<PAGE>1
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                    FORM 10-K

                  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended     December 31, 1997 
                              ------------------

Commission file number             1-12724
                              -----------------

              AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88
-----------------------------------------------------------------
               (Exact name of registrant as specified in charter)

             Delaware                           13-3398206
-------------------------------------      ----------------------
  (State or other jurisdiction of           (I.R.S. Employer
  incorporation or organization)            Identification No.)

11200 Rockville Pike, Rockville, Maryland           20852
-----------------------------------------  ----------------------
(Address of principal executive offices)          (Zip Code)

                                 (301) 816-2300
-----------------------------------------------------------------
              (Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

                                        Name of each exchange on
    Title of each class                      which registered
--------------------------------      ---------------------------
 Depositary Units of Limited            American Stock Exchange
   Partnership Interest

           Securities registered pursuant to Section 12(g) of the Act:

                                      NONE
-----------------------------------------------------------------
                                (Title of class)

     Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.   Yes  X    No     
                                               ----      ---- 

<PAGE>2

     Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [X]

     As of March 6, 1998, 8,802,091 Depositary Units of Limited Partnership
Interest were outstanding and the aggregate market value of such units held by
non-affiliates of the Registrant on such date was $123,218,858. <PAGE>
 <PAGE>3
              AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88

                         1997 ANNUAL REPORT ON FORM 10-K

                                TABLE OF CONTENTS

                                     PART I
                                     ------
                                                         Page 
                                                         ----
Item 1.   Business  . . . . . . . . . . . . . . . . . .    4 
Item 2.   Properties  . . . . . . . . . . . . . . . . .    5 
Item 3.   Legal Proceedings . . . . . . . . . . . . . .    5
Item 4.   Submission of Matters to a Vote of
            Security Holders  . . . . . . . . . . . . .    5 

                                     PART II
                                     -------
Item 5.   Market for Registrant's Securities and
            Related Security Holder Matters . . . . . .    6 
Item 6.   Selected Financial Data . . . . . . . . . . .    8 
Item 7.   Management's Discussion and Analysis of
            Financial Condition and Results of 
            Operations  . . . . . . . . . . . . . . . .    9 
Item 8.   Financial Statements and Supplementary Data .   18 
Item 9.   Changes in and Disagreements with Accountants 
            on Accounting and Financial Disclosure  . .   18 

                                    PART III
                                    --------
Item 10.  Directors and Executive Officers of the
            Registrant  . . . . . . . . . . . . . . . .   19
Item 11.  Executive Compensation  . . . . . . . . . . .   20 
Item 12.  Security Ownership of Certain Beneficial
            Owners and Management . . . . . . . . . . .   20 
Item 13.  Certain Relationships and Related Transactions. 20 

                                     PART IV
                                     -------
Item 14.  Exhibits, Financial Statement Schedules and
            Reports on Form 8-K . . . . . . . . . . . .   21 
Signatures  . . . . . . . . . . . . . . . . . . . . . .   24  

 <PAGE>4

                                     PART I

ITEM 1.   BUSINESS

Development and Description of Business
---------------------------------------
     Information concerning the business of American Insured Mortgage Investors
L.P.-Series 88 (the Partnership) is contained in Part II, Item 7, Management's
Discussion and Analysis of Financial Condition and Results of Operations and in
Notes 1, 4, 5 and 7 of the notes to the financial statements of the Partnership.
Also see Schedule IV-Mortgage Loans on Real Estate for a summary of mortgage
investments held by the Partnership as of December 31, 1997.

Employees
---------
     The Partnership has no employees.  The business of the Partnership is
managed by CRIIMI, Inc. (the General Partner), while its portfolio of mortgages
is managed by AIM Acquisition Partners, L.P. (the Advisor) pursuant to an
advisory agreement (the Advisory Agreement).  CRIIMI, Inc. is a wholly-owned
subsidiary of CRIIMI MAE Inc. (CRIIMI MAE).  CRIIMI MAE was formerly managed by
an affiliate of CRI, Inc. (CRI).

     The general partner of the Advisor is AIM Acquisition Corporation (AIM
Acquisition) and the limited partners include, but are not limited to, AIM
Acquisition, The Goldman Sachs Group, L.P., Broad, Inc. and CRIIMI MAE. 
Effective September 6, 1991 and through June 30, 1995, a sub-advisory agreement
(the Sub-advisory Agreement) existed whereby CRI/AIM Management, Inc., an
affiliate of CRI, managed the Partnership's portfolio.  In connection with the
transaction in which CRIIMI MAE became a self-administered real estate
investment trust (REIT), an affiliate of CRIIMI MAE acquired the Sub-advisory
Agreement.  As a result of this transaction, effective June 30, 1995, CRIIMI MAE
Services Limited Partnership, an affiliate of CRIIMI MAE, manages the
Partnership's portfolio.  These transactions had no effect on the Partnership's
financial statements.

Competition
-----------
     In disposing of mortgage investments, the Partnership competes with private
investors, mortgage banking companies, mortgage brokers, state and local
government agencies, lending institutions, trust funds, pension funds, and other
entities, some with similar objectives to those of the Partnership and some of
which are or may be affiliates of the Partnership, its General Partner, the
Advisor and their respective affiliates.  Some of these entities may have
substantially greater capital resources and experience than the Partnership in
disposing of the Federal Housing Administration (FHA) insured mortgages than the
Partnership. 

     CRIIMI MAE and its affiliates also may serve as general partners, sponsors
or managers of real estate limited partnerships, REITS or other entities in the
future.  The Partnership may attempt to dispose of mortgages at or about the
same time that one or more of the other AIM Partnerships (American Insured
Mortgage Investors L.P. - Series 84, American Insured Mortgage Investors -
Series 85, L.P., American Insured Mortgage Investors L.P. - Series 86, American
Insured Mortgage Investors L.P. - Series 88, collectively referred to herein as
AIM Partnerships) and/or other entities sponsored or managed by CRIIMI MAE, are
attempting to dispose of mortgages.  As a result of market conditions that could
limit dispositions, CRIIMI MAE Services Limited Partnership and its affiliates
could be faced with conflicts of interest in determining which mortgages would
be disposed of.  Both CRIIMI MAE Services Limited Partnership and CRIIMI, Inc.,
however, are subject to their fiduciary duties in evaluating the appropriate
action to be taken when faced with such conflicts. 

<PAGE>5 

                                     PART I

ITEM 1.   BUSINESS - Continued

Forward-Looking Statements
--------------------------
     In accordance with the Private Securities Litigation Reform Act of 1995,
the Partnership can obtain a "Safe Harbor" for forward-looking statements by
identifying those statements and by accompanying those statements with
cautionary statements which identify factors that could cause actual results to
differ from those in the forward-looking statements.  Accordingly, the following
information contains or may contain forward-looking statements:  (1) information
included or incorporated by reference in this Annual Report on Form 10-K,
including, without limitation, statements made under Item 7, Management's
Discussion and Analysis of Financial Condition and Results of Operations, (2)
information included or incorporated by reference in future filings by the
Partnership with the Securities and Exchange Commission including, without
limitation, statements with respect to growth, projected revenues, earnings,
returns and yields on its portfolio of mortgage assets, the impact of interest
rates, costs and business strategies and plans and (3) information contained in
written material, releases and oral statements issued by or on behalf of, the
Partnership, including, without limitation, statements with respect to growth,
projected revenues, earnings, returns and yields on its portfolio of mortgage
assets, the impact of interest rates, costs and business strategies and plans. 
The Partnership's actual results may differ materially from those contained in
the forward-looking statements identified above.  Factors which may cause such a
difference to occur include, but are not limited to (i) regulatory and
litigation matters, (ii) interest rates, (iii) trends in the economy, (iv)
prepayment of mortgages and (v) defaulted mortgages.

ITEM 2.   PROPERTIES

     Although the Partnership does not own the underlying real estate, the
mortgages underlying the Partnership's mortgage investments are primarily non-
recourse first liens on the respective multifamily residential developments or
retirement homes.

ITEM 3.   LEGAL PROCEEDINGS

     There are no material legal proceedings to which the Partnership is a
party.

ITEM 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

     No matters were submitted to the security holders to be voted on during the
fourth quarter of 1997.

                                     PART II

ITEM 5.   MARKET FOR REGISTRANT'S SECURITIES AND RELATED SECURITY  HOLDER
          MATTERS

Principal Market and Market Price for Units
-------------------------------------------
     The General Partner listed the Partnership's Units for trading on the
American Stock Exchange (AMEX) on January 18, 1994, in order to provide
investment liquidity as contemplated in the Partnership's original prospectus. 
The Units are traded under the symbol "AIK." 

<PAGE>6 

                                     PART II

ITEM 5.   MARKET  FOR  REGISTRANT'S  SECURITIES  AND RELATED  SECURITY    HOLDER
          MATTERS - Continued

     The high and low bid prices for the Units as reported on AMEX for each
quarterly period in 1997 and 1996 were as follows:

                                                         1997
                                                         ----
      Quarter Ended                             High               Low
      -------------                            -------           -------
      March 31, 1997                           $15               $14
      June 30, 1997                             15                14
      September 30, 1997                        14 7/8            13 3/8
      December 31, 1997                         13 15/16          13 3/16

                                                         1996
                                                         ----
      Quarter Ended                             High               Low
      -------------                            -------           -------
      March 31, 1996                           $14 1/8           $12 3/4 
      June 30, 1996                             13 5/8            12 5/8
      September 30, 1996                        13 3/8            12 3/4
      December 31, 1996                         13 7/8            13 1/8 

<PAGE>7 

                                     PART II

ITEM 5.   MARKET  FOR  REGISTRANT'S  SECURITIES  AND RELATED  SECURITY    HOLDER
          MATTERS - Continued

Distribution Information
------------------------
      Distributions per Unit, payable out of the cash flow of the Partnership, 
during 1997 and 1996 were as follows:

<TABLE><CAPTION>

            Distributions for the            Amount of Distribution
                Quarter Ended                       Per Unit       
            ---------------------            ----------------------
            <S>                              <C>
            March 31, 1997                        $    0.59 (1)
            June 30, 1997                              0.30
            September 30, 1997                         1.06 (2)
            December 31, 1997                          0.38 (3)
                                                  ---------
                                                  $    2.33
                                                  =========

            March 31, 1996                        $    0.32 (4)
            June 30, 1996                              0.30
            September 30, 1996                         0.30
            December 31, 1996                          0.30
                                                  ---------
                                                  $    1.22
                                                  =========

(1)   This amount includes approximately $0.27 per Unit representing partial receipt of proceeds
      from the assignment of Water's Edge of New Jersey and approximately $0.02 per Unit
      representing proceeds from mortgage dispositions not reinvested prior to the expiration of
      the reinvestment period.
(2)   This amount includes approximately $0.76 per Unit representing proceeds from the
      prepayment of the mortgage on Parkside Estates.
(3)   This amount includes approximately $0.08 per Unit representing a curtailment on the
      mortgage of Olde Mill Apartments and approximately $0.01 per Unit representing previously
      undistributed accrued interest received from St. Charles Place - Phase II.
(4)   This amount includes approximately $0.02 per Unit representing previously undistributed
      accrued interest received from Water's Edge of New Jersey.

</TABLE>

     There are no material legal restrictions upon the Partnership's present or
future ability to make distributions in accordance with the provisions of the
Partnership Agreement.

                               Approximate Number of Unitholders
Title of Class                      as of December 31, 1997
-----------------               -------------------------------
Depositary Units of Limited
  Partnership Interest                     7,200     

<PAGE>8

                                     PART II

ITEM 6.   SELECTED FINANCIAL DATA
          (Dollars in thousands, except per Unit amounts)
<TABLE>
<CAPTION>
                                                                               For the Years Ended December 31,  
                                                               1997        1996       1995        1994            1993  
                                                             --------    --------   --------    --------        --------
<S>                                                          <C>         <C>        <C>         <C>             <C>     
Income                                                       $ 12,167    $ 12,465   $ 13,236    $ 13,332        $ 13,644

Net (losses) gains on 
  mortgage dispositions/modifications                            (354)       (378)     2,452         978            (972)

Net earnings                                                   10,097      10,293     13,795      11,540          10,542

Net earnings per Limited
  Partnership Unit - Basic (1)                                   1.09        1.11       1.49        1.24            1.13

Distributions per Limited
  Partnership Unit (1)(2)                                        2.33        1.22       1.66        1.41            1.12


                                                                                    As of December 31,        
                                                               1997        1996       1995        1994            1993  
                                                             --------    --------   --------    --------        --------

Total assets                                                 $150,616    $159,554   $161,927    $154,805        $166,904

Partners' equity                                             $146,977    $156,644   $158,806    $150,506        $161,498


(1)  Calculated based upon the weighted average number of Units outstanding.  See Note 2 of the notes to the financial statements of
     the Partnership. 

(2)  Includes distributions due the Unitholders for the Partnership's fiscal quarters ended December 31, 1997, 1996, 1995, 1994 and
     1993, which were paid subsequent to year end.  See Notes 7 and 9 of the notes to the Partnership's financial statements
     contained in Item 8, "Financial Statements and Supplementary Data."

</TABLE>

     The selected statements of operations data presented above for the years
ended December 31, 1997, 1996 and 1995, and the balance sheet data as of
December 31, 1997 and 1996, are derived from and are qualified by reference to
the Partnership's financial statements which have been included elsewhere in
this Form 10-K.  The statements of operations data for the years ended December
31, 1995 and 1994 and the balance sheet data as of December 31, 1996, 1995 and
1994 are derived from audited financial statements not included in this Form 10-
K.  This data should be read in conjunction with the financial statements and
the notes thereto. 

<PAGE>9

                                     PART II

ITEM 7.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
               CONDITION AND RESULTS OF OPERATIONS

General
-------
     American Insured Mortgage Investors L.P. - Series 88 (the Partnership) was
formed under the Uniform Limited Partnership Act of the state of Delaware on
February 13, 1987.  During the period from October 2, 1987 (the initial closing
date of the Partnership's public offering) through March 10, 1989 (the
termination date of the offering), the Partnership, pursuant to its public
offering of Units, raised a total of $177,039,320 in gross proceeds.  In
addition, the initial limited partner contributed $2,500 to the capital of the
Partnership and received 125 units of limited partnership interest in exchange
therefor.  

     CRIIMI, Inc. (the General Partner) holds a partnership interest of 4.9%
which includes shares acquired from the former assignor limited partner. 
CRIIMI, Inc. is a wholly-owned subsidiary of CRIIMI MAE Inc. (CRIIMI MAE). 

     AIM Acquisition Partners, L.P. (the Advisor), serves as the advisor to the
Partnership.  AIM Acquisition Corporation (AIM Acquisition) is the general
partner of the Advisor and the limited partners include, but are not limited to,
AIM Acquisition, The Goldman Sachs Group, L.P., Broad, Inc. and CRIIMI MAE. 
Pursuant to the terms of certain amendments to the Partnership Agreement, the
General Partner is required to obtain the consent of the Advisor prior to taking
certain significant actions which affect the management and policies of the
Partnership.

     Effective September 6, 1991 and through June 30, 1995, a sub-advisory
agreement (the Sub-advisory Agreement) existed whereby CRI/AIM Management, Inc.,
an affiliate of CRI, managed the Partnership's portfolio.  In connection with
the transaction in which CRIIMI MAE became a self-administered real estate
investment trust (REIT) on June 30, 1995, an affiliate of CRIIMI MAE acquired
the Sub-advisory Agreement.  As a consequence of this transaction, effective
June 30, 1995, CRIIMI MAE Services Limited Partnership manages the Partnership's
portfolio.  These transactions had no effect on the Partnership's financial
statements.

     Until the change in the Partnership's investment policy, as discussed
below, the Partnership was in the business of originating mortgage loans
(Originated Insured Mortgages) and acquiring mortgage loans (Acquired Insured
Mortgages, and together with Originated Insured Mortgages, referred to herein as
Insured Mortgages).  As of December 31, 1997, the Partnership had invested in
either Originated Insured Mortgages which are insured or guaranteed, in whole or
in part, by the Federal Housing Administration (FHA) or Acquired Insured
Mortgages which are fully insured (as more fully described below).  

     The Partnership's reinvestment period expired on December 31, 1996, and the
Partnership Agreement states that the Partnership will terminate on December 31,
2021, unless previously terminated under the provisions of the Partnership
Agreement.  

     The Partnership is currently in the process of evaluating its information
technology infrastructure for Year 2000 compliance.  The Partnership does not
expect that the cost to modify its information technology infrastructure to be
Year 2000 compliant will be material to its financial condition or results of
operations.  The Partnership does not anticipate any material disruption in its
operations as a result of any failure by the Partnership to be in compliance. 
The Partnership is currently evaluating the Year 2000 compliance status of its
service providers.  The Partnership does not expect any non Year 2000 compliance
to cause any disruption in its operations by its service providers. 

<PAGE>10 

                                     PART II

ITEM 7.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
               CONDITION AND RESULTS OF OPERATIONS - Continued

     As of December 31, 1997, the Partnership had invested in 36 Insured
Mortgages with aggregate amortized cost, face and fair values of approximately
$141 million, $142 million, and $143 million, respectively. 

Investment in Insured Mortgages
-------------------------------
     The Partnership's investment in Insured Mortgages is comprised of
participation certificates evidencing a 100% undivided beneficial interest in
government insured multifamily mortgages issued or sold pursuant to FHA programs
(FHA-Insured Certificates), mortgage-backed securities guaranteed by GNMA (GNMA
Mortgage-Backed Securities) and FHA-insured mortgage loans (FHA-Insured Loans). 
The mortgages underlying the FHA-Insured Certificates, the GNMA Mortgage-Backed
Securities and the FHA-Insured Loans are non-recourse first liens on multifamily
residential developments or retirement homes.

     Payments of principal and interest on FHA-Insured Certificates and FHA-
Insured Loans are insured by the United States Department of Housing and Urban
Development (HUD) pursuant to Title 2 of the National Housing Act.  Payments of
principal and interest on GNMA Mortgage-Backed Securities are guaranteed by GNMA
pursuant to Title 3 of the National Housing Act.

     The following is a discussion of the Partnership's mortgage investments,
along with the risks related to each type of investment.

     A.   Fully Insured FHA-Insured Certificates and GNMA
            Mortgage-Backed Securities
          -----------------------------------------------
          Listed below is the Partnership's aggregate investment in fully
     insured Acquired Insured Mortgages as of December 31, 1997 and 1996: 

<PAGE>11 

                                     PART II

ITEM 7.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
               CONDITION AND RESULTS OF OPERATIONS - Continued

<TABLE>
<CAPTION>                                           December 31,         
                                               1997            1996    
                                           ------------    ------------
<S>                                        <C>             <C>         
Number of:
  GNMA Mortgage-Backed Securities                    22              22
  FHA-Insured Certificates                            5               5
Amortized Cost                             $ 72,251,365    $ 73,722,912
Face Value                                   72,492,904      73,970,506
Fair Value                                   74,963,747      74,492,545

</TABLE>

          Listed below is the Partnership's aggregate investment in fully
     insured Originated Insured Mortgages as of December 31, 1997 and 1996:

<TABLE>
<CAPTION>                                          December 31,         
                                               1997            1996    
                                           ------------    ------------
<S>                                        <C>             <C>         
Number of Mortgages                                   1               1
Amortized Cost                             $ 11,296,412   $  11,356,150
Face Value                                   10,941,101      10,994,620
Fair Value                                   11,055,186      11,128,509

</TABLE>

          As of March 1, 1998, all fully insured mortgages were current with
     respect to the payment of principal and interest.

          In February 1996, the General Partner instructed the servicer for the
     mortgage on Water's Edge of New Jersey, a fully insured acquired
     construction loan, to file a Notice of Default and an Election to Assign
     the mortgage with the Department of Housing and Urban Development (HUD). 
     The property underlying this construction loan is a nursing home located in
     Trenton, New Jersey.  In January 1997, AIM 88 received approximately $2.6
     million from HUD.  A distribution of $0.27 per Unit was declared in January
     1997 and paid in May 1997.  As of December 31, 1997, the Partnership had
     received approximately $10.2 million from the assignment including
     repayment of accrued interest.  The remainder of the proceeds,
     approximately $1.5 million, is included in Due from HUD and Receivables and
     other assets.  HUD has disallowed approximately $1.5 million of the
     assignment claim.  The servicer is currently negotiating with HUD in regard
     to collection of the disallowed portion of the claim.  The General Partner
     believes that the allowance for loan losses is sufficient to provide for
     amounts not recovered from the servicer.

          In May 1997, the Partnership received approximately $778,000 in a
     principal curtailment made on the mortgage on Olde Mill Apartments.  These
     proceeds of $0.08 per Unit were declared as part of the November 1997
     distribution and were paid in February 1998.

          During August 1997, the mortgage on Parkside Estates was prepaid.  The
     Partnership received net proceeds of approximately $7.1 million and
     recognized a gain of approximately $20,700 on this prepayment.  A
     distribution of $0.76 per Unit related to this prepayment was declared in
     September 1997 and was paid in November 1997. 

<PAGE>12 

                                     PART II

ITEM 7.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
               CONDITION AND RESULTS OF OPERATIONS - Continued

          In February 1998, the Partnership received approximately $1.7 million
     in net proceeds from the prepayment of the mortgage on Northpoint
     Apartments.  These proceeds of $0.19 per Unit were declared as part of the
     February 1998 distribution and is expected to be distributed in May 1998.

     B.   Coinsured FHA-Insured Certificates
          ----------------------------------
          Under the HUD coinsurance program, both HUD and the coinsurance lender
     are responsible for paying a portion of the insurance benefits if a
     mortgagor defaults and the sale of the development collateralizing the
     mortgage produces insufficient net proceeds to repay the mortgage
     obligation.  In such cases, the coinsurance lender will be liable to the
     Partnership for the first part of such loss in an amount up to 5% of the
     outstanding principal balance of the mortgage as of the date foreclosure
     proceedings are instituted or the deed is acquired in lieu of foreclosure. 
     For any loss greater than 5% of the outstanding principal balance, the
     responsibility for paying the insurance benefits will be borne on a
     pro-rata basis, 85% by HUD and 15% by the coinsurance lender.

          While the Partnership is due payment of all amounts owed under the
     mortgage, the coinsurance lender is responsible for the timely payment of
     principal and interest to the Partnership.  The coinsurance lender is
     prohibited from entering into any workout arrangement with the borrower
     without the Partnership's consent and must file a claim for coinsurance
     benefits with HUD, upon default, if the Partnership so directs.  As an
     ongoing HUD-approved coinsurance lender, and under the terms of the
     participation documents, the coinsurance lender is required to satisfy
     certain minimum net worth requirements as set forth by HUD.  However, it is
     possible that the coinsurance lender's potential liability for loss on
     these developments, and others, could exceed its HUD-required minimum net
     worth.  In such case, the Partnership would bear the risk of loss if the
     coinsurance lenders were unable to meet their coinsurance obligations.  In
     addition, HUD's obligation for the payment of its share of the loss could
     be diminished under certain conditions, such as the lender not adequately
     pursuing regulatory violations of the borrower or the failure to comply
     with other terms of the mortgage.  However, the General Partner is not
     aware of any conditions or actions that would result in HUD diminishing its
     insurance coverage.

          As of December 31, 1997 and 1996, the Partnership held investments in
     three coinsured FHA-Insured Certificates secured by coinsured mortgages. 
     One of these coinsured mortgage investments, the mortgage on St. Charles
     Place - Phase II, is coinsured by The Patrician Mortgage Company
     (Patrician), an unaffiliated third party coinsurance lender under the HUD
     coinsurance program.  As of December 31, 1997, and 1996, the remaining two
     FHA-Insured Certificates are coinsured by Integrated Funding, Inc. (IFI),
     an affiliate of the Partnership, and are discussed below.

     1.   Coinsured by third party
          ------------------------
          St. Charles Place - Phase II is a 156-unit apartment complex located
          in Miramar, Florida.  Listed below is the Partnership's investment in
          the St. Charles Place - Phase II mortgage as of December 31, 1997 and
          1996.  These amounts represent the Partnership's approximate 55%
          ownership interest in the mortgage.  The remaining 45% ownership
          interest is held by American Insured Mortgage Investors L.P. - Series
          86 (AIM 86), an affiliate of the Partnership. 


<PAGE>13 

                                     PART II

ITEM 7.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
               CONDITION AND RESULTS OF OPERATIONS - Continued

<TABLE>
<CAPTION>                             December 31,         
                                   1997          1996    
                               ------------  ------------
<S>                            <C>           <C>         
Amortized Cost                 $  3,710,287  $  3,730,991
Face Value                        3,710,287     3,730,991
Fair Value                        3,484,715     3,527,521

</TABLE>

          As of March 1, 1998, the mortgagor had made payments of principal and
          interest due to the Partnership on the mortgage through November 1995.
          Patrician is litigating the case in bankruptcy court while pursuing
          negotiations on a modification agreement with the borrower.

          The General Partner intends to continue to oversee the Partnership's
          interest in this mortgage investment to ensure that Patrician meets
          its coinsurance obligations.  The General Partner's assessment of the
          realizability of the carrying value of the St. Charles Place-Phase II
          mortgage is based on the most recent information available, and to the
          extent these conditions change or additional information becomes
          available, the General Partner's assessment may change.  However, the
          General Partner does not believe that there would be a material
          adverse impact on the Partnership's financial condition or its results
          of operations should Patrician be unable to comply with its full
          coinsurance obligation.

     2.   Coinsured by affiliate
          ----------------------
          As of December 31, 1997 and 1996, the Partnership held investments in
          two FHA-Insured Certificates secured by coinsured mortgages, where the
          coinsurance lender is IFI.  These investments were made on behalf of
          the Partnership by the former managing general partner.  As structured
          by the former managing general partner, with respect to these
          mortgages, the Partnership bears the risk of loss upon default for
          IFI's portion of the coinsurance loss on these mortgage investments. 

<PAGE>14 

                                     PART II

ITEM 7.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
               CONDITION AND RESULTS OF OPERATIONS - Continued

<TABLE>
<CAPTION>

                                      December 31, 1997                                    December 31, 1996            
                               Fair        Amortized         Face                   Fair       Amortized       Face    
                             Mkt. Value      Cost           Value                Mkt. Value      Cost          Value   
                            -----------  ------------    ------------           -----------  ------------  ------------
<S>                         <C>          <C>             <C>                    <C>          <C>           <C>         
The Breakers at Golf
  Mill(1)(2)                $20,873,845  $ 22,309,235    $ 22,309,236           $21,084,011  $ 22,492,106  $ 22,492,106
Summerwind Apts.-Phase 
  II(1)(2)                    8,809,008     7,959,366       9,378,179             8,928,581     8,000,581     9,442,628
                            -----------  ------------    ------------           -----------  ------------    ----------
                            $29,682,853  $ 30,268,601    $ 31,687,415           $30,012,592  $ 30,492,687  $ 31,934,734
                            ===========  ============    ============           ===========  ============  ============

(1) As of March 1, 1998, the mortgagor was current with respect to payment of principal and interest on this mortgage.
(2) There were no loan losses recognized for the years ended, 1997 and 1996.  The cumulative loan losses recognized in prior years
    were $980,000 for The Breakers at Golf Mill, and $1,511,743 for Summerwind Apartments - Phase II.

</TABLE>

     C.   FHA-Insured Loans
          -----------------
          Listed below is the Partnership's aggregate investment in fully
     insured Originated Insured Mortgages as of December 31, 1997 and 1996:

<TABLE>
<CAPTION>                                   December 31,         
                                        1997            1996    
                                    ------------    ------------
<S>                                 <C>             <C>         
Number of Mortgages                            3(1)            4
Amortized Cost                      $ 22,609,310    $ 29,746,073
Face Value                            22,213,954      29,163,152
Fair Value                            22,428,570      29,712,245

(1)  During August 1997, the mortgage on Parkside Estates was prepaid.  The
Partnership received net proceeds of approximately $7.1 million and recognized a
gain of approximately $20,700 on this prepayment.  A distribution of $0.76 per
Unit related to this prepayment was declared in September 1997 and was paid in
November 1997.

</TABLE>

          Listed below is the Partnership's aggregate investment in fully
     insured Acquired Insured Mortgages as of December 31, 1997 and 1996:

<TABLE><CAPTION>
                                             December 31,         
                                         1997            1996   
                                    ------------    ------------
<S>                                 <C>             <C>         
Number of Mortgages                            2               2
Amortized Cost                      $  1,094,502    $  1,129,575
Face Value                             1,091,827       1,126,731
Fair Value                             1,107,188       1,173,057

</TABLE> 

<PAGE>15 

                                     PART II

ITEM 7.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
               CONDITION AND RESULTS OF OPERATIONS - Continued

          As of March 1, 1998, all of the Partnership's FHA-Insured Loans were
     current with respect to the payment of principal and interest.

          All of the FHA-Insured Loans contain Participations.  During the years
     ended December 31, 1997, 1996 and 1995, the Partnership received additional
     interest of $134,769, $63,045 and $46,581, respectively, from the FHA-
     Insured Loans which contain Participations.  These amounts are included in
     mortgage investment income on the accompanying statements of operations.

     Results of Operations
     ---------------------
     1997 versus 1996
     ----------------
     Net earnings decreased for 1997 as compared to 1996 primarily as a result
     of a decrease in the mortgage asset base.   

     Mortgage investment income decreased for 1997 as compared to 1996.  This
     decrease was primarily due to the prepayment of the mortgage on Parkside
     Estates and a principal curtailment on the mortgage on Olde Mill
     Apartments, as discussed previously, as well as the normal amortization of
     the mortgage base.

     Interest and other income increased slightly for 1997 as compared to 1996. 
     This increase was primarily due to the temporary investment of proceeds
     from mortgage prepayments.  

     Net realized gains on mortgage dispositions and modifications increased for
     1997 as compared to 1996.  Gains or losses on mortgage dispositions and
     modifications are based on the number, carrying amounts and proceeds of
     mortgage investments disposed of during the period.  During 1997, the
     Partnership incurred gains on mortgage dispositions and modifications of
     approximately $21,000 related to the prepayment of the mortgage on Parkside
     Estates.  This compares to losses recognized in 1996 of approximately
     $378,000 related to the prepayment of the mortgage on Harbor View Estates,
     the partial settlement of the coinsurance claim in Water's Edge of New
     Jersey and the modification of the mortgage on Turn at Gresham. 
     Additionally, during 1997, the Partnership provided $375,000 to reserve for
     possible losses on its portfolio.

     1996 versus 1995
     ----------------
     Net earnings decreased for 1996 as compared to 1995 primarily as a result
     of a reduction in net gains on mortgage dispositions and modifications, as
     discussed below.  Also contributing to this decrease were decreases in
     mortgage investment income and interest and other income, as discussed
     below.
 
     Mortgage investment income decreased for 1996 as compared to 1995.  This
     decrease was primarily due to the timing of the reinvestment of net
     proceeds from the May 1996 assignment of the Water's Edge of New Jersey
     mortgage.  Additionally, the participation agreement with The Breakers at
     Golf Mill was terminated effective March 1, 1995, therefore Participations
     received by the Partnership decreased from $133,120 in 1995 to $21,902 in
     1996.

     Interest and other income decreased for 1996 as compared to 1995.  This
     decrease was primarily due to interest earned on claim proceeds from
     Hazeltine Shores and Pinewood Park Apartments during 1995. 

<PAGE>16 

                                     PART II

ITEM 7.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
               CONDITION AND RESULTS OF OPERATIONS - Continued

     General and administrative expenses decreased for 1996 as compared to 1995.
     This decrease was primarily the result of non-recurring professional fees
     in connection with the disposition of certain mortgages in 1995, as well as
     a decrease in service fee expense as a result of the reduction in the
     mortgage base.

     Net gains on mortgage dispositions and modifications decreased for 1996 as
     compared to 1995.  Gains or losses on mortgage dispositions and
     modifications are based on the number, carrying amounts and proceeds of
     mortgage investments disposed of during the period.  During 1996, the
     Partnership incurred losses on mortgage dispositions and modifications of
     approximately $378,000 related to the prepayment of the mortgage on Harbor
     View Estates, the partial settlement of the coinsurance claim on Water's
     Edge of New Jersey and the modification of the mortgage on Turn at Gresham.
     This compares to gains recognized in 1995 of approximately $2.3 million
     related to the settlement of the coinsurance claims on Pinewood Park
     Apartments and Hamlet at Cobb's Landing, and to a gain of approximately
     $140,000 in connection with the prepayment of the mortgage on Gilbert
     Greens Apartments.

     Liquidity and Capital Resources
     -------------------------------
     The Partnership's operating cash receipts, derived from payments of
     principal and interest on Insured Mortgages, plus cash receipts from
     interest on short-term investments, were sufficient for the years ended
     December 31, 1997, 1996 and 1995 to meet operating requirements.

     The basis for paying distributions to Unitholders is net proceeds from
     mortgage dispositions, if any, and cash flow from operations, which
     includes regular interest income and principal from Insured Mortgages. 
     Although the Insured Mortgages yield a fixed monthly mortgage payment once
     purchased, the cash distributions paid to the Unitholders will vary during
     each quarter due to (1) the fluctuating yields in the short-term money
     market where the monthly mortgage payments received are temporarily
     invested prior to the payment of quarterly distributions, (2) the reduction
     in the asset base and monthly mortgage payments due to monthly mortgage
     payments received or mortgage dispositions, (3) variations in the cash flow
     attributable to the delinquency or default of Insured Mortgages and
     professional fees and foreclosure and acquisition costs incurred in
     connection with those Insured Mortgages and (4) variations in the
     Partnership's operating expenses.

     Cash flow - 1997 versus 1996
     ----------------------------
     Net cash provided by operating activities decreased for 1997 as compared to
     1996 primarily due to a decrease in the mortgage asset base.

     Net cash provided by investing activities increased for 1997 as compared to
     1996 primarily due to the expiration of the reinvestment period as of
     December 31, 1996, thereby resulting in no mortgage acquisitions in 1997.

     Net cash used in financing activities increased for 1997 as compared to
     1996 due to an increase in distributions paid to partners as a result of
     special distributions and capital gains in connection with the disposition
     of the mortgages on Water's Edge of New Jersey and Parkside Estates, and
     the principal curtailment on Olde Mill Apartments. 

<PAGE>17 

                                     PART II

ITEM 7.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
               CONDITION AND RESULTS OF OPERATIONS - Continued

     Cash flow - 1996 versus 1995
     ----------------------------
     Net cash provided by operating activities decreased for 1996 as compared to
     1995 primarily due to a decrease in net earnings in 1996 as a result of a
     decrease in mortgage investment income and interest and other income, as
     discussed above.  Also contributing to the decrease was an increase in
     receivables and other assets during 1996 as a result of the assignment of
     the mortgage on Water's Edge of New Jersey.  

     Net cash provided by investing activities decreased for 1996 as compared to
     1995 primarily due to an increase in the acquisition of Acquired Insured
     Mortgages from approximately $7.6 million in 1995 to approximately $9.4
     million in 1996.  This decrease was also due to a reduction in proceeds
     from mortgage dispositions and modifications from approximately $9.3
     million in 1995 to approximately $8.6 million in 1996.

     Net cash used in financing activities decreased for 1996 as compared to
     1995 primarily due to a decrease in distributions paid to partners as a
     result of special distributions related to the receipt of previously
     undistributed accrued interest and capital gain in connection with the
     disposition of the mortgages on Hazeltine Shores, Pinewood Park Apartments
     and Hamlet at Cobb's Landing during the first three quarters of 1995.

     New Accounting Standards
     ------------------------
     In February 1997, FASB issued SFAS No. 128 "Earnings per Share" ("FAS
     128").  FAS 128 changes the requirements for the calculation and disclosure
     of earnings per share.  The Partnership is required to present basic net
     earnings per limited partnership unit as opposed to net earnings per
     limited partnership unit.  However, the computational differences between
     FAS 128 and the prior accounting standard do not impact the Partnership. 
     FAS 128 has been applied to the year ended December 31, 1997, and all prior
     periods.

     During 1997 FASB issued SFAS No. 129 "Disclosure of Information about
     Capital Structure" ("FAS 129").  FAS 129 continues the existing
     requirements to disclose the pertinent rights and privileges of all
     securities other than ordinary common stock but expands the number of
     companies subject to portions of its requirements.  The Partnership's
     disclosures comply with the requirements of this statement.

     During 1997 FASB issued SFAS No. 130 "Reporting Comprehensive Income" ("FAS
     130").  FAS 130 states that all items that are required to be recognized
     under accounting standards as components of comprehensive income are to be
     reported in a separate statement of income.  This would include net income
     as currently reported by the Partnership adjusted for unrealized gains and
     losses related to the Partnership's mortgages accounted for as "available
     for sale".  FAS 130 is effective for years beginning on or after December
     15, 1997.

     During 1997, FASB issued SFAS 131 "Disclosures about Segments of an
     Enterprise and Related Information" ("FAS 131").  FAS 131 establishes
     standards for the way that public business enterprises report information
     about operating segments and related disclosures about products and
     services, geographical areas and major customers.  FAS 131 is effective for
     years beginning on or after December 15, 1997. 

<PAGE>18

                                     PART II

ITEM 8.   FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

     The information required by this item is contained on pages 28 through 58.

ITEM 9.   CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
               ACCOUNTING AND FINANCIAL DISCLOSURES 

     None. 

<PAGE>19

                                    PART III

ITEM 10.  DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

     (a),(b),(c),(e)

     The Partnership has no officers or directors.  CRIIMI, Inc. (the General
Partner) holds a Partnership interest of 4.9%.  The affairs of the Partnership
are managed by the General Partner, which is wholly owned by CRIIMI MAE, a
Partnership whose shares are listed on the New York Stock Exchange.  Prior to
June 30, 1995, CRIIMI MAE was managed by an advisor whose general partner is
CRI.  However, effective June 30, 1995, CRIIMI MAE became a self-administered
REIT, and, as a result, the advisor no longer advises CRIIMI MAE.

     AIM Acquisition Partners, L.P. (the Advisor) serves as the advisor of the
Partnership.  AIM Acquisition is the general partner of the Advisor and the
limited partners include, but are not limited to, AIM Acquisition, The Goldman
Sachs Group, L.P, Broad, Inc. and CRIIMI MAE.  Pursuant to the terms of certain
amendments to the Partnership Agreement, the General Partner is required to
receive the consent of the Advisor prior to taking certain significant actions
which affect the management and policies of the Partnership.

     The General Partner is also the general partner of AIM 84 (American Insured
Mortgage Investors L.P. - Series 84, referred to herein as AIM 84), AIM 85
(American Insured Mortgage Investors L.P. - Series 85, referred to herein as AIM
85) and AIM 86 (American Insured Mortgage Investors L.P. - Series 86, referred
to herein as AIM 86), limited partnerships with investment objectives similar to
those of the Partnership.

          (d)  There is no family relationship between any of the officers and
               directors of the General Partner.

          (f)  Involvement in certain legal proceedings.

               None.

          (g)  Promoters and control persons.

               Not applicable.

          (h)  Based solely on its review of Forms 3 and 4 and amendments
               thereto furnished to the Partnership, and written representations
               from certain reporting persons that no Form 5s were required for
               those persons, the Partnership believes that all reporting
               persons have filed on a timely basis Forms 3, 4 and 5 as required
               in the fiscal year ended December 31, 1997. 

<PAGE>20

                                    PART III

ITEM 11.  EXECUTIVE COMPENSATION

     The information required by Item 11 is incorporated herein by reference to
Note 9 of the notes to the Partnership's financial statements. 

ITEM 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
            MANAGEMENT

     As of December 31, 1997, no person was known by the Partnership to be the
beneficial owner of more than 5% of the outstanding Units of the Partnership.

     As of December 31, 1997, neither the officers and directors, as a group, of
the General Partner nor any individual director of the General Partner, are
known to own more than 1% of the outstanding Units of the Partnership.

ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS

   (a)  Transactions with management and others.

        Note 9 of the notes to the Partnership's financial statements, which
        contains a discussion of the amounts, fees and other compensation paid
        or accrued by the Partnership to the directors and executive officers of
        the General Partner and their affiliates, is incorporated herein by
        reference.

   (b)  Certain business relationships.

        Other than as set forth in Item 11 of this report which is incorporated
        herein by reference, the Partnership has no business relationship with
        entities of which the former general partners or the current General
        Partner of the Partnership are officers, directors or equity owners.

   (c)  Indebtedness of management.

        None.

   (d)  Transactions with promoters.

     Not applicable. 

<PAGE>21

                                     PART IV

ITEM 14.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON
            FORM 8-K

(a)(1)      Financial Statements:

                                                           Page  
     Description                                           Number
     -----------                                           ------
     Balance Sheets as of December 31, 1997
       and 1996                                              27  

     Statements of Operations for the years ended
       December 31, 1997, 1996 and 1995                      29  

     Statements of Changes in Partners' Equity for
       the years ended December 31, 1997, 1996 and
       1995                                                  30  

     Statements of Cash Flows for the years ended
       December 31, 1997, 1996 and 1995                      32  

     Notes to Financial Statements                           33 


(a)(2)      Financial Statement Schedules:

            IV - Mortgage Loans on Real Estate

            All other schedules have been omitted because they are inapplicable,
            not required, or the information is included in the Financial
            Statements or Notes thereto.

(a)(3)      Exhibits:

  3.        Certificate of Limited Partnership is incorporated by reference to
            Exhibit 4(a) to Amendment No. 1 to the Partnership's Registration
            Statement on Form S-11 (No. 33-12479) filed with the Commission on
            June 10, 1987.

  4.        Agreement of Limited Partnership, incorporated by reference to
            Exhibit 3 to the Post-Effective Amendment No. 1 to the Partnership's
            Registration Statement on Form S-11 (No. 33-12479) filed with the
            Commission on March 8, 1988 (such Amendment is referred to
            hereinbelow as Post-Effective Amendment No.1).

  4.1       Material Amendments to Agreement of Limited Partnership are
            incorporated by reference to Exhibit 3(a) to Post-Effective
            Amendment No.1.

  4.2       Amendment to the Amended and Restated Agreement of Limited
            Partnership of the Partnership dated February 12, 1990.

 10         Escrow Agreement is incorporated by reference to Exhibit 10(a) to
            the Partnership's Annual Report on Form 10-K for the year ended
            December 31, 1987.

 10.1       Origination and Acquisition Services Agreement is incorporated by
            reference to Exhibit 10(b) to the Partnership's Annual Report on
            Form 10-K for the year ended December 31, 1987. 

<PAGE>22 

                                     PART IV

ITEM 14.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON
            FORM 8-K - Continued

 10.2       Management Services Agreement is incorporated by reference to
            Exhibit 10(c) to the Partnership's Annual Report on Form 10-K for
            the year ended December 31, 1987.

 10.3       Disposition Services Agreement is incorporated by reference to
            Exhibit 10(d) to the Partnership's Annual Report on Form 10-K for
            the year ended December 31, 1987.

 10.4       Agreement among the former managing general partner, the former
            associate general partner and Integrated Resources, Inc. is
            incorporated by reference to Exhibit 10(e) to the Partnership's
            Annual Report on Form 10-K for the year ended December 31, 1987.

 10.5       Reinvestment Plan is incorporated by reference to Exhibit 10(f) to
            Post- Effective Amendment No. 1.

 10.6       Mortgagor-Participant Agreement, Mortgage Assignment of Rents and
            Security Agreement and Mortgage Note with respect to The Breakers
            (sometimes also referred to as the Niles Senior Lifestyle Community)
            is incorporated by reference to Exhibit 10(g) to Post-Effective
            Amendment No. 1.

 10.7       Mortgagor-Mortgagee Agreement, Mortgage Note and Mortgage with
            respect to the Arlington development is incorporated by reference to
            Exhibit 10(h) to Post-Effective Amendment No. 1.

 10.8       Pages A-1 - A-5 of the Partnership Agreement of Registrant,
            incorporated by reference to Exhibit 28 to the Partnership's Annual
            Report on Form 10-K for the year ended December 31, 1990.

 10.9       Purchase Agreement among AIM Acquisition, the former managing
            general partner, the former corporate general partner, IFI and
            Integrated dated as of December 13, 1990, as amended January 9,
            1991, incorporated by reference to Exhibit 28(a) to the
            Partnership's Annual Report on Form 10-K for the year ended December
            31, 1990.

 10.10      Purchase Agreement among CRIIMI, Inc., AIM Acquisition, the former
            managing general partner, the former corporate general partner, IFI
            and Integrated dated as of December 13, 1990 and executed as of
            March 1, 1991, incorporated by reference to Exhibit 28(b) to the
            Partnership's Annual Report on Form 10-K for the year ended December
            31, 1990.

 10.11      Amendments to Partnership Agreement dated August 13, 1991. 
            Incorporated by reference to Exhibit 28(c) to the Partnership's
            Annual Report on Form 10-K for the year ended December 31, 1991.

 10.12      Sub-management Agreement by and between AIM Acquisition and CRI/AIM
            Management, Inc., dated as of March 1, 1991, incorporated by
            reference to Exhibit 28(e) the Partnership's Annual Report on Form
            10-K for the year ended December 31, 1992.

 10.13      Expense Reimbursement Agreement by Integrated Funding Inc. and the
            AIM Funds, effective December 31, 1992, incorporated by reference to
            Exhibit 28(f) to the Partnership's Quarterly Report on Form 10-Q for
            the quarter ended June 30, 1993. 

<PAGE>23 

                                     PART IV

ITEM 14.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON
            FORM 8-K - Continued

 10.14      Non-negotiable promissory note from American Insured Mortgage
            Investors L.P. - Series 85 in the amount of $319,074.67 dated April
            1, 1994, incorporated by reference to Exhibit 10(p) to the
            Partnership's Annual Report on Form 10-K for the year ended December
            31, 1994.

 10.15      Non-negotiable promissory note from American Insured Mortgage
            Investors L.P. - Series 86 in the amount of $478,612.00 dated April
            1, 1994, incorporated by reference to Exhibit 10(q) to the
            Partnership's Annual Report on Form 10-K for the year ended December
            31, 1994.

 10.16      Amendment to Reimbursement Agreement by Integrated Funding, Inc. and
            the AIM Funds, effective April 1, 1994, incorporated by reference to
            Exhibit 10(r) to the Partnership's Annual Report on Form 10-K for
            the year ended December 31, 1994.

 10.17      Second Amendment to Reimbursement Agreement by Integrated Funding,
            Inc. and the AIM Funds, effective April 1, 1997, (filed herewith).

 10.18      Non-negotiable promissory note from American Insured Mortgage
            Investors, L.P. - Series 86, in the amount of $658,486 dated April
            1, 1997, (filed herewith).

 27.        Financial Data Schedule (filed herewith).

 (b)        Reports on Form 8-K filed during the last quarter of the fiscal
            year:  None.

            All other items are not applicable. 

<PAGE>24

                                   SIGNATURES

          Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
                              AMERICAN INSURED MORTGAGE
                                INVESTORS L.P. - SERIES 88
                                (Registrant)

                              By:CRIIMI, Inc.
                              General Partner

March 23, 1998                /s/ William B. Dockser
---------------------------   -------------------------
DATE                          William B. Dockser
                              Chairman of the Board and
                                Principal Executive Officer
                                

March 23, 1998                /s/ H. William Willoughby
---------------------------   -------------------------
DATE                          H. William Willoughby
                              President and Director


March 23, 1998                /s/ Cynthia O. Azzara
---------------------------   -------------------------
DATE                          Cynthia O. Azzara
                              Principal Financial and 
                                Accounting Officer


March 23, 1998                /s/ Garrett G. Carlson, Sr.
---------------------------   --------------------------
DATE                          Garrett G. Carlson, Sr.
                              Director

March 23, 1998                /s/ Larry H. Dale
---------------------------   -------------------------
DATE                          Larry H. Dale
                              Director


March 23, 1998                /s/ G. Richard Dunnells
---------------------------   -------------------------
DATE                          G. Richard Dunnells
                              Director


March 23, 1998                /s/ Robert Merrick
---------------------------   -------------------------
DATE                          Robert Merrick
                              Director<PAGE>
<PAGE>25






























              AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88

              Financial Statements as of December 31, 1997 and 1996

            and for the Years Ended December 31, 1997, 1996 and 1995 

<PAGE>26

                    REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS

To the Partners of
  American Insured Mortgage Investors L.P. - Series 88:

     We have audited the accompanying balance sheets of American Insured
Mortgage Investors L.P. - Series 88 (the Partnership) as of December 31, 1997
and 1996 and the related statements of operations, changes in partners' equity
and cash flows for the years ended December 31, 1997, 1996 and 1995.  These
financial statements and the schedule referred to below are the responsibility
of the Partnership's management.  Our responsibility is to express an opinion on
these financial statements and the schedule based on our audits.

     We conducted our audits in accordance with generally accepted auditing
standards.  Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement.  An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. 
We believe that our audits provide a reasonable basis for our opinion.

     In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of the Partnership as of
December 31, 1997 and 1996, and the results of its operations and its cash flows
for the years ended December 31, 1997, 1996 and 1995, in conformity with
generally accepted accounting principles. 

     Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole.  Schedule IV-Mortgage Loans on Real
Estate as of December 31, 1997 is presented for purposes of complying with the
Securities and Exchange Commission's rules and regulations and is not a required
part of the basic financial statements.  The information in this schedule has
been subjected to the auditing procedures applied in our audits of the basic
financial statements and, in our opinion, is fairly stated in all material
respects in relation to the basic financial statements taken as a whole.



Arthur Andersen LLP
Washington, D.C.
March 23, 1998 


<PAGE>27

              AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88

                                 BALANCE SHEETS
                                     ASSETS
<TABLE>
<CAPTION>
                                                         As of December 31,     
                                                      1997            1996    
                                                  ------------    ------------
<S>                                               <C>             <C>         
Investment in FHA-Insured Certificates
  and GNMA Mortgage-Backed
  Securities, at fair value:                                                  
  Acquired insured mortgages                      $ 74,963,747    $ 74,492,545
  Originated insured mortgages                      44,222,754      44,668,622
                                                  ------------    ------------
                                                   119,186,501     119,161,167
Investment in FHA-Insured Loans, 
  at amortized cost, net of unamortized
  discount and premium:
  Originated insured mortgages                      22,609,310      29,746,073
  Acquired insured mortgages                         1,094,502       1,129,575
                                                  ------------    ------------
                                                    23,703,812      30,875,648

Due from HUD                                           663,410       3,221,611

Cash and cash equivalents                            2,721,306       1,918,341

Investment in affiliates                             1,281,884       1,177,774

Notes receivable from affiliates
  and due from affiliates                              728,684         797,687

Receivables and other assets                         2,330,128       2,402,130
                                                  ------------    ------------
         Total assets                             $150,615,725    $159,554,358
                                                  ============    ============ 

<PAGE>28

              AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88

                        LIABILITIES AND PARTNERS' EQUITY

Distributions payable                             $  3,517,134    $  2,776,685

Accounts payable and accrued expenses                  121,331         133,484
                                                  ------------    ------------
         Total liabilities                           3,638,465       2,910,169
                                                  ------------    ------------
Commitments and contingencies

Partners' equity:
  Limited partners' equity                         147,475,554     158,381,944
  General partner's deficit                         (1,539,380)       (977,432)
  Less:  Repurchased Limited Partnership
    Units - 50,000 Units                              (618,750)       (618,750)
  Net unrealized losses on investment
    in FHA-Insured Certificates and GNMA
    Mortgage-Backed Securities                      (1,902,187)     (2,240,839)
  Net unrealized gains on investment in
    FHA-Insured Certificates and GNMA
    Mortgage-Backed Securities                       3,562,023       2,099,266
                                                  ------------    ------------

         Total partners' equity                    146,977,260     156,644,189
                                                  ------------    ------------
         Total liabilities and
           partners' equity                       $150,615,725    $159,554,358
                                                  ============    ============
                   The accompanying notes are an integral part
                         of these financial statements.
</TABLE> 

<PAGE>29

              AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88

                            STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>

                                                                            For the years ended December 31,      
                                                                       1997            1996           1995    
                                                                    -----------     -----------   ------------
     <S>                                                            <C>             <C>           <C>  
     Income:
       Mortgage investment income                                   $11,892,090     $12,229,747    $12,524,904
       Interest and other income                                        274,652         235,386        710,734
                                                                    -----------     -----------    -----------
                                                                     12,166,742      12,465,133     13,235,638
                                                                    -----------     -----------    -----------
     Expenses:
       Asset management fee to related parties                        1,469,320       1,503,297      1,493,283
       General and administrative                                       245,921         291,178        399,681
                                                                    -----------     -----------    -----------
                                                                      1,715,241       1,794,475      1,892,964
                                                                    -----------    ------------    -----------
       Earnings before gains (losses) on 
            mortgage dispositions/modifications                      10,451,501      10,670,658     11,342,674

     Gains on mortgage dispositions/modifications                        20,746              --      2,452,221
     Losses on mortgage dispositions/modifications                           --        (377,900)            --
     Provision for loss                                                (375,000)             --             --
                                                                    -----------     -----------    -----------
             Net earnings                                           $10,097,247     $10,292,758    $13,794,895
                                                                    ===========     ===========    ===========

     Net earnings allocated to:
       Limited partners - 95.1%                                     $ 9,602,482     $ 9,788,413    $13,118,945
       General partner - 4.9%                                           494,765         504,345        675,950
                                                                    -----------     -----------    -----------
                                                                    $10,097,247     $10,292,758    $13,794,895
                                                                    ===========     ===========    ===========

     Net earnings per Limited
       Partnership Unit
       outstanding - Basic                                          $      1.09     $      1.11    $      1.49
                                                                    ===========     ===========    ===========


                                             The accompanying notes are an integral part
                                                   of these financial statements.
</TABLE> 

<PAGE>30

                                AMERICAN INSURED INVESTORS L.P. - SERIES 88

                                  STATEMENTS OF CHANGES IN PARTNERS' EQUITY

                           For the years ended December 31, 1997, 1996 and 1995

<TABLE><CAPTION>
                                                                                                                  
                                                                                    Unrealized       Unrealized   
                                                                                      Losses            Gains     
                                                                                  on Investment    on Investment  
                                                                                  in FHA-Insured   in FHA-Insured 
                                                                    Repurchased    Certificates      Certificates 
                                                                     Limited        and GNMA           and GNMA         Total   
                                          Limited       General     Partnership  Mortgage-Backed   Mortgage-Backed    Partners' 
                                          Partner       Partners       Units       Securities        Securities        Equity   
                                        ------------ -------------  ----------- ----------------  ---------------- -------------
<S>                                     <C>          <C>            <C>         <C>               <C>              <C>          
Balance, January 1, 1995               $ 160,824,608 $    (851,574) $  (618,750)$     (9,241,699) $        393,579 $ 150,506,164

  Net earnings                            13,118,945       675,950           --               --                --    13,794,895

  Distributions paid or accrued
    of $1.66 per Unit, including
    return of capital of $0.17 per
    Unit                                 (14,611,471)     (752,852)          --               --                --   (15,364,323)

  Adjustment to net unrealized gains
    (losses) on investment in FHA-
    Insured Certificates and 
    GNMA Mortgage-Backed 
    Securities                                    --            --           --        7,722,542         2,146,729     9,869,271
                                        ------------ -------------  ----------- ----------------  ---------------- -------------
Balance, December 31, 1995               159,332,082      (928,476)    (618,750)      (1,519,157)        2,540,308   158,806,007

  Net earnings                             9,788,413       504,345           --               --                --    10,292,758

  Distributions paid or accrued
    of $1.22 per Unit, including
    return of capital of $.11 per
    Unit                                 (10,738,551)     (553,301)          --               --                --   (11,291,852)

  Adjustment to net unrealized gains
    (losses) on investment in FHA-
    Insured Certificates and
    GNMA Mortgage-Backed
    Securities                                    --            --           --         (721,682)         (441,042)   (1,162,724)
                                      -------------- -------------------------- ----------------  ---------------- -------------
Balance, December 31, 1996               158,381,944      (977,432)    (618,750)      (2,240,839)        2,099,266   156,644,189 

<PAGE>31

                         AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88

                        STATEMENTS OF CHANGES IN PARTNERS' EQUITY - Continued

                          For the years ended December 31, 1997, 1996 and 1995


</TABLE>
<TABLE><CAPTION>
                                                                                                                  
                                                                                    Unrealized       Unrealized   
                                                                                      losses            gains     
                                                                                  on Investment    on Investment  
                                                                                  in FHA-Insured   in FHA-Insured 
                                                                    Repurchased    Certificates      Certificates 
                                                                     Limited        and GNMA           and GNMA         Total   
                                           Limited      General     Partnership  Mortgage-Backed   Mortgage-Backed    Partners' 
                                           Partners     Partner        Units       Securities        Securities        Equity   
                                        ------------ -------------  ----------- ----------------  ---------------- -------------
<S>                                     <C>          <C>            <C>         <C>               <C>              <C>          
  Net earnings                             9,602,482       494,765           --               --                --    10,097,247

  Distributions paid or accrued
    of $2.33 per Unit, including
    return of capital of $1.24 per
    Unit                                 (20,508,872)   (1,056,713)          --               --                --   (21,565,585)

  Adjustment to net unrealized gains
    (losses) on investment in FHA-
    Insured Certificates and
    GNMA Mortgage-Backed
    Securities                                    --            --           --          338,652         1,462,757     1,801,409
                                      -------------- -------------- ----------- ----------------  ---------------- -------------
Balance, December 31, 1997            $  147,475,554 $  (1,539,380) $  (618,750)$     (1,902,187) $      3,562,023 $ 146,977,260
                                      ============== ============== =========== ================  ================ =============
Limited Partnership Units outstanding -
  basic, as of December 31, 1995,
  1996 and 1997                                          8,802,091
                                                     =============


                                             The accompanying notes are an integral part
                                                   of these financial statements.
</TABLE> 

<PAGE>32

                         AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88

                                       STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>

                                                                            For the years ended December 31,     
                                                                        1997           1996          1995    
                                                                    ------------   ------------  ------------
<S>                                                                 <C>            <C>            <C>        
Cash flows from operating activities:
  Net earnings                                                      $ 10,097,247   $ 10,292,758  $ 13,794,895

  Adjustments to reconcile net earnings to net cash
    provided by operating activities:
    Gains on mortgage dispositions/modifications                         (20,746)            --    (2,452,221)
    Losses on mortgage dispositions/modifications                             --        377,900            --
    Changes in assets and liabilities:
      (Increase) decrease in investment in affiliate 
        and due from affiliates                                          (35,107)        11,542        88,035
      (Increase) decrease in receivables and other assets               (302,998)      (298,420)      169,312
      Decrease in accounts payable and accrued expenses                  (12,153)       (25,608)      (67,462)
      Provision for loss                                                 375,000             --            --
                                                                    ------------   ------------  ------------
        Net cash provided by operating activities                     10,101,243     10,358,172    11,532,559
                                                                    ------------   ------------  ------------
Cash flows from investing activities:
  Proceeds from dispositions/modifications of 
    Insured Mortgages                                                  7,016,157      8,571,748     9,316,015
  Investment in Acquired Insured Mortgages and advances on 
    construction loans                                                        --     (9,416,014)   (7,687,752)
  Decrease in Due from HUD                                             2,558,201             --            --
  Payments made and treated as an addition                                                                    
    to Assets Held for Sale Under Coinsurance
    Program/mortgage investment income
    accrued/accreted on AHFS                                                  --        (37,452)      (97,952)
  Receipt of principal payments                                        1,952,500      1,037,314       929,409
                                                                    ------------   ------------  ------------
        Net cash provided by investing activities                     11,526,858        155,596     2,459,720
                                                                    ------------   ------------  ------------
Cash flows from financing activities:
  Distributions paid to partners                                     (20,825,136)   (11,476,964)  (16,474,997)
                                                                    ------------   ------------  ------------
        Net cash used in financing activities                        (20,825,136)   (11,476,964)  (16,474,997)
                                                                    ------------   ------------  ------------
Net increase (decrease) in cash and cash equivalents                     802,965       (963,196)   (2,482,718)

Cash and cash equivalents, beginning of year                           1,918,341      2,881,537     5,364,255
                                                                   -------------   ------------  ------------
Cash and cash equivalents, end of year                             $   2,721,306   $  1,918,341  $  2,881,537
                                                                   =============   ============  ============

                                             The accompanying notes are an integral part
                                                   of these financial statements.


</TABLE> 

<PAGE>33

              AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88

                          NOTES TO FINANCIAL STATEMENTS

1.   ORGANIZATION

     American Insured Mortgage Investors L.P. - Series 88 (the Partnership) was
formed under the Uniform Limited Partnership Act of the state of Delaware on
February 13, 1987.

     CRIIMI, Inc. (the General Partner) holds a partnership interest of 4.9%
which includes shares acquired from the former assignor limited partner. 
CRIIMI, Inc. is a wholly-owned subsidiary of CRIIMI MAE Inc. (CRIIMI MAE).  From
September 6, 1991 through June 30, 1995, CRIIMI MAE was managed by an advisor
whose general partner is CRI, Inc. (CRI).  However, effective June 30, 1995,
CRIIMI MAE became a self-administered real estate investment trust (REIT) and,
as a result, the advisor no longer advises CRIIMI MAE.

     AIM Acquisition Partners, L.P. (the Advisor) serves as the advisor to the
Partnership.  AIM Acquisition Corporation (AIM Acquisition) is the general
partner of the Advisor, and the limited partners include, but are not limited
to, AIM Acquisition, The Goldman Sachs Group, L.P., Broad, Inc., and CRIIMI MAE.

     Effective September 6, 1991 and through June 30, 1995, a sub-advisory
agreement (the Sub-advisory Agreement) existed whereby CRI/AIM Management, Inc.,
an affiliate of CRI, managed the Partnership's portfolio and directed the
acquisition and disposition of the Partnership's mortgage investments.  In
connection with the transaction in which CRIIMI MAE became a self-administered
REIT, an affiliate of CRIIMI MAE acquired the Sub-advisory Agreement.  As a
consequence of this transaction, effective June 30, 1995, CRIIMI MAE Services
Limited Partnership, an affiliate of CRIIMI MAE, manages the Partnership's
portfolio.

     Until the change in the Partnership's investment policy, as discussed
below, the Partnership was in the business of originating mortgage loans
(Originated Insured Mortgages) and acquiring mortgage loans (Acquired Insured
Mortgages, and together with Originated Insured Mortgages, referred to herein as
Insured Mortgages). As of December 31, 1997, the Partnership had invested in
either Originated Insured Mortgages which are insured or guaranteed, in whole or
in part, by the Federal Housing Administration (FHA) or Acquired Insured
Mortgages which are fully insured (as more fully described below).

     Effective September 19, 1991, the General Partner changed, at the Advisor's
recommendation, the investment policies of the Partnership to invest only in
Acquired Insured Mortgages which are fully insured or guaranteed by the Federal
National Mortgage Association, the Government National Mortgage Association
(GNMA), FHA or the Federal Home Loan Mortgage Corporation.

     The Partnership's reinvestment period expired on December 31, 1996 and the
Partnership Agreement states that the Partnership will terminate on December 31,
2021, unless previously terminated under the provisions of the Partnership
Agreement.  After the expiration of the reinvestment period, the Partnership is
required (subject to the conditions set forth in the Partnership Agreement) to
distribute disposition proceeds to its Unitholders.

     The General Partner listed the Partnership's Units for trading on the
American Stock Exchange (AMEX) on January 18, 1994, in order to provide
investment liquidity as contemplated in the Partnership's original prospectus. 
The Units are traded under the symbol "AIK." 

<PAGE>34

              AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88

                          NOTES TO FINANCIAL STATEMENTS

2.   SIGNIFICANT ACCOUNTING POLICIES

     Method of Accounting
     --------------------
          The Partnership's financial statements are prepared on the accrual
     basis of accounting in accordance with generally accepted accounting
     principles.  The preparation of financial statements in conformity with
     generally accepted accounting principles requires management to make
     estimates and assumptions that affect the reported amounts of assets and
     liabilities at the date of the financial statements and the reported
     amounts of revenues and expenses during the reporting period.  Actual
     results could differ from those estimates.

     Investment in Mortgages
     -----------------------
          The Partnership's investment in Insured Mortgages is comprised of
     participation certificates evidencing a 100% undivided beneficial interest
     in government insured multifamily mortgages issued or sold pursuant to FHA
     programs (FHA-Insured Certificates), mortgage-backed securities guaranteed
     by GNMA (GNMA Mortgage-Backed Securities) and FHA-insured mortgage loans
     (FHA-Insured Loans).  The mortgages underlying the FHA-Insured
     Certificates, GNMA Mortgage-Backed Securities and FHA-Insured Loans are
     non-recourse first liens on multifamily residential developments or
     retirement homes.

          Payments of principal and interest on FHA-Insured Certificates and
     FHA-Insured Loans are insured by the United States Department of Housing
     and Urban Development (HUD) pursuant to Title 2 of the National Housing
     Act.  Payments of principal and interest on GNMA Mortgage-Backed Securities
     are guaranteed by GNMA pursuant to Title 3 of the National Housing Act.

          As of December 31, 1997, the weighted average remaining term of the
     Partnership's investments in GNMA Mortgage-Backed Securities and FHA-
     Insured Certificates is approximately 31 years.  However, the Partnership
     Agreement states that the Partnership will terminate in approximately 24
     years, on December 31, 2021, unless previously terminated under the
     provisions of the Partnership Agreement.  As the Partnership is anticipated
     to terminate prior to the weighted average remaining term of the GNMA
     Mortgage-Backed Securities and FHA-Insured Certificates in its portfolio,
     the Partnership does not have the ability, at this time, to hold these
     investments to maturity.  Consequently, the General Partner believes that
     the Partnership's investments in GNMA Mortgage-Backed Securities and FHA-
     Insured Certificates should be included in the Available for Sale category.
     Although the Partnership's investments in GNMA Mortgage-Backed Securities
     and FHA-Insured Certificates are classified as Available for Sale for
     financial statement purposes, the General Partner does not intend to
     voluntarily sell these assets other than those which may be sold as a
     result of a default.

          In connection with this classification, as of December 31, 1997 and
     1996, the Partnership's investments in GNMA Mortgage-Backed Securities and
     FHA-Insured Certificates are recorded at fair value, with the net
     unrealized gains or losses on these investments reported as a separate
     component of partners' equity.  Subsequent increases or decreases in the
     fair value of GNMA Mortgage-Backed Securities and FHA-Insured Certificates,
     classified as Available for Sale, will be included as a separate component
     of partners' equity.  Realized gains and losses on GNMA Mortgage-Backed
     Securities and FHA-Insured Certificates, classified as Available for Sale,
     will continue to be reported in earnings.  The amortized cost of the
     investments in GNMA Mortgage-Backed Securities and FHA-Insured Certificates

<PAGE>35 

              AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88

                          NOTES TO FINANCIAL STATEMENTS

2.   SIGNIFICANT ACCOUNTING POLICIES - Continued

     in this category is adjusted for amortization of discounts and premiums to
     maturity.  Such amortization is included in mortgage investment income.

          Gains from dispositions of mortgage investments are recognized upon
     the receipt of cash or HUD debentures.

          Losses on dispositions of mortgage investments are recognized when it
     becomes probable that a mortgage will be disposed of and that the
     disposition will result in a loss.  In the case of Insured Mortgages fully
     insured by HUD, the Partnership's maximum exposure for purposes of
     determining the loan losses would generally be an assignment fee charged by
     HUD representing approximately 1% of the unpaid principal balance of the
     Insured Mortgage at the date of default, plus the unamortized balance of
     acquisition fees and closing costs paid in connection with the acquisition
     of the Insured Mortgage and the loss of approximately 30 days accrued
     interest.

     Cash and Cash Equivalents
     -------------------------
          Cash and cash equivalents consist of money market funds, time and
     demand deposits, commercial paper, certificates of deposit, and repurchase
     agreements with original maturities of three months or less.

     Income Taxes
     ------------
          No provision has been made for Federal, state or local income taxes in
     the accompanying financial statements, since they are the personal
     responsibility of the Unitholders.

     Provision for Loss
     ------------------
          The Partnership assess the realizability of its investments on a loan
     level basis.  As a result, the Partnership provided a reserve of $375,000
     for the year ending December 31, 1997.

     New Accounting Standards
     ------------------------
          In February 1997, FASB issued SFAS No. 128 "Earnings per Share" ("FAS
     128").  FAS 128 changes the requirements for the calculation and disclosure
     of earnings per share.  The Partnership is required to present basic net
     earnings per limited partnership unit as opposed to net earnings per
     limited partnership unit.  However, the computational differences between
     FAS 128 and the prior accounting standard do not impact the Partnership. 
     FAS 128 has been applied to the year ended December 31, 1997, and all prior
     periods.

          During 1997 FASB issued SFAS No. 129 "Disclosure of Information about
     Capital Structure" ("FAS 129").  FAS 129 continues the existing
     requirements to disclose the pertinent rights and privileges of all
     securities other than ordinary common stock but expands the number of
     companies subject to portions of its requirements.  The Partnership's
     disclosures comply with the requirements of this statement.

          During 1997 FASB issued SFAS No. 130 "Reporting Comprehensive Income"
     ("FAS 130").  FAS 130 states that all items that are required to be
     recognized under accounting standards as components of comprehensive income
     are to be reported in separate statement of income.  This would include net
     income as currently reported by the Partnership adjusted for unrealized 


<PAGE>36 

              AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88

                          NOTES TO FINANCIAL STATEMENTS

2.   SIGNIFICANT ACCOUNTING POLICIES - Continued

     gains and losses related to the Partnership's mortgages accounted for as
     "available for sale".  FAS 130 is effective for years beginning on or after
     December 15, 1997.

          During 1997, FASB issued SFAS No. 131 "Disclosures about Segments of
     an Enterprise and Related Information" ("FAS 131").  FAS 131 establishes
     standards for the way that public business enterprises report information
     about operating segments and related disclosures about products and
     services, geographical areas and major customers.  FAS 131 is effective for
     years beginning on or after December 15, 1997.

3.   FAIR VALUE OF FINANCIAL INSTRUMENTS

     The following estimated fair values of the Partnership's financial
instruments are presented in accordance with generally accepted accounting
principles which define fair value as the amount at which a financial instrument
could be exchanged in a current transaction between willing parties, other than
in a forced or liquidation sale.  These estimated fair values, however, do not
represent the liquidation value or the market value of the Partnership.

<TABLE>
<CAPTION>
                                            As of December 31, 1997           As of December 31, 1996
                                            Amortized           Fair          Amortized          Fair     
                                               Cost             Value            Cost            Value    
                                           ------------     ------------     ------------     ------------
<S>                                        <C>              <C>              <C>              <C>         
Investment in FHA-Insured
  Certificates and GNMA
  Mortgage-Backed Securities:
    Acquired insured mortgages             $ 72,251,365     $ 74,963,747     $ 73,722,912     $ 74,492,545
    Originated insured mortgages             45,275,300       44,222,754       45,579,828       44,668,622
                                           ------------     ------------     ------------     ------------
                                           $117,526,665     $119,186,501     $119,302,740     $119,161,167
                                           ============     ============     ============     ============

Investment in FHA-Insured Loans:
  Originated insured mortgages             $ 22,609,310     $ 22,428,570     $ 29,746,073     $ 29,712,245
  Acquired insured mortgages                  1,094,502        1,107,188        1,129,575        1,173,057
                                           ------------     ------------     ------------     ------------
                                           $ 23,703,812     $ 23,535,758     $ 30,875,648     $ 30,885,302
                                           ============     ============     ============     ============

Cash and cash equivalents                  $  2,721,306     $  2,721,306     $  1,918,341     $  1,918,341

Accrued interest receivable                $  1,612,260     $  1,612,260     $  1,344,679     $  1,344,679

</TABLE>

         The following methods and assumptions were used to estimate the fair 
     value of each class of financial instrument:

     Investment in FHA-Insured Certificates, GNMA Mortgage-Backed
       Securities and FHA-Insured Loans
     -----------------------------------------------------------
          The fair value of the fully insured FHA-Insured Certificates, GNMA
     Mortgage-Backed Securities and FHA-Insured Loans is based on quoted market
     prices.  In order to determine the fair value of coinsured FHA-Insured 

<PAGE>37 

              AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88

                          NOTES TO FINANCIAL STATEMENTS
3.   FAIR VALUE OF FINANCIAL INSTRUMENTS - Continued

     Certificates, the Partnership valued the coinsured FHA-Insured Certificates
     as though they were fully insured FHA-Insured Certificates (in the same
     manner fully insured FHA-Insured Certificates were valued).  From this
     amount, the Partnership deducted a discount factor from the face value of
     the loan.  This discount factor is based on the Partnership's historical
     analysis of the difference in fair value between coinsured FHA-Insured
     Certificates and fully insured FHA-Insured Certificates.

     Cash and cash equivalents and accrued interest receivable
     ---------------------------------------------------------
          The carrying amount approximates fair value because of the short
     maturity of these instruments.

4.   INVESTMENT IN FHA-INSURED CERTIFICATES AND GNMA MORTGAGE-
       BACKED SECURITIES

     The following is a discussion of the Partnership's mortgage investments,
along with the risks related to each type of investment.

     A.   Fully Insured FHA-Insured Certificates and GNMA
            Mortgage-Backed Securities
          -----------------------------------------------
          Listed below is the Partnership's aggregate investment in fully
     insured Acquired Insured Mortgages as of December 31, 1997 and 1996:

<TABLE>
<CAPTION>                                         December 31,         
                                             1997              1996    
                                         ------------      ------------
<S>                                      <C>               <C>         
Number of:
  GNMA Mortgage-Backed Securities                  22                22
  FHA-Insured Certificates                          5                 5
Amortized Cost                           $ 72,251,365      $ 73,722,912
Face Value                                 72,492,904        73,970,506
Fair Value                                 74,963,747        74,492,545

</TABLE>

          Listed below is the Partnership's aggregate investment in fully
     insured Originated Insured Mortgages as of December 31, 1997 and 1996:

<TABLE>
<CAPTION>                                         December 31,         
                                             1997              1996    
                                         ------------      ------------
<S>                                      <C>               <C>         
Number of Mortgages                                 1                 1
Amortized Cost                           $ 11,296,412     $  11,356,150
Face Value                                 10,941,101        10,994,620
Fair Value                                 11,055,186        11,128,509

</TABLE>

          As of March 1, 1998, all fully insured mortgages were current with
     respect to the payment of principal and interest.

          In February 1996, the General Partner instructed the servicer for the
     mortgage on Water's Edge of New Jersey, a fully insured acquired 

<PAGE>38 

              AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88

                          NOTES TO FINANCIAL STATEMENTS

4.   INVESTMENT IN FHA-INSURED CERTIFICATES AND GNMA MORTGAGE-
       BACKED SECURITIES - Continued

     construction loan, to file a Notice of Default and an Election to Assign
     the mortgage with the Department of Housing and Urban Development (HUD). 
     The property underlying this construction loan is a nursing home located in
     Trenton, New Jersey.  In January 1997, AIM 88 received approximately $2.6
     million from HUD.  A distribution of $0.27 per Unit was declared in January
     1997 and paid in May 1997.  As of December 31, 1997, the Partnership had
     received approximately $10.2 million including repayment of accrued
     interest.  The remainder of the proceeds, approximately $1.5 million, is
     included in Due from HUD and Receivables and other assets.  HUD has
     disallowed approximately $1.5 million of the assignment claim.  The
     servicer is currently negotiating with HUD in regard to collection of the
     disallowed portion of the claim.  The General Partner believes that the
     allowance for loan losses is sufficient to provide for amounts not
     recovered from the servicer.

          In May 1997, the Partnership received approximately $778,000 in a
     principal curtailment made on the mortgage on Olde Mills.  These proceeds
     of $0.08 per Unit were declared as part of the November 1997 distribution
     and were paid in February 1998.

          During August 1997, the mortgage on Parkside Estates was prepaid.  The
     Partnership received net proceeds of approximately $7.1 million and
     recognized a gain of approximately $20,700 on this prepayment.  A
     distribution of $0.76 per Unit related to this prepayment was declared in
     September 1997 and was paid in November 1997.

          In February 1998, the Partnership received approximately $1.7 million
     in net proceeds from the prepayment of the mortgage on Northpoint
     Apartments.  These proceeds of $0.19 per Unit were declared as part of the
     February 1998 distribution and is expected to be distributed in May 1998.

     B.   Coinsured FHA-Insured Certificates
          ----------------------------------
          Under the HUD coinsurance program, both HUD and the coinsurance lender
     are responsible for paying a portion of the insurance benefits if a
     mortgagor defaults and the sale of the development collateralizing the
     mortgage produces insufficient net proceeds to repay the mortgage
     obligation.  In such cases, the coinsurance lender will be liable to the
     Partnership for the first part of such loss in an amount up to 5% of the
     outstanding principal balance of the mortgage as of the date foreclosure
     proceedings are instituted or the deed is acquired in lieu of foreclosure. 
     For any loss greater than 5% of the outstanding principal balance, the
     responsibility for paying the insurance benefits will be borne on a
     pro-rata basis, 85% by HUD and 15% by the coinsurance lender.

          While the Partnership is due payment of all amounts owed under the
     mortgage, the coinsurance lender is responsible for the timely payment of
     principal and interest to the Partnership.  The coinsurance lender is
     prohibited from entering into any workout arrangement with the borrower
     without the Partnership's consent and must file a claim for coinsurance
     benefits with HUD, upon default, if the Partnership so directs.  As an
     ongoing HUD-approved coinsurance lender, and under the terms of the
     participation documents, the coinsurance lender is required to satisfy
     certain minimum net worth requirements as set forth by HUD.  However, it is
     possible that the coinsurance lender's potential liability for loss on
     these developments, and others, could exceed its HUD-required minimum net
     worth.  In such case, the Partnership would bear the risk of loss if the 

<PAGE>39 

              AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88

                          NOTES TO FINANCIAL STATEMENTS

4.   INVESTMENT IN FHA-INSURED CERTIFICATES AND GNMA MORTGAGE-
       BACKED SECURITIES - Continued

     coinsurance lenders were unable to meet their coinsurance obligations.  In
     addition, HUD's obligation for the payment of its share of the loss could
     be diminished under certain conditions, such as the lender not adequately
     pursuing regulatory violations of the borrower or the failure to comply
     with other terms of the mortgage.  However, the General Partner is not
     aware of any conditions or actions that would result in HUD diminishing its
     insurance coverage.

          As of December 31, 1997 and 1996, the Partnership held investments in
     three coinsured FHA-Insured Certificates secured by coinsured mortgages. 
     One of these coinsured mortgage investments, the mortgage on St. Charles
     Place - Phase II, is coinsured by The Patrician Mortgage Company
     (Patrician), an unaffiliated third party coinsurance lender under the HUD
     coinsurance program.  As of December 31, 1997 and 1996, the remaining two
     FHA-Insured Certificates are coinsured by IFI, an affiliate of the
     Partnership.  The following is a discussion of actual and potential
     performance problems with respect to the Partnership's coinsured mortgage
     investments.

          Coinsured by third party
          ------------------------
          St. Charles Place - Phase II is a 156-unit apartment complex located
          in Miramar, Florida.  Listed below is the Partnership's investment in
          the St. Charles Place - Phase II mortgage as of December 31, 1997 and
          1996.  These amounts represent the Partnership's approximate 55%
          ownership interest in the mortgage.  The remaining 45% ownership
          interest is held by American Insured Mortgage Investors L.P. - Series
          86 (AIM 86), an affiliate of the Partnership.

<TABLE>
<CAPTION>                                     December 31,         
                                          1997             1996    
                                      ------------     ------------
<S>                                   <C>              <C>         
Amortized Cost                        $  3,710,287     $  3,730,991
Face Value                               3,710,287        3,730,991
Fair Value                               3,484,715        3,527,521

</TABLE>

          As of March 1, 1998, the mortgagor had made payments of principal and
          interest due to the Partnership on the mortgage through November 1995.
          Patrician is litigating the case in bankruptcy court while pursuing
          negotiations on a modification agreement with the borrower.

          The General Partner intends to continue to oversee the Partnership's
          interest in this mortgage investment to ensure that Patrician meets
          its coinsurance obligations.  The General Partner's assessment of the
          realizability of the carrying value of the St. Charles Place - Phase
          II mortgage is based on the most recent information available, and to
          the extent these conditions change or additional information becomes
          available, the General Partner's assessment may change.  However, the
          General Partner does not believe that there would be a material
          adverse impact on the Partnership's financial condition or its results
          of operations should Patrician be unable to comply with its full
          coinsurance obligation.  

<PAGE>40 

              AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88

                          NOTES TO FINANCIAL STATEMENTS

4.   INVESTMENT IN FHA-INSURED CERTIFICATES AND GNMA MORTGAGE-
       BACKED SECURITIES - Continued

          Coinsured by affiliate
          ----------------------
          As of December 31, 1997 and 1996, the Partnership held investments in
          two FHA-Insured Certificates secured by coinsured mortgages, where the
          coinsurance lender is IFI.  These investments were made on behalf of
          the Partnership by the former managing general partner.  As structured
          by the former managing general partner, with respect to these
          mortgages, the Partnership bears the risk of loss upon default for
          IFI's portion of the coinsurance loss on these mortgage investments. 

<PAGE>41 

              AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88

                          NOTES TO FINANCIAL STATEMENTS

4.   INVESTMENT IN FHA-INSURED CERTIFICATES AND GNMA MORTGAGE-
       BACKED SECURITIES - Continued

<TABLE>
<CAPTION>

                                      December 31, 1997                                  December 31, 1996            
                               Fair        Amortized         Face                   Fair       Amortized       Face    
                             Mkt. Value      Cost           Value                Mkt. Value      Cost          Value   
                            -----------  ------------    ------------           -----------  ------------  ------------
<S>                         <C>          <C>             <C>                    <C>          <C>           <C>         
The Breakers at Golf
  Mill(1)(2)                $20,873,845  $ 22,309,235    $ 22,309,236           $21,084,011  $ 22,492,106  $ 22,492,106
Summerwind Apts.-Phase 
  II(1)(2)                    8,809,008     7,959,366       9,378,179             8,928,581     8,000,581     9,442,628
                            -----------  ------------    ------------           -----------  ------------    ----------
                            $29,682,853  $ 30,268,601    $ 31,687,415           $30,012,592  $ 30,492,687  $ 31,934,734
                            ===========  ============    ============           ===========  ============  ============

(1) As of March 1, 1998, the mortgagor was current with respect to payment of principal and interest on this mortgage.
(2) There were no loan losses recognized for the years ended, 1997 and 1996.  The cumulative loan losses recognized in prior years
    were $980,000 for the Breakers at Golf Mill, and $1,511,743 for Summerwind Apartments - Phase II.

</TABLE> 

<PAGE>42

              AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88

                          NOTES TO FINANCIAL STATEMENTS

5.   INVESTMENT IN FHA-INSURED LOANS

     Listed below is the Partnership's aggregate investment in fully insured
Originated Insured Mortgages as of December 31, 1997 and 1996:

<TABLE>
<CAPTION>                                         December 31,         
                                             1997             1996    
                                         ------------     ------------
<S>                                      <C>              <C>         
Number of Mortgages                                 3(1)             4
Amortized Cost                           $ 22,609,310     $ 29,746,073
Face Value                                 22,213,954       29,163,152
Fair Value                                 22,428,570       29,712,245

(1)  During August 1997, the mortgage on Parkside Estates was prepaid.  The
Partnership received net proceeds of approximately $7.1 million and recognized a
gain of approximately $20,700 on this prepayment.  A distribution of $0.76 per
Unit related to this prepayment was declared in September 1997 and was paid in
November 1997.

</TABLE>

          Listed below is the Partnership's aggregate investment in fully
     insured Acquired Insured Mortgages as of December 31, 1997 and 1996:

<TABLE>
<CAPTION>                                         December 31,         
                                              1997           1996    
                                          ------------   ------------
<S>                                       <C>            <C>         
Number of Mortgages                                  2              2
Amortized Cost                            $  1,094,502   $  1,129,575
Face Value                                   1,091,827      1,126,731
Fair Value                                   1,107,188      1,173,057

</TABLE>

     As of March 1, 1998, all of the Partnership's FHA-Insured Loans were
current with respect to the payment of principal and interest.

     All of the FHA-Insured Loans contain Participations.  During the years
ended December 31, 1997, 1996 and 1995, the Partnership received additional
interest of $134,769, $63,045 and $46,581, respectively, from the FHA-Insured
Loans which contain Participations. These amounts are included in mortgage
investment income on the accompanying statements of operations. 

<PAGE>43

              AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88

                          NOTES TO FINANCIAL STATEMENTS

6.   DUE FROM HUD

     Due from HUD consists of amounts due to the Partnership in connection with
losses incurred on the disposition of fully insured and coinsured mortgage
investments.

     As of December 31, 1997, Due from HUD includes approximately $603,500
related to the assignment of Water's Edge of New Jersey, as discussed in Note 4.
As of December 31, 1997 and 1996, Due from HUD includes approximately $59,000
and $59,000, respectively, related to the disposition of Hazeltine Shores.

7.   DISTRIBUTIONS TO UNITHOLDERS

     The distributions paid or accrued to Unitholders on a per Unit basis for
the years ended December 31, 1997, 1996 and 1995 are as follows:

                                     1997      1996     1995 
                                   -------   -------   ------
     Quarter ended March 31        $0.59(5)  $0.32(1)  $0.49(2)
     Quarter ended June 30          0.30      0.30      0.53(3)
     Quarter ended September 30     1.06(6)   0.30      0.32(4)
     Quarter ended December 31      0.38(7)   0.30      0.32(1)
                                   -----     -----     -----
                                   $2.33     $1.22     $1.66
                                   =====     =====     =====

(1)  This amount includes approximately $0.02 per Unit representing previously
     undistributed accrued interest received from Water's Edge of New Jersey.
(2)  This amount includes approximately $0.15 per Unit representing accrued, but
     previously undistributed, interest related to the receipt of claim proceeds
     from the mortgage on Pinewood Park Apartments and approximately $0.01 per
     Unit representing previously undistributed accrued interest received from
     Water's Edge of New Jersey.
(3)  This amount includes approximately $0.22 per Unit representing accrued, but
     previously undistributed, interest and capital gain related to the receipt
     of claim proceeds from the mortgage on Hamlet at Cobb's Landing.
(4)  This amount includes approximately $0.02 per Unit representing capital gain
     from the disposition of the mortgage on Gilbert Greens Apartments.
(5)  This amount includes approximately $0.27 per Unit representing partial
     receipt of proceeds from the assignment of Water's Edge of New Jersey and
     approximately $0.02 per Unit representing proceeds from mortgage
     dispositions not reinvested prior to the expiration of the reinvestment
     period.
(6)  This amount includes approximately $0.76 per Unit representing proceeds
     from the prepayment of the mortgage on Parkside Estates.
(7)  This amount includes approximately $0.08 per Unit representing a
     curtailment on the mortgage of Olde Mills Apartments and approximately
     $0.01 per Unit representing previously undistributed accrued interest
     received from St. Charles Place - Phase II.

     The basis for paying distributions to Unitholders is net proceeds from
mortgage dispositions, if any, and cash flow from operations, which includes
regular interest income and principal from Insured Mortgages.  Although the
Insured Mortgages yield a fixed monthly mortgage payment once purchased, the
cash distributions paid to the Unitholders will vary during each quarter due to
(1) the fluctuating yields in the short-term money market where the monthly
mortgage payments received are temporarily invested prior to the payment of
quarterly distributions, (2) the reduction in the asset base resulting from the
receipt of monthly mortgage payments or mortgage dispositions, (3) variations in
the cash flow attributable to the delinquency or default of Insured Mortgages 

<PAGE>44 

              AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88

                          NOTES TO FINANCIAL STATEMENTS
7.   DISTRIBUTIONS TO UNITHOLDERS - Continued

and professional fees and foreclosure and acquisition costs incurred in
connection with those Insured Mortgages and (4) variations in the Partnership's
operating expenses.

8.   INVESTMENT IN AFFILIATE, NOTES RECEIVABLE FROM AFFILIATES,
       DUE FROM AFFILIATES AND NOTE PAYABLE AND DUE TO AFFILIATE 

     In order to capitalize IFI with sufficient net worth under HUD regulations,
in April 1994, the Partnership transferred a GNMA Mortgage-Backed Security in
the amount of approximately $2.0 million to IFI.  AIM 85 and AIM 86 each issued
a demand note payable to the Partnership and recorded an investment in IFI
through AIM Mortgage, Inc. at an amount proportionate to each entity's coinsured
mortgages for which IFI was the mortgagee of record as of April 1, 1994. 
Interest income on the note, which is based on an annual interest rate of 7.25%
(representing the interest rate on the GNMA Mortgage-Backed Security transferred
by the Partnership), was $50,263 and $57,832 during the years ended December 31,
1997 and 1996, respectively, and is included in interest and other income on the
accompanying statements of operations.  In April 1997, the GNMA mortgage-backed
security, with a current balance of $1.9 million, was reallocated between the
Partnership and AIM 86 as AIM 85 no longer holds any mortgages coinsured by IFI.
As a result, a new demand note receivable from AIM 86 was issued and the
investment in IFI was updated.

     In connection with these transfers, the expense reimbursement agreement was
amended as of April 1, 1997, to adjust the allocation of the expense
reimbursement to the AIM Funds to an amount proportionate to each entity's
coinsured mortgage investments for which IFI was the mortgagee of record as of
April 1, 1997.  The expense reimbursement, as amended, along with the
Partnership's interest income from the notes receivable, and the Partnership's
equity interest in IFI's net income or loss, substantially equals the mortgage
principal and interest on the GNMA Mortgage-Backed Security transferred to IFI. 
In April 1997, this agreement was amended to exclude AIM 85 which no longer
holds mortgages coinsured by IFI. 

<PAGE>45

              AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88

                          NOTES TO FINANCIAL STATEMENTS

9.   TRANSACTIONS WITH RELATED PARTIES

     In addition to the related party transactions described above in Note 8, 
the General Partner and certain affiliated entities, during the years ended 
December 31, 1997, 1996 and 1995, have earned or received compensation or 
payments for services from the Partnership as follows:

<TABLE>
<CAPTION>
                                           COMPENSATION PAID OR ACCRUED TO RELATED PARTIES
                                           -----------------------------------------------
                                 Capacity in Which                       For the years ended December 31,     
Name of Recipient                   Served/Item                    1997            1996           1995   
-----------------          ----------------------------         ----------      ----------     ----------
<S>                        <C>                                  <C>             <C>            <C>       
CRIIMI, Inc.(1)            General Partner/Distribution         $1,056,713      $  553,301     $  752,852

AIM Acquisition            Advisor/Asset Management Fee          1,469,320       1,503,297      1,493,283
  Partners, L.P.(2)

CRI(3)                     Affiliate of General Partner/                --              --         62,347
                             Expense Reimbursement

CRIIMI MAE                 Affiliate of General Partner/            53,474          62,376         24,696
  Management, Inc.(3)       Expense Reimbursement


     (1)  The General Partner, pursuant to amendments to the Partnership Agreement, effective September 6, 1991, is entitled to
receive 4.9% of the Partnership's income, loss, capital and distributions, including, without limitation, the Partnership's Adjusted
Cash from Operations and Proceeds of Mortgage Prepayments, Sales or Insurance (both as defined in the Partnership Agreement).

     (2)  The Advisor, pursuant to the Partnership Agreement is entitled to an Asset Management Fee equal to 0.95% of Total Invested
Assets (as defined in the Partnership Agreement).  The Sub-advisor to the Partnership is entitled to a fee of 0.28% of Total
Invested Assets of the Advisor's Asset Management Fee.  Of the amounts paid to the Advisor, CRIIMI MAE Services Limited Partnership,
the Sub-advisor, earned a fee equal to $433,040 and $443,060 and $219,670 for the years ended December 31, 1997, December 31, 1996
and for the six months ended December 31, 1995, respectively.  CRI/AIM Management, Inc., which acted as the Sub-advisor through June
30, 1995, earned a fee equal to $220,449 for the six months ended June 30, 1995.

     (3)  Prior to June 30, 1995, these amounts were paid to CRI as reimbursement for expenses incurred prior to June 30, 1995 on
behalf of the General Partner and the Partnership.  The transaction in which CRIIMI MAE became a self-administered REIT had no
impact on the payments required to be made by the Partnership, other than the expense reimbursement previously paid by the
Partnership to CRI in connection with the provision of services by the Sub-advisor are, effective June 30, 1995, paid to a wholly-
owned subsidiary of CRIIMI MAE, CRIIMI MAE Management, Inc.

</TABLE>

10.  PARTNERS' EQUITY

     Depositary Units representing economic rights in limited partnership
interests (Units) were issued at a stated value of $20.  A total of 8,851,966
Units were issued for an aggregate capital contribution of $177,039,320. In
addition, the initial limited partner contributed $2,500 to the capital of the
Partnership and received 125 Units in exchange therefor, and the former general
partners contributed a total of $1,000 to the Partnership.  During 1994, the
Partnership repurchased 50,000 Units. 

<PAGE>46

              AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88

                          NOTES TO FINANCIAL STATEMENTS

11.  SUMMARY OF QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
     (In Thousands, Except Per Unit Data)

     The following is a summary of unaudited quarterly results of operations for
the years ended December 31, 1997, 1996 and 1995:

<TABLE>                                                               
<CAPTION>
                                                                       1997               
                                                                    Quarter ended           
                                               March 31      June 30      September 30   December 31 
                                              -----------   ----------    -------------  ------------
<S>                                           <C>           <C>            <C>           <C>         
Income                                        $     3,122   $    3,104     $      2,982  $      2,959
Net gains/(losses) from mortgage
  disposition/modification                             --           --               21          (375)
Net earnings                                        2,696        2,629            2,588         2,184
Net earnings per
  Limited Partnership Unit - Basic                   0.29         0.28             0.28          0.24

</TABLE>

<TABLE><CAPTION>
                                                                      1996               
                                                                    Quarter ended           
                                               March 31      June 30      September 30   December 31 
                                              -----------   ----------    -------------  ------------
<S>                                           <C>           <C>            <C>           <C>         
Income                                        $     3,200   $    3,184     $      3,034  $      3,047
Net gains (losses) from
  mortgage dispositions/modifications                   1         (379)              --            --
Net earnings                                        2,765        2,333            2,589         2,606
Net earnings per
  Limited Partnership Unit - Basic                   0.30         0.25             0.28          0.28

</TABLE>

<TABLE>
<CAPTION>
                                                                     1995               
                                                                   Quarter ended           
                                               March 31      June 30      September 30   December 31 
                                              -----------   ----------    -------------  ------------
<S>                                           <C>           <C>            <C>           <C>         
Income                                        $     3,412   $    3,469     $      3,175  $      3,180
Net gains from 
  mortgage dispositions                             1,075        1,377               --            --
Net earnings                                        4,015        4,392            2,686         2,702
Net earnings per
  Limited Partnership Unit - Basic                   0.43         0.48             0.29          0.29

</TABLE> 

<PAGE>47


                          AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88
                              SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE
                                          DECEMBER 31, 1997

<TABLE><CAPTION>
                                                      Interest                                                     Annual Payment
                                                      Rate on           Face           Net                         Principal and 
                               Maturity      Put      Mortgage        Value of    Carrying Value    Cumulative        Interest   
Development Name/Location        Date      Date (1)    (5)(6)         Mortgage   (3)(10)(11)(13)    Loan Losses    (5)(6)(12)(14)
-------------------------      --------    --------  -----------    -----------  ---------------    -----------    --------------
<S>                            <C>         <C>       <C>            <C>          <C>                <C>            <C>           

ACQUIRED INSURED MORTGAGES:
--------------------------
FHA-Insured Certificates
  (carried at fair value)

Sylvan Manor
  Silver Spring, Maryland          5/21         N/A        7.500%  $  3,130,803    $   3,166,269             --        $  284,523
Northpoint Apartments
  Richland, Washington             1/23         N/A        8.550%     1,715,825        1,741,078             --           166,490
Heather Ridge Apartments
  Fayetteville, North Carolina     4/27         N/A        8.625%     4,435,156        4,498,966             --           416,231
Olde Mill Apartments
  Liverpool, New York              4/27         N/A        8.920%     4,198,415        4,265,333             --           484,083
Park Avenue Plaza
  Omaha, Nebraska                  9/29         N/A        9.000%     1,965,964        1,993,917             --           187,923
                                                                   ------------    -------------

  Total Investment in FHA-Insured
    Certificates - Acquired Insured
    Mortgages                                                        15,446,163       15,665,563
                                                                   ------------    -------------
GNMA Mortgage-Backed Securities
  (carried at fair value)

Garden Terrace
  Douglasville, Georgia            1/20         N/A        7.125%     2,696,144        2,764,496             --           236,214
Lioncrest Towers
  Richton Park, Illinois          10/28         N/A        7.000%     6,472,235        6,631,038             --           496,783
San Jose South
  San Jose, California            10/23         N/A        7.750%     8,228,212        8,432,199             --           697,343
Beauvoir Manor Apts.
  Biloxi, Mississippi              9/18         N/A        8.875%     1,250,042        1,351,945             --           127,474
Greenview Garden
  Butler, Pennsylvania             7/33         N/A        9.000%       880,636          951,391             --            78,247
Lorenzo Carolina Apts.
  Tampa, Florida                   6/26         N/A        8.250%     1,019,436        1,044,405             --            89,196
Silver Lake Plaza Apts.
  Los Angeles, California         11/35         N/A        7.950%     5,317,150        5,445,314             --           431,590
Woodcrest Townhomes
  Chaska, Minnesoata               8/31         N/A        8.375%     3,107,829        3,183,063             --           269,291 

</TABLE>


<PAGE>48


                         AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88
                               SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE
                                           DECEMBER 31, 1997

<TABLE><CAPTION>

                                                      Interest                                                     Annual Payment
                                                      Rate on          Face            Net                         Principal and 
                               Maturity      Put      Mortgage       Value of     Carrying Value    Cumulative        Interest   
Development Name/Location        Date      Date (1)    (5)(6)         Mortgage   (3)(10)(11)(13)    Loan Losses    (5)(6)(12)(14)
-------------------------      --------    --------  -----------    -----------  ---------------    -----------    --------------
<S>                            <C>         <C>       <C>            <C>          <C>                <C>            <C>           

ACQUIRED INSURED MORTGAGES:
--------------------------

GNMA Mortgage-Backed Securities
  (carried at fair value)- Continued

Hewitt Gardens Apts.
  Omaha, Nebraska                 10/29         N/A        8.750%     4,456,340        4,815,182             --           404,876
Lamplighter Apts.
  Port Arthur, Texas              10/29         N/A        9.000%     2,226,331        2,405,540             --           207,131
Linville Manor
  Shelby, North Carolina           7/31         N/A        8.750%     1,988,569        2,148,540             --           178,928
Oak Grove Apts.
  Austin, Texas                    9/26         N/A        8.750%       556,832          601,768             --            51,686
Oakwood Gardens
  San Jose, California            10/23         N/A        7.750%     1,150,665        1,179,192             --            97,519
Seven Springs
  College Park, Maryland          12/21         N/A        7.625%     4,734,261        4,852,630             --           419,008
Stony Creek
  Washington Township, Michigan    2/29         N/A        7.500%     5,379,333        5,510,803             --           426,966
Burlwood Apts.
  Portland, Oregon                 8/15         N/A        9.000%       625,170          641,259             --            61,431
Collin Care Centers
  Plano, Texas                     9/30         N/A        8.125%     1,697,468        1,738,676             --           144,201
Holton Manor
  Elkhorn, Wisconsin              11/21         N/A        8.250%     1,009,295        1,034,423             --            94,385
Oaklawn Apts.
  Boise, Idaho                     8/24         N/A        9.000%       478,235          489,963             --            40,206
Orchard Creek Apts.
  Farmington Hills, Michigan       1/30         N/A        8.625%     1,280,134        1,383,218             --           113,136
Tehama Estates
  Sacramento,California            7/29         N/A        8.750%     1,348,582        1,457,192             --           122,710
Westview Terrace Apts.
  Tacoma, Washington               4/30         N/A        8.550%     1,143,842        1,235,947             --           101,053
                                                                    -----------     ------------
  Total Investment in GNMA Mortgage-Backed
    Securities, carried at fair value                                57,046,741       59,298,184
                                                                    -----------     ------------
  Total Investment in Acquired Insured
    Mortgages, carried at fair value                                 72,492,904       74,963,747
                                                                    -----------     ------------ 

</TABLE>

<PAGE>49

<TABLE><CAPTION>

                         AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88
                                SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE
                                           DECEMBER 31, 1997


                                                      Interest                                                     Annual Payment
                                                      Rate on           Face            Net                        Principal and 
                               Maturity      Put      Mortgage        Value of    Carrying Value    Cumulative        Interest   
Development Name/Location        Date      Date (1)     (5)(6)        Mortgage   (3)(10)(11)(13)    Loan Losses    (5)(6)(12)(14)
-------------------------      --------    --------  -----------    -----------  ---------------    -----------    --------------
<S>                            <C>         <C>       <C>            <C>          <C>                <C>            <C>           

ORIGINATED INSURED MORTGAGES:
----------------------------
Fully Insured Mortgages
-----------------------
FHA-Insured Certificates
  (carried at fair value)

Arbor Village
  Tallahassee, Florida             1/34          --        8.125%   10,941,101        11,055,186             --           944,868
                                                                  -------------     ------------
Coinsured Mortgages
-------------------
FHA-Insured Certificates
  (carried at fair value)

Summerwind Apartments-Phase II
  Naples, Florida (7)              6/30        7/03        8.500%    9,378,179         8,809,008      1,511,743           865,175
St. Charles Place - Phase II
  Miramar, Florida (4)             2/30       12/03        8.625%    3,710,286(4)(8)(9)3,484,715             --           341,697
The Breakers at Golf Mill
  Niles, Illinois (7)             11/29       11/02        7.000%    22,309,236(7)    20,873,845        980,000         1,751,525
                                                                  -------------     ------------
    Total Investment in coinsured
      FHA-Insured Certificates,
      carried at fair value                                          35,397,701       33,167,568
                                                                  -------------     ------------
    Total Investment in Originated Insured
      Mortgages, carried at fair value                               46,338,802       44,222,754
                                                                  -------------     ------------
    Total Investment in FHA-Insured Certificates 
      and GNMA Mortgage-Backed Securities,
      carried at fair value                                         118,831,706      119,186,501
                                                                  -------------     ------------ 
</TABLE>


<PAGE>50

<TABLE><CAPTION>

                         AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88
                                SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE
                                             DECEMBER 31, 1997


                                                      Rate on           Face            Net                        Principal and 
                               Maturity      Put      Mortgage       Value of     Carrying Value    Cumulative        Interest   
Development Name/Location        Date      Date (1)    (5)(6)         Mortgage   (3)(10)(11)(13)    Loan Losses   (5)(6)12)(14)  
-------------------------      --------    --------  -----------    -----------  ---------------    -----------    --------------
<S>                            <C>         <C>       <C>            <C>          <C>                <C>            <C>           

ACQUIRED INSURED MORTGAGES:
--------------------------
FHA-Insured Loans
  (carried at amortized cost)(2)

Kingsway Apts.
  Monroe, LA                       8/07         N/A       10.000%       534,155          535,056(2)          --            86,862
Kon Tiki Apts.
  League City, TX                  1/27         N/A       9.875%        557,672          559,446(2)          --            58,444
                                                                    -----------     ------------
    Total Investment in FHA-
      Insured Loans - Acquired
      Insured Mortgages, carried
      at amortized cost                                               1,091,827        1,094,502
                                                                    -----------     ------------

ORIGINATED INSURED MORTGAGES:
----------------------------
Fully Insured Mortgages
-----------------------
FHA-Insured Loans
  (carried at amortized cost)(2)

The Turn at Gresham
  Gresham, OR                      8/29       12/02       8.000%      5,763,690        5,763,691(2)          --           501,516
Parkside Estates
  Glendale Heights, IL             2/31       12/06       8.375%             --               --             --           384,943
Olmstead Park Apts.
  Charlotte, NC                    7/32       12/07       8.500%      5,769,127        5,987,972(2)          --           518,476
Water's Edge II
  Columbus, OH                     7/33         N/A       8.250%     10,681,137       10,857,647(2)          --           933,734
                                                                   ------------     ------------

    Total Investment in FHA-
      Insured Loans - Originated
      Insured Mortgages, carried
      at amortized cost                                              22,213,954       22,609,310
                                                                   ------------     ------------
    Total Investment in FHA-Insured Loans                            23,305,781       23,703,812
                                                                   ------------     ------------
    TOTAL INVESTMENT IN INSURED MORTGAGES                          $142,137,488     $142,890,313
                                                                   ============     ============ 
</TABLE>


<PAGE>51


              AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88

              NOTES TO SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE 

                                DECEMBER 31, 1997

(1)  Under the Section 221 program of the National Housing Act of 1937, as
     amended, a mortgagee has the right to assign an Insured Mortgage (put) to
     FHA at the expiration of 20 years from the date of final endorsement, if
     the mortgage is not in default at such time. Any mortgagee electing to
     assign a FHA-insured mortgage to FHA will receive, in exchange therefor,
     HUD debentures having a total face value equal to the then outstanding
     principal balance of the FHA-insured mortgage plus accrued interest to the
     date of assignment.  These HUD debentures will mature 10 years from the
     date of assignment and will bear interest at the "going Federal rate" at
     such date.  This assignment procedure is applicable to an Insured Mortgage
     which had a firm or conditional FHA commitment for insurance on or before
     November 30, 1983 and, in the case of mortgages sold in a GNMA auction, was
     sold in an auction prior to February 1984.  Certain of the Partnership's
     Insured Mortgages may have the right of assignment under this program. 
     Certain Insured Mortgages that do not qualify under this program possess a
     special assignment option, in certain mortgage documents, which allow the
     Partnership, anytime after this date, to require payment by the borrower of
     the unpaid principal balance of the Insured Mortgages.  At such time, the
     borrowers must make payment to the Partnership or the Partnership may
     cancel the FHA insurance and institute foreclosure proceedings.

(2)  Inclusive of closing costs and acquisition fees.

(3)  Prepayment of these Insured Mortgages would be based upon the unpaid
     principal balance at the time of prepayment.

(4)  This mortgage is insured under the HUD coinsurance program, as previously
     discussed.  The Patrician Mortgage Company is the HUD-approved coinsurance
     lender.

(5)  This represents the base interest rate during the permanent phase of this
     Insured Mortgage loan. Additional interest, measured as a percentage of
     surplus cash (as defined in the participation agreements) and a percentage
     of the proceeds from the sale or refinancing of the development (as defined
     in the participation agreements), will also be due.  During the years ended
     1997, 1996 and 1995, additional interest was recognized in the amount of
     $134,769, $84,947 and $179,701, respectively.  These amounts are included
     in mortgage investment income on the accompanying statements of operations.

(6)  In addition, the servicer or the sub-servicer of the mortgage, primarily
     unaffiliated third parties, is entitled to receive compensation for certain
     services rendered.

(7)  These mortgages are insured under the HUD coinsurance program.  IFI is the
     HUD-approved coinsurance lender and the Partnership bears the risk of any
     coinsurance loss, as previously discussed.

(8)  These amounts represent the Partnership's 55% interest in this mortgage. 
     The remaining 45% interest was acquired by AIM 86, an affiliate of the
     Partnership.

(9)  Represents the principal amount subject to delinquent principal or
     interest.  See Note 4 to the Partnership's financial statements.

(10) A reconciliation of the carrying value of the Partnership's investment in
     Insured Mortgages, for the years ended December 31, 1997 and 1996, is as
     follows: 

<PAGE>52


              AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88

              NOTES TO SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE 

                                DECEMBER 31, 1997

<TABLE>
<CAPTION>

                                                   1997             1996    
                                               ------------     ------------
     <S>                                       <C>              <C>         
     Beginning balance                         $150,036,815     $154,669,316

       Investment in Acquired Insured
          Mortgages and advances on 
          construction loans, including 
         acquisition costs                               --        9,416,014

       Principal receipts on mortgages           (1,952,500)      (1,037,314)

       Proceeds from mortgages assigned
         or sold                                 (7,016,157)      (8,308,830)(a)

       Net (losses) gains on mortgage 
         dispositions                                20,746         (377,900)

       Coinsurance claims due from HUD                   --       (3,161,747)

       Net unrealized (losses) gains on
         investment in FHA-Insured
         Certificates and GNMA Mortgage-
         Backed Securities                        1,801,409       (1,162,724)
                                               ------------     ------------
     Ending balance                            $142,890,313     $150,036,815
                                               ============     ============

(a)  Excludes proceeds received in connection with the settlement of the HUD
coinsurance claim related to Hazeltine Shores.

</TABLE>

(11) The mortgages underlying the Partnership's investments in FHA-Insured
     Certificates, GNMA Mortgage-Backed Securities and FHA-Insured Loans are
     primarily non-recourse first liens on multifamily residential developments
     or retirement homes.

(12) Principal and interest are payable at relatively level amounts over the
     life of the Insured Mortgages.

(13) As of December 31, 1997 and 1996, the tax basis of the Insured Mortgages
     was approximately $144 million and $153 million, respectively.

(14) Annual principal and interest payments for mortgages acquired during 1997
     and 1996 are annualized.<PAGE>