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 June 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___

                         PART I - FINANCIAL INFORMATION

ITEM 1.     FINANCIAL STATEMENTS

a)

                           NATIONAL PROPERTY INVESTORS 4
                                  BALANCE SHEET

                                   (Unaudited)

                          (in thousands, except unit data)

<TABLE>
<CAPTION>

                                  June 30, 2000

Assets

<S>                                                          <C>               <C>
   Cash and cash equivalents                                                 $  257
   Receivables and deposits                                                     963
   Restricted escrows                                                           267
   Other assets                                                                 333
   Investment property:
       Land                                                  $  1,980
       Buildings and related personal property                 25,497
                                                               27,477
       Less accumulated depreciation                          (20,565)        6,912
                                                                            $ 8,732

Liabilities and Partners' Deficit
Liabilities

   Accounts payable                                                         $   106
   Tenant security deposit liabilities                                          372
   Other liabilities                                                            443
   Mortgage note payable                                                     19,300

Partners' Deficit

   General partner                                            $ (362)
   Limited partners (60,005 units
      issued and outstanding)                                 (11,127)      (11,489)
                                                                            $ 8,732

                   See Accompanying Notes to Financial Statements
</TABLE>


b)

                           NATIONAL PROPERTY INVESTORS 4
                            STATEMENTS OF OPERATIONS

                                   (Unaudited)

                          (in thousands, except unit data)

<TABLE>
<CAPTION>

                                           Three Months               Six Months
                                          Ended June 30,            Ended June 30,
                                        2000         1999         2000         1999

Revenues:
<S>                                 <C>          <C>           <C>         <C>
   Rental income                    $ 1,737      $ 1,586       $ 3,409     $ 3,229
   Other income                          96           96           157         174
       Total revenues                 1,833        1,682         3,566       3,403

Expenses:
   Operating                            581          548         1,132       1,086
   General and administrative           185           41           237         218
   Depreciation                         284          267           562         515
   Interest                             373          373           745         745
   Property taxes                       134          123           268         245
       Total expenses                 1,557        1,352         2,944       2,809

Net income                          $   276      $   330       $   622     $   594

Net income allocated to
   general partner (1%)                   3            3             6           6
Net income allocated to
   limited partners (99%)               273          327           616         588
                                    $   276      $   330       $   622     $   594
Net income per limited
   partnership unit                 $  4.55      $  5.45       $ 10.27     $  9.80

Distribution per limited

   partnership unit                 $ 24.15      $    --       $ 24.15     $ 33.95

                   See Accompanying Notes to Financial Statements
</TABLE>

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 six months
   ended June 30, 2000                    --           6          616          622

Partners' deficit at
   June 30, 2000                      60,005      $ (362)    $(11,127)    $(11,489)

                   See Accompanying Notes to Financial Statements
</TABLE>

d)

                           NATIONAL PROPERTY INVESTORS 4
                            STATEMENTS OF CASH FLOWS

                                   (Unaudited)

                                   (in thousands)

<TABLE>
<CAPTION>

                                                                  Six Months Ended
                                                                        June 30,

                                                                  2000        1999
Cash flows from operating activities:

<S>                                                              <C>          <C>
  Net income                                                     $  622        $ 594
  Adjustments to reconcile net income to cash
   provided by operating activities:
   Depreciation                                                     562          515
   Amortization of loan costs                                        37           37
   Change in accounts:
      Receivables and deposits                                     (310)         (74)
      Other assets                                                  170          100
      Accounts payable                                               71           87
      Tenant security deposit liabilities                            10           (6)
      Other liabilities                                            (171)          57
       Net cash provided by operating activities                    991        1,310

Cash flows from investing activities:

  Net (deposits to) withdrawals from restricted escrows             (94)         213
  Property improvements and replacements                           (243)        (147)
       Net cash (used in) provided by investing activities         (337)          66

Cash flows used in financing activities:

  Distribution to partners                                       (2,015)      (2,058)

Net decrease in cash and cash equivalents                        (1,361)        (682)
Cash and cash equivalents at beginning of period                  1,618        3,418
Cash and cash equivalents at end of period                       $ 257       $ 2,736

Supplemental disclosure of cash flow information:

  Cash paid for interest                                         $ 707        $ 707

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

                   See Accompanying Notes to Financial Statements
</TABLE>

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 six  month  periods  ended  June 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 six month
periods ended June 30, 2000 and 1999:

                                                                2000      1999
                                                                (in thousands)
 Property management fees (included in operating expenses)      $ 176     $ 171

 Reimbursement for services of affiliates (included in
   investment property and general and administrative and
   operating expenses)                                             58        52

 Partnership management fee (included in general and
   administrative expense)                                         30        42

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

During the six months ended June 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 $176,000 and $171,000 for the
six month periods ended June 30, 2000, and 1999, respectively.

Affiliates  of  the  Managing   General  Partner  received   reimbursements   of
accountable  administrative  expenses  amounting  to  approximately  $58,000 and
$52,000 for the six month periods ended June 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 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 both 2000 and 1999,  which was paid during the six month  periods  ended June
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 six month periods
ended June 30, 2000 and 1999,  approximately $30,000 and $42,000,  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.

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, 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 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  $1,464,000 were paid during
the six months ended June 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.

Cash distributions from operations of approximately  $2,058,000 were paid during
the six months ended June 30, 1999, of which  approximately  $2,037,000 was paid
to the limited partners ($33.95 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 six month periods ended June 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 June 30, 2000    Residential     Other     Totals

Rental income                            $ 1,737       $ --      $ 1,737
Other income                                  96           --         96
Interest expense                             373           --        373
Depreciation                                 284           --        284
General and administrative expense            --          185        185
Segment profit (loss)                        461         (185)       276

    Six Months Ended June 30, 2000     Residential     Other     Totals

Rental income                            $ 3,409       $ --      $ 3,409
Other income                                 155            2        157
Interest expense                             745           --        745
Depreciation                                 562           --        562
General and administrative expense            --          237        237
Segment profit (loss)                        857         (235)       622
Total assets                               8,494          238      8,732
Capital expenditures for investment
  property                                   243           --        243

    Three Months Ended June 30, 1999    Residential     Other      Totals

Rental income                           $ 1,586       $   --    $ 1,586
Other income                                 77           19         96
Interest expense                            373           --        373
Depreciation                                267           --        267
General and administrative expense           --           41         41
Segment profit (loss)                       352          (22)       330

    Six Months Ended June 30, 1999     Residential     Other      Totals

Rental income                           $ 3,229       $   --    $ 3,229
Other income                                134           40        174
Interest expense                            745           --        745
Depreciation                                515           --        515
General and administrative expense           --          218        218
Segment profit (loss)                       772         (178)       594
Total assets                              9,458        2,037     11,495
Capital expenditures for investment
  property                                  147           --        147

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. 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 will entertain applications for lead
counsel which must be filed by August 4, 2000. The Court has scheduled a hearing
on August 21, 2000 to address the issue of appointing lead counsel. 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.

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 six month  periods  ended June 30, 2000,  and
1999, respectively.

Results of Operations

The Partnership  realized net income of approximately  $622,000 and $594,000 for
the six month periods ended June 30, 2000 and 1999,  respectively.  The increase
in net income  for the six months  ended  June 30,  2000 is  attributable  to an
increase in total revenues largely offset by an increase in total expenses.  The
increase in total  revenues  is  primarily  due to an increase in rental  income
partially offset by a decrease 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  decrease  in other  income is  primarily  due to a  decrease  in
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  and  depreciation  expenses.  The  increase in  operating  expense is
primarily due to an increase in property,  administrative and insurance expenses
at the Partnership's  investment  property.  The increase in property expense is
primarily due to an increase in manager and maintenance  salaries.  The increase
in administrative  expense is primarily due to 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 increase in insurance
expense is the result of an  increase  in the  insurance  policy  premiums.  The
increase in depreciation is the result of property improvements and replacements
at Pennbrook during the past year.

The Partnership  realized net income of approximately  $276,000 and $330,000 for
the three months ended June 30, 2000 and 1999, respectively. The decrease in net
income is attributable to an increase in total expenses  partially  offset by an
increase in total  revenues.  The increase in total expenses is primarily due to
increased operating,  general and administrative and depreciation  expenses. For
the increase in operating and  depreciation  expense,  refer to the  discussions
above.  The increase in general and  administrative  expense is primarily due to
the timing of the payment of  Partnership  management  fees and  non-accountable
reimbursements in 2000 and 1999. During 2000, these amounts were paid along with
the  distributions  during the three months  ended June 30,  2000.  During 1999,
these  amounts  were paid along with the  distributions  during the three months
ended March 31,  1999.  The increase in total  revenues is  primarily  due to an
increase in rental income, as discussed above.

Included in general and  administrative  expenses  for the six months ended June
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 June 30, 2000, the Partnership had cash and cash equivalents of approximately
$257,000 as compared to  approximately  $2,736,000 at June 30, 1999. For the six
months ended June 30, 2000, cash and cash  equivalents  decreased  approximately
$1,361,000  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  $337,000 of cash used in investing activities partially offset by
approximately  $991,000 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 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  $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 six months ended June 30,  2000,  the
Partnership completed  approximately $243,000 of budgeted and unbudgeted 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  $1,464,000 were paid during
the six months ended June 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.  Cash  distributions  from  operations  of
approximately $2,058,000 were paid during the six months ended June 30, 1999, of
which  approximately  $2,037,000  was paid to the limited  partners  ($33.95 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.

                           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. 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 will entertain applications for lead
counsel which must be filed by August 4, 2000. The Court has scheduled a hearing
on August 21, 2000 to address the issue of appointing lead counsel. 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 June 30, 2000.

                                   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: August 9, 2000