10,921          5,561              16,791           11,539
  Real estate taxes                                       -           7,432                  -             9,964
  State and other taxes                                  487            354              10,392            8,968
  Depreciation and
    amortization                                     114,143        122,968             230,053          242,331
                                                    --------       --------          ----------       ----------
                                                     178,982        187,078             356,132          358,270
                                                    --------       --------          ----------       ----------

Income Before Minority
  Interest in Loss (Income)
  of Consolidated Joint
  Venture, Equity in Earnings
  of Unconsolidated Joint
  Ventures, Gain on Sale
  of Land and Building and
  Provision for Loss on Land
  and Building                                       482,112        611,998           1,130,288        1,259,500

Minority Interest in Loss
  (Income) of Consolidated
  Joint Venture                                      (11,659)           225             (24,540)           4,068

Equity in Earnings of Uncon-
  solidated Joint Ventures                            61,403         20,628             117,899          169,356

Gain on Sale of Land and
  Building                                                -              -              345,122               -

Provision for Loss on Land
  and Building                                            -         (79,777)                 -           (79,777)
                                                    --------       --------          ----------       ----------

Net Income                                          $531,856       $553,074          $1,568,769       $1,353,147
                                                    ========       ========          ==========       ==========

Allocation of Net Income:
  General partners                                  $  5,318       $  5,799          $   13,806       $   13,800
  Limited partners                                   526,538        547,275           1,554,963        1,339,347
                                                    --------       --------          ----------       ----------

                                                    $531,856       $553,074          $1,568,769       $1,353,147
                                                    ========       ========          ==========       ==========

Net Income Per Limited
  Partner Unit                                      $   7.52       $   7.82          $    22.21        $    19.13
                                                    ========       ========          ==========        ==========

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


                                  Six Months Ended               Year Ended
                                      June 30,                  December 31,
                                        1998                        1997
                                  ----------------              --------

General partners:
  Beginning balance                $   229,363                   $   204,010
  Net income                            13,806                        25,353
                                   -----------                   -----------
                                       243,169                       229,363
                                   -----------                   -----------

Limited partners:
  Beginning balance                 28,564,886                    28,840,357
  Net income                         1,554,963                     2,874,529
  Distributions ($22.50 and
    $45.00 per limited partner
    unit, respectively)             (1,575,000)                   (3,150,000)
                                   -----------                   -----------
                                    28,544,849                    28,564,886
                                   -----------                   -----------

Total partners' capital            $28,788,018                   $28,794,249
                                   ===========                   ===========


            See accompanying notes to condensed financial statements.

                                        3

<PAGE>



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


                                                      Six Months Ended
                                                           June 30,
                                                   1998              1997
                                               -----------        ------------

Increase (Decrease) in Cash and Cash
  Equivalents:

    Net Cash Provided by Operating
      Activities                               $ 1,655,360        $ 1,613,640
                                               -----------        -----------

    Cash Flows from Investing
      Activities:
        Proceeds from sale of land
          and buildings                          2,832,253                 -
        Additions to land and build-
          ings on operating leases                (125,000)        (1,112,647)
        Investment in joint ventures            (2,740,640)                -
        Decrease (increase) in
          restricted cash                         (204,074)           977,017
        Payment of lease costs                      (3,300)            (3,300)
                                               -----------        -----------
            Net cash used in investing
              activities                          (240,761)          (138,930)
                                               -----------        -----------

    Cash Flows from Financing
      Activities:
        Distributions to limited
          partners                              (1,575,000)        (1,645,000)
        Distributions to holder
          of minority interest                     (21,020)            (4,228)
                                               -----------        -----------
            Net cash used in
              financing activities              (1,596,020)        (1,649,228)
                                               -----------        -----------


Net Decrease in Cash and Cash
  Equivalents                                     (181,421)          (174,518)

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

Cash and Cash Equivalents at
  End of Period                                $ 1,433,338        $   953,412
                                               ===========        ===========

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 Six Months Ended June 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 six months ended June 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.

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 Six Months Ended June 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 acquired a 34.74% interest and a 46.2%
         interest  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  April  1998,   the   Partnership   entered  into  a  joint  venture
         arrangement,   Melbourne  Joint  Venture,  with  an  affiliate  of  the
         Partnership which has the same general partners,  to construct and hold
         one restaurant  property.  As of June 30, 1998, the Partnership and its
         co-venture partner had each contributed




                                        6

<PAGE>



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


4.       Investment in Joint Ventures - Continued:

         $236,535,   to  purchase  land  relating  to  the  joint  venture.  The
         Partnership agreed to contribute  approximately  $289,700 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 June 1998, the Partnership acquired 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.

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

                                                   June 30,      December 31,
                                                     1998            1997

                  Land and buildings on
                    operating leases, less
                    accumulated depreciation      $7,124,498      $4,568,842
                  Net investment in direct
                    financing leases               3,344,203         911,559
                  Cash                                31,002           7,991
                  Receivables                         15,073          22,230
                  Accrued rental income              194,451         160,197
                  Other assets                           862             414
                  Liabilities                         27,269           7,557
                  Partners' capital               10,682,820       5,663,676
                  Revenues                           487,764         471,627
                  Gain on sale of land
                    and building                          -          488,372
                  Net income                         422,077         889,883

         The Partnership  recognized income totalling  $117,899 and $169,356 for
         the six months ended June 30, 1998 and 1997,  respectively,  from these
         joint  ventures,  $61,403  and  $20,628 of which was earned  during the
         quarters ended June 30, 1998 and 1997, respectively.

                                        7

<PAGE>



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


5.       Restricted Cash:

         As of June 30, 1998,  the net sales  proceeds of $900,000 from the sale
         of the property in Bellevue, Nebraska, plus accrued interest of $3,697,
         were being  held in an  interest-bearing  escrow  account  pending  the
         release of funds by the escrow agent to acquire an additional  property
         on behalf of the Partnership.

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 six month periods ended June 30:

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

                  Golden Corral Corporation            $342,950       $340,363
                  Restaurant Management
                    Services, Inc.                      221,994        262,125
                  Mid-America Corporation               219,760        219,760
                  IHOP Properties, Inc.                 214,063             -

         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 six month periods ended June 30:

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

                  Golden Corral Family
                    Steakhouse Restaurants    $342,950           $340,363
                  Burger King                  227,910            260,851
                  IHOP                         214,063                 -




                                        8

<PAGE>



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


6.       Concentration of Credit Risk - Continued:

         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 June 30, 1998, the Partnership owned 40 Properties,  including
five  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

         The  Partnership's  primary  source of capital for the six months ended
June 30, 1998 and 1997, 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 $1,655,360 and
$1,613,640  for the six months ended June 30, 1998 and 1997,  respectively.  The
increase in cash from  operations  for the six months  ended June 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 six
months ended June 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
six months ended June 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 June 30, 1998, the  Partnership  owned a 34.74% and
46.2%  interest  in the  Properties  in  Overland  Park,  Kansas,  and  Memphis,
Tennessee, respectively.



                                       10

<PAGE>



Liquidity and Capital Resources - Continued

         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  reinvested 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  reinvested a portion of the net sales  proceeds in a joint  venture
arrangement, Melbourne Joint Venture, with an affiliate of the Partnership which
has the same general partners, to construct and hold one restaurant Property. As
of  June  30,  1998,  the  Partnership  and  its  co-venture  partner  had  each
contributed  $236,535,  to  purchase  land  relating to the joint  venture.  The
Partnership   agreed  to   contribute   approximately   $289,700  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

                                       11

<PAGE>



Liquidity and Capital Resources - Continued

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.  As of June 30, 1998,  the net sales  proceeds of $900,000 plus
accrued  interest  of  $3,697,  were being  held in an  interest-bearing  escrow
account  pending  the  release  of  funds by the  escrow  agent  to  acquire  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 June 30, 1998, the Partnership had $1,433,338
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 six months ended
June 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 June 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 $855,337 at June 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 six months ended June 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  at June 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 $1,575,000 for each of the six months ended June 30,
1998 and 1997  ($787,500 for each of the quarters ended June 30, 1998 and 1997).
This represents  distributions for each applicable six months of $22.50 per unit
($11.25  per unit for each of the  quarters  ended June 30,  1998 and 1997).  No
distributions  were made to the general partners for the quarters and six months
ended June 30, 1998 and 1997. No amounts distributed to the limited partners for
the six months  ended June 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.


                                       12

<PAGE>



Liquidity and Capital Resources - Continued

         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 six months  ended June 30,  1997,  the  Partnership  and its
consolidated joint venture, Caro Joint Venture, owned and leased 37 wholly owned
Properties,  and during the six months ended June 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  $1,384,259  and $1,557,897  during the six months ended June 30,
1998 and 1997,  respectively,  in rental income from operating leases and earned
income from direct financing leases from these Properties, $627,999 and $773,422
of  which  was  earned  during  the  quarters  ended  June 30,  1998  and  1997,
respectively.  Rental and earned  income  decreased  during the  quarter and six
months ended June 30, 1998, as compared to the quarter and six months ended June
30, 1997,  primarily as a result of the sales during 1997 of four Properties and
the sales  during  1998 of four  Properties.  During the  quarter and six months
ended June 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 quarter and six months
ended  June 30,  1998 was also  partially  offset  by the fact that  during  the
quarter  and six months  ended June 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 quarter and six months ended June 30, 1998, due to the fact
that in October 1997, a new tenant began  operating this Property.  In addition,
the  decrease in rental and earned  income for the quarter and six months  ended
June 30, 1998 was  partially  offset by the fact that during the quarter and six
months  ended  June 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.

                                       13

<PAGE>



Results of Operations - Continued

         During the six months  ended June 30,  1998 and 1997,  the  Partnership
earned $67,682 and $33,265,  respectively, in interest and other income, $31,006
and  $17,982 of which was earned  during the  quarters  ended June 30,  1998 and
1997, respectively. The increase in interest and other income during the quarter
and six months  ended June 30,  1998,  was  partially  attributable  to interest
earned on the net sales proceeds  relating to the 1998 sales of four  Properties
pending the reinvestment in additional  Properties.  The increase during the six
months ended June 30, 1998,  was also  partially  attributable  to the fact that
during the six months ended June 30, 1998, the Partnership's  consolidated joint
venture  recognized  approximately  $13,300 in other income due to the fact that
the tenant of the  Property in Caro,  Michigan,  paid past due real estate taxes
relating to the  Property  and the  consolidated  joint  venture  reversed  such
amounts during 1998 which had been previously accrued as an expense during 1997.

         For the six  months  ended June 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 six months  ended  June 30,  1998,  the  Partnership  owned and leased  four
Properties  indirectly through joint venture arrangements and five Properties as
tenants-in-common  with  affiliates  of  the  general  partners.  In  connection
therewith,  during the six months ended June 30, 1998 and 1997, the  Partnership
earned $117,899 and $169,356, respectively, attributable to net income earned by
these joint  ventures,  $61,403 and $20,628 of which was earned for the quarters
ended June 30, 1998 and 1997, respectively. The decrease in net income earned by
joint ventures during the six months ended June 30, 1998, as compared to the six
months  ended  June 30,  1997,  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.  Show  Low  Joint  Venture
reinvested the majority of the net sales  proceeds in a replacement  Property in
June 1997.  The decrease in net income earned by joint  ventures  during the six
months ended June 30,  1998,  as compared to the six months ended June 30, 1997,
is  partially  offset by, and the  increase in net income for the quarter  ended
June 30, 1998,  as compared to the quarter ended June 30, 1997, is primarily due
to the fact that in  January  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.

         During at least one of the six  months  ended  June 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

                                       14

<PAGE>



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 June 30,  1998,  Golden  Corral  Corporation  was the
lessee  under  leases  relating  to  five  restaurants,   Restaurant  Management
Services,  Inc. was the lessee under leases  relating to seven  restaurants  and
Mid-America  Corporation  and IHOP  Properties,  Inc.,  were each lessees  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, IHOP and Burger King, each accounted for
more than ten percent of the  Partnership's  total rental income during at least
one of the six months ended June 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  $356,132  and  $358,270  for the six months  ended June 30, 1998 and 1997,
respectively,  $178,982  and  $187,078 of which were  incurred  for the quarters
ended June 30, 1998 and 1997.  The  decrease in  operating  expenses  during the
quarter ended June 30, 1998, as compared to the quarter ended June 30, 1997, was
primarily due to a decrease in  depreciation  expense due to the sale of several
Properties during 1997 and 1998.

         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 six months  ended June 30,  1998,  for  financial
reporting purposes. No Properties were sold during the six months ended June 30,
1997.

         During the quarter and six months ended June 30, 1997, the  Partnership
established  an  allowance  for loss on land and  building  for its  Property in
Whitehall,  Michigan, in the amount of $79,777 for financial reporting purposes.
The allowance  represented  the difference  between (i) the Property's  carrying
value at June 30,  1997,  plus the  additional  rental  income  (accrued  rental
income)  that the  Partnership  had  recognized  since  inception  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 this property in July 1997. No such  allowance was
established during the quarter and six months ended June 30, 1998.

                                       15

<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 June 30, 1998.

                                       16

<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 4th day of August, 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)