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, 2001


[ ] 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, 2001
<TABLE>
<CAPTION>



Assets
<S>                                                                          <C>
   Cash and cash equivalents                                                 $  459
   Receivables and deposits                                                     964
   Other assets                                                                 483
   Investment property:
       Land                                                  $  1,980
       Buildings and related personal property                 25,908
                                                               27,888
       Less accumulated depreciation                          (21,437)        6,451
                                                                            $ 8,357
Liabilities and Partners' Deficit
Liabilities
   Accounts payable                                                          $  115
   Tenant security deposit liabilities                                          421
   Other liabilities                                                            435
   Mortgage note payable                                                     19,300

Partners' Deficit
   General partner                                            $ (366)
   Limited partners (60,005 units
      issued and outstanding)                                 (11,548)      (11,914)
                                                                            $ 8,357


                   See Accompanying Notes to Financial Statements

</TABLE>

<PAGE>

b)

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

<TABLE>
<CAPTION>

                                                           Three Months Ended
                                                               March 31,
                                                         2001              2000
Revenues:
<S>                                                    <C>                <C>
   Rental income                                       $ 1,759            $ 1,672
   Other income                                             66                 61
       Total revenues                                    1,825              1,733

Expenses:
   Operating                                               684                551
   General and administrative                              123                 52
   Depreciation                                            298                278
   Interest                                                372                372
   Property taxes                                          135                134
       Total expenses                                    1,612              1,387

Net income                                              $ 213              $ 346

Net income allocated to general partner (1%)             $ 2                $ 3

Net income allocated to limited partners (99%)             211                343
                                                        $ 213              $ 346

Net income per limited partnership unit                 $ 3.52            $ 5.72

Distribution per limited partnership unit              $ 12.98             $ --

                   See Accompanying Notes to Financial Statements

</TABLE>

<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, 2000                  60,005      $ (360)    $(10,980)    $(11,340)

Distributions to partners                 --          (8)        (779)        (787)

Net income for the three months
   ended March 31, 2001                   --           2          211          213

Partners' deficit at
   March 31, 2001                     60,005      $ (366)    $(11,548)    $(11,914)


                   See Accompanying Notes to Financial Statements
</TABLE>


<PAGE>

d)

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


<TABLE>
<CAPTION>

                                                                   Three Months Ended
                                                                        March 31,
                                                                    2001         2000
Cash flows from operating activities:
<S>                                                                 <C>          <C>
  Net income                                                        $ 213        $ 346
  Adjustments to reconcile net income to cash
   provided by operating activities:
     Depreciation                                                      298          278
     Amortization of loan costs                                         19           19
     Change in accounts:
      Receivables and deposits                                        (166)        (185)
      Other assets                                                      40          101
      Accounts payable                                                  68          (23)
      Tenant security deposit liabilities                               --          (12)
      Other liabilities                                               (174)        (185)
        Net cash provided by operating activities                      298          339

Cash flows from investing activities:
  Net withdrawals from (deposits to) restricted escrows                 63          (47)
  Property improvements and replacements                              (191)        (104)
        Net cash used in investing activities                         (128)        (151)

Cash flows from financing activities:
  Distribution to partners                                            (787)        (551)

Net decrease in cash and cash equivalents                             (617)        (363)
Cash and cash equivalents at beginning of period                     1,076        1,618
Cash and cash equivalents at end of period                          $ 459       $ 1,255

Supplemental disclosure of cash flow information:
  Cash paid for interest                                            $ 354        $ 354

At  December  31,  2000,  approximately  $92,000 of  property  improvements  and
replacements  were  included  in accounts  payable and are  included in property
improvements and replacements for the three months ended March 31, 2001.

                   See Accompanying Notes to Financial Statements
</TABLE>


<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,  2001,  are not  necessarily
indicative  of the  results  that may be  expected  for the fiscal  year  ending
December 31, 2001. 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, 2000. The Managing  General  Partner is a
subsidiary of Apartment Investment and Management Company ("AIMCO"),  a publicly
traded real estate investment trust.

Segment Reporting

Statement of Financial  Accounting Standards ("SFAS") No. 131, "Disclosure about
Segments of an Enterprise and Related Information" established standards for the
way that public business enterprises report information about operating segments
in annual  financial  statements  and  requires  that those  enterprises  report
selected  information about operating segments in interim financial reports.  It
also establishes  standards for related disclosures about products and services,
geographic  areas,  and  major  customers.  As  defined  in SFAS  No.  131,  the
Partnership  has only one  reportable  segment.  The  Managing  General  Partner
believes that  segment-based  disclosures  will not result in a more  meaningful
presentation than the financial statements as currently presented.

Note B - 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, 2001 and 2000:

                                                                  2001      2000
                                                                  (in thousands)
 Property management fees (included in operating expenses)        $ 91      $ 86
 Reimbursement for services of affiliates (included in
   investment property and general and administrative and
   operating expenses)                                               44       26
 Partnership management fee (included in general and
   administrative expense)                                           17       --
 Non-accountable reimbursement (included in general
   and administrative expenses)                                      50       --

Affiliates of the Managing  General  Partner are entitled to receive 5% of gross
receipts  from the  Partnership's  property for  providing  property  management
services.  The  Partnership  paid to such affiliates  approximately  $91,000 and
$86,000  for  the  three  month  periods   ended  March  31,  2001,   and  2000,
respectively.

Affiliates  of  the  Managing   General  Partner  received   reimbursements   of
accountable  administrative  expenses  amounting  to  approximately  $44,000 and
$26,000  for  the  three  month  periods   ended  March  31,  2001,   and  2000,
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 non-accountable expenses up to a maximum of $100,000 per year based upon
the number of Partnership units sold, subject to certain  limitations.  A fee of
approximately  $50,000 was paid for the period ended March 31, 2001. No such fee
was paid during the three months 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 $17,000 of fees
were paid during the three month  period ended March 31,  2001,  in  conjunction
with the  operating  distributions  made.  No such fee was paid 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.

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership,  AIMCO and its affiliates  owned 44,773 limited  partnership  units
(the "Units") in the Partnership representing 74.62% of the outstanding Units at
March 31, 2001. 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  74.62% 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 its affiliation with the Managing  General Partner.  However,
with respect to 26,466 units, Insignia Properties, LP, an affiliate of AIMCO, 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 C - Distribution to Partners

Cash  distributions  from operations of approximately  $787,000 were paid during
the three months ended March 31, 2001, of which approximately  $779,000 was paid
to the limited partners  ($12.98 per limited  partnership  unit).  Subsequent to
March 31,  2001,  a  distribution  was  declared  and paid from  operations  for
approximately $237,000  (approximately $234,000 to the limited partners or $3.90
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 D - 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,  among other things,  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;  management of
the  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 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 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 and an  appeal  was  taken  from the order on
October 5, 2000. On December 4, 2000, the Court  appointed the law firm of Lieff
Cabraser  Heimann & Bernstein  LLP as new lead  counsel for  plaintiffs  and the
putative class.  Plaintiffs filed a third amended complaint on January 19, 2001.
On March 2, 2001,  the  Managing  General  Partner  and its  affiliates  filed a
demurrer to the third amended  complaint.  The demurrer is scheduled to be heard
on May 14,  2001.  The Court has also  scheduled a hearing on a motion for class
certification  for August 27, 2001.  Plaintiffs must file their motion for class
certification no later than June 15, 2001. 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  heat 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 has
filed a motion for summary judgment to have the court dismiss the claims against
the  Partnership,  and this motion is currently  pending  before the court.  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.

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 95% for the three month periods ended March 31, 2001,  and
2000, respectively.

Results of Operations

The Partnership  realized net income of approximately  $213,000 and $346,000 for
the three  month  periods  ended  March 31,  2001 and  2000,  respectively.  The
decrease  in net income  was  primarily  attributable  to an  increase  in total
expenses slightly offset by an increase in total revenues. The increase in total
revenues was primarily due to an increase in rental income due to an increase in
average rental rates and a slight increase in occupancy.

Total  expenses  increased  due to an increase in  operating,  depreciation  and
general and  administrative  expenses.  The  increase in  operating  expense was
primarily due to increased natural gas rates.  Depreciation expense increased as
a result of  property  improvements  and  replacements  at Village of  Pennbrook
Apartments during the past twelve months.

General and  administrative  expense  increased  primarily due to an increase in
Partnership  management  fees and  non-accountable  reimbursement  paid with the
distributions  during the three months ended March 31, 2001. As no distributions
were paid during the three months ended March 31, 2000,  no such  expenses  were
paid. General and  administrative  expenses also increased due to an increase in
the  costs  of  services  provided  by the  Managing  General  Partner  and  its
affiliates  as allowed  under the  Partnership  Agreement.  Also included in the
general and administrative  expenses are costs associated with the quarterly and
annual  communications  with  investors and  regulatory  agencies and the annual
audit required by the Partnership Agreement.

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 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,  2001,  the  Partnership   had  cash  and  cash   equivalents  of
approximately  $459,000  as compared to  approximately  $1,255,000  at March 31,
2000.  For the three  months  ended March 31,  2001,  cash and cash  equivalents
decreased  approximately  $617,000 from December 31, 2000. This decrease was due
to  approximately  $787,000 and $128,000 of cash used in financing and investing
activities,  respectively,  partially offset by  approximately  $298,000 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,  slightly offset by net withdrawals
from restricted escrows held by the mortgage lender. The Partnership invests its
working capital reserves in interest bearing accounts.

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  liability 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 $3,570,000 has been
budgeted for capital  improvements  at Village of Pennbrook  Apartments  for the
year  2001  consisting  primarily  of  cabinet   enhancements,   floor  covering
replacement, appliance replacements, ground lighting and air conditioning units.
During the three month period ended March 31, 2001,  the  Partnership  completed
approximately $99,000 of capital improvements at Village of Pennbrook Apartments
consisting primarily of floor covering, appliance and water heater replacements.
These  improvements  were  funded  from  operations  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  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  $787,000 were paid during
the three months ended March 31, 2001, of which approximately  $779,000 was paid
to the limited partners  ($12.98 per limited  partnership  unit).  Subsequent to
March 31,  2001,  a  distribution  was  declared  and paid from  operations  for
approximately $237,000  (approximately $234,000 to the limited partners or $3.90
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 quarterly 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 that the
Partnership  will  generate  sufficient  funds from  operations  after  required
capital  improvements  to permit  further  distributions  to its partners in the
remainder of 2001 or subsequent periods.

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership,  AIMCO and its affiliates  owned 44,773 limited  partnership  units
(the "Units") in the Partnership representing 74.62% of the outstanding Units at
March 31, 2001. 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  74.62% 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 its affiliation with the Managing  General Partner.  However,
with respect to 26,466 units, Insignia Properties, LP, an affiliate of AIMCO, 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.

<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,  among other things,  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;  management of
the  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 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 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 and an  appeal  was  taken  from the order on
October 5, 2000. On December 4, 2000, the Court  appointed the law firm of Lieff
Cabraser  Heimann & Bernstein  LLP as new lead  counsel for  plaintiffs  and the
putative class.  Plaintiffs filed a third amended complaint on January 19, 2001.
On March 2, 2001,  the  Managing  General  Partner  and its  affiliates  filed a
demurrer to the third amended  complaint.  The demurrer is scheduled to be heard
on May 14,  2001.  The Court has also  scheduled a hearing on a motion for class
certification  for August 27, 2001.  Plaintiffs must file their motion for class
certification no later than June 15, 2001. 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  heat 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 has
filed a motion for summary judgment to have the court dismiss the claims against
the  Partnership,  and this motion is currently  pending  before the court.  The
Partnership intends to vigorously defend this matter.



<PAGE>


ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K

            a)    Exhibits:

                  None.

            b)    Reports on Form 8-K:

                  None filed during the quarter ended March 31, 2001.




<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: