SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 25049

                                   Form 10-KSB
(Mark One)

[X]  ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE  SECURITIES  EXCHANGE ACT OF
     1934


                    For the fiscal year ended December 31, 2003

[ ]  TRANSITION  REPORT UNDER SECTION 13 OR 15(d) OF THE  SECURITIES  EXCHANGE
     ACT OF 1934


                For the transition period from _________to _________

                         Commission file number 0-16684

                         MULTI-BENEFIT REALTY FUND '87-1
                 (Name of small business issuer in its charter)

         California                                               94-3026785
(State or other jurisdiction of                                (I.R.S. Employer
 incorporation or organization)                              Identification No.)

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

                                (864)  239-1000
                          Issuer's  telephone  number,
                               including area code

           Securities registered under Section 12(b) of the Exchange Act:

                                      None

           Securities registered under Section 12(g) of the Exchange Act:

                          Units of Limited Partnership
                                (Title of class)

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 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___

Check if there is no disclosure of delinquent  filers in response to Item 405 of
Regulation S-B contained in this form, and no disclosure  will be contained,  to
the best of the  Partnership's  knowledge  in  definitive  proxy or  information
statements  incorporated  by  reference  in Part III of this Form  10-KSB or any
amendment to this Form [X]

State issuer's revenues for its most recent fiscal year.  $1,429,000

State the aggregate  market value of the voting  partnership  interests  held by
non-affiliates  computed  by  reference  to the price at which  the  partnership
interests  were sold,  or the average bid and asked  prices of such  partnership
interests as of December 31, 2003. No market exists for the limited  partnership
interests of the Registrant,  and,  therefore,  no aggregate market value can be
determined.

                       DOCUMENTS INCORPORATED BY REFERENCE
                                      None



<PAGE>



The matters discussed in this report contain certain forward-looking statements,
including, without limitation, statements regarding future financial performance
and the effect of government  regulations.  Actual results may differ materially
from those described in the forward-looking statements and will be affected by a
variety of risks and factors including,  without limitation:  national and local
economic  conditions;  the terms of  governmental  regulations  that  affect the
Registrant and interpretations of those regulations; the competitive environment
in which the Registrant operates;  financing risks, including the risk that cash
flows from operations may be insufficient to meet required payments of principal
and interest;  real estate risks, including variations of real estate values and
the general  economic  climate in local markets and  competition  for tenants in
such markets;  litigation,  including  costs  associated  with  prosecuting  and
defending  claims  and  any  adverse   outcomes,   and  possible   environmental
liabilities.   Readers  should  carefully  review  the  Registrant's   financial
statements and the notes thereto,  as well as the risk factors  described in the
documents  the  Registrant  files  from  time to time  with the  Securities  and
Exchange Commission.

                                     PART I

Item 1.     Description of Business

Multi-Benefit   Realty  Fund  '87-1  (the  "Partnership"  or  "Registrant")  was
organized on September 8, 1986, as a limited  partnership  under the  California
Revised Limited  Partnership Act. ConCap  Equities,  Inc. ("CEI") is the general
partner of the Partnership (see additional information below). CEI (the "General
Partner")  is a  subsidiary  of  Apartment  Investment  and  Management  Company
("AIMCO"), a publicly traded real estate investment trust.

Commencing December 10, 1986, the Registrant offered, pursuant to a Registration
Statement  filed with the  Securities  and Exchange  Commission,  $60,000,000 of
Units of  Depositary  Receipts  (collectively,  the "Units,"  and  individually,
"Unit").   Upon  the  closing  of  the  offering,   the   Partnership   received
subscriptions for 172,436 Units resulting in gross proceeds of $17,244,000.  The
Units were sold in two  different  classes,  ("A" Units and "B" Units) which are
entitled  to  different  rights  and  priorities  as to cash  distributions  and
Partnership allocations. The Units represent economic rights attributable to the
limited partnership  interests in the Partnership and entitle the holders ("Unit
holders") thereof to participate in certain allocations and distributions of the
Partnership.  The original  intent of the Partnership was that the "A" Units and
"B" Units be allocated  such that the "B" Units would not exceed 25% nor be less
than 20% of the total amount of the Units sold. Upon closing of the offering and
up through the current fiscal year, the "B" Units represented  approximately 44%
of the total amount of the Units sold. Several  alternative  procedures had been
considered  which  would  have  allowed  the  Partnership  to  conform  the unit
allocations  more  closely  to  the  original  intended  investment  objectives;
however,  no economically  feasible  alternatives  were determined to exist. The
corporate limited partner of the Partnership was Multi-Benefit  '87-1 Depositary
Corporation, an affiliate of the General Partner. The Partnership may repurchase
or retire any Units, at its absolute  discretion,  but is under no obligation to
do so.  Since its initial  offering,  1,000 Units have been  retired.  Since its
initial  offering,  the Partnership has not received,  nor are limited  partners
required to make, additional capital contributions.

Upon  the  Partnership's   formation  in  1986,  Consolidated  Capital  Equities
Corporation  ("CCEC"), a Colorado  corporation,  was the sole general partner of
the Partnership and the corporate limited partner, a wholly-owned  subsidiary of
CCEC, was the sole limited partner.  In 1988,  through a series of transactions,
Southmark Corporation  ("Southmark") acquired a controlling interest in CCEC. In
December  1988,  CCEC filed for  reorganization  under  Chapter 11 of the United
States  Bankruptcy  Code. In 1990, as part of CCEC's  reorganization  plan,  CEI
acquired  CCEC's general  partner  interest in the  Partnership  and in 15 other
affiliated public limited partnerships (the "Affiliated Partnerships"), acquired
the stock of the corporate  limited  partner,  and CEI replaced CCEC as managing
general  partner  in all  16  partnerships.  The  selection  of CEI as the  sole
managing  general  partner was approved by a majority of the Unit holders in the
Partnership and of the limited  partners in each of the Affiliated  Partnerships
pursuant to a solicitation of the Unit holders dated August 10, 1990. As part of
this  solicitation,   the  Unit  holders  also  approved  an  amendment  to  the
Partnership Agreement to limit changes of control of the Partnership.

All of CEI's outstanding  stock was owned by Insignia  Properties Trust ("IPT"),
which acquired the stock through two  transactions  in December 1994 and October
1995. Effective February 26, 1999, IPT was merged into AIMCO.

The  Partnership is engaged in the business of operating and holding real estate
properties for investment.  The Partnership  originally acquired three apartment
properties,  one of which was sold prior to the calendar  year 2002.  On October
28, 2003,  the  Partnership  sold another of its investment  properties,  Shadow
Brook  Apartments.  The Partnership  continues to own and operate one investment
property as of December 31, 2003.  See "Item 2.  Description  of Property".  The
Partnership  Agreement provides that the Partnership is to terminate on December
31, 2036, unless terminated prior to such date.

The Partnership  has no employees.  Management and  administrative  services are
provided by the General Partner and agents retained by the General  Partner.  An
affiliate of the General Partner provided such management services for the years
ended December 31, 2003 and 2002.

Risk Factors

The  real  estate  business  in which  the  Partnership  is  engaged  is  highly
competitive.  There are other  residential  properties within the market area of
the Partnership's  property.  The number and quality of competitive  properties,
including  those which may be managed by an affiliate of the General  Partner in
such  market  area,  could  have a  material  effect on the  rental  market  for
apartments at the  Partnership's  property and the rents that may be charged for
such apartments. While the General Partner and its affiliates own and/or control
a  significant  number of  apartment  units in the  United  States,  such  units
represent an  insignificant  percentage of total  apartment  units in the United
States and competition for the apartments is local. In addition, various limited
partnerships have been formed by the General Partner and/or affiliates to engage
in business which may be competitive with the Partnership.

Laws benefiting  disabled persons may result in the Partnership's  incurrence of
unanticipated  expenses.  Under the Americans with  Disabilities Act of 1990, or
ADA,  all places  intended to be used by the public are required to meet certain
Federal  requirements  related to access and use by disabled persons.  Likewise,
the Fair Housing Amendments Act of 1988, or FHAA, requires apartment  properties
first occupied after March 13, 1990 to be accessible to the  handicapped.  These
and other  Federal,  state  and  local  laws may  require  modifications  to the
Partnership's  property, or restrict renovations of the property.  Noncompliance
with these laws could result in the  imposition  of fines or an award of damages
to  private  litigants  and  also  could  result  in an  order  to  correct  any
non-complying  feature,  which could result in substantial capital expenditures.
Although  the  General  Partner  believes  that the  Partnership's  property  is
substantially in compliance with present requirements, the Partnership may incur
unanticipated expenses to comply with the ADA and the FHAA.

Both the income and expenses of operating the property owned by the  Partnership
are subject to factors outside of the Partnership's  control, such as changes in
the supply  and  demand of similar  properties  resulting  from  various  market
conditions, increases/decreases in unemployment or population shifts, changes in
the availability of permanent mortgage funds, changes in zoning laws, or changes
in patterns or needs of users.  In addition,  there are risks inherent in owning
and operating residential  properties because such properties are susceptible to
the  impact of  economic  and other  conditions  outside  of the  control of the
Partnership.

There have been, and it is possible there may be other, Federal, state and local
legislation  and  regulations   enacted   relating  to  the  protection  of  the
environment.  The Partnership is unable to predict the extent,  if any, to which
such new  legislation  or  regulations  might occur and the degree to which such
existing or new legislation or regulations  might adversely  affect the property
owned by the Partnership.

The  Partnership  monitors its property for evidence of  pollutants,  toxins and
other dangerous substances, including the presence of asbestos. In certain cases
environmental  testing has been performed which resulted in no material  adverse
conditions or liabilities.  In no case has the Partnership  received notice that
it is a potentially  responsible party with respect to an environmental clean up
site.

A further  description  of the  Partnership's  business  is included in "Item 6.
Management's Discussion and Analysis or Plan of Operation" of this Form 10-KSB.

Item 2.     Description of Property

The following table sets forth the Partnership's investment in property:

                                   Date of
Property                           Purchase      Type of Ownership        Use

Hunt Club Apartments                 05/87   Fee ownership subject to  Apartment
  Indianapolis, Indiana                      first mortgage (1)        200 units

(1)   The  property is held by a limited  partnership  in which the  Partnership
      owns a 99% interest.

Sale of Property

On October  28,  2003,  the  Partnership  sold  Shadow  Brook  Apartments  to an
unrelated  third party for a gross sale price of  $14,750,000.  The net proceeds
realized by the  Partnership  were  approximately  $6,303,000  after  payment of
closing  costs and  assumption  of the  mortgage by the buyer.  The  Partnership
recognized  a gain of  approximately  $9,640,000  as a result  of the  sale.  In
addition,  the  Partnership  recognized  a loss  on  extinguishment  of  debt of
approximately $251,000 as a result of unamortized loan costs being written off.

Schedule of Property

Set forth  below for the  Partnership's  property is the gross  carrying  value,
accumulated depreciation,  depreciable life, method of depreciation, and Federal
tax basis.
<TABLE>
<CAPTION>

                             Gross
                            Carrying   Accumulated                        Federal
Property                     Value    Depreciation    Rate    Method     Tax Basis
                                (in thousands)                         (in thousands)

<S>                         <C>          <C>          <C>                 <C>
Hunt Club Apartments        $ 8,022      $ 5,630      5-30     S/L        $ 3,377
</TABLE>

See "Note A - Organization  and Summary of Significant  Accounting  Policies" of
the consolidated financial statements included in "Item 7. Financial Statements"
for a description of the Partnership's capitalization and depreciation policies.

Schedule of Property Indebtedness

The  following  table  sets  forth  certain  information  relating  to the  loan
encumbering the Partnership's property.
<TABLE>
<CAPTION>

                       Principal                                         Principal
                       Balance At      Stated                             Balance
                      December 31,    Interest    Period    Maturity       Due At
Property                  2003          Rate     Amortized    Date      Maturity (1)
                     (in thousands)                                    (in thousands)
Hunt Club
<S>                     <C>            <C>       <C>          <C>           <C>
  1st mortgage          $ 3,608        8.05%     20 years     09/20         $ --
</TABLE>

(1)   See  "Note  B -  Mortgage  Note  Payable"  to the  consolidated  financial
      statements included in "Item 7. Financial Statements" for information with
      respect to the Partnership's ability to prepay the loan and other specific
      details about the loan.

Schedule of Rental Rates and Occupancy

Average annual rental rates and occupancy for 2003 and 2002 for the property are
as follows:

                                   Average Annual               Average Annual
                                    Rental Rates                  Occupancy
                                   (per unit)
Property                         2003           2002          2003          2002

Hunt Club Apartments            $7,574         $7,876          92%          93%

The General  Partner  attributes  the  decrease in average  rental  rates to the
competitive  market and weak economy in the  Indianapolis  area. Lower rents are
being offered in an effort to retain tenants.

As noted under "Item 1.  Description of Business",  the real estate  industry is
highly   competitive.   The  property  is  subject  to  competition  from  other
residential  apartment  complexes in the area. The General Partner believes that
the property is adequately  insured.  The property is an apartment complex which
leases units for terms of one year or less. No residential  tenant leases 10% or
more of the available rental space. The property is in good physical  condition,
subject to normal  depreciation  and  deterioration  as is typical for assets of
this type and age.

Schedule of Real Estate Taxes and Rate

Real estate taxes and rate in 2003 for the property were as follows:

                                                2003            2003
                                                Taxes           Rate
                                           (in thousands)

       Hunt Club Apartments                     $158            2.36%

During 2003,  the state of Indiana  implemented a  reassessment  of property tax
values. The Partnership is currently appealing the reassessed property tax value
of Hunt Club Apartments. In the state of Indiana property tax bills are paid one
year in arrears.  Thus,  the 2002  property  tax bills are  received and paid in
2003. Due to the  Partnership's  appeal of the reassessed  property  value,  the
property  tax  accrual  for 2003  and,  in  certain  situations,  the  remaining
liability  for the 2002 property tax bills is based on the property tax value as
estimated  by a third party  property  tax  specialist.  The 2003  property  tax
expense  based on this  estimate and  recorded in the  financial  statements  is
approximately  $158,000.  If the Partnership is  unsuccessful in its appeal,  it
could  potentially  be liable  for up to  approximately  $65,000  of  additional
property taxes. The Partnership believes that the recorded liability is the best
estimate of the amounts to be paid for Indiana property taxes.

Capital Improvements

Hunt Club

During the year ended December 31, 2003, the Partnership completed approximately
$85,000 of capital improvements at Hunt Club Apartments  consisting primarily of
floor  covering and  appliance  replacements  and water heater  upgrades.  These
improvements were funded from Partnership  reserves and operating cash flow. The
Partnership  is  currently  evaluating  the  capital  improvement  needs  of the
property for the upcoming  year and  currently  expects to budget  approximately
$110,000.  Additional improvements may be considered during 2004 and will depend
on the physical  condition of the property as well as  Partnership  reserves and
anticipated cash flow generated by the property.

Shadow Brook

During the year ended December 31, 2003, the Partnership completed approximately
$95,000 of capital expenditures at Shadow Brook Apartments  consisting primarily
of water heater and furniture and fixture upgrades, appliance and floor covering
replacements and air conditioning  improvements.  These improvements were funded
by operating cash flow. Shadow Brook Apartments was sold on October 28, 2003.

Item 3.     Legal Proceedings

In March 1998, several putative unit holders of limited partnership units of the
Partnership  commenced an action  entitled  Rosalie  Nuanes,  et al. v. Insignia
Financial Group, Inc., et al. (the "Nuanes action") in the Superior Court of the
State of  California  for the  County  of San  Mateo.  The  plaintiffs  named as
defendants,  among others,  the Partnership,  its General Partner and several of
their affiliated  partnerships and corporate  entities.  The action purported to
assert  claims on behalf of a class of  limited  partners  and  derivatively  on
behalf of a number of limited partnerships  (including the Partnership) that are
named as nominal defendants, challenging, among other things, the acquisition of
interests in certain General Partner entities by Insignia  Financial Group, Inc.
("Insignia") and entities that were, at one time,  affiliates of Insignia;  past
tender offers by the Insignia  affiliates to acquire limited  partnership units;
management of the  partnerships  by the Insignia  affiliates;  and the series of
transactions  which  closed on October 1, 1998 and  February  26,  1999  whereby
Insignia and Insignia  Properties Trust,  respectively,  were merged into AIMCO.
The plaintiffs sought monetary damages and equitable relief,  including judicial
dissolution of the Partnership. In addition, during the third quarter of 2001, a
complaint (the "Heller  action") was filed against the same  defendants that are
named in the Nuanes action,  captioned Heller v. Insignia Financial Group. On or
about August 6, 2001,  plaintiffs  filed a first amended  complaint.  The Heller
action was brought as a purported  derivative  action,  and asserted claims for,
among other things,  breach of fiduciary duty, unfair  competition,  conversion,
unjust enrichment, and judicial dissolution.

On January 8, 2003,  the parties filed a  Stipulation  of Settlement in proposed
settlement of the Nuanes action and the Heller action.

In general  terms,  the  proposed  settlement  provides  for  certification  for
settlement  purposes of a settlement class consisting of all limited partners in
this  Partnership and others (the  "Partnerships")  as of December 20, 2002, the
dismissal  with  prejudice  and  release  of claims  in the  Nuanes  and  Heller
litigation,  payment by AIMCO of $9.9  million  (which shall be  distributed  to
settlement  class  members  after  deduction of attorney fees and costs of class
counsel and certain costs of settlement) and up to $1 million toward the cost of
independent  appraisals of the  Partnerships'  properties  by a Court  appointed
appraiser.  An affiliate of the General Partner has also agreed to make at least
one round of tender offers to purchase all of the  partnership  interests in the
Partnerships within one year of final approval, if it is granted, and to provide
partners  with the  independent  appraisals  at the time of these  tenders.  The
proposed  settlement  also provided for the  limitation  of the allowable  costs
which the General  Partner or its  affiliates  will charge the  Partnerships  in
connection with this litigation and imposes limits on the class counsel fees and
costs in this litigation.  On April 11, 2003,  notice was distributed to limited
partners providing the details of the proposed settlement.

On June 13, 2003, the Court granted final approval of the settlement and entered
judgment in both the Nuanes and Heller actions.  On August 12, 2003, an objector
("Objector")  filed an  appeal  seeking  to  vacate  and/or  reverse  the  order
approving the settlement and entering  judgment  thereto.  On November 24, 2003,
the Objector filed an  application  requesting the Court order AIMCO to withdraw
settlement  tender offers it had  commenced,  refrain from making further offers
pending the appeal and auction any units tendered to third  parties,  contending
that the offers did not conform  with the terms of the  Settlement.  Counsel for
the Objector (on behalf of another  investor)  had  alternatively  requested the
Court take certain  action  purportedly  to enforce the terms of the  settlement
agreement.  On December 18, 2003,  the Court heard oral  argument on the motions
and denied them both in their entirety.  On January 28, 2004, Objector filed his
opening brief in his pending appeal. The General Partner is currently  scheduled
to file a brief in  support  of the  order  approving  settlement  and  entering
judgment thereto by April 23, 2004.

On August 8, 2003 AIMCO  Properties  L.P., an affiliate of the General  Partner,
was served with a Complaint in the United  States  District  Court,  District of
Columbia alleging that AIMCO Properties L.P.  willfully  violated the Fair Labor
Standards  Act (FLSA) by failing to pay  maintenance  workers  overtime  for all
hours  worked  in  excess  of forty  per  week.  The  Complaint  is  styled as a
Collective  Action  under  the FLSA and seeks to  certify  state  subclasses  in
California, Maryland, and the District of Columbia. Specifically, the plaintiffs
contend that AIMCO Properties L.P. failed to compensate  maintenance workers for
time  that they were  required  to be  "on-call".  Additionally,  the  Complaint
alleges AIMCO  Properties  L.P.  failed to comply with the FLSA in  compensating
maintenance  workers  for time that they  worked in  responding  to a call while
"on-call".  The  Complaint  also  attempts  to certify a subclass  for  salaried
service  directors who are challenging  their  classification as exempt from the
overtime  provisions of the FLSA.  AIMCO  Properties L.P. has filed an answer to
the  Complaint  denying the  substantive  allegations.  Discovery  is  currently
underway.

The  General  Partner  does not  anticipate  that any costs to the  Partnership,
whether legal or settlement costs,  associated with these cases will be material
to the Partnership's overall operations.

Item 4.     Submission of Matters to a Vote of Security Holders

During the quarter ended  December 31, 2003, no matters were submitted to a vote
of the Unit holders through the solicitation of proxies or otherwise.

                                     PART II

 Item 5. Market for the Partnership's Units of Depository Receipts and Related
                             Security Holder Matters

No  established  public trading market has developed for the Units of Depository
Receipts  ("Units") and it is not anticipated that such a market will develop in
the future.

      Title of Class:                     Number of Record Unit holders:

      Units of Depositary Receipts
               A Units                    365 as of December 31, 2003
               B Units                    510 as of December 31, 2003

The  Partnership  offered and sold  172,436 "A" and "B" Units.  At December  31,
2003,  the  Partnership  had 96,284 "A" Units and 75,152 "B" Units  outstanding.
Affiliates of the General  Partner held 63,163 "A" Units (65.60%) and 40,001 "B"
Units (53.23%) at December 31, 2003.

The following table sets forth the distributions made by the Partnership for the
years ended December 31, 2002 and 2003.
<TABLE>
<CAPTION>

                                                  Distributions
                                                   Per Limited         Per Limited
                                Aggregate        Partnership "A"     Partnership "B"

<S> <C>   <C>  <C>   <C>      <C>       <C>           <C>                 <C>
    01/01/02 - 12/31/02       $ 692,000 (1)           $ 7.11              $ 0.00
    01/01/03 - 12/31/03        6,223,000 (2)           54.07               13.07
</TABLE>

(1)   Consists of $692,000 of cash from operations.

(2)   Consists of $339,000 from  operations and $5,884,000 of cash from the sale
      proceeds of Shadow Brook Apartments (see "Item 6" for further details).

Upon distribution of sale proceeds from the sale of Carlin Manor during the year
ended  December  31,  2000,  the "A" Unit  holders  did not  receive the correct
priority  return.  As a result,  at December 31, 2002,  the "B" Unit holders had
received excess distributions of approximately $1,328,000  (approximately $17.67
per "B" Unit).  Approximately  $1,303,000 of this amount was due to the "A" Unit
holders (approximately $13.53 per "A" Unit) and approximately $25,000 was due to
the General Partner.

All future distributions  payable to the "B" Unit holders were to be paid to the
"A" Unit  holders  until the "A" Unit  holders  received  the  correct  priority
return.  During the year ended  December  31,  2002,  the "B" unit  holders were
entitled  to  approximately  $95,000  (approximately  $1.26  per  "B"  Unit  and
approximately $0.99 per "A" Unit) in distributions.  This amount was paid to the
"A" unit holders to reduce the  overpayment.  During the year ended December 31,
2003, the Partnership distributed approximately $5,884,000 of sale proceeds from
the sale of Shadow  Brook  Apartments  (see "Item 6" for  further  details)  and
approximately $339,000 from operations.  Due to the prior overpayment to the "B"
unit holders,  the "A" unit holders  received  approximately  $1,303,000 and the
General  Partner  received  approximately  $25,000 of funds that otherwise would
have been paid to the "B" unit holders during 2003.

Future cash  distributions  will depend on the levels of net cash generated from
operations,  the  availability  of cash  reserves,  and the  timing  of the debt
maturity,  refinancing,  and/or property sale. The Partnership's  cash available
for  distribution  is reviewed on a monthly  basis.  There can be no  assurance,
however,  that the Partnership  will generate  sufficient  funds from operations
after required capital  expenditures to permit  distributions to its partners in
2004 or  subsequent  periods.  See "Item 2.  Description  of  Properties-Capital
Improvements" for information  relating to anticipated  capital  expenditures at
the property.

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership,  AIMCO and its affiliates  owned 63,163 "A" and 40,001 "B" Units of
Depository Receipts ("Units") in the Partnership  representing 65.60% and 53.23%
of the  outstanding  "A" and "B" Units,  respectively,  at December  31, 2003. A
number of these units were  acquired  pursuant to tender offers made by AIMCO or
its  affiliates.  It is  possible  that  AIMCO or its  affiliates  will  acquire
additional  Units in  exchange  for cash or a  combination  of cash and units in
AIMCO  Properties,  L.P.,  the operating  partnership  of AIMCO,  either through
private  purchases  or tender  offers.  Pursuant to the  Partnership  Agreement,
unitholders  holding a majority  of the Units are  entitled  to take action with
respect to a variety of matters that include,  but are not limited to, voting on
certain amendments to the Partnership Agreement and voting to remove the General
Partner.  As a result of its  ownership of 65.60% and 53.23% of the  outstanding
"A" and "B" Units,  respectively,  AIMCO and its affiliates are in a position to
control all such voting decisions with respect to the Partnership.  Although the
General  Partner  owes  fiduciary   duties  to  the  limited   partners  of  the
Partnership, the General Partner also owes fiduciary duties to AIMCO as its sole
stockholder. As a result, the duties of the General Partner, as general partner,
to the  Partnership  and its limited  partners may come into  conflict  with the
duties of the General Partner to AIMCO, as its sole stockholder.

Item 6.     Management's Discussion and Analysis or Plan of Operation

This item should be read in conjunction with the financial  statements and other
items contained elsewhere in this report.

Results of Operations

The  Partnership's  net  income  for  the  year  ended  December  31,  2003  was
approximately $9,096,000, as compared to net income of approximately $82,000 for
the year ended  December  31,  2002.  The  increase  in net income is due to the
recognition of a gain from sale of  discontinued  operations in 2003,  partially
offset by increases in losses from both continuing and discontinued operations.

Effective  January 1, 2002,  the  Partnership  adopted  Statement  of  Financial
Accounting  Standards  No. 144,  "Accounting  for the  Impairment or Disposal of
Long-Lived Assets", which established standards for the way that public business
enterprises  report  information  about long-lived  assets that are either being
held for sale or have  already  been  disposed  of. SFAS No. 144  requires  that
long-lived  assets  held  for  sale or  already  disposed  of be  reported  as a
discontinued  operation  on  the  statement  of  operations.  As a  result,  the
accompanying  consolidated  statement of operations  for the year ended December
31, 2002 has been  restated as of January 1, 2002 to reflect the  operations  of
Shadow  Brook  Apartments  as (loss)  income from  discontinued  operations.  On
October 28, 2003, the Partnership  sold Shadow Brook  Apartments to an unrelated
third party, for a gross sale price of $14,750,000. The net proceeds realized by
the Partnership were approximately $6,303,000 after payment of closing costs and
assumption  of the  mortgage by the buyer.  The  Partnership  realized a gain of
approximately  $9,640,000 as a result of the sale which is shown as gain on sale
of discontinued  operations.  In addition,  the  Partnership  recorded a loss on
early  extinguishment of debt of approximately  $251,000 due to the write-off of
unamortized loan costs,  which is included in loss from discontinued  operations
in the accompanying  consolidated  statements of operations.  The results of the
property's operations for the year ended December 31, 2003 and 2002 are included
in loss from  discontinued  operations of approximately  $91,000 and income from
discontinued  operations  of  approximately  $365,000,  respectively,  including
revenues of approximately $1,757,000 and $2,248,000, respectively.

The  Partnership's  net loss  from  continuing  operations  for the  year  ended
December  31, 2003 was  approximately  $453,000,  as compared to a net loss from
continuing operations of approximately  $283,000 for the year ended December 31,
2002.  The increase in loss from  continuing  operations is due to a decrease in
total revenues and an increase in total expenses. The decrease in total revenues
is due to a decrease in rental income,  partially offset by an increase in other
income. Rental income decreased primarily due to a slight decrease in occupancy,
a decrease in average  rental  rates and an increase in bad debt expense at Hunt
Club Apartments.  Other income  increased  primarily due to an increase in lease
cancellation  fees and late  charges  partially  offset by a decrease in laundry
income at Hunt Club Apartments.

Total  expenses  increased  due  primarily to an increase in operating  expenses
partially  offset by  decreases  in  interest,  general and  administrative  and
property tax expenses. Depreciation expense remained relatively constant for the
comparable  periods.  Operating expenses increased primarily due to increases in
utilities  and  contract  cleaning and repairs as a result of water leaks at the
property  and a harsher  winter  partially  offset  by a  decrease  in  employee
expenses at Hunt Club Apartments.  Interest expense decreased due to the payment
of scheduled  principal  payments on the mortgage  encumbering the Partnership's
investment  property  which reduced the average  outstanding  balance during the
period.  Property tax expense decreased due to the  Partnership's  appeal of the
reassessed value of Hunt Club Apartments by the taxing authorities. During 2003,
the state of Indiana  implemented  a  reassessment  of property tax values.  The
Partnership  is currently  appealing the  reassessed  property tax value of Hunt
Club Apartments. In the state of Indiana property tax bills are paid one year in
arrears. Thus, the 2002 property tax bills are received and paid in 2003. Due to
the  Partnership's  appeal of the reassessed  property  value,  the property tax
accrual for 2003 and, in certain  situations,  the  remaining  liability for the
2002  property  tax bills is based on the  property  tax value as estimated by a
third party property tax specialist. The 2003 property tax expense based on this
estimate and recorded in the financial statements is approximately  $158,000. If
the Partnership is unsuccessful  in its appeal,  it could  potentially be liable
for up to  approximately  $65,000 of additional  property taxes. The Partnership
believes  that the recorded  liability is the best estimate of the amounts to be
paid for Indiana property taxes.

General and administrative expense decreased due to the decrease in professional
expenses associated with the management of the Partnership.  Included in general
and  administrative  expenses  are  management  reimbursements  to the  Managing
General Partner as allowed under the  Partnership  Agreement and management fees
paid to the Managing General Partner in connection with  distributions made from
operations. Also included are costs associated with the quarterly communications
with  investors  and  regulatory  agencies and the annual audit  required by the
Partnership Agreement.

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

Liquidity and Capital Resources

At  December  31,  2003,  the  Partnership  had  cash and  cash  equivalents  of
approximately  $303,000 as compared to  approximately  $219,000 at December  31,
2002. Cash and cash equivalents  increased  approximately  $84,000 from December
31,  2002 due to  approximately  $6,123,000  and  $469,000  of cash  provided by
investing  and  operating   activities,   respectively,   partially   offset  by
approximately $6,508,000 of cash used in financing activities.  Cash provided by
investing  activities consisted of net proceeds received from the sale of Shadow
Brook  Apartments  slightly offset by the purchase of property  improvements and
replacements.  Cash used in financing  activities  consisted of distributions to
partners  and  principal   payments  made  on  the  mortgages   encumbering  the
Partnership's  properties.  The Partnership invests its working capital reserves
in interest bearing accounts.

The sufficiency of existing  liquid assets to meet future  liquidity and capital
expenditure   requirements   is  directly   related  to  the  level  of  capital
expenditures required at the property to adequately maintain the physical assets
and other operating needs of the Partnership and to comply with Federal,  state,
and local  legal and  regulatory  requirements.  The  General  Partner  monitors
developments in the area of legal and regulatory  compliance and is studying new
federal laws,  including the  Sarbanes-Oxley Act of 2002. The Sarbanes-Oxley Act
of 2002  mandates  or suggests  additional  compliance  measures  with regard to
governance,  disclosure,  audit and other areas. In light of these changes,  the
Partnership  expects that it will incur higher  expenses  related to compliance,
including   increased  legal  and  audit  fees.  The  Partnership  is  currently
evaluating the capital  improvement  needs of its property for the upcoming year
and currently expects to budget approximately $110,000.  Additional improvements
may be considered  and will depend on the physical  condition of the property as
well as the  anticipated  cash flow  generated by the property.  The  additional
capital  expenditures will be incurred only if cash is available from operations
or  from  Partnership  reserves.  To  the  extent  that  such  budgeted  capital
improvements are completed,  the Partnership's  distributable cash flow, if any,
may be adversely affected at least in the short term.

The  Partnership's  assets are thought to be sufficient for any near-term  needs
(exclusive  of  capital   improvements)   of  the   Partnership.   The  mortgage
indebtedness of approximately  $3,608,000 is amortized over 20 years and matures
September 1, 2020 at which time the loan is scheduled to be fully amortized.

The following table sets forth the distributions made by the Partnership for the
years ended December 31, 2002 and 2003.
<TABLE>
<CAPTION>

                                                  Distributions
                                                   Per Limited         Per Limited
                                Aggregate        Partnership "A"     Partnership "B"

<S> <C>   <C>  <C>   <C>      <C>       <C>           <C>                 <C>
    01/01/02 - 12/31/02       $ 692,000 (1)           $ 7.11              $ 0.00
    01/01/03 - 12/31/03        6,223,000 (2)           54.07               13.07
</TABLE>

(1)   Consists of $692,000 of cash from operations.

(2)   Consists of $339,000  from  operations  and  $5,884,000  of cash from the
      sale proceeds of Shadow Brook Apartments.

Upon distribution of sale proceeds from the sale of Carlin Manor during the year
ended  December  31,  2000,  the "A" Unit  holders  did not  receive the correct
priority  return.  As a result,  at December 31, 2002,  the "B" Unit holders had
received excess distributions of approximately $1,328,000  (approximately $17.67
per "B" Unit).  Approximately  $1,303,000 of this amount was due to the "A" Unit
holders (approximately $13.53 per "A" Unit) and approximately $25,000 was due to
the General Partner.

All future distributions  payable to the "B" Unit holders were to be paid to the
"A" Unit  holders  until the "A" Unit  holders  received  the  correct  priority
return.  During the year ended  December  31,  2002,  the "B" unit  holders were
entitled  to  approximately  $95,000  (approximately  $1.26  per  "B"  Unit  and
approximately $0.99 per "A" Unit) in distributions.  This amount was paid to the
"A" unit holders to reduce the  overpayment.  During the year ended December 31,
2003, the Partnership distributed approximately $5,884,000 of sale proceeds from
the sale of Shadow Brook Apartments and approximately  $339,000 from operations.
Due to the prior overpayment to "B" unit holders,  the "A" unit holders received
approximately  $1,303,000 and the General Partner received approximately $25,000
of funds  that  otherwise  would have been paid to the "B" unit  holders  during
2003.

Future cash  distributions  will depend on the levels of net cash generated from
operations,  the  availability  of cash  reserves,  and the  timing  of the debt
maturity,  refinancing,  and/or property sale. The Partnership's  cash available
for  distribution  is reviewed on a monthly  basis.  There can be no  assurance,
however,  that the Partnership  will generate  sufficient  funds from operations
after required capital  expenditures to permit  distributions to its partners in
2004 or subsequent periods.

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership,  AIMCO and its affiliates  owned 63,163 "A" and 40,001 "B" Units of
Depository Receipts ("Units") in the Partnership  representing 65.60% and 53.23%
of the  outstanding  "A" and "B" Units,  respectively,  at December  31, 2003. A
number of these units were  acquired  pursuant to tender offers made by AIMCO or
its  affiliates.  It is  possible  that  AIMCO or its  affiliates  will  acquire
additional  Units in  exchange  for cash or a  combination  of cash and units in
AIMCO  Properties,  L.P.,  the operating  partnership  of AIMCO,  either through
private  purchases  or tender  offers.  Pursuant to the  Partnership  Agreement,
unitholders  holding a majority  of the Units are  entitled  to take action with
respect to a variety of matters that include,  but are not limited to, voting on
certain amendments to the Partnership Agreement and voting to remove the General
Partner.  As a result of its  ownership of 65.60% and 53.23% of the  outstanding
"A" and "B" Units,  respectively,  AIMCO and its affiliates are in a position to
control all such voting decisions with respect to the Partnership.  Although the
General  Partner  owes  fiduciary   duties  to  the  limited   partners  of  the
Partnership, the General Partner also owes fiduciary duties to AIMCO as its sole
stockholder. As a result, the duties of the General Partner, as general partner,
to the  Partnership  and its limited  partners may come into  conflict  with the
duties of the General Partner to AIMCO, as its sole stockholder.

Critical Accounting Policies and Estimates

A summary of the Partnership's  significant  accounting  policies is included in
"Note A - Organization and Significant Accounting Policies" which is included in
the consolidated  financial  statements in "Item 7. Financial  Statements".  The
General  Partner  believes that the  consistent  application  of these  policies
enables the  Partnership  to provide  readers of the financial  statements  with
useful and reliable  information about the  Partnership's  operating results and
financial  condition.  The preparation of consolidated  financial  statements in
conformity with accounting  principles  generally  accepted in the United States
requires the Partnership to make estimates and assumptions.  These estimates and
assumptions affect the reported amounts of assets and liabilities at the date of
the financial  statements  as well as reported  amounts of revenues and expenses
during the reporting  period.  Actual results could differ from these estimates.
Judgments  and  assessments  of  uncertainties  are  required  in  applying  the
Partnership's  accounting policies in many areas. The Partnership  believes that
of its  significant  accounting  policies,  the  following  may involve a higher
degree of judgment and complexity.

Impairment of Long-Lived Assets

Investment property is recorded at cost, less accumulated  depreciation,  unless
considered  impaired.  If events or  circumstances  indicate  that the  carrying
amount of a property may be impaired, the Partnership will make an assessment of
its recoverability by estimating the undiscounted  future cash flows,  excluding
interest charges, of the property.  If the carrying amount exceeds the aggregate
future cash flows,  the  Partnership  would  recognize an impairment loss to the
extent the carrying amount exceeds the fair value of the property.

Real  property  investments  are  subject  to varying  degrees of risk.  Several
factors  may  adversely  affect  the  economic  performance  and  value  of  the
Partnership's  investment  property.  These factors include, but are not limited
to,  changes  in the  national,  regional  and  local  economic  climate;  local
conditions,  such as an oversupply of multifamily  properties;  competition from
other available  multifamily property owners and changes in market rental rates.
Any  adverse  changes  in  these  factors  could  cause  an  impairment  in  the
Partnership's asset.

Revenue Recognition

The Partnership generally leases apartment units for twelve-month terms or less.
Rental income  attributable to leases is recognized monthly as it is earned. The
Partnership  evaluates all accounts receivable from residents and establishes an
allowance, after the application of security deposits, for accounts greater than
30 days past due on current tenants and all receivables due from former tenants.
The Partnership will offer rental concessions during particularly slow months or
in response to heavy  competition from other similar  complexes in the area. Any
concessions  given at the inception of the lease are amortized  over the life of
the lease.


<PAGE>


Item 7.     Financial Statements

                        MULTI-BENEFIT REALTY FUND '87-1

LIST OF CONSOLIDATED FINANCIAL STATEMENTS

      Report of Ernst & Young LLP, Independent Auditors

      Consolidated Balance Sheet - December 31, 2003

      Consolidated Statements of Operations - Years ended December 31, 2003 and
      2002

      Consolidated  Statements  of Changes in Partners'  (Deficiency)  Capital -
      Years ended December 31, 2003 and 2002

      Consolidated  Statements of Cash Flows - Years ended December 31, 2003 and
      2002

      Notes to Consolidated Financial Statements


<PAGE>


                 Report of Ernst & Young LLP, Independent Auditors



The Partners
Multi-Benefit Realty Fund '87-1


We have audited the  accompanying  consolidated  balance sheet of  Multi-Benefit
Realty  Fund  '87-1  as of  December  31,  2003,  and the  related  consolidated
statements of operations,  changes in partners'  (deficiency)  capital, and cash
flows for each of the two years in the period ended  December  31,  2003.  These
financial statements are the responsibility of the Partnership's management. Our
responsibility  is to express an opinion on these financial  statements based on
our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States. 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 the  Partnership's  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  consolidated  financial  position of Multi-Benefit
Realty Fund '87-1 at December  31,  2003,  and the  consolidated  results of its
operations  and its cash  flows  for each of the two years in the  period  ended
December 31, 2003, in conformity with accounting  principles  generally accepted
in the United States.


                                                            /s/ERNST & YOUNG LLP


Greenville, South Carolina
March 16, 2004


<PAGE>





                         MULTI-BENEFIT REALTY FUND '87-1

                           CONSOLIDATED BALANCE SHEET
                        (in thousands, except unit data)

                                December 31, 2003

<TABLE>
<CAPTION>


Assets
<S>                                                                          <C>
   Cash and cash equivalents                                                 $ 303
   Receivables and deposits                                                       63
   Other assets                                                                  148
   Investment property (Notes B and E):
      Land                                                     $ 485
      Buildings and related personal property                    7,537
                                                                 8,022
      Less accumulated depreciation                             (5,630)        2,392
                                                                            $ 2,906

Liabilities and Partners' (Deficiency) Capital
Liabilities
   Accounts payable                                                           $ 40
   Tenant security deposit liabilities                                            42
   Accrued property taxes (Note G)                                               158
   Other liabilities                                                             178
   Mortgage note payable (Note B)                                              3,608

Partners' (Deficiency) Capital
   General Partner                                             $ (75)
   Limited Partner "A" Unit holders -
      96,284 units issued and outstanding                       (8,182)
   Limited Partner "B" Unit holders -
      75,152 units issued and outstanding                        7,137        (1,120)
                                                                            $ 2,906

           See Accompanying Notes to Consolidated Financial Statements

</TABLE>

<PAGE>

                         MULTI-BENEFIT REALTY FUND '87-1

                      CONSOLIDATED STATEMENTS OF OPERATIONS

                      (in thousands, except per unit data)
<TABLE>
<CAPTION>

                                                          Years Ended December 31,
                                                            2003            2002
                                                                         (Restated)
Revenues:
<S>                                                        <C>            <C>
  Rental income                                            $ 1,223        $ 1,337
  Other income                                                 206            195
      Total revenues                                         1,429          1,532

Expenses:
  Operating                                                    833            712
  General and administrative                                   212            224
  Depreciation                                                 387            390
  Interest                                                     306            319
  Property taxes                                               144            170
      Total expenses                                         1,882          1,815

Loss from continuing operations                               (453)          (283)
(Loss) income from discontinued operations                     (91)           365
Gain on sale of discontinued operations                      9,640             --

Net income                                                 $ 9,096          $ 82

Net income allocated to general partner (1%)                $ 91            $ 1
Net income allocated to limited partners (99%)               9,005             81

                                                           $ 9,096          $ 82
Per limited partnership unit:
  Loss from continuing operations                          $ (2.62)       $ (1.64)
  (Loss) income from discontinued operations                 (0.52)          2.11
  Gain on sale of discontinued operations                    55.67             --

Net income per limited partnership unit                    $ 52.53         $ 0.47

Distributions per limited partnership "A" units            $ 54.07         $ 7.11

Distributions per limited partnership "B" units            $ 13.07          $ --

           See Accompanying Notes to Consolidated Financial Statements

</TABLE>

<PAGE>

                         MULTI-BENEFIT REALTY FUND '87-1

        CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' (DEFICIENCY) CAPITAL
                        (in thousands, except unit data)

<TABLE>
<CAPTION>

                                                                               Total
                                                                             Partners'
                                        General       Limited Partners     (Deficiency)
                                        Partner    "A" Units    "B" Units     Capital

<S>                                       <C>       <C>          <C>         <C>
Original capital contributions            $ 1       $ 9,706      $ 7,538     $ 17,245

Limited partnership units at
  December 31, 2003 and
  December 31, 2002                         --       96,284       75,152      171,436

Partners' (deficiency) capital at
  December 31, 2001                     $ (125)     $(7,393)     $ 4,135     $ (3,383)

Distributions to partners                   (7)        (685)          --         (692)

Net income for the year ended
  December 31, 2002                          1           45           36           82

Partners' (deficiency) capital at
  December 31, 2002                       (131)      (8,033)       4,171       (3,993)

Distributions to partners                  (35)      (5,206)        (982)      (6,223)

Net income for the year ended
  December 31, 2003                         91        5,057        3,948        9,096

Partners' (deficiency) capital at
  December 31, 2003                      $ (75)     $(8,182)     $ 7,137     $ (1,120)


           See Accompanying Notes to Consolidated Financial Statements

</TABLE>

<PAGE>

                         MULTI-BENEFIT REALTY FUND '87-1

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (in thousands)
<TABLE>
<CAPTION>


                                                                Years Ended December 31,
                                                                    2003         2002
Cash flows from operating activities:
<S>                                                                <C>           <C>
  Net income                                                       $ 9,096       $ 82
  Adjustments to reconcile net income to net cash provided
   by operating activities:
     Depreciation                                                      770          848
     Amortization of loan costs                                         24           27
     Bad debt                                                          169           --
     Gain on sale of investment property                            (9,640)          --
     Loss on early extinguishment of debt                              251           --
     Change in accounts:
      Receivables and deposits                                         (49)          (8)
      Other assets                                                      (2)           8
      Accounts payable                                                 (82)         (51)
      Tenant security deposit liabilities                              (21)          13
      Accrued property taxes                                            (4)           9
      Other liabilities                                                (43)           1
          Net cash provided by operating activities                    469          929

Cash flows from investing activities:
  Property improvements and replacements                              (180)        (172)
  Net proceeds from sale of investment property                      6,303          112
          Net cash provided by (used in) investing activities        6,123          (60)

Cash flows from financing activities:
  Payments on mortgage notes payable                                  (285)        (300)
  Distributions to partners                                         (6,223)        (692)
          Net cash used in financing activities                     (6,508)        (992)

Net increase (decrease) in cash and cash equivalents                    84         (123)
Cash and cash equivalents at beginning of year                         219          342
Cash and cash equivalents at end of year                            $ 303        $ 219

Supplemental disclosure of cash flow information:
  Cash paid for interest                                            $ 838        $ 915

Supplemental disclosure of non-cash activity:
Net proceeds  from sale of  investment  property and  repayment of mortgage note
payable have been reduced by  approximately  $8,328,000 due to the assumption of
the  mortgage  note  payable by the buyer  related  to the sale of Shadow  Brook
Apartments.


           See Accompanying Notes to Consolidated Financial Statements

</TABLE>

<PAGE>

                         MULTI-BENEFIT REALTY FUND '87-1

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                December 31, 2003


Note A - Organization and Summary of Significant Accounting Policies

Organization

Multi-Benefit   Realty  Fund  '87-1  (the  "Partnership"  or  "Registrant")  was
organized  as a limited  partnership  under the laws of the State of  California
pursuant to a Certificate and Agreement of Limited  Partnership  filed September
8, 1986.  The  Partnership  commenced  operations  on  February  27,  1987.  The
Partnership  operated two apartment properties during 2002 and 2003, one located
in Indiana and one located in Utah,  which was sold  October  28,  2003.  ConCap
Equities,  Inc.  ("CEI" or the "General  Partner") is a subsidiary  of Apartment
Investment  and  Management  Company  ("AIMCO"),  a publicly  traded real estate
investment trust. The Partnership  Agreement provides that the Partnership is to
terminate on December 31, 2036, unless terminated prior to such date.

Upon  the  Partnership's   formation  in  1986,  Consolidated  Capital  Equities
Corporation  ("CCEC"), a Colorado  corporation,  was the sole general partner of
the Partnership and the corporate limited partner, a wholly-owned  subsidiary of
CCEC, was the sole limited partner.  In 1988,  through a series of transactions,
Southmark Corporation  ("Southmark") acquired a controlling interest in CCEC. In
December  1988,  CCEC filed for  reorganization  under  Chapter 11 of the United
States  Bankruptcy  Code. In 1990, as part of CCEC's  reorganization  plan,  CEI
acquired  CCEC's general  partner  interest in the  Partnership  and in 15 other
affiliated public limited partnerships (the "Affiliated Partnerships"), acquired
the stock of the  corporate  limited  partner,  and CEI replaced CCEC as General
Partner in all 16 partnerships. The selection of CEI as the sole General Partner
was  approved by a majority of the Unit  holders in the  Partnership  and of the
limited  partners  in  each  of  the  Affiliated   Partnerships  pursuant  to  a
solicitation  of the  Unit  holders  dated  August  10,  1990.  As  part of this
solicitation,  the Unit  holders also  approved an amendment to the  Partnership
Agreement to limit changes of control of the Partnership.

Principles of Consolidation

The consolidated financial statements of the Partnership include its 99% limited
partnership  interest in Hunt Club Associates,  Ltd. The general partner of Hunt
Club  Associates,  Ltd. is the General  Partner.  The Partnership may remove the
general partner of Hunt Club  Associates,  Ltd;  therefore,  this partnership is
controlled and consolidated by the Partnership. All significant interpartnership
balances have been eliminated.

Use of Estimates

The preparation of financial statements in conformity with accounting principles
generally  accepted in the United States  requires  management to make estimates
and assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results could differ from those estimates.

Partners' (Deficiency) Capital

The  Partnership  has  issued  two  classes  of  Units  of  Depositary  Receipts
("Units"),  "A" Units and "B" Units.  The two  classes of Units are  entitled to
different  rights  and  priorities  as to  cash  distributions  and  partnership
allocations.  The Units represent  economic  rights  attributable to the limited
partnership  interests in the Partnership and entitle the holders thereof ("Unit
holders") to participate in certain allocations of the Partnership.

The  Partnership  Agreement  provides for the  allocation  of net income and net
losses from operations for both financial and tax reporting purposes as follows:
net profits are first  allocated in the reverse order of any net losses then are
allocated 99% to the holders of "A" Units until they have been allocated  income
equal to their  priority  return,  and 1% to the General  Partner.  The priority
return  represents 9% per annum return on invested capital for the Partnership's
first  fiscal  year,  9.5% for the  second  year and 10% per  annum  thereafter.
Additional  net profits are  allocated 1% to the General  Partner and 99% to the
Unit holders.  Net losses are allocated 1% to the General Partner and 99% to the
Unit holders until their capital  accounts are depleted.  Additional  net losses
are allocated to the General  Partner.  Net income per limited  partnership unit
for both 2003 and 2002 was  computed  as 99% of net  income  divided  by 171,436
units outstanding.

Distributable  cash from  operations is allocated 1% to the General  Partner and
99% to the Unit holders with holders of "A" Units first receiving their priority
return,  then the balance is split equally  between holders of "A" Units and "B"
Units.  The General Partner  receives 1% of surplus funds and holders of "A" and
"B" Units will receive a return of their invested capital. Any remainder will be
allocated 10% to holders of "A" Units and 90% to holders of "B" Units.

Cash and Cash Equivalents

Includes  cash on hand and in  banks.  At  certain  times,  the  amount  of cash
deposited  at a bank may  exceed the limit on insured  deposits.  Cash  balances
include  approximately  $291,000 at December 31, 2003 that are  maintained by an
affiliated   management  company  on  behalf  of  affiliated  entities  in  cash
concentration accounts.

Tenant Security Deposits

The Partnership  requires security deposits from lessees for the duration of the
lease.  Deposits are refunded when the tenant  vacates,  provided the tenant has
not damaged their space and is current on rental payments.

Investment Property

Investment  property  consists of one  apartment  complex and is stated at cost.
Acquisition  fees are  capitalized  as a cost of real  estate.  Expenditures  in
excess of $250 that  maintain an existing  asset which has a useful life of more
than  one  year  are  capitalized  as  capital   replacement   expenditures  and
depreciated  over the  estimated  useful  life of the  asset.  Expenditures  for
ordinary  repairs,  maintenance  and  apartment  turnover  costs are  accrued as
incurred.

In accordance with Statement of Financial Accounting Standards ("SFAS") No. 144,
"Accounting   for  the  Impairment  or  Disposal  of  Long-Lived   Assets,"  the
Partnership  records  impairment  losses on long-lived assets used in operations
when events and circumstances indicate that the assets might be impaired and the
undiscounted  cash flows estimated to be generated by those assets are less than
the carrying  amounts of those assets.  No  adjustments  for impairment of value
were recorded in the years ended December 31, 2003 and 2002.

Depreciation

Depreciation is provided by the straight-line method over the estimated lives of
the investment  property and related personal  property.  For Federal income tax
purposes, the accelerated cost recovery method is used for real property over 18
years for additions after May 8, 1985 and before January 1, 1987. As a result of
the Tax  Reform  Act of  1986,  for  additions  after  December  31,  1986,  the
alternative  depreciation  system is used for  depreciation of (1) real property
additions over 40 years, and (2) personal property additions over 5-20 years.

Loan Costs

Loan  costs  of  approximately   $162,000  less   accumulated   amortization  of
approximately  $41,000 are included in other  assets and are being  amortized by
the effective  interest  method over the life of the loan.  Amortization of loan
costs  is  included  in  interest  expense  in the  accompanying  statements  of
operations.  Amortization  expense is expected to be  approximately  $12,000 for
2004, $11,000 for both 2005 and 2006 and $10,000 for both 2007 and 2008.

Leases

The Partnership generally leases apartment units for twelve-month terms or less.
The  Partnership  recognizes  income  on leases  monthly  as it is  earned.  The
Partnership  evaluates all accounts receivable from residents and establishes an
allowance, after the application of security deposits, for accounts greater than
30 days past due on current tenants and all receivables due from former tenants.
The Partnership will offer rental concessions during particularly slow months or
in response to heavy  competition from other similar  complexes in the area. Any
concessions  given at the inception of the lease are amortized  over the life of
the lease.

Segment Reporting

SFAS  No.  131,   "Disclosure  about  Segments  of  an  Enterprise  and  Related
Information"  established standards for the way that public business enterprises
report information about operating  segments in annual financial  statements and
requires that those  enterprises  report  selected  information  about operating
segments in interim financial reports. It also established standards for related
disclosures about products and services,  geographic areas, and major customers.
As defined in SFAS No. 131, the Partnership has only one reportable segment.

Advertising

Advertising  costs of  approximately  $60,000  and  $57,000  for the years ended
December 31, 2003 and 2002, respectively, are charged to expense as incurred and
are  included  in  operating   expenses  and  (loss)  income  from  discontinued
operations.

Fair Value of Financial Statements

SFAS No.  107,  "Disclosures  about Fair  Value of  Financial  Instruments",  as
amended by SFAS No. 119, "Disclosures about Derivative Financial Instruments and
Fair  Value  of  Financial  Instruments",  requires  disclosure  of  fair  value
information  about  financial  instruments,  whether  or not  recognized  in the
balance sheet, for which it is practicable to estimate fair value. Fair value is
defined in the SFAS as the amount at which the instruments could be exchanged in
a  current  transaction  between  willing  parties,  other  than in a forced  or
liquidation  sale.  The  Partnership  believes that the carrying  amounts of its
financial instruments (except for long term debt) approximates their fair values
due to the short  term  maturity  of these  instruments.  The fair  value of the
Partnership's  long term debt, after  discounting the scheduled loan payments to
maturity  at the  Partnership's  incremental  borrowing  rate was  approximately
$4,117,000 at December 31, 2003.

Recent Accounting Pronouncements

Effective  January 1, 2002,  the  Partnership  adopted  Statement  of  Financial
Accounting  Standards  ("SFAS")  No.  144,  "Accounting  for the  Impairment  or
Disposal of Long-Lived  Assets",  which  established  standards for the way that
business  enterprises report information about long-lived assets that are either
being held for sale or have already been disposed of by sale or other means. The
standard  requires  that results of  operations  for a long-lived  asset that is
being held for sale or has already been disposed of be reported as  discontinued
operations  on the  statement  of  operations.  As a  result,  the  accompanying
consolidated  statements  of operations as of January 1, 2002 have been restated
to reflect the operations of Shadow Brook Apartments, which was sold October 28,
2003, as (loss) income from discontinued operations.

Note B - Mortgage Note Payable

The principle terms of mortgage note payable are as follows:
<TABLE>
<CAPTION>

                        Principal      Monthly                           Principal
                       Balance At      Payment    Stated                  Balance
                      December 31,    Including  Interest   Maturity       Due At
Property                  2003        Interest     Rate       Date        Maturity
                           (in thousands)                              (in thousands)
Hunt Club
<S>                      <C>            <C>        <C>      <C>   <C>       <C>
  1st mortgage           $ 3,608        $ 33       8.05%    09/01/20        $ --
</TABLE>

The  mortgage  note  payable  is  non-recourse  and is  secured by pledge of the
respective  apartment  property  and by pledge of revenues  from the  respective
apartment property.  The note requires  prepayment  penalties if repaid prior to
maturity and prohibits resale of the property subject to existing indebtedness.

Scheduled principal payments of the mortgage note payable subsequent to December
31, 2003 are as follows (in thousands):

                               2004              $ 106
                               2005                 115
                               2006                 125
                               2007                 135
                               2008                 147
                            Thereafter            2,980
                                                $ 3,608

Note C - Income Taxes

The Partnership  received a ruling from the Internal  Revenue Service that it is
to be classified as a partnership for Federal income tax purposes.  Accordingly,
no provision for income taxes is made in the consolidated  financial  statements
of the Partnership. Taxable income or loss of the Partnership is reported in the
income tax returns of its partners.

The  following is a  reconciliation  of reported net income and Federal  taxable
income (in thousands, except per unit data):

                                              2003          2002
Net income as reported                       $ 9,096        $ 82
Add (deduct)
  Depreciation differences                       107            52
  Unearned income                                (74)           (3)
  Gain on sale of investment property           (249)           --
  Other                                           34          (116)
Federal taxable income                       $ 8,914        $ 15
Federal taxable income per limited
  partnership unit:
    "A" Units                                $ 75.86       $ 0.15
    "B" Units                                $ 9.33         $ --

The following is a reconciliation between the Partnership's reported amounts and
Federal tax basis of net (liabilities)  assets (in thousands) as of December 31,
2003:

Net liabilities as reported                   $(1,120)
Land and buildings                                 88
Accumulated depreciation                          897
Syndication fees                                1,975
Other                                              88

Net assets - tax basis                        $ 1,928

Note D - Transactions with Affiliated Parties

The Partnership has no employees and is dependent on the General Partner and its
affiliates for the management and administration of all Partnership  activities.
The Partnership  Agreement  provides for (i) payments to affiliates for services
and (ii)  reimbursement of certain expenses  incurred by affiliates on behalf of
the Partnership.

Affiliates of the General  Partner are entitled to receive 5% of gross  receipts
from both of the Partnership's properties as compensation for providing property
management  services.  The  Partnership  paid to such  affiliates  approximately
$169,000  and  $187,000  for  the  years  ended  December  31,  2003  and  2002,
respectively,  which is included in operating  expenses  and (loss)  income from
discontinued operations.

An affiliate  of the General  Partner  received  reimbursements  of  accountable
administrative  expenses amounting to approximately $94,000 and $101,000 for the
years  ended  December  31,  2003 and 2002,  respectively,  which is included in
general and administrative  expenses and investment property.  Included in these
amounts are fees  related to  construction  management  services  provided by an
affiliate of the General Partner of  approximately  $4,000 during the year ended
December 31, 2002. The fees are calculated based on a percentage of current year
additions  to  investment  property.  There were no such fees for the year ended
December 31, 2003.

The Partnership  Agreement  provides for a fee equal to 9% of distributable cash
from  operations  (as  defined in the  Partnership  Agreement)  received  by the
limited   partners  to  be  paid  to  the  General  Partner  for  executive  and
administrative  management services.  Fees of approximately  $30,000 and $62,000
were paid during the years ended  December 31, 2003 and 2002,  respectively,  in
association with the  distributions  from operations and are included in general
and administrative expenses.

The  Partnership  insures its  property up to certain  limits  through  coverage
provided by AIMCO which is  generally  self-insured  for a portion of losses and
liabilities  related to workers  compensation,  property  casualty  and  vehicle
liability.  The Partnership  insures its property above the AIMCO limits through
insurance policies obtained by AIMCO from insurers unaffiliated with the General
Partner.  During the years ended December 31, 2003 and 2002, the Partnership was
charged  by  AIMCO  and  its  affiliates   approximately  $42,000  and  $50,000,
respectively,  for  insurance  coverage and fees  associated  with policy claims
administration.

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership,  AIMCO and its affiliates  owned 63,163 "A" and 40,001 "B" Units of
Depository Receipts ("Units") in the Partnership  representing 65.60% and 53.23%
of the  outstanding  "A" and "B" Units,  respectively,  at December  31, 2003. A
number of these units were  acquired  pursuant to tender offers made by AIMCO or
its  affiliates.  It is  possible  that  AIMCO or its  affiliates  will  acquire
additional  Units in  exchange  for cash or a  combination  of cash and units in
AIMCO  Properties,  L.P.,  the operating  partnership  of AIMCO,  either through
private  purchases  or tender  offers.  Pursuant to the  Partnership  Agreement,
unitholders  holding a majority  of the Units are  entitled  to take action with
respect to a variety of matters that include,  but are not limited to, voting on
certain amendments to the Partnership Agreement and voting to remove the General
Partner.  As a result of its  ownership of 65.60% and 53.23% of the  outstanding
"A" and "B" Units,  respectively,  AIMCO and its affiliates are in a position to
control all such voting decisions with respect to the Partnership.  Although the
General  Partner  owes  fiduciary   duties  to  the  limited   partners  of  the
Partnership, the General Partner also owes fiduciary duties to AIMCO as its sole
stockholder. As a result, the duties of the General Partner, as general partner,
to the  Partnership  and its limited  partners may come into  conflict  with the
duties of the General Partner to AIMCO, as its sole stockholder.

Note E - Real Estate and Accumulated Depreciation
<TABLE>
<CAPTION>

                                                  Initial Cost
                                                 To Partnership
                                                 (in thousands)
                                                         Buildings       Net Cost
                                                        and Related     Capitalized
                                                         Personal      Subsequent to
Description                  Encumbrances      Land      Property       Acquisition
                            (in thousands)                            (in thousands)
<S>                            <C>            <C>         <C>             <C>
Hunt Club Apartments           $ 3,608        $ 485       $ 5,673         $ 1,864
</TABLE>

<TABLE>
<CAPTION>

                 Gross Amount At Which Carried
                      At December 31, 2003
                      (in thousands)
                       Buildings
                      And Related
                       Personal             Accumulated     Date of      Date    Depreciable
Description    Land    Property    Total    Depreciation  Construction Acquired  Life-Years
                                           (in thousands)
<S>            <C>      <C>       <C>         <C>             <C>        <C>        <C>
Hunt Club      $ 485    $ 7,537   $ 8,022     $ 5,630         1979       05/87      5-30
</TABLE>

Reconciliation of "real estate and accumulated depreciation"

                                              Years Ended December 31,
                                                 2003          2002
                                                   (in thousands)
Real Estate
Balance at beginning of year                   $ 19,303      $ 19,131
  Property improvements                             180           172
  Sale of investment property                   (11,461)           --
Balance at end of year                          $ 8,022      $ 19,303

Accumulated Depreciation
Balance at beginning of year                   $ 11,403      $ 10,555
  Additions charged to expense                      770           848
  Sale of investment property                    (6,543)           --
Balance at end of year                          $ 5,630      $ 11,403

The  aggregate  cost of the real  estate  for  Federal  income tax  purposes  at
December  31,  2003 and  2002,  is  approximately  $8,110,000  and  $19,617,000,
respectively. The accumulated depreciation taken for Federal income tax purposes
at December 31, 2003 and 2002,  is  approximately  $4,733,000  and  $10,579,000,
respectively.

Note F - Disposition of Investment Property

On October  28,  2003,  the  Partnership  sold  Shadow  Brook  Apartments  to an
unrelated  third party for a gross sale price of  $14,750,000.  The net proceeds
realized by the  Partnership  were  approximately  $6,303,000  after  payment of
closing  costs and  assumption  of the  mortgage by the buyer.  The  Partnership
recognized  a gain of  approximately  $9,640,000  as a result  of the  sale.  In
addition,  the  Partnership  recognized  a loss  on  extinguishment  of  debt of
approximately  $251,000 as a result of unamortized  loan costs being written off
and  is  included  in  loss  from  discontinued  operations.   The  accompanying
statements of operations have been restated as of January 1, 2002 to reflect the
operations  of Shadow  Brook  Apartments  as  (loss)  income  from  discontinued
operations and includes revenues of approximately  $1,757,000 and $2,248,000 for
the years ended December 31, 2003 and 2002, respectively.

Note G - Accrued Property Taxes

During 2003,  the state of Indiana  implemented a  reassessment  of property tax
values. The Partnership is currently appealing the reassessed property tax value
of Hunt Club Apartments. In the state of Indiana property tax bills are paid one
year in arrears.  Thus,  the 2002  property  tax bills are  received and paid in
2003. Due to the  Partnership's  appeal of the reassessed  property  value,  the
property  tax  accrual  for 2003  and,  in  certain  situations,  the  remaining
liability  for the 2002 property tax bills is based on the property tax value as
estimated  by a third party  property  tax  specialist.  The 2003  property  tax
expense  based on this  estimate and  recorded in the  financial  statements  is
approximately  $158,000.  If the Partnership is  unsuccessful in its appeal,  it
could  potentially  be liable  for up to  approximately  $65,000  of  additional
property taxes. The Partnership believes that the recorded liability is the best
estimate of the amounts to be paid for Indiana property taxes.

Note H - Legal Proceedings

In March 1998, several putative unit holders of limited partnership units of the
Partnership  commenced an action  entitled  Rosalie  Nuanes,  et al. v. Insignia
Financial Group, Inc., et al. (the "Nuanes action") in the Superior Court of the
State of  California  for the  County  of San  Mateo.  The  plaintiffs  named as
defendants,  among others,  the Partnership,  its General Partner and several of
their affiliated  partnerships and corporate  entities.  The action purported to
assert  claims on behalf of a class of  limited  partners  and  derivatively  on
behalf of a number of limited partnerships  (including the Partnership) that are
named as nominal defendants, challenging, among other things, the acquisition of
interests in certain General Partner entities by Insignia  Financial Group, Inc.
("Insignia") and entities that were, at one time,  affiliates of Insignia;  past
tender offers by the Insignia  affiliates to acquire limited  partnership units;
management of the  partnerships  by the Insignia  affiliates;  and the series of
transactions  which  closed on October 1, 1998 and  February  26,  1999  whereby
Insignia and Insignia  Properties Trust,  respectively,  were merged into AIMCO.
The plaintiffs sought monetary damages and equitable relief,  including judicial
dissolution of the Partnership. In addition, during the third quarter of 2001, a
complaint (the "Heller  action") was filed against the same  defendants that are
named in the Nuanes action,  captioned Heller v. Insignia Financial Group. On or
about August 6, 2001,  plaintiffs  filed a first amended  complaint.  The Heller
action was brought as a purported  derivative  action,  and asserted claims for,
among other things,  breach of fiduciary duty, unfair  competition,  conversion,
unjust enrichment, and judicial dissolution.

On January 8, 2003,  the parties filed a  Stipulation  of Settlement in proposed
settlement of the Nuanes action and the Heller action.

In general  terms,  the  proposed  settlement  provides  for  certification  for
settlement  purposes of a settlement class consisting of all limited partners in
this  Partnership and others (the  "Partnerships")  as of December 20, 2002, the
dismissal  with  prejudice  and  release  of claims  in the  Nuanes  and  Heller
litigation,  payment by AIMCO of $9.9  million  (which shall be  distributed  to
settlement  class  members  after  deduction of attorney fees and costs of class
counsel and certain costs of settlement) and up to $1 million toward the cost of
independent  appraisals of the  Partnerships'  properties  by a Court  appointed
appraiser.  An affiliate of the General Partner has also agreed to make at least
one round of tender offers to purchase all of the  partnership  interests in the
Partnerships within one year of final approval, if it is granted, and to provide
partners  with the  independent  appraisals  at the time of these  tenders.  The
proposed  settlement  also provided for the  limitation  of the allowable  costs
which the General  Partner or its  affiliates  will charge the  Partnerships  in
connection with this litigation and imposes limits on the class counsel fees and
costs in this litigation.  On April 11, 2003,  notice was distributed to limited
partners providing the details of the proposed settlement.

On June 13, 2003, the Court granted final approval of the settlement and entered
judgment in both the Nuanes and Heller actions.  On August 12, 2003, an objector
("Objector")  filed an  appeal  seeking  to  vacate  and/or  reverse  the  order
approving the settlement and entering  judgment  thereto.  On November 24, 2003,
the Objector filed an  application  requesting the Court order AIMCO to withdraw
settlement  tender offers it had  commenced,  refrain from making further offers
pending the appeal and auction any units tendered to third  parties,  contending
that the offers did not conform  with the terms of the  Settlement.  Counsel for
the Objector (on behalf of another  investor)  had  alternatively  requested the
Court take certain  action  purportedly  to enforce the terms of the  settlement
agreement.  On December 18, 2003,  the Court heard oral  argument on the motions
and denied them both in their entirety.  On January 28, 2004, Objector filed his
opening brief in his pending appeal. The General Partner is currently  scheduled
to file a brief in  support  of the  order  approving  settlement  and  entering
judgment thereto by April 23, 2004.

On August 8, 2003 AIMCO  Properties  L.P., an affiliate of the General  Partner,
was served with a Complaint in the United  States  District  Court,  District of
Columbia alleging that AIMCO Properties L.P.  willfully  violated the Fair Labor
Standards  Act (FLSA) by failing to pay  maintenance  workers  overtime  for all
hours  worked  in  excess  of forty  per  week.  The  Complaint  is  styled as a
Collective  Action  under  the FLSA and seeks to  certify  state  subclasses  in
California, Maryland, and the District of Columbia. Specifically, the plaintiffs
contend that AIMCO Properties L.P. failed to compensate  maintenance workers for
time  that they were  required  to be  "on-call".  Additionally,  the  Complaint
alleges AIMCO  Properties  L.P.  failed to comply with the FLSA in  compensating
maintenance  workers  for time that they  worked in  responding  to a call while
"on-call".  The  Complaint  also  attempts  to certify a subclass  for  salaried
service  directors who are challenging  their  classification as exempt from the
overtime  provisions of the FLSA.  AIMCO  Properties L.P. has filed an answer to
the  Complaint  denying the  substantive  allegations.  Discovery  is  currently
underway.

The  General  Partner  does not  anticipate  that any costs to the  Partnership,
whether legal or settlement costs,  associated with these cases will be material
to the Partnership's overall operations.

The  Partnership  is unaware  of any other  pending  or  outstanding  litigation
matters  involving  it or its  investment  properties  that are not of a routine
nature arising in the ordinary course of business.


<PAGE>



Item 8.  Changes  in  and  Disagreements  with  Accountants  on  Accounting  and
         Financial Disclosures

            None.

Item 8a.    Controls and Procedures

(a) Disclosure Controls and Procedures.  The Partnership's management,  with the
participation of the principal executive officer and principal financial officer
of the General Partner,  who are the equivalent of the  Partnership's  principal
executive officer and principal financial officer,  respectively,  has evaluated
the  effectiveness of the Partnership's  disclosure  controls and procedures (as
such term is defined  in Rules  13a-15(e)  and  15d-15(e)  under the  Securities
Exchange  Act of 1934,  as amended  (the  "Exchange  Act")) as of the end of the
period covered by this report. Based on such evaluation, the principal executive
officer and  principal  financial  officer of the General  Partner,  who are the
equivalent  of the  Partnership's  principal  executive  officer  and  principal
financial  officer,  respectively,  have  concluded  that, as of the end of such
period, the Partnership's disclosure controls and procedures are effective.

(b) Internal Control Over Financial  Reporting.  There have not been any changes
in the Partnership's  internal control over financial reporting (as such term is
defined in Rules  13a-15(f)  and  15d-15(f)  under the Exchange  Act) during the
fourth quarter of 2003 that have materially  affected,  or are reasonably likely
to  materially  affect,  the  Partnership's   internal  control  over  financial
reporting.


<PAGE>

                                    PART III

Item 9.  Directors,  Officers,  Promoters and Control  Persons;  Compliance with
         Section 16(a) of the Exchange Act

The general partner of Multi-Benefit Realty Fund '87-1 (the "Partnership" or the
"Registrant") is ConCap  Equities,  Inc. ("CEI" or the "General  Partner").  The
names of the directors and officers of the General  Partner,  their ages and the
nature of all positions with CEI presently held by them are as follows:

Name                        Age    Position

Peter K. Kompaniez           59    Director
Martha L. Long               44    Director and Senior Vice President
Harry G. Alcock              41    Executive Vice President
Miles Cortez                 60    Executive Vice President, General Counsel
                                     and Secretary
Patti K. Fielding            40    Executive Vice President
Paul J. McAuliffe            47    Executive Vice President and Chief
                                     Financial Officer
Thomas M. Herzog             41    Senior Vice President and Chief Accounting
                                     Officer

Peter K. Kompaniez has been Director of the General Partner since February 2004.
Mr.  Kompaniez  has been Vice  Chairman of the Board of Directors of AIMCO since
July 1994 and was  appointed  President  in July 1997.  Mr.  Kompaniez  has also
served as Chief Operating  Officer of NHP Incorporated  after it was acquired by
AIMCO in December  1997.  Effective  April 1, 2004,  Mr.  Kompaniez  resigned as
President of AIMCO.  Mr.  Kompaniez will continue in his role as Director of the
General  Partner and Vice  Chairman  of AIMCO's  Board and will serve AIMCO on a
variety of special and ongoing projects in an operating role.

Martha L. Long has been a Director  and Senior  Vice  President  of the  General
Partner since February 2004. Ms. Long has been with AIMCO since October 1998 and
has served in various  capacities.  From 1998 to 2001, Ms. Long served as Senior
Vice President and Controller of AIMCO and the General Partner.  During 2002 and
2003,  Ms. Long served as Senior Vice  President of Continuous  Improvement  for
AIMCO.

Harry G. Alcock was appointed Executive Vice President of the General Partner in
February 2004 and has been Executive Vice President and Chief Investment Officer
of AIMCO since October  1999.  Prior to October 1999 Mr. Alcock served as a Vice
President  of AIMCO  from July 1996 to October  1997,  when he was  promoted  to
Senior Vice  President-Acquisitions  where he served  until  October  1999.  Mr.
Alcock has had responsibility for acquisition and financing  activities of AIMCO
since July 1994.

Miles  Cortez was  appointed  Executive  Vice  President,  General  Counsel  and
Secretary of the General  Partner in February  2004 and of AIMCO in August 2001.
Prior to joining  AIMCO,  Mr. Cortez was the senior  partner of Cortez  Macaulay
Bernhardt  &  Schuetze  LLC,  a Denver  law firm,  from  December  1997  through
September 2001.

Patti K. Fielding was appointed  Executive  Vice President - Securities and Debt
of the General  Partner in  February  2004 and of AIMCO in  February  2003.  Ms.
Fielding  previously  served as Senior Vice  President - Securities  and Debt of
AIMCO from  January  2000 to February  2003.  Ms.  Fielding is  responsible  for
securities and debt financing and the treasury  department.  Ms. Fielding joined
AIMCO in February 1997 and served as Vice  President - Tenders,  Securities  and
Debt until January 2000.

Paul J. McAuliffe has been Executive Vice President and Chief Financial  Officer
of the General  Partner since April 2002. Mr.  McAuliffe has served as Executive
Vice  President of AIMCO since February 1999 and was appointed  Chief  Financial
Officer  of AIMCO in October  1999.  From May 1996  until he joined  AIMCO,  Mr.
McAuliffe was Senior Managing Director of Secured Capital Corp.

Thomas M.  Herzog was  appointed  Senior  Vice  President  and Chief  Accounting
Officer of the General  Partner in February  2004 and of AIMCO in January  2004.
Prior to  joining  AIMCO in January  2004,  Mr.  Herzog  was at GE Real  Estate,
serving  as Chief  Accounting  Officer & Global  Controller  from  April 2002 to
January 2004 and as Chief Technical Advisor from March 2000 to April 2002. Prior
to joining GE Real  Estate,  Mr.  Herzog was at  Deloitte & Touche LLP from 1990
until 2000, including a two-year assignment in the real estate national office.

One or more of the above persons are also directors and/or officers of a general
partner (or general partner of a general partner) of limited  partnerships which
either have a class of  securities  registered  pursuant to Section 12(g) of the
Securities Exchange Act of 1934, or are subject to the reporting requirements of
Section  15(d) of such Act.  Further,  one or more of the above persons are also
directors and/or officers of Apartment Investment and Management Company and the
general  partner  of  AIMCO  Properties,  L.P.,  entities  that  have a class of
securities  registered  pursuant to Section 12(g) of the Securities Exchange Act
of 1934, or are subject to the reporting  requirements of Section 15 (d) of such
Act.

The board of  directors of the General  Partner  does not have a separate  audit
committee.  As such, the board of directors of the General Partner  fulfills the
functions of an audit  committee.  The board of directors  has  determined  that
Martha L. Long meets the requirement of an "audit committee financial expert".

The  directors  and  officers of the General  Partner  with  authority  over the
Partnership are all employees of subsidiaries of AIMCO. AIMCO has adopted a code
of ethics that applies to such  directors and officers that is posted on AIMCO's
website  (www.AIMCO.com).  AIMCO's  website is not  incorporated by reference to
this filing.

Item 10.    Executive Compensation

Neither the  directors  nor the  officers of the General  Partner  received  any
remuneration  from the  Registrant  during the years ended December 31, 2003 and
2002.

Item 11.    Security Ownership of Certain Beneficial Owners and Management

(a)   Security Ownership of Certain Beneficial Owners

Except as noted below,  no person or entity was known to CEI to own of record or
beneficially  more than 5% of the Units of the  Partnership  as of December  31,
2003.

                                               Number of         Percent
                                                 Units           of Total

      AIMCO Properties, L.P. (1)            34,280 A units        35.60%
        (an affiliate of AIMCO)             21,561 B units        28.69%

      AIMCO IPLP, L.P. (2)                   2,243 A units        2.33%
        (an affiliate of AIMCO and             210 B units        0.28%
        formerly known as Insignia
        Properties, L.P.)

      Madison River Properties, LLC (2)     21,457 A units        22.29%
        (an affiliate of AIMCO)             13,822 B units        18.39%

      Cooper River Properties, LLC (2)       5,183 A units        5.38%
        (an affiliate of AIMCO)              4,408 B units        5.87%

(1)   Entity is indirectly  ultimately controlled by AIMCO. Its business address
      is 4582 S. Ulster St. Parkway, Suite 1100, Denver, Colorado 80237.

(2)   Entity is indirectly ultimately owned by AIMCO. Its business address is 55
      Beattie Place, Greenville, SC 29601.

(b)   Beneficial Owners of Management

      As of December 31, 2003,  neither CEI nor any of its directors or officers
      or  associates  of CEI own any  units  of the  Partnership  of  record  or
      beneficially.

(c)   Changes in Control

      Beneficial Owners of CEI

As of  December  31,  2003,  the  following  entity  was  known to CEI to be the
beneficial owner of more than 5 percent of its common stock:

              Name and address         Number of CEI SHARES   Percent of Total

      Insignia Properties Trust (1)           100,000               100%

(1)   Entity is indirectly ultimately owned by AIMCO. Its business address is 55
      Beattie Place, Greenville, SC 29601.

Item 12.    Certain Relationships and Related Transactions

The Partnership has no employees and is dependent on the General Partner and its
affiliates for the management and administration of all Partnership  activities.
The Partnership  Agreement  provides for (i) payments to affiliates for services
and (ii)  reimbursement of certain expenses  incurred by affiliates on behalf of
the Partnership.

Affiliates of the General  Partner are entitled to receive 5% of gross  receipts
from both of the Partnership's properties as compensation for providing property
management  services.  The  Partnership  paid to such  affiliates  approximately
$169,000  and  $187,000  for  the  years  ended  December  31,  2003  and  2002,
respectively,  which is included in operating  expenses  and (loss)  income from
discontinued operations.

An affiliate  of the General  Partner  received  reimbursements  of  accountable
administrative  expenses amounting to approximately $94,000 and $101,000 for the
years  ended  December  31,  2003 and 2002,  respectively,  which is included in
general and administrative  expenses and investment property.  Included in these
amounts are fees  related to  construction  management  services  provided by an
affiliate of the General Partner of  approximately  $4,000 during the year ended
December 31, 2002. The fees are calculated based on a percentage of current year
additions  to  investment  property.  There were no such fees for the year ended
December 31, 2003.

The Partnership  Agreement  provides for a fee equal to 9% of distributable cash
from  operations  (as  defined in the  Partnership  Agreement)  received  by the
limited   partners  to  be  paid  to  the  General  Partner  for  executive  and
administrative  management services.  Fees of approximately  $30,000 and $62,000
were paid during the years ended  December 31, 2003 and 2002,  respectively,  in
association with the  distributions  from operations and are included in general
and administrative expenses.

The  Partnership  insures its  property up to certain  limits  through  coverage
provided by AIMCO which is  generally  self-insured  for a portion of losses and
liabilities  related to workers  compensation,  property  casualty  and  vehicle
liability.  The Partnership  insures its property above the AIMCO limits through
insurance policies obtained by AIMCO from insurers unaffiliated with the General
Partner.  During the years ended December 31, 2003 and 2002, the Partnership was
charged  by  AIMCO  and  its  affiliates   approximately  $42,000  and  $50,000,
respectively,  for  insurance  coverage and fees  associated  with policy claims
administration.

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership,  AIMCO and its affiliates  owned 63,163 "A" and 40,001 "B" Units of
Depository Receipts ("Units") in the Partnership  representing 65.60% and 53.23%
of the  outstanding  "A" and "B" Units,  respectively,  at December  31, 2003. A
number of these units were  acquired  pursuant to tender offers made by AIMCO or
its  affiliates.  It is  possible  that  AIMCO or its  affiliates  will  acquire
additional  Units in  exchange  for cash or a  combination  of cash and units in
AIMCO  Properties,  L.P.,  the operating  partnership  of AIMCO,  either through
private  purchases  or tender  offers.  Pursuant to the  Partnership  Agreement,
unitholders  holding a majority  of the Units are  entitled  to take action with
respect to a variety of matters that include,  but are not limited to, voting on
certain amendments to the Partnership Agreement and voting to remove the General
Partner.  As a result of its  ownership of 65.60% and 53.23% of the  outstanding
"A" and "B" Units,  respectively,  AIMCO and its affiliates are in a position to
control all such voting decisions with respect to the Partnership.  Although the
General  Partner  owes  fiduciary   duties  to  the  limited   partners  of  the
Partnership, the General Partner also owes fiduciary duties to AIMCO as its sole
stockholder. As a result, the duties of the General Partner, as general partner,
to the  Partnership  and its limited  partners may come into  conflict  with the
duties of the General Partner to AIMCO, as its sole stockholder.

Item 13.    Exhibits and Reports on Form 8-K

      (a)   Exhibits:

            See attached Exhibit Index.

      (b)   Reports on Form 8-K filed during the fourth quarter of calendar year
            2003:

            Current  Report  on Form 8-K  dated  October  28,  2003 and filed on
            November 10, 2003 disclosing the sale of Shadow Brook Apartments.

Item 14.    Principal Accounting Fees and Services

The General Partner has reappointed Ernst & Young LLP as independent auditors to
audit the financial statements of the Partnership for 2004.

Audit  Fees.  The  Partnership   paid  to  Ernst  &  Young  LLP  audit  fees  of
approximately $41,000 and $42,000 for 2003 and 2002, respectively.

Tax Fees.  The  Partnership  paid to Ernst & Young LLP fees for tax services for
2003 and 2002 of approximately $12,000 and $13,000, respectively.


                                   SIGNATURES



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


                                    MULTI-BENEFIT REALTY FUND '87-1


                                    By:   CONCAP EQUITIES, INC.
                                          General Partner


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


                                    By:   /s/Thomas M. Herzog
                                          Thomas M. Herzog
                                          Senior Vice President
                                          and Chief Accounting Officer


                                    Date: March 29, 2004


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


/s/Peter K. Kompaniez         Director                      Date: March 29, 2004
Peter K. Kompaniez


/s/Martha L. Long             Director and Senior Vice      Date: March 29, 2004
Martha L. Long                President


/s/Thomas M. Herzog           Senior Vice President and     Date: March 29, 2004
Thomas M. Herzog              Chief Accounting Officer


<PAGE>

                                  EXHIBIT INDEX


Exhibit

3.1  Agreement of Limited Partnership,  incorporated by reference to Exhibit A-5
     to the Prospectus of the  Registrant  dated December 10, 1986 as filed with
     the Commission pursuant to Rule 424(b) under the Act.

3.2  Certificate   of  Limited   Partnership   (incorporated   by  reference  to
     Registration  Statement of Registrant (File No. 3-38908) filed December 10,
     1986, as amended to date).

4    Depositary Agreement  (Incorporated by reference to Registration  Statement
     of Registrant  (File No.  33-8908)  filed  December 10, 1986, as amended by
     date).

10.12Letter of Notice dated December 20, 1991, from Partnership  Services,  Inc.
     ("PSI")  to  the   Partnership   regarding  the  change  in  ownership  and
     dissolution  of ConCap  Services  Company  whereby PSI assumed the Investor
     Services Agreement. (Incorporated by reference to the Annual Report on Form
     10-K for the year ended December 31, 1991).

10.15Letter of Notice  dated  December  20,  1991,  from PSI to the  Partnership
     regarding the change in ownership and dissolution of ConCap Capital Company
     whereby PSI assumed the  Financial  Services  Agreement.  (Incorporated  by
     reference to the Annual Report on Form 10-K for the year ended December 31,
     1991).

10.22Multifamily   Note  dated  August  31,  2000,  by  and  between  Hunt  Club
     Associates, Ltd., a Texas limited partnership, and ARCS Commercial Mortgage
     Co.,  L.P.,  a  California  limited  partnership   relating  to  Hunt  Club
     Apartments.  (Incorporated  by  reference to the  Quarterly  Report on Form
     10-QSB for the quarter ended September 30, 2000.)

10.23Multifamily Note dated August 31, 2001, by and between Multi-Benefit Realty
     Fund '87-1, a California limited  partnership and GMAC Commercial  Mortgage
     Corporation, a California corporation, relating to Shadow Brook Apartments.
     (Incorporated  by reference to the Quarterly  Report on Form 10-QSB for the
     quarter ended September 30, 2001.)

10.24Purchase and Sale Contract between  Multi-Benefit Realty Fund '87-1 and RDO
     Properties,  LLC, dated August 7, 2003.  (Incorporated  by reference to the
     Current Report on Form 8-K dated October 28, 2003.)

10.25Amendment to Purchase and Sale Contract between  Multi-Benefit  Realty Fund
     '87-1 and RDO Properties,  LLC, dated September 11, 2003.  (Incorporated by
     reference to the Current Report on Form 8-K dated October 28, 2003.)

10.26Second  Amendment  to  Purchase  and Sale  Contract  between  Multi-Benefit
     Realty  Fund '87-1 and RDO  Properties,  LLC,  dated  September  18,  2003.
     (Incorporated  by reference to the Current Report on Form 8-K dated October
     28, 2003.)

10.27Third Amendment to Purchase and Sale Contract between  Multi-Benefit Realty
     Fund '87-1 and RDO Properties,  LLC, dated October 10, 2003.  (Incorporated
     by reference to the Current Report on Form 8-K dated October 28, 2003.)

31.1 Certification  of  equivalent  of  Chief  Executive   Officer  pursuant  to
     Securities Exchange Act Rules  13a-14(a)/15d-14(a),  as Adopted Pursuant to
     Section 302 of the Sarbanes-Oxley Act of 2002.

31.2 Certification  of  equivalent  of  Chief  Financial   Officer  pursuant  to
     Securities Exchange Act Rules  13a-14(a)/15d-14(a),  as Adopted Pursuant to
     Section 302 of the Sarbanes-Oxley Act of 2002.

32.1 Certification  Pursuant to 18 U.S.C.  Section 1350, as Adopted  Pursuant to
     Section 906 of the Sarbanes-Oxley Act of 2002.


<PAGE>


Exhibit 31.1


                                  CERTIFICATION


I, Martha L. Long, certify that:


1.    I have reviewed this annual report on Form 10-KSB of Multi-Benefit  Realty
      Fund '87-1;

2.    Based on my knowledge,  this report does not contain any untrue  statement
      of a material fact or omit to state a material fact  necessary to make the
      statements made, in light of the circumstances under which such statements
      were made,  not  misleading  with  respect  to the period  covered by this
      report;

3.    Based on my  knowledge,  the  financial  statements,  and other  financial
      information  included  in this  report,  fairly  present  in all  material
      respects the financial condition,  results of operations and cash flows of
      the registrant as of, and for, the periods presented in this report;

4.    The  registrant's  other  certifying  officer(s) and I are responsible for
      establishing  and  maintaining  disclosure  controls  and  procedures  (as
      defined in Exchange Act Rules  13a-15(e) and 15d-15(e)) for the registrant
      and have:

      (a)   Designed such  disclosure  controls and  procedures,  or caused such
            disclosure   controls  and  procedures  to  be  designed  under  our
            supervision,  to ensure that  material  information  relating to the
            registrant,  including its consolidated subsidiaries,  is made known
            to us by others  within  those  entities,  particularly  during  the
            period in which this report is being prepared;

      (b)   Evaluated the effectiveness of the registrant's  disclosure controls
            and  procedures and presented in this report our  conclusions  about
            the effectiveness of the disclosure  controls and procedures,  as of
            the  end  of the  period  covered  by  this  report  based  on  such
            evaluation; and

      (c)   Disclosed  in this  report any change in the  registrant's  internal
            control  over   financial   reporting   that  occurred   during  the
            registrant's  most recent fiscal  quarter (the  registrant's  fourth
            fiscal  quarter in the case of an annual report) that has materially
            affected,   or  is  reasonably  likely  to  materially  affect,  the
            registrant's internal control over financial reporting; and

5.    The registrant's other certifying  officer(s) and I have disclosed,  based
      on  our  most  recent   evaluation  of  internal  control  over  financial
      reporting,  to the  registrant's  auditors and the audit  committee of the
      registrant's  board of directors  (or persons  performing  the  equivalent
      functions):

      (a)   All significant  deficiencies and material  weaknesses in the design
            or operation of internal control over financial  reporting which are
            reasonably  likely to adversely affect the  registrant's  ability to
            record, process, summarize and report financial information; and

      (b)   Any fraud,  whether or not  material,  that  involves  management or
            other  employees  who have a  significant  role in the  registrant's
            internal control over financial reporting.

Date:  March 29, 2004

                                /s/Martha L. Long
                                Martha L. Long
                                Senior Vice President of ConCap Equities,  Inc.,
                                equivalent  of the chief  executive  officer  of
                                the Partnership


<PAGE>



Exhibit 31.2


                                  CERTIFICATION


I, Thomas M. Herzog, certify that:


1.    I have reviewed this annual report on Form 10-KSB of Multi-Benefit  Realty
      Fund '87-1;

2.    Based on my knowledge,  this report does not contain any untrue  statement
      of a material fact or omit to state a material fact  necessary to make the
      statements made, in light of the circumstances under which such statements
      were made,  not  misleading  with  respect  to the period  covered by this
      report;

3.    Based on my  knowledge,  the  financial  statements,  and other  financial
      information  included  in this  report,  fairly  present  in all  material
      respects the financial condition,  results of operations and cash flows of
      the registrant as of, and for, the periods presented in this report;

4.    The  registrant's  other  certifying  officer(s) and I are responsible for
      establishing  and  maintaining  disclosure  controls  and  procedures  (as
      defined in Exchange Act Rules  13a-15(e) and 15d-15(e)) for the registrant
      and have:

      (a)   Designed such  disclosure  controls and  procedures,  or caused such
            disclosure   controls  and  procedures  to  be  designed  under  our
            supervision,  to ensure that  material  information  relating to the
            registrant,  including its consolidated subsidiaries,  is made known
            to us by others  within  those  entities,  particularly  during  the
            period in which this report is being prepared;

      (b)   Evaluated the effectiveness of the registrant's  disclosure controls
            and  procedures and presented in this report our  conclusions  about
            the effectiveness of the disclosure  controls and procedures,  as of
            the  end  of the  period  covered  by  this  report  based  on  such
            evaluation; and

      (c)   Disclosed  in this  report any change in the  registrant's  internal
            control  over   financial   reporting   that  occurred   during  the
            registrant's  most recent fiscal  quarter (the  registrant's  fourth
            fiscal  quarter in the case of an annual report) that has materially
            affected,   or  is  reasonably  likely  to  materially  affect,  the
            registrant's internal control over financial reporting; and

5.    The registrant's other certifying  officer(s) and I have disclosed,  based
      on  our  most  recent   evaluation  of  internal  control  over  financial
      reporting,  to the  registrant's  auditors and the audit  committee of the
      registrant's  board of directors  (or persons  performing  the  equivalent
      functions):

      (a)   All significant  deficiencies and material  weaknesses in the design
            or operation of internal control over financial  reporting which are
            reasonably  likely to adversely affect the  registrant's  ability to
            record, process, summarize and report financial information; and

      (b)   Any fraud,  whether or not  material,  that  involves  management or
            other  employees  who have a  significant  role in the  registrant's
            internal control over financial reporting.

Date:  March 29, 2004

                                /s/Thomas M. Herzog
                                Thomas M. Herzog
                                Senior  Vice  President  and  Chief   Accounting
                                Officer of ConCap Equities,  Inc., equivalent of
                                the chief financial officer of the Partnership


<PAGE>


Exhibit 32.1


                          Certification of CEO and CFO
                       Pursuant to 18 U.S.C. Section 1350,
                             As Adopted Pursuant to
                  Section 906 of the Sarbanes-Oxley Act of 2002



In connection with the Annual Report on Form 10-KSB of Multi-Benefit Realty Fund
'87-1 (the  "Partnership"),  for the year ended  December 31, 2003 as filed with
the Securities and Exchange Commission on the date hereof (the "Report"), Martha
L. Long, as the equivalent of the Chief  Executive  Officer of the  Partnership,
and Thomas M. Herzog,  as the equivalent of the Chief  Financial  Officer of the
Partnership,  each hereby  certifies,  pursuant to 18 U.S.C.  Section  1350,  as
adopted pursuant to Section 906 of the  Sarbanes-Oxley Act of 2002, that, to the
best of his knowledge:

      (1)   The Report fully complies with the  requirements of Section 13(a) or
            15(d) of the Securities Exchange Act of 1934; and

      (2)   The  information  contained in the Report  fairly  presents,  in all
            material respects, the financial condition and results of operations
            of the Partnership.


                                           /s/Martha L. Long
                                    Name:  Martha L. Long
                                    Date:  March 29, 2004


                                           /s/Thomas M. Herzog
                                    Name:  Thomas M. Herzog
                                    Date:  March 29, 2004


This  certification is furnished with this Report pursuant to Section 906 of the
Sarbanes-Oxley  Act of 2002 and shall not be deemed filed by the Partnership for
purposes of Section 18 of the Securities Exchange Act of 1934, as amended.