Exhibit 99.0



DiVall Insured Income Properties 2, L.P.



QUARTERLY NEWS



|                                       |  |                   
|-------------------------------------- |  | ------------------
|A publication of The Provo Group, Inc. |  | THIRD QUARTER 2005



ONE YEAR AGO
TODAY . . .



One year ago our Quarterly Newsletter read Indeed
the first three quarters of 2004 have been without any significant negative variations from our cash flow plan.



Indeed the first three quarters of 2005 have also been without any significant negative variations from our cash flow plan. We planned to distribute a total of $1,290,000
($27.87 per unit) for the First, Second and Third Quarters of 2005 and we actually distributed $1,305,000 ($28.20 per unit). We anticipate the Fourth Quarter of 2005 distribution, which is scheduled to be mailed in February 2006, to be higher than
the planned distribution of $430,000, due to the pending sale of the North Richland Hills, TX property in the Fourth Quarter of 2005 (see property highlights on page 2.)



We are again confident in forecasting stable performance for 2006 and fully expect our rate of return on net asset values to dwarf the
yields from either the government or corporate bond markets.



|                                                                                                                                                                                                                           |  |                                                                                                                                                                                                                                                                                         
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|DISTRIBUTION HIGHLIGHTS                                                                                                                                                                                                   
|                                                                                                                                                                                                                           | 
|      $435,000distributed for the Third Quarter of 2005.                                                                                                                                                                  |  |       $1,305,000 total amount distributed for the first three Quarters of 2005, slightly higher
than budget.                                                                                                                                                                           
|                                                                                                                                                                                                                           | 
|      $9.40 per unit (approximately) for the Third Quarter of 2005 distribution. The approximate
annualized operating return is 8.5% based on the most recent net asset value of $440 per unit as of December 31, 2004. |  |       $1,305 to $1,156range of cumulative distributions per unit from thefirst unit
sold to the lastunit sold before the offering closed (3/90), respectively. (Distributions are from both cash flow from operations and net cash activity from financing and investing activities).



|                       |  |  
|---------------------- |  | -
|SEE INSIDE             |  |  
|                       | 
|Property Highlights    |  | 2
|Questions & Answers    |  | 2
|NewContact Information |  | 2



---

|       |  |                         |  |       
|------ |  | ----------------------- |  | ------
|PAGE 2 |  | DIVALL 2 QUARTERLY NEWS |  | 3 Q 05



PROPERTY HIGHLIGHTS



Sales



North
Richland Hills, TX (currently operated as a Hooters restaurant):The Partnership currently has a contract pending for the sale of this property to a closely held entity affiliated with the Hooters restaurant operator for $1,575,000.
Closing is anticipated to be in the Fourth Quarter of 2005.



QUESTIONS & ANSWERS



| |  |  | When can I expect my next distribution mailing?
| | - |  | -----------------------------------------------

Your distribution correspondence for the Fourth Quarter of 2005 is scheduled to be mailed on February 15, 2006.



| |  |  | What was the December 31, 2004 net asset value?
| | - |  | -----------------------------------------------

The net asset value was $440 per unit (approximately).



| |  |  | When will the December 31, 2005 net asset value be calculated?
| | - |  | --------------------------------------------------------------

The revised net asset valuation is scheduled to be mailed in mid-February 2006.



| |  |  | When can I expect to receive my 2005 Schedule K-1?
| | - |  | --------------------------------------------------

IRS regulations do not require the 2005 K-1s to be mailed out until April 15th, but we plan to
mail the K-1s by March 15, 2006.



| |  |  | Ive moved, how do I update my account registration?
| | - |  | ----------------------------------------------------

Please mail or fax to DiVall Investor Relations a signed letter stating your new address and telephone number. Updates cannot be accepted over the telephone or via voicemail messages.



| |  |  | If I have questions or comments, how can I reach DiVall Investor Relations?
| | - |  | ---------------------------------------------------------------------------

You can reach DiVall Investor Relations at the address listed below. Please note that this is a change of address from prior mailings.



NEW CONTACT INFORMATION



|       |  |                                              
|------ |  | ---------------------------------------------
|MAIL:  |  | DiVall Investor Relations                    
|       |  | c/o Phoenix American Financial Services, Inc.
|       |  | 2401 Kerner Blvd.                            
|       |  | San Rafael, CA 94901                         
|       | 
|PHONE: |  | 1-800-547-7686                               
|FAX:   |  | 1-415-485-4553                               



---

DIVALL INSURED INCOME PROPERTIES 2 L.P.

STATEMENTS OF INCOME AND CASH FLOW CHANGES

FOR THE THREE MONTH PERIOD ENDED
SEPTEMBER 30, 2005



|                                                                     |  |                       |            |   |                      |   |           |                |  |   |         |  
|-------------------------------------------------------------------- |  | --------------------- | ---------- | - | -------------------- | - | --------- | -------------- |  | - | ------- | -
|                                                                     |  | PROJECTED             |            |   | ACTUAL               |   |           | VARIANCE       | 
|                                                                     |  | 3RD QUARTER09/30/2005 |            |   | 3RDQUARTER09/30/2005 |   |           | BETTER (WORSE) | 
|OPERATING REVENUES                                                   |  |                       |            |   |                      |   |           |                |  |   |         |  
|Rental income                                                        |  | $                     | 642,042    |   |                      | $ | 630,382   |                |  | $ | (11,660 | )
|Interest income                                                      |  |                       | 2,550      |   |                      |   | 4,705     |                |  |   | 2,155   |  
|Real estate tax recoveries                                           |  |                       | 7,474      |   |                      |   | 6,535     |                |  |   | (939    | )
|Other income                                                         |  |                       | 0          |   |                      |   | 3,107     |                |  |   | 3,107   |  
|                                                                     |  |                       |            |   |                      |   |           |                |  |   |         |  
|TOTAL OPERATING REVENUES                                             |  | $                     | 652,066    |   |                      | $ | 644,729   |                |  | $ | (7,337  | )
|                                                                     |  |                       |            |   |                      |   |           |                |  |   |         |  
|OPERATING EXPENSES                                                   |  |                       |            |   |                      |   |           |                |  |   |         |  
|Insurance                                                            |  | $                     | 9,729      |   |                      | $ | 9,728     |                |  | $ | 1       |  
|Management fees                                                      |  |                       | 52,230     |   |                      |   | 53,126    |                |  |   | (896    | )
|Overhead allowance                                                   |  |                       | 4,311      |   |                      |   | 4,296     |                |  |   | 15      |  
|Advisory Board                                                       |  |                       | 3,500      |   |                      |   | 3,500     |                |  |   | 0       |  
|Administrative                                                       |  |                       | 8,030      |   |                      |   | 9,883     |                |  |   | (1,853  | )
|Professional services                                                |  |                       | 11,190     |   |                      |   | 18,008    |                |  |   | (6,818  | )
|Auditing                                                             |  |                       | 16,200     |   |                      |   | 17,300    |                |  |   | (1,100  | )
|Legal                                                                |  |                       | 9,000      |   |                      |   | 5,306     |                |  |   | 3,694   |  
|Property Expenses                                                    |  |                       | 3,000      |   |                      |   | 1,600     |                |  |   | 1,400   |  
|                                                                     |  |                       |            |   |                      |   |           |                |  |   |         |  
|TOTAL OPERATING EXPENSES                                             |  | $                     | 117,190    |   |                      | $ | 122,747   |                |  | $ | (5,557  | )
|                                                                     |  |                       |            |   |                      |   |           |                |  |   |         |  
|INVESTIGATION AND RESTORATION EXPENSES                               |  | $                     | 0          |   |                      | $ | 124       |                |  | $ | (124    | )
|                                                                     |  |                       |            |   |                      |   |           |                |  |   |         |  
|NON-OPERATING EXPENSES                                               |  |                       |            |   |                      |   |           |                |  |   |         |  
|Depreciation                                                         |  |                       | 65,358     |   |                      |   | 65,357    |                |  |   | 1       |  
|Amortization                                                         |  |                       | 3,198      |   |                      |   | 3,198     |                |  |   | (0      | )
|                                                                     |  |                       |            |   |                      |   |           |                |  |   |         |  
|TOTAL NON-OPERATING EXPENSES                                         |  | $                     | 68,556     |   |                      | $ | 68,555    |                |  | $ | 1       |  
|                                                                     |  |                       |            |   |                      |   |           |                |  |   |         |  
|TOTAL EXPENSES                                                       |  | $                     | 185,746    |   |                      | $ | 191,426   |                |  | $ | (5,680  | )
|                                                                     |  |                       |            |   |                      |   |           |                |  |   |         |  
|NET INCOME                                                           |  | $                     | 466,320    |   |                      | $ | 453,301   |                |  | $ | (13,019 | )
|                                                                     |  |                       |           
|OPERATING CASH RECONCILIATION:                                       |  |                       |            |   |                      |   |           | VARIANCE       | 
|Depreciation and amortization                                        |  |                       | 68,556     |   |                      |   | 68,555    |                |  |   | (1      | )
|Recovery of amounts previously written off                           |  |                       | 0          |   |                      |   | (3,107    | )              |  |   | (3,107  | )
|(Increase) Decrease in current assets                                |  |                       | (187,155   | ) |                      |   | (205,439  | )              |  |   | (18,284 | )
|Increase (Decrease) in current liabilities                           |  |                       | (137       | ) |                      |   | (1,650    | )              |  |   | (1,513  | )
|(Increase) Decrease in cash reserved for payables                    |  |                       | (1,728     | ) |                      |   | (163      | )              |  |   | 1,565   |  
|Current cash flows advanced from (reserved for) future distributions |  |                       | 97,900     |   |                      |   | 132,357   |                |  |   | 34,457  |  
|                                                                     |  |                       |            |   |                      |   |           |                |  |   |         |  
|Net Cash Provided From Operating Activities                          |  | $                     | 443,756    |   |                      | $ | 443,854   |                |  | $ | 98      |  
|                                                                     |  |                       |            |   |                      |   |           |                |  |   |         |  
|CASH FLOWS (USED IN) FROM INVESTING AND FINANCING ACTIVITIES         |  |                       |            |   |                      |   |           |                |  |   |         |  
|Indemnification Trust (Interest earnings reinvested)                 |  |                       | (1,500     | ) |                      |   | (3,140    | )              |  |   | (1,640  | )
|Recovery of amounts previously written off                           |  |                       | 0          |   |                      |   | 3,107     |                |  |   | 3,107   |  
|                                                                     |  |                       |            |   |                      |   |           |                |  |   |         |  
|Net Cash (Used In) From Investing And Financing Activities           |  | $                     | (1,500     | ) |                      | $ | (33       | )              |  | $ | 1,467   |  
|                                                                     |  |                       |            |   |                      |   |           |                |  |   |         |  
|Total Cash Flow For Quarter                                          |  | $                     | 442,256    |   |                      | $ | 443,821   |                |  | $ | 1,565   |  
|                                                                     |  |                       |           
|Cash Balance Beginning of Period                                     |  |                       | 892,337    |   |                      |   | 914,506   |                |  |   | 22,169  |  
|Less 2nd quarter 2005 distributions paid August 2005                 |  |                       | (430,000   | ) |                      |   | (435,000  | )              |  |   | (5,000  | )
|Change in cash reserved for payables or future distributions         |  |                       | (96,172    | ) |                      |   | (132,194  | )              |  |   | (36,022 | )
|                                                                     |  |                       |            |   |                      |   |           |                |  |   |         |  
|Cash Balance End of Period                                           |  | $                     | 808,421    |   |                      | $ | 791,133   |                |  | $ | (17,288 | )
|                                                                     |  |                       |           
|Cash reserved for 3rd quarter 2005 L.P. distributions                |  |                       | (430,000   | ) |                      |   | (435,000  | )              |  |   | (5,000  | )
|Cash reserved for payment of accrued expenses                        |  |                       | (91,862    | ) |                      |   | (97,696   | )              |  |   | (5,834  | )
|Cash advanced from (reserved for) future distributions               |  |                       | (180,713   | ) |                      |   | (146,256  | )              |  |   | 34,457  |  
|                                                                     |  |                       |            |   |                      |   |           |                |  |   |         |  
|Unrestricted Cash Balance End of Period                              |  | $                     | 105,846    |   |                      | $ | 112,181   |                |  | $ | 6,335   |  
|                                                                     |  |                       |            |   |                      |   |           |                |  |   |         |  
|                                                                     |  |                       |           
|                                                                     |  | PROJECTED             |            |   | ACTUAL               |   |           | VARIANCE       | 
|*Quarterly Distribution                                              |  | $                     | 430,000    |   |                      | $ | 435,000   |                |  | $ | 5,000   |  
|Mailing Date                                                         |  |                       | 11/15/2005 |   |                      |   | (enclosed | )              |  |   |        |  

---

|* | Refer to distribution letter for detail of quarterly distribution.
|- | ------------------------------------------------------------------



---

PROJECTIONS FOR

DISCUSSION PURPOSES



DIVALL INSURED INCOME PROPERTIES 2 LP

2005 PROPERTY SUMMARY

AND RELATED RECEIPTS

FOR CURRENT OPERATING PROPERTIES

AS OF SEPTEMBER 30, 2005



PORTFOLIO(Note 1)



|                          |  |                      |  |             |  |                |           |        |   |        |                     |  |         |  |                               |  |                     |  |         |   |  |           |  |                |  |        |  
|------------------------- |  | -------------------- |  | ----------- |  | -------------- | --------- | ------ | - | ------ | ------------------- |  | ------- |  | ----------------------------- |  | ------------------- |  | ------- | - |  | --------- |  | -------------- |  | ------ | -
|                          |  |                      |  | REAL ESTATE |  |                | EQUIPMENT |        |   | TOTALS |                     |  |         |  |                              
|CONCEPT                   |  | LOCATION             |  | COST        |  | ANNUALBASERENT |           | %YIELD |   |        | LEASEEXPIRATIONDATE |  | COST    |  | PRINCIPALRETURNEDAS OF 1/1/94 |  | ANNUALLEASERECEIPTS |  | %RETURN |   |  | COST      |  | ANNUALRECEIPTS |  | RETURN |  
|APPLEBEES                |  | COLUMBUS,OH          |  | 1,059,465   |  | 135,780        |           | 12.82  | % |        |                     |  | 84,500  |  | 29,849                        |  | 0                   |  | 0.00    | % |  | 1,143,965 |  | 135,780        |  | 11.87  | %
|                          |  |                      |  |             |  |                |           |        |   |        |                     | 
|BLOCKBUSTER               |  | OGDEN, UT            |  | 646,425     |  | 110,750        |           | 17.13  | % |        |                     |  |         |  |                               |  |                     |  |         |   |  | 646,425   |  | 110,750        |  | 17.13  | %
|                          |  |                      |  |             |  |                |           |        |   |        |                     | 
|DENNYS                   |  | PHOENIX, AZ          |  | 972,726     |  | 65,000         |           | 6.68   | % |        |                     |  | 183,239 |  | 0                             |  | 0                   |  | 0.00    | % |  | 1,155,965 |  | 65,000         |  | 5.62   | %
|                          |  |                      |  |             |  |                |           |        |   |        |                     | 
|CHINESE SUPER BUFFET      |  | PHOENIX, AZ          |  | 865,900     |  | 66,000         |           | 7.62   | % |        |                     |  | 221,237 |  | 0                             |  | 0                   |  | 0.00    | % |  | 1,087,137 |  | 66,000         |  | 6.07   | %
|                          |  |                      |  |             |  |                |           |        |   |        |                     | 
|HOOTERS (2)              |  | N. RICHLANDHILLS, TX |  | 1,246,719   |  | 95,000         |           | 7.62   | % |        |                     |  |         |  |                               |  |                     |  |         |   |  | 1,246,719 |  | 95,000         |  | 7.62   | %
|                          |  |                      |  |             |  |                |           |        |   |        |                     | 
|DAYTONAS All SPORTS CAFÉ |  | DES MOINES,IA        |  | 845,000     |  | 60,000         |           | 7.10   | % |        |                     |  | 52,813  |  | 0                             |  | 0                   |  | 0.00    | % |  | 897,813   |  | 60,000         |  | 6.68   | %
|                          |  |                      |  |             |  |                |           |        |   |        |                     | 
|KFC                       |  | SANTA FE,NM          |  | 451,230     |  | 60,000         |           | 13.30  | % |        |                     |  |         |  |                               |  |                     |  |         |   |  | 451,230   |  | 60,000         |  | 13.30  | %

---

Note:

|1: | This property summary includes only property and equipment held by the Partnership during 2005.
|-- | -----------------------------------------------------------------------------------------------

|2: | The Partnership currently has a contract pending for the sale of this property to a closely held entity affiliated with the Hooters restaurant operator for $1,575,000. Closing
is anticipated to be in the Fourth Quarter of 2005.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

PROJECTIONS FOR

DISCUSSION PURPOSES



DIVALL INSURED INCOME PROPERTIES 2 LP

2005 PROPERTY SUMMARY

AND RELATED RECEIPTS

FOR CURRENT OPERATING PROPERTIES

AS OF SEPTEMBER 30, 2005



PORTFOLIO(Note
1)



|                  |  |                  |  |             |  |                |           |        |   |        |                     |  |         |  |                               |  |                     |  |         |   |  |            |  |               |  |        |  
|----------------- |  | ---------------- |  | ----------- |  | -------------- | --------- | ------ | - | ------ | ------------------- |  | ------- |  | ----------------------------- |  | ------------------- |  | ------- | - |  | ---------- |  | ------------- |  | ------ | -
|                  |  |                  |  | REAL ESTATE |  |                | EQUIPMENT |        |   | TOTALS |                    
|CONCEPT           |  | LOCATION         |  | COST        |  | ANNUALBASERENT |           | %YIELD |   |        | LEASEEXPIRATIONDATE |  | COST    |  | PRINCIPALRETURNEDAS OF 1/1/94 |  | ANNUALLEASERECEIPTS |  | %RETURN |   |  | COST       |  | TOTALRECEIPTS |  | RETURN |  
|POPEYES          |  | PARK FOREST, IL  |  | 580,938     |  | 77,280         |           | 13.30  | % |        |                     |  |         |  |                               |  |                     |  |         |   |  | 580,938    |  | 77,280        |  | 13.30  | %
|                  |  |                  |  |             |  |                |           |        |   |        |                     | 
|SUNRISE PRESCHOOL |  | PHOENIX, AZ      |  | 1,084,503   |  | 123,318        |           | 11.37  | % |        |                     |  | 79,219  |  | 33,047                        |  | 0                   |  | 0.00    | % |  | 1,182,735  |  | 123,318       |  | 10.43  | %
|                  |  |                  |  |             |  |                |           |        |   |        |                     |  | 19,013  |  | 6,710                         |  | 0                   |  | 0.00    | % |  |            |  |               |  |        |  
|                  |  |                  |  |             |  |                |           |        |   |        |                     | 
|PANDA BUFFET      |  | GRAND FORKS, ND  |  | 739,375     |  | 34,000         |           | 4.60   | % |        |                     |  |         |  |                               |  |                     |  |         |   |  | 739,375    |  | 34,000        |  | 4.60   | %
|                  |  |                  |  |             |  |                |           |        |   |        |                     | 
|WENDYS           |  | AIKEN, SC        |  | 633,750     |  | 90,480         |           | 14.28  | % |        |                     |  |         |  |                               |  |                     |  |         |   |  | 633,750    |  | 90,480        |  | 14.28  | %
|WENDYS           |  | CHARLESTON, SC   |  | 580,938     |  | 77,280         |           | 13.30  | % |        |                     |  |         |  |                               |  |                     |  |         |   |  | 580,938    |  | 77,280        |  | 13.30  | %
|WENDYS           |  | N. AUGUSTA, SC   |  | 660,156     |  | 87,780         |           | 13.30  | % |        |                     |  |         |  |                               |  |                     |  |         |   |  | 660,156    |  | 87,780        |  | 13.30  | %
|WENDYS           |  | AUGUSTA, GA      |  | 728,813     |  | 96,780         |           | 13.28  | % |        |                     |  |         |  |                               |  |                     |  |         |   |  | 728,813    |  | 96,780        |  | 13.28  | %
|WENDYS           |  | CHARLESTON, SC   |  | 596,781     |  | 76,920         |           | 12.89  | % |        |                     |  |         |  |                               |  |                     |  |         |   |  | 596,781    |  | 76,920        |  | 12.89  | %
|WENDYS           |  | AIKEN, SC        |  | 776,344     |  | 96,780         |           | 12.47  | % |        |                     |  |         |  |                               |  |                     |  |         |   |  | 776,344    |  | 96,780        |  | 12.47  | %
|WENDYS           |  | AUGUSTA, GA      |  | 649,594     |  | 86,160         |           | 13.26  | % |        |                     |  |         |  |                               |  |                     |  |         |   |  | 649,594    |  | 86,160        |  | 13.26  | %
|WENDYS           |  | CHARLESTON, SC   |  | 528,125     |  | 70,200         |           | 13.29  | % |        |                     |  |         |  |                               |  |                     |  |         |   |  | 528,125    |  | 70,200        |  | 13.29  | %
|WENDYS           |  | MT. PLEASANT, SC |  | 580,938     |  | 77,280         |           | 13.30  | % |        |                     |  |         |  |                               |  |                     |  |         |   |  | 580,938    |  | 77,280        |  | 13.30  | %
|WENDYS           |  | MARTINEZ, GA     |  | 633,750     |  | 84,120         |           | 13.27  | % |        |                     |  |         |  |                               |  |                     |  |         |   |  | 633,750    |  | 84,120        |  | 13.27  | %
|                  |  |                  |  |             |  |                |           |        |   |        |                     | 
|PORTFOLIO TOTALS  |  |                  |  | 14,861,470  |  | 1,670,908      |           | 11.24  | % |        |                     |  | 640,021 |  | 69,606                        |  | 0                   |  | 0.00    | % |  | 15,501,491 |  | 1,670,908     |  | 10.78  | %

---

Note:

|1: | This property summary includes only property and equipment held by the Partnership during 2005.
|-- | -----------------------------------------------------------------------------------------------

|2: | The Partnership currently has a contract pending for the sale of this property to a closely held entity affiliated with the Hooters restaurant operator for $1,575,000. Closing
is anticipated to be in the Fourth Quarter of 2005.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------