Exhibit 99.0



DiVall Insured Income Properties 2, L.P.



QUARTERLY NEWS



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



The Consent
for Sale Results Are In . . .



On May 13, 2005 investors were
mailed the Biennial Consent for Sale of the Limited Partnership. The results were independently tabulated by Phoenix American Financial Services. In accordance with the terms of the consents voting procedures, 85% of the units were deemed to
have voted AGAINST a sale. Correspondingly, fifteen percent (15%) of the units voted FOR a sale, which was significantly below the majority required of fifty-one percent (51%). Below please find a summary of past and present
Consent for Sale results:



|     |  |     |  |        
|---- |  | --- |  | -------
|     |  | FOR |  | AGAINST
|2001 |  | 26% |  | 74%    
|2003 |  | 14% |  | 86%    
|2005 |  | 15% |  | 85%    



The 20 largest DiVall 2 investors own
33% of the Partnership. An interesting sidebar to the above voting was that only 2 out of the largest 20 investors voted FOR a sale. The Advisory Board believes that when only 10% of the largest investors want to sell, the vast majority
of the partners are satisfied with the Partnerships yield as well as the quality and integrity of its management.



We believe that the Partnership can continue to provide a steady cash flow to the partners, and additional value can be achieved by continuing the strategy of selectively
selling the properties which are not leased to prime quality tenants.



Consistent with our two year voting cycle, we will circulate the next biennial consent in May 2007.



DISTRIBUTION HIGHLIGHTS



|                                                                                                                                                                                                                                                                       |  |                                                                                                                                                                                                                                                                                
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|      $435,000 total amount distributed for the First Quarter
2005, as budgeted.        $9.40 per unit (approx.) for the First Quarter 2005. The approximate annualized operating return is 8.5% based on the most recent net asset value as of December 31,
2004. |  |       $1,295 to $1,146 range of distributions per unit from the first unit sold to the
last unit sold before the offering closed (2/90) respectively. (Distributions are from both cash flow from operations and net cash activity from financing and investing activities).



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|       |  |          |  |       
|------ |  | -------- |  | ------
|PAGE 2 |  | DIVALL 2 |  | 2 Q 05



QUESTIONS & ANSWERS



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



Your distribution correspondence for the Third Quarter of 2005 is scheduled to be mailed on November 15, 2005.



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



Approximately $440 per unit.



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



Please mail or fax to us 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 your office?
|- | -------------------------------------------------------------



You can reach us at our address listed below:



|        |  |                             
|------- |  | ----------------------------
|MAIL:   |  | DiVall Investor Relations   
|        |  | c/o The Provo Group, Inc.   
|        |  | 1100 Main Street, Suite 1830
|        |  | Kansas City, MO 64105       
|PHONE:  |  | 800-547-7686                
|FAX:    |  | (816) 221-2130              
|E-MAIL: |  | mevans@theprovogroup.com    



---

DIVALL INSURED INCOME PROPERTIES 2 L.P.

STATEMENTS OF INCOME AND CASH FLOW CHANGES

FOR THE THREE MONTH PERIOD ENDED
JUNE 30, 2005



|                                                                     |  |                       |            |   |                      |   |            |               |  |   |          |  
|-------------------------------------------------------------------- |  | --------------------- | ---------- | - | -------------------- | - | ---------- | ------------- |  | - | -------- | -
|                                                                     |  | PROJECTED             |            |   | ACTUAL               |   |            | VARIANCE      | 
|                                                                     |  | 2ND QUARTER06/30/2005 |            |   | 2NDQUARTER06/30/2005 |   |            | BETTER(WORSE) | 
|OPERATING REVENUES                                                   |  |                       |            |   |                      |   |            |               |  |   |          |  
|Rental income                                                        |  | $                     | 450,395    |   |                      | $ | 442,226    |               |  | $ | (8,169   | )
|Interest income                                                      |  |                       | 2,550      |   |                      |   | 3,951      |               |  |   | 1,401    |  
|Real estate tax recoveries                                           |  |                       | 11,211     |   |                      |   | 13,911     |               |  |   | 2,700    |  
|Other income                                                         |  |                       | 0          |   |                      |   | 3,401      |               |  |   | 3,401    |  
|                                                                     |  |                       |            |   |                      |   |            |               |  |   |          |  
|TOTAL OPERATING REVENUES                                             |  | $                     | 464,156    |   |                      | $ | 463,489    |               |  | $ | (667     | )
|                                                                     |  |                       |            |   |                      |   |            |               |  |   |          |  
|OPERATING EXPENSES                                                   |  |                       |            |   |                      |   |            |               |  |   |          |  
|Insurance                                                            |  | $                     | 9,729      |   |                      | $ | 9,728      |               |  | $ | 1        |  
|Management fees                                                      |  |                       | 52,230     |   |                      |   | 53,114     |               |  |   | (884     | )
|Overhead allowance                                                   |  |                       | 4,311      |   |                      |   | 4,296      |               |  |   | 15       |  
|Advisory Board                                                       |  |                       | 3,500      |   |                      |   | 3,500      |               |  |   | 0        |  
|Administrative                                                       |  |                       | 38,680     |   |                      |   | 26,410     |               |  |   | 12,270   |  
|Professional services                                                |  |                       | 19,940     |   |                      |   | 20,923     |               |  |   | (983     | )
|Auditing                                                             |  |                       | 16,200     |   |                      |   | 15,900     |               |  |   | 300      |  
|Legal                                                                |  |                       | 9,000      |   |                      |   | 13,096     |               |  |   | (4,096   | )
|Property Expenses                                                    |  |                       | 3,750      |   |                      |   | 490        |               |  |   | 3,260    |  
|                                                                     |  |                       |            |   |                      |   |            |               |  |   |          |  
|TOTAL OPERATING EXPENSES                                             |  | $                     | 157,340    |   |                      | $ | 147,458    |               |  | $ | 9,882    |  
|                                                                     |  |                       |            |   |                      |   |            |               |  |   |          |  
|INVESTIGATION AND RESTORATION EXPENSES                               |  | $                     | 0          |   |                      | $ | 136        |               |  | $ | (136     | )
|                                                                     |  |                       |            |   |                      |   |            |               |  |   |          |  
|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                                                       |  | $                     | 225,896    |   |                      | $ | 216,150    |               |  | $ | 9,746    |  
|                                                                     |  |                       |            |   |                      |   |            |               |  |   |          |  
|NET INCOME                                                           |  | $                     | 238,260    |   |                      | $ | 247,340    |               |  | $ | 9,080    |  
|                                                                     |  |                       |           
|                                                                     |  |                       |            |   |                      |   |            | VARIANCE      | 
|OPERATING CASH RECONCILIATION:                                       |  |                       |            |   |                      |   |            |               |  |   |          |  
|Depreciation and amortization                                        |  |                       | 68,556     |   |                      |   | 68,555     |               |  |   | (1       | )
|Recovery of amounts previously written off                           |  |                       | 0          |   |                      |   | (3,401     | )             |  |   | (3,401   | )
|(Increase) Decrease in current assets                                |  |                       | 222,237    |   |                      |   | 8,406      |               |  |   | (213,831 | )
|Increase (Decrease) in current liabilities                           |  |                       | (10,725    | ) |                      |   | (104,421   | )             |  |   | (93,696  | )
|(Increase) Decrease in cash reserved for payables                    |  |                       | 9,772      |   |                      |   | 103,432    |               |  |   | 93,660   |  
|Current cash flows advanced from (reserved for) future distributions |  |                       | (83,100    | ) |                      |   | 146,687    |               |  |   | 229,787  |  
|                                                                     |  |                       |            |   |                      |   |            |               |  |   |          |  
|Net Cash Provided From Operating Activities                          |  | $                     | 445,000    |   |                      | $ | 466,597    |               |  | $ | 21,597   |  
|                                                                     |  |                       |            |   |                      |   |            |               |  |   |          |  
|CASH FLOWS (USED IN) FROM INVESTING AND FINANCING ACTIVITIES         |  |                       |            |   |                      |   |            |               |  |   |          |  
|Indemnification Trust (Interest earnings reinvested)                 |  |                       | (1,500     | ) |                      |   | (2,494     | )             |  |   | (994     | )
|Recovery of amounts previously written off                           |  |                       | 0          |   |                      |   | 3,401      |               |  |   | 3,401    |  
|                                                                     |  |                       |            |   |                      |   |            |               |  |   |          |  
|Net Cash (Used In) From Investing And Financing Activities           |  | $                     | (1,500     | ) |                      | $ | 907        |               |  | $ | 2,407    |  
|                                                                     |  |                       |            |   |                      |   |            |               |  |   |          |  
|Total Cash Flow For Quarter                                          |  | $                     | 443,500    |   |                      | $ | 467,505    |               |  | $ | 24,005   |  
|                                                                     |  |                       |           
|Cash Balance Beginning of Period                                     |  |                       | 805,510    |   |                      |   | 1,148,932  |               |  |   | 343,422  |  
|Less 1st quarter 2005 distributions paid 5/05                        |  |                       | (430,000   | ) |                      |   | (435,000   | )             |  |   | (5,000   | )
|Change in cash reserved for payables or future distributions         |  |                       | 73,328     |   |                      |   | (250,119   | )             |  |   | (323,447 | )
|                                                                     |  |                       |            |   |                      |   |            |               |  |   |          |  
|Cash Balance End of Period                                           |  | $                     | 892,337    |   |                      | $ | 931,318    |               |  | $ | 38,981   |  
|                                                                     |  |                       |           
|Cash reserved for 2nd quarter 2005 L.P. distributions                |  |                       | (430,000   | ) |                      |   | (435,000   | )             |  |   | (5,000   | )
|Cash reserved for payment of accrued expenses                        |  |                       | (90,134    | ) |                      |   | (97,533    | )             |  |   | (7,399   | )
|Cash advanced from (reserved for) future distributions               |  |                       | (278,613   | ) |                      |   | (278,613   | )             |  |   | 0        |  
|                                                                     |  |                       |            |   |                      |   |            |               |  |   |          |  
|Unrestricted Cash Balance End of Period                              |  | $                     | 93,590     |   |                      | $ | 120,172    |               |  | $ | 26,582   |  
|                                                                     |  |                       |            |   |                      |   |            |               |  |   |          |  
|                                                                     |  |                       |           
|                                                                     |  | PROJECTED             |            |   | ACTUAL               |   |            | VARIANCE      | 
|*  Quarterly Distribution                                            |  | $                     | 430,000    |   |                      | $ | 435,000    |               |  | $ | 5,000    |  
|Mailing Date                                                         |  |                       | 08/15/2005 |   |                      |   | (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 JUNE 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                  |  | R. HILLS, 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.
| | -- | -----------------------------------------------------------------------------------------------



Page 1 of 2



---

PROJECTIONS FOR

DISCUSSION
PURPOSES



DIVALL INSURED INCOME PROPERTIES 2 LP

2005 PROPERTY SUMMARY

AND RELATED RECEIPTS

FOR CURRENT OPERATING PROPERTIES

AS OF JUNE 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 |  
|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           |  | CHARLESTION, 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.
| | -- | -----------------------------------------------------------------------------------------------



Page 2 of 2