FORM 10-QSB---QUARTERLY OR TRANSITIONAL REPORT UNDER SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934
                        Quarterly or Transitional Report



                     U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   Form 10-QSB

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

                 For the quarterly period ended September 30, 2000


[ ] 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 0-10412


                           NATIONAL PROPERTY INVESTORS 4
         (Exact name of small business issuer as specified in its charter)



         California                                         13-3031722
(State or other jurisdiction of                          (I.R.S. Employer
 incorporation or organization)                         Identification No.)

                          55 Beattie Place, PO Box 1089
                        Greenville, South Carolina 29602
                      (Address of principal executive offices)

                                 (864) 239-1000
                           (Issuer's telephone number)


Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act  during the  preceding  12 months (or for such
shorter period that the Partnership was required to file such reports),  and (2)
has been subject to such filing requirements for the past 90 days. Yes X No___



<PAGE>



                         PART I - FINANCIAL INFORMATION


ITEM 1.     FINANCIAL STATEMENTS

a)

                           NATIONAL PROPERTY INVESTORS 4
                                  BALANCE SHEET
                                   (Unaudited)
                          (in thousands, except unit data)


                               September 30, 2000


<TABLE>
<CAPTION>

Assets
<S>                                                                         <C>
   Cash and cash equivalents                                                $ 1,049
   Receivables and deposits                                                     672
   Restricted escrows                                                            16
   Other assets                                                                 645
   Investment property:
       Land                                                  $  1,980
       Buildings and related personal property                 25,575
                                                               27,555
       Less accumulated depreciation                          (20,850)        6,705
                                                                            $ 9,087
Liabilities and Partners' Deficit
Liabilities
   Accounts payable                                                          $   21
   Tenant security deposit liabilities                                          391
   Other liabilities                                                            441
   Mortgage note payable                                                     19,300

Partners' Deficit
   General partner                                            $  (358)
   Limited partners (60,005 units
      issued and outstanding)                                 (10,708)      (11,066)
                                                                            $ 9,087
</TABLE>


                   See Accompanying Notes to Financial Statements

<PAGE>

b)

                           NATIONAL PROPERTY INVESTORS 4
                            STATEMENTS OF OPERATIONS
                                   (Unaudited)
                          (in thousands, except unit data)

<TABLE>
<CAPTION>

                                      Three Months Ended          Nine Months Ended
                                         September 30,              September 30,
                                       2000          1999         2000         1999

Revenues:
<S>                                  <C>           <C>          <C>          <C>
   Rental income                     $ 1,746       $ 1,620      $ 5,155      $ 4,849
   Other income                          112            90          269          264
       Total revenues                  1,858         1,710        5,424        5,113

Expenses:
   Operating                             559           543        1,691        1,629
   General and administrative             94           192          331          410
   Depreciation                          285           272          847          787
   Interest                              372           372        1,117        1,117
   Property taxes                        125           124          393          369
       Total expenses                  1,435         1,503        4,379        4,312

Net income                            $  423         $ 207      $ 1,045        $ 801

Net income allocated to
   general partner (1%)                $   4           $ 2         $ 10          $ 8
Net income allocated to
   limited partners (99%)                419           205        1,035          793

                                      $  423         $ 207      $ 1,045        $ 801
Net income per limited
   partnership unit                   $ 6.98        $ 3.42      $ 17.25      $ 13.22

Distribution per limited
   partnership unit                    $  --       $ 29.53      $ 24.15      $ 63.48
</TABLE>

                   See Accompanying Notes to Financial Statements


<PAGE>


c)

                           NATIONAL PROPERTY INVESTORS 4
                    STATEMENT OF CHANGES IN PARTNERS' DEFICIT
                                   (Unaudited)
                          (in thousands, except unit data)


<TABLE>
<CAPTION>

                                     Limited
                                   Partnership   General      Limited
                                      Units      Partner     Partners       Total

<S>                                   <C>          <C>       <C>          <C>
Original capital contributions        60,005       $   1     $ 30,003     $ 30,004

Partners' deficit at
   December 31, 1999                  60,005      $ (353)    $(10,294)    $(10,647)

Distributions to partners                            (15)      (1,449)      (1,464)

Net income for the nine months
   ended September 30,2000                --          10        1,035        1,045

Partners' deficit at
   September 30,2000                  60,005      $ (358)    $(10,708)    $(11,066)
</TABLE>


                   See Accompanying Notes to Financial Statements

<PAGE>

d)

                           NATIONAL PROPERTY INVESTORS 4
                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                   (in thousands)

<TABLE>
<CAPTION>

                                                                   Nine Months Ended
                                                                     September 30,
                                                                    2000        1999
Cash flows from operating activities:
<S>                                                               <C>           <C>
  Net income                                                      $ 1,045       $  801
  Adjustments to reconcile net income to cash
   provided by operating activities:
     Depreciation                                                     847          787
     Amortization of loan costs                                        56           56
     Change in accounts:
      Receivables and deposits                                        (19)         149
      Other assets                                                   (161)        (215)
      Accounts payable                                                (14)          34
      Tenant security deposit liabilities                              29          (37)
      Accrued property taxes                                           --           30
      Other liabilities                                              (173)          33
         Net cash provided by operating activities                  1,610        1,638

Cash flows from investing activities:
  Net withdrawals from restricted escrows                             157          329
  Property improvements and replacements                             (321)        (362)
         Net cash used in investing activities                       (164)         (33)

Cash flows used in financing activities:
  Distribution to partners                                         (2,015)      (3,848)

Net decrease in cash and cash equivalents                            (569)      (2,243)
Cash and cash equivalents at beginning of period                    1,618        3,418
Cash and cash equivalents at end of period                        $ 1,049      $ 1,175

Supplemental disclosure of cash flow information:
  Cash paid for interest                                          $ 1,061      $ 1,061

Distributions to partners of approximately $551,000 were accrued at December 31,
1999 and paid in January 2000.
</TABLE>

                   See Accompanying Notes to Financial Statements

<PAGE>

e)

                           NATIONAL PROPERTY INVESTORS 4
                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)


Note A - Basis of Presentation

The accompanying unaudited financial statements of National Property Investors 4
(the  "Partnership" or the  "Registrant")  have been prepared in accordance with
generally accepted accounting  principles for interim financial  information and
with  the  instructions  to Form  10-QSB  and Item  310(b)  of  Regulation  S-B.
Accordingly,  they do not include all of the information and footnotes  required
by generally accepted accounting  principles for complete financial  statements.
In the opinion of NPI Equity  Investments,  Inc.  ("NPI Equity" or the "Managing
General  Partner"),  all adjustments  (consisting of normal recurring  accruals)
considered  necessary  for a fair  presentation  have been  included.  Operating
results for the three and nine month periods ended  September 30, 2000,  are not
necessarily  indicative  of the results that may be expected for the fiscal year
ending  December  31,  2000.  For further  information,  refer to the  financial
statements and footnotes thereto included in the Partnership's  Annual Report on
Form 10-KSB for the fiscal year ended December 31, 1999.

Note B - Transfer of Control

Pursuant  to a series  of  transactions  which  closed  on  October  1, 1998 and
February 26, 1999,  Insignia Financial Group, Inc. and Insignia Properties Trust
merged into Apartment  Investment and Management Company  ("AIMCO"),  a publicly
traded real estate investment trust, with AIMCO being the surviving  corporation
(the "Insignia Merger").  As a result, AIMCO acquired 100% ownership interest in
the Managing General Partner. The Managing General Partner does not believe that
this  transaction  has had or will have a  material  effect on the  affairs  and
operations of the Partnership.

Note C - Transactions with Affiliated Parties

The  Partnership  has no employees  and is  dependent  on the  Managing  General
Partner  and  its  affiliates  for  the  management  and  administration  of all
partnership  activities.  The  Partnership  Agreement  provides  for payments to
affiliates for services and for  reimbursement of certain  expenses  incurred by
affiliates  on  behalf  of the  Partnership.  The  following  transactions  with
affiliates of the Managing  General  Partner were incurred during the nine month
periods ended September 30, 2000 and 1999:

                                                                  2000      1999
                                                                  (in thousands)

 Property management fees (included in operating expenses)        $270      $255
 Reimbursement for services of affiliates (included in
   investment property and general and administrative and
   operating expenses)                                             130        84
 Partnership management fee (included in general and
   administrative expense)                                          30       203
 Non-accountable reimbursement (included in general
   and administrative expenses)                                    100       100

During the nine months ended  September  30, 2000,  and 1999,  affiliates of the
Managing  General Partner were entitled to receive 5% of gross receipts from the
Partnership's   property  for  providing  property  management   services.   The
Partnership paid to such affiliates  approximately $270,000 and $255,000 for the
nine month periods ended September 30, 2000, and 1999, respectively.

Affiliates  of  the  Managing   General  Partner  received   reimbursements   of
accountable  administrative  expenses  amounting to  approximately  $130,000 and
$84,000  for the  nine  month  periods  ended  September  30,  2000,  and  1999,
respectively.

For services relating to the  administration of the Partnership and operation of
the Partnership's  property, the Managing General Partner is entitled to receive
payment for non-accountable  expenses up to a maximum of $100,000 per year based
upon the number of Partnership units sold, subject to certain  limitations.  The
payment of this amount is dependent upon the Partnership  distributing cash from
operations.  The Managing  General Partner was entitled to receive  $100,000 for
such  services  in both 2000 and  1999,  which was paid  during  the nine  month
periods ended September 30, 2000 and 1999.

In  addition  to the amounts  discussed  above,  as  compensation  for  services
rendered in managing the  Partnership,  the Managing General Partner is entitled
to receive Partnership management fees in conjunction with distributions of cash
from operations,  subject to certain limitations.  During the nine month periods
ended  September  30,  2000  and  1999,   approximately  $30,000  and  $203,000,
respectively, was paid in conjunction with the operating distributions.

The Managing  General  Partner has made available to the  Partnership a $300,000
line of credit. At the present time, the Partnership has no outstanding  amounts
due under this line of credit.  Based on present  plans,  the  Managing  General
Partner does not  anticipate  the need to borrow in the near future.  Other than
cash and cash equivalents,  the line of credit is the Partnership's  only unused
source of liquidity.

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership,  AIMCO and its affiliates  currently own 43,900 limited partnership
units in the Partnership representing 73.161% of the outstanding units. A number
of these  units were  acquired  pursuant  to tender  offers made by AIMCO or its
affiliates.  It is possible that AIMCO or its  affiliates  will make one or more
additional offers to acquire  additional  limited  partnership  interests in the
Partnership  for cash or in exchange for units in the operating  partnership  of
AIMCO. Under the Partnership  Agreement,  unitholders  holding a majority of the
Units are  entitled to take action with  respect to a variety of matters,  which
would  include  without   limitation,   voting  on  certain  amendments  to  the
Partnership  Agreement and voting to remove the Managing General  Partner.  As a
result of its  ownership  of 73.161%  of the  outstanding  units,  AIMCO is in a
position to influence all voting decisions with respect to the Registrant.  When
voting on matters, AIMCO would in all likelihood vote the Units it acquired in a
manner  favorable  to the interest of the Managing  General  Partner  because of
their  affiliation with the Managing General Partner.  However,  with respect to
26,466  units,  Insignia  Properties,  LP, an affiliate of the Managing  General
Partner,   is  required  to  vote  such  Units:  (i)  against  any  increase  in
compensation payable to the Managing General Partner or to affiliates;  and (ii)
on all other  matters  submitted by it or its  affiliates,  in proportion to the
votes cast by  non-tendering  unitholders.  Except for the  foregoing,  no other
limitations  are imposed on the ability of AIMCO or its  affiliates to influence
voting decisions with respect to the Partnership.

Note D - Distribution to Partners

Cash distributions from operations of approximately  $1,464,000 were paid during
the nine months ended September 30, 2000, of which approximately  $1,449,000 was
paid to the limited partners ($24.15 per limited  partnership unit). At December
31,  1999,  a  distribution  payable of  approximately  $551,000  (approximately
$545,000 to the limited  partners  or $9.08 per  limited  partnership  unit) was
accrued and subsequently paid in January 2000.

Subsequent to September 30, 2000, a cash distribution was approved and paid from
operations of approximately $635,000 of which approximately $629,000 was paid to
the limited partners ($10.48 per limited  partnership unit). In association with
this  distribution,   the  Managing  General  Partner  was  paid  a  Partnership
management fee of approximately $57,000.

Cash distributions from operations of approximately  $3,848,000 were paid during
the nine months ended September 30, 1999, of which approximately  $3,809,000 was
paid to the limited partners ($63.48 per limited partnership unit).

Note E - Segment Information

Description  of the types of products  and  services  from which the  reportable
segment derives its revenues:

The  Partnership  has  one  reportable  segment:  a  residential  property.  The
Partnership's  residential property segment consists of one apartment complex in
Pennsylvania.  The  Partnership  rents apartment units to tenants for terms that
are typically twelve months or less.

Measurement of segment profit or loss:

The  Partnership  evaluates  performance  based on segment  profit (loss) before
depreciation.  The accounting policies of the reportable segment are the same as
those of the  Partnership  as described in  Partnership's  Annual Report on Form
10-KSB for the year ended December 31, 1999.

Factors management used to identify the enterprise's reportable segment:

Segment  information  for the three and nine month periods  ended  September 30,
2000 and 1999, is shown in the tables below (in  thousands).  The "Other" column
includes  Partnership  administration  related  items and income and expense not
allocated to the reportable segment.

  Three Months Ended September 30,2000    Residential     Other       Totals

Rental income                               $ 1,746        $ --       $ 1,746
Other income                                    111            1          112
Interest expense                                372           --          372
Depreciation                                    285           --          285
General and administrative expense               --           94           94
Segment profit (loss)                           516          (93)         423


  Nine Months Ended September 30,2000     Residential     Other      Totals

Rental income                               $ 5,155       $ --       $ 5,155
Other income                                    266            3         269
Interest expense                              1,117           --       1,117
Depreciation                                    847           --         847
General and administrative expense               --          331         331
Segment profit (loss)                         1,373         (328)      1,045
Total assets                                  8,932          155       9,087
Capital expenditures for investment
  property                                      321           --         321


  Three Months Ended September 30,1999    Residential     Other       Totals

Rental income                               $ 1,620        $ --       $ 1,620
Other income                                     76           14           90
Interest expense                                372           --          372
Depreciation                                    272           --          272
General and administrative expense               --          192          192
Segment profit (loss)                           385         (178)         207


  Nine Months Ended September 30,1999    Residential     Other       Totals

Rental income                              $ 4,849        $ --      $ 4,849
Other income                                   210           54         264
Interest expense                             1,117           --       1,117
Depreciation                                   787           --         787
General and administrative expense              --          410         410
Segment profit (loss)                        1,157         (356)        801
Total assets                                 9,311          523       9,834
Capital expenditures for investment
  property                                     362           --         362

Note F - Legal Proceedings

In March 1998, several putative unit holders of limited partnership units of the
Partnership  commenced an action  entitled  Rosalie  Nuanes,  et al. v. Insignia
Financial  Group,  Inc., et al. in the Superior Court of the State of California
for the County of San Mateo. The plaintiffs  named as defendants,  among others,
the  Partnership,  its Managing  General Partner and several of their affiliated
partnerships  and corporate  entities.  The action  purports to assert claims on
behalf of a class of limited  partners and derivatively on behalf of a number of
limited  partnerships  (including  the  Partnership)  which are named as nominal
defendants,  challenging the acquisition of interests in certain general partner
entities by Insignia Financial Group, Inc. ("Insignia") and entities which were,
at one  time,  affiliates  of  Insignia;  past  tender  offers  by the  Insignia
affiliates to acquire limited  partnership units; the management of partnerships
by the  Insignia  affiliates;  and the  Insignia  Merger.  The  plaintiffs  seek
monetary damages and equitable  relief,  including  judicial  dissolution of the
Partnership.  On June 25, 1998,  the  Managing  General  Partner  filed a motion
seeking  dismissal  of the action.  In lieu of  responding  to the  motion,  the
plaintiffs have filed an amended  complaint.  The Managing General Partner filed
demurrers to the amended complaint which were heard February 1999.

Pending the ruling on such  demurrers,  settlement  negotiations  commenced.  On
November 2, 1999,  the parties  executed and filed a Stipulation  of Settlement,
settling claims,  subject to final court approval,  on behalf of the Partnership
and all limited  partners  who owned  units as of November 3, 1999.  Preliminary
approval of the settlement  was obtained on November 3, 1999 from the Court,  at
which time the Court set a final approval  hearing for December 10, 1999.  Prior
to the December 10, 1999 hearing,  the Court received various  objections to the
settlement, including a challenge to the Court's preliminary approval based upon
the alleged lack of authority of prior lead counsel to enter the settlement.  On
December 14, 1999, the Managing  General  Partner and its affiliates  terminated
the  proposed  settlement.  In  February  2000,  counsel  for some of the  named
plaintiffs filed a motion to disqualify plaintiff's lead and liaison counsel who
negotiated  the  settlement.  On June  27,  2000,  the  Court  entered  an order
disqualifying them from the case. The Court is considering applications for lead
counsel and has  currently  scheduled a hearing on the matter for  November  20,
2000. The Managing  General  Partner does not anticipate  that costs  associated
with this case will be material to the Partnership's overall operations.

Estate of Harry  Schubert v.  National  Property  Investors  4, Civil Action No.
97-09129, Court of Common Pleas of Bucks County, Pennsylvania.  During 1998, the
Plaintiff brought action against the Partnership  alleging that as the result of
carbon monoxide and methane  poisoning due to a  malfunctioning  heating unit in
the  deceased's  apartment at the  Partnership's  property,  the  decedent  lost
consciousness for several hours,  suffered respiratory arrest and suffered other
pains and injuries. The Plaintiff alleges breach of contract,  fraud, violations
of the Unfair Trade Practices and Consumer  Protection Law and  negligence.  The
Partnership  has filed a motion for  summary  judgment  and is  waiting  for the
court's response. The Partnership intends to vigorously defend this matter.

The  Partnership is unaware of any other pending or outstanding  litigation that
is not of a routine nature arising in the ordinary course of business.


<PAGE>

ITEM 2.     MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

The  matters  discussed  in this Form  10-QSB  contain  certain  forward-looking
statements  and  involve  risks and  uncertainties  (including  changing  market
conditions,   competitive  and  regulatory   matters,   etc.)  detailed  in  the
disclosures  contained  in this  Form  10-QSB  and the  other  filings  with the
Securities and Exchange  Commission made by the  Partnership  from time to time.
The  discussion  of  the  Partnership's  business  and  results  of  operations,
including  forward-looking  statements pertaining to such matters, does not take
into  account  the  effects of any  changes to the  Partnership's  business  and
results of operation.  Accordingly,  actual results could differ materially from
those  projected in the  forward-looking  statements  as a result of a number of
factors, including those identified herein.

The Partnership's investment property consists of one apartment complex, Village
of Pennbrook Apartments,  located in Falls Township,  Pennsylvania.  The average
occupancy was 96% and 94% for the nine month  periods ended  September 30, 2000,
and 1999, respectively.

Results of Operations

The Partnership realized net income of approximately $1,045,000 and $801,000 for
the nine month periods  ended  September  30, 2000 and 1999,  respectively.  The
increase  in net  income  for  the  nine  months  ended  September  30,  2000 is
attributable to an increase in total revenues  slightly offset by an increase in
total  expenses.  The increase in total revenues is primarily due to an increase
in rental income and a small  increase in other  income.  The increase in rental
income is due to an increase in both average  occupancy and average rental rates
at the property. The increase in other income is primarily due to an increase in
net corporate  housing income,  pet fees,  application  fees, and vending income
largely  offset by decreased  interest  income as a result of lower average cash
balances  in  interest  bearing  accounts.  The  increase  in total  expenses is
primarily  the result of increased  operating,  property  tax, and  depreciation
expenses partially offset by a decrease in general and  administrative  expense.
The increase in operating  expense is primarily  due to an increase in utilities
expense and manager and maintenance salaries and related benefits.  The increase
in  property  tax  expense is the result of the timing of the receipt of the tax
bill which  affected the accrual at September 30, 2000 and 1999. The increase in
depreciation  is  the  result  of  property  improvements  and  replacements  at
Pennbrook   during  the  past  twelve  months.   The  decrease  in  general  and
administrative  expense is  primarily  due to the  decrease  in the  Partnership
management  fee as a result  of  reduced  distributions  from  operations.  This
decrease is partially  offset by an increase in legal expense as a result of the
Schubert matter discussed in "Part 1 - Financial Information,  Item 1. Financial
Statements, Note F - Legal Proceedings".

The Partnership  realized net income of approximately  $423,000 and $207,000 for
the three months ended September 30, 2000 and 1999,  respectively.  The increase
in net income is attributable to an increase in total revenues and a decrease in
total  expenses.  The decrease in total  expenses is primarily  due to decreased
general and administrative expenses partially offset by an increase in operating
and  depreciation  expense.  For the  increase  in  operating  and  depreciation
expenses,   refer  to  the  discussions  above.  The  decrease  in  general  and
administrative  expense is primarily due to the timing of cash distributions and
the payment of Partnership  management  fees in 2000 and 1999.  During the three
months  ended  September  30,  2000,  no cash  distributions  were  made  and no
Partnership  management fees were earned.  During 1999,  these amounts were paid
along with the  distributions  during the three months ended September 30, 1999.
The  increase in total  revenues is  primarily  due to an increase in rental and
other income, as discussed above.

Included  in general  and  administrative  expenses  for the nine  months  ended
September 30, 2000 and 1999, are  reimbursements to the Managing General Partner
allowed under the  Partnership  Agreement  associated with its management of the
Partnership.  Costs associated with the quarterly and annual communications with
investors  and  regulatory  agencies,  and  the  annual  audit  required  by the
Partnership Agreement are also included.

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

Capital Resources and Liquidity

At  September  30,  2000,  the  Partnership  had cash and  cash  equivalents  of
approximately  $1,049,000 as compared to  approximately  $1,175,000 at September
30,  1999.  For the  nine  months  ended  September  30,  2000,  cash  and  cash
equivalents decreased  approximately  $569,000 from the Partnership's year ended
December 31, 1999.  This  decrease was due to  approximately  $2,015,000 of cash
used  in  financing  activities  and  approximately  $164,000  of  cash  used in
investing  activities  partially  offset  by  approximately  $1,610,000  of cash
provided by operating activities. Cash used in financing activities consisted of
distributions paid to the partners.  Cash used in investing activities consisted
of property  improvements and  replacements  partially offset by net withdrawals
from restricted escrows held by the mortgage lender. The Partnership invests its
working capital reserves in a money market account.

The Managing  General Partner has extended to the Partnership a $300,000 line of
credit.  At the present time, the  Partnership  has no  outstanding  amounts due
under this line of credit.  Based on present plans, the Managing General Partner
does not anticipate  the need to borrow in the near future.  Other than cash and
cash equivalents,  the line of credit is the Partnership's only unused source of
liquidity.

The sufficiency of existing  liquid assets to meet future  liquidity and capital
expenditure   requirements   is  directly   related  to  the  level  of  capital
expenditures required at the property to adequately maintain the physical assets
and other operating  needs of the Partnership and to comply with Federal,  state
and local legal and  regulatory  requirements.  Approximately  $295,000 has been
budgeted for capital  improvements at Village of Pennbrook during the year 2000,
consisting primarily of floor covering replacements,  appliances, heating units,
and parking lot  improvements.  During the nine months ended September 30, 2000,
the  Partnership  completed  approximately  $321,000 of budgeted and  unbudgeted
capital  improvements at Village of Pennbrook  consisting primarily of furniture
and fixtures,  appliance  replacements,  structural  improvements,  water heater
replacements,   air  conditioning  unit  replacements,   and  carpet  and  vinyl
replacement.  These capital  improvements  were funded from operating cash flows
and replacement  reserves.  Additional  improvements  may be considered and will
depend on the physical condition of the property as well as replacement reserves
and anticipated cash flows generated by the property.  The capital  improvements
will be incurred only if cash is available from  operations or from  partnership
reserves.  To the extent  that such  capital  improvements  are  completed,  the
Partnership's  distributable  cash flow,  if any, may be  adversely  affected at
least in the short term.

The Partnership's  current assets are thought to be sufficient for any near-term
needs  (exclusive  of capital  improvements)  of the  Partnership.  The mortgage
indebtedness  of  $19,300,000  consists  of monthly  interest  only  payments of
approximately  $118,000  at a stated  rate of 7.33%.  The  mortgage  matures  on
November 1, 2003,  with the  principal  due on the maturity  date.  The Managing
General  Partner  will attempt to refinance  such  indebtedness  and/or sell the
property  prior to such maturity  date. If the property  cannot be refinanced or
sold for a sufficient  amount,  the  Partnership  will risk losing such property
through foreclosure.

Cash distributions from operations of approximately  $1,464,000 were paid during
the nine months ended September 30, 2000, of which approximately  $1,449,000 was
paid to the limited partners ($24.15 per limited  partnership unit). At December
31,  1999,  a  distribution  payable of  approximately  $551,000  (approximately
$545,000 to the limited  partners  or $9.08 per  limited  partnership  unit) was
accrued and subsequently paid in January 2000. Subsequent to September 30, 2000,
a cash  distribution  was approved  and paid from  operations  of  approximately
$635,000  of  which  approximately  $629,000  was paid to the  limited  partners
($10.48 per limited  partnership  unit). Cash  distributions  from operations of
approximately  $3,848,000  were paid  during  the nine  months  ended  September
30,1999,  of which  approximately  $3,809,000  was paid to the limited  partners
($63.48 per limited partnership unit). The Partnership's  distribution policy is
reviewed on a semi-annual  basis.  Future cash  distributions will depend on the
levels of net cash generated from operations, the availability of cash reserves,
and the timing of the debt maturity,  refinancing,  and/or property sale.  There
can be no assurance,  however,  that the  Partnership  will generate  sufficient
funds from  operations  after required  capital  improvements  to permit further
distributions  to its  partners  during  the  remainder  of 2000  or  subsequent
periods.

<PAGE>

                           PART II - OTHER INFORMATION


ITEM 1.     LEGAL PROCEEDINGS

In March 1998, several putative unit holders of limited partnership units of the
Partnership  commenced an action  entitled  Rosalie  Nuanes,  et al. v. Insignia
Financial  Group,  Inc., et al. in the Superior Court of the State of California
for the County of San Mateo. The plaintiffs  named as defendants,  among others,
the  Partnership,  its Managing  General Partner and several of their affiliated
partnerships  and corporate  entities.  The action  purports to assert claims on
behalf of a class of limited  partners and derivatively on behalf of a number of
limited  partnerships  (including  the  Partnership)  which are named as nominal
defendants,  challenging the acquisition of interests in certain general partner
entities by Insignia Financial Group, Inc. ("Insignia") and entities which were,
at one  time,  affiliates  of  Insignia;  past  tender  offers  by the  Insignia
affiliates to acquire limited  partnership units; the management of partnerships
by the  Insignia  affiliates;  and the  Insignia  Merger.  The  plaintiffs  seek
monetary damages and equitable  relief,  including  judicial  dissolution of the
Partnership.  On June 25, 1998,  the  Managing  General  Partner  filed a motion
seeking  dismissal  of the action.  In lieu of  responding  to the  motion,  the
plaintiffs have filed an amended  complaint.  The Managing General Partner filed
demurrers to the amended complaint which were heard February 1999.

Pending the ruling on such  demurrers,  settlement  negotiations  commenced.  On
November 2, 1999,  the parties  executed and filed a Stipulation  of Settlement,
settling claims,  subject to final court approval,  on behalf of the Partnership
and all limited  partners  who owned  units as of November 3, 1999.  Preliminary
approval of the settlement  was obtained on November 3, 1999 from the Court,  at
which time the Court set a final approval  hearing for December 10, 1999.  Prior
to the December 10, 1999 hearing,  the Court received various  objections to the
settlement, including a challenge to the Court's preliminary approval based upon
the alleged lack of authority of prior lead counsel to enter the settlement.  On
December 14, 1999, the Managing  General  Partner and its affiliates  terminated
the  proposed  settlement.  In  February  2000,  counsel  for some of the  named
plaintiffs filed a motion to disqualify plaintiff's lead and liaison counsel who
negotiated  the  settlement.  On June  27,  2000,  the  Court  entered  an order
disqualifying them from the case. The Court is considering applications for lead
counsel and has  currently  scheduled a hearing on the matter for  November  20,
2000. The Managing  General  Partner does not anticipate  that costs  associated
with this case will be material to the Partnership's overall operations.

Estate of Harry  Schubert v.  National  Property  Investors  4, Civil Action No.
97-09129, Court of Common Pleas of Bucks County, Pennsylvania.  During 1998, the
Plaintiff brought action against the Partnership  alleging that as the result of
carbon monoxide and methane  poisoning due to a  malfunctioning  heating unit in
the  deceased's  apartment at the  Partnership's  property,  the  decedent  lost
consciousness for several hours,  suffered respiratory arrest and suffered other
pains and injuries. The Plaintiff alleges breach of contract,  fraud, violations
of the Unfair Trade Practices and Consumer  Protection Law and  negligence.  The
Partnership  has filed a motion for  summary  judgment  and is  waiting  for the
court's response. The Partnership intends to vigorously defend this matter.


<PAGE>


ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K

            a)    Exhibits:

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

            b)    Reports on Form 8-K:

                  None filed during the quarter ended September 30, 2000.




<PAGE>


                                   SIGNATURES



In accordance with the  requirements of the Exchange Act, the Registrant  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.



                                    NATIONAL PROPERTY INVESTORS 4


                                    By:   NPI EQUITY INVESTMENTS, INC.
                                          Managing General Partner


                                    By:   /s/Patrick J. Foye
                                          Patrick J. Foye
                                          Executive Vice President


                                    By:   /s/Martha L. Long
                                          Martha L. Long
                                          Senior Vice President
                                          and Controller


                                    Date: