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 March 31, 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)

                                 March 31, 2000
<TABLE>
<CAPTION>

Assets
<S>                                                                         <C>
   Cash and cash equivalents                                                $ 1,255
   Receivables and deposits                                                     838
   Restricted escrows                                                           220
   Other assets                                                                 420
   Investment property:
       Land                                                  $  1,980
       Buildings and related personal property                 25,358
                                                               27,338
       Less accumulated depreciation                          (20,281)        7,057
                                                                            $ 9,790

Liabilities and Partners' Deficit
Liabilities
   Accounts payable                                                          $   12
   Tenant security deposit liabilities                                          350
   Other liabilities                                                            429
   Mortgage note payable                                                     19,300

Partners' Deficit
   General partner                                            $  (350)
   Limited partners (60,005 units
      issued and outstanding)                                  (9,951)      (10,301)
                                                                            $ 9,790
</TABLE>

                   See Accompanying Notes to Financial Statements

<PAGE>

b)

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


                                                   Three Months Ended
                                                        March 31,
                                                2000                1999
Revenues:
   Rental income                              $ 1,672             $ 1,643
   Other income                                    61                  78
       Total revenues                           1,733               1,721

Expenses:
   Operating                                      551                 538
   General and administrative                      52                 177
   Depreciation                                   278                 248
   Interest                                       372                 372
   Property taxes                                 134                 122
       Total expenses                           1,387               1,457

Net income                                     $  346               $ 264

Net income allocated
   to general partner (1%)                      $   3                 $ 3
Net income allocated
   to limited partners (99%)                      343                 261
                                               $  346               $ 264
Net income per limited
   partnership unit                            $ 5.72              $ 4.35
Distribution per limited
   partnership unit                             $  --             $ 33.95

                   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)

Net income for the three months
   ended March 31, 2000                   --           3          343          346

Partners' deficit at
   March 31, 2000                     60,005      $ (350)    $ (9,951)    $(10,301)
</TABLE>

                   See Accompanying Notes to Financial Statements

<PAGE>

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

<TABLE>
<CAPTION>

                                                                 Three Months Ended
                                                                      March 31,
                                                                  2000          1999
Cash flows from operating activities:
<S>                                                              <C>           <C>
  Net income                                                     $  346        $ 264
  Adjustments to reconcile net income to cash
   provided by operating activities:
   Depreciation                                                     278          248
   Amortization of loan costs                                        19           19
   Change in accounts:
      Receivables and deposits                                     (185)           9
      Other assets                                                  101           89
      Accounts payable                                              (23)          44
      Tenant security deposit liabilities                           (12)          (4)
      Other liabilities                                            (185)           7
       Net cash provided by operating activities                    339          676

Cash flows from investing activities:
  Net (deposits to) withdrawals from restricted escrows             (47)         271
  Property improvements and replacements                           (104)         (53)
       Net cash (used in) provided by investing activities         (151)         218

Cash flows used in financing activities:
  Distribution to partners                                         (551)      (2,058)

Net decrease in cash and cash equivalents                          (363)      (1,164)
Cash and cash equivalents at beginning of period                  1,618        3,418
Cash and cash equivalents at end of period                      $ 1,255      $ 2,254

Supplemental disclosure of cash flow information:
  Cash paid for interest                                         $  354        $ 354
</TABLE>

Distributions  to partners were accrued at December 31, 1999 and paid in January
2000.

                   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 month  period ended March 31,  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 three month
periods ended March 31, 2000 and 1999:

                                                                  2000      1999
                                                                  (in thousands)
 Property management fees (included in operating expenses)        $ 86      $ 86

 Reimbursement for services of affiliates (included in
   investment property and general and administrative and
   operating expenses)                                              26        26

 Partnership management fee (included in other liabilities
   and general and administrative expense)                          --        42

 Non-accountable reimbursement (included in general
   and administrative expenses)                                     --       100

During the three  months  ended  March 31,  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  $86,000 for both three month
periods ended March 31, 2000, and 1999, respectively.

Affiliates  of  the  Managing   General  Partner  received   reimbursements   of
accountable  administrative expenses amounting to approximately $26,000 for both
of the three month periods ended March 31, 2000, and 1999.

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 the  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 Managing  General Partner was entitled to receive $100,000 for such services
in 1999,  which was paid during the three month period ended March 31, 1999.  No
such fee was paid for the period ended March 31, 2000.

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.  Approximately $42,000 of fees
were paid in January 1999 in conjunction with the operating distribution made at
that time.  No such fee was due during the three  month  period  ended March 31,
2000.

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.

AIMCO and its affiliates  currently own 43,188 limited  partnership units in the
Partnership  representing  71.974% 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. As a result of its
ownership  of  71.974%  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 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 Insignia  Properties,  L.P.'s
ability to influence voting decisions with respect to the Partnership.

Note D - Distribution to Partners

Cash distributions from operations of approximately  $2,058,000 were paid during
the three months ended March 31, 1999,  of which  approximately  $2,037,000  was
paid to the limited partners ($33.95 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.

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 month periods ended March 31, 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.

                 2000                  Residential      Other     Totals

Rental income                            $ 1,672       $   --    $ 1,672
Other income                                  59            2         61
Interest expense                             372           --        372
Depreciation                                 278           --        278
General and administrative expense            --           52         52
Segment profit (loss)                        396          (50)       346
Total assets                               9,745           45      9,790
Capital expenditures for investment
  property                                   104           --        104


                 1999                  Residential     Other     Totals

Rental income                           $ 1,643       $   --    $ 1,643
Other income                                 57           21         78
Interest expense                            372           --        372
Depreciation                                248           --        248
General and administrative expense           --          177        177
Segment profit (loss)                       420         (156)       264
Total assets                              9,006        2,068     11,074
Capital expenditures for investment
  property                                   53           --         53

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,  the 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  by Insignia  Financial  Group,  Inc.
("Insignia")  and  entities  which  were,  at one time,  affiliates  of Insignia
("Insignia  Affiliates") of interests in certain general partner entities,  past
tender offers by Insignia  Affiliates to acquire limited  partnership units, the
management of partnerships  by Insignia  Affiliates and the Insignia Merger (see
"Note B - Transfer  of  Control").  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 own units as
of November 3, 1999.  Preliminary  approval of the  settlement  was  obtained on
November 3, 1999 from the Superior Court of the State of  California,  County of
San Mateo, 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 class  plaintiffs'  counsel
to enter the settlement.  On December 14, 1999, the Managing General Partner and
its affiliates terminated the proposed settlement. Certain plaintiffs have filed
a motion to  disqualify  some of the  plaintiffs'  counsel  in the  action.  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.  This
matter is currently in the  preliminary  stages of  discovery.  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 95% and 96% for the three month periods ended March 31, 2000,  and
1999, respectively.

Results of Operations

The Partnership  realized net income of approximately  $346,000 and $264,000 for
the three  month  periods  ended  March 31,  2000 and  1999,  respectively.  The
increase in net income is  attributable  to an increase in total  revenues and a
decrease in total  expenses.  The increase in total  revenues is  primarily  the
result of increased  average rental rates. The decrease in total expenses is due
to a  decrease  in  general  and  administrative  expenses  partially  offset by
increases in depreciation  and operating  expenses.  The decrease in general and
administrative  expenses is  primarily  due to the  decrease in the  Partnership
management   fee  and   non-accountable   reimbursement   associated   with  the
distribution  from operations  during the first quarter of 1999. The increase in
depreciation  is  the  result  of  property  improvements  and  replacements  at
Pennbrook   during  the  past  year.  The  increase  in  operating   expense  is
attributable to an increase in maintenance expense due primarily to snow removal
expenses at Pennbrook during the three month period ended March 31, 2000.

Included in general and administrative expenses for the three months ended March
31, 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  March  31,  2000,  the  Partnership   had  cash  and  cash   equivalents  of
approximately  $1,255,000 as compared to  approximately  $2,254,000 at March 31,
1999.  For the three  months  ended March 31,  2000,  cash and cash  equivalents
decreased  approximately $363,000 from the Partnership's year ended December 31,
1999. This decrease was due to approximately  $551,000 of cash used in financing
activities  and  approximately  $151,000  of cash used in  investing  activities
partially  offset  by  approximately  $339,000  of cash  provided  by  operating
activities.  Cash used in financing  activities consisted of a distribution paid
to partners during the first quarter of 2000. Cash used in investing  activities
consisted  of  property  improvements  and  replacements  and  net  deposits  to
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  $273,000 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 three months ended March 31, 2000, the
Partnership completed  approximately $104,000 of capital improvements at Village
of  Pennbrook  consisting  primarily  of  appliance   replacements,   structural
improvements, water heater replacements, and carpet and vinyl replacement. These
capital   improvements  were  funded  from  operating  cash  flows.   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
budgeted 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  $2,058,000 were paid during
the three months ended March 31, 1999,  of which  approximately  $2,037,000  was
paid to the limited partners ($33.95 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.

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 in
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,  the 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  by Insignia  Financial  Group,  Inc.
("Insignia")  and  entities  which  were,  at one time,  affiliates  of Insignia
("Insignia  Affiliates") of interests in certain general partner entities,  past
tender offers by Insignia  Affiliates to acquire limited  partnership units, the
management of partnerships  by Insignia  Affiliates and the Insignia Merger (see
"Part I - Financial Information, Item I. Financial Statements, Note B - Transfer
of  Control").  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 own units as of November
3, 1999. Preliminary approval of the settlement was obtained on November 3, 1999
from the  Superior  Court of the State of  California,  County of San Mateo,  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 class  plaintiffs'  counsel  to  enter  the
settlement.  On  December  14,  1999,  the  Managing  General  Partner  and  its
affiliates  terminated the proposed settlement.  Certain plaintiffs have filed a
motion to disqualify some of the plaintiffs' counsel in the action. 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.  This
matter is currently in the  preliminary  stages of  discovery.  The  Partnership
intends to vigorously defend this matter.

ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K

            a)    Exhibits:

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

            b)    Reports on Form 8-K:

                  None filed during the quarter ended March 31, 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: