FORM 10-KSB--ANNUAL OR TRANSITIONAL REPORT UNDER
                             SECTION 13 OR 15(d)

                                   Form 10-KSB
(Mark One)
[X]   ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
      OF 1934
      [No Fee Required]

                 For the fiscal year ended December 31, 2000

[ ]   TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
      ACT OF 1934
      [No Fee Required]

             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)

                   Issuer's telephone number (864) 239-1000

        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.  $9,443,000

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, 2000. 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>

                                     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").

The  Registrant  is engaged in the business of operating and holding real estate
properties for  investment.  By the end of the  Partnership's  fiscal year 1988,
three apartment properties had been acquired. During the year ended December 31,
2000,  one of the  properties  was sold.  The  Registrant  continues  to own and
operate two of these  properties.  See "Item 2. Description of Properties".  The
Partnership  Agreement provides that the Partnership is to terminate on December
31, 2036, unless terminated prior to such date.

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").  Two  classes of Units ("A"  Units and "B"  Units,  herein so  called),
entitled  to  different  rights  and  priorities  as to cash  distributions  and
Partnership  allocations,  were offered.  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  General  Partner  of  the  Partnership
intended  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.
At the end of the current fiscal year, the "B" Units  represented  approximately
44% of the total  amount of the Units  sold.  The General  Partner is  currently
considering several alternative  procedures to conform the unit allocations more
closely to the intended  investment  objectives.  The General Partner intends to
continue such consideration,  but has not yet determined a feasible alternative.
The  corporate  limited  partner  of the  Partnership  was  Multi-Benefit  '87-1
Depositary  Corporation,  an affiliate  of the General  Partner.  The  corporate
limited  partner  served as  depositary  for the Units  pursuant to a Depositary
Agreement  entered  into  with the  Partnership.  The sale of  Units  closed  on
September 30, 1988,  with 172,436 Units sold at $100 each, or gross  proceeds of
approximately $17,244,000 to the Partnership.  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 (see "Transfer of
Control" below).

The Registrant has no employees. Property management and administrative services
are  provided  by the  General  Partner  and by agents  retained  by the General
Partner.  An affiliate of the General  Partner has been  providing such property
management services.

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 properties.  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 the
apartments at the Partnership's properties 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.

Both  the  income  and  expenses  of  operating  the  properties  owned  by  the
Partnership are subject to factors outside of the Partnership's control, such as
changes in the supply and demand for similar  properties  resulting from various
market  conditions,  increases/decreases  in unemployment or population  shifts,
changes in the availability of permanent mortgage  financing,  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 properties
owned by the Partnership.

The Partnership  monitors its properties 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 "Management's
Discussion and Analysis or Plan of Operations" included in "Item 6" of this Form
10-KSB.

Transfer of Control

Pursuant  to a series  of  transactions  which  closed  on  October  1, 1998 and
February 26, 1999,  Insignia  Financial Group, Inc. and IPT merged into AIMCO, a
publicly  traded real estate  investment  trust,  with AIMCO being the surviving
corporation (the "Insignia Merger").  As a result, AIMCO acquired 100% ownership
interest in the General Partner.  The General Partner does not believe that this
transaction has had or will have a material effect on the affairs and operations
of the Partnership.

Item 2.     Description of Properties

The following table sets forth the Partnership's investments in properties:

                                 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

Shadow Brook Apartments            05/87   Fee ownership subject to   Apartment
  West Valley City, Utah                   first mortgage             300 units

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

Schedule of Properties

Set forth below for each of the  Partnership's  properties 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        $ 7,621      $ 4,471      5-30     S/L        $ 4,035
Shadow Brook Apartments      11,079        5,244      5-30     S/L          5,998

  Total                     $18,700      $ 9,715                          $10,033
</TABLE>

See  "Note A" to the  consolidated  financial  statements  included  in "Item 7.
Financial  Statements"  for a  description  of  the  Partnership's  depreciation
policy.

Schedule of Property Indebtedness

The  following  table  sets  forth  certain  information  relating  to the loans
encumbering the Registrant's properties.
<TABLE>
<CAPTION>

                       Principal                                         Principal
                       Balance At      Stated                             Balance
                      December 31,    Interest    Period    Maturity       Due At
Property                  2000          Rate     Amortized    Date      Maturity (2)
                     (in thousands)                                    (in thousands)

Hunt Club
<S>                      <C>           <C>       <C>          <C>           <C>
  1st mortgage           $3,880        8.05%     20 years     09/20         $ --
Shadow Brook
  1st mortgage            6,000        7.33%        (1)       11/03         6,000

                         $9,880                                            $6,000
</TABLE>

(1)   Payments consist of interest only.

(2)   See "Item 7. Financial  Statements - Note C" for information  with respect
      to the  Partnership's  ability to prepay  these  loans and other  specific
      details about the loans.

Schedule of Rental Rate and Occupancy

Average annual rental rates and occupancy for 2000 and 1999 for each property:

                                   Average Annual               Average Annual
                                     Rental Rate                  Occupancy
                                     (per unit)
Property                         2000           1999          2000          1999

Hunt Club Apartments            $7,861         $7,720          94%          93%
Shadow Brook Apartments          7,186          7,187          97%          98%

As noted under "Item 1.  Description of Business",  the real estate  industry is
highly  competitive.  All of the  properties of the  Partnership  are subject to
competition from other residential  apartment complexes in the area. The General
Partner  believes  that  all of the  properties  are  adequately  insured.  Each
property is an  apartment  complex  which  leases units for terms of one year or
less.  No tenant leases 10% or more of the  available  rental space.  All of the
properties are 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 Rates

Real estate taxes and rates in 2000 for each property were:

                                                2000            2000
                                               Billing          Rate
                                           (in thousands)

       Hunt Club Apartments                     $147            9.84%
       Shadow Brook Apartments                   103            1.40%

Capital Improvements

Carlin Manor

During the year ended December 31, 2000, the Partnership expended  approximately
$67,000 for capital  improvements at Carlin Manor consisting  primarily of floor
covering, major landscaping, and appliance replacements.  This property was sold
on June 12, 2000.

Hunt Club

During the year ended December 31, 2000, the Partnership expended  approximately
$297,000  for capital  improvements  and  replacements  at Hunt Club  consisting
primarily of carpet replacements,  heating upgrades,  parking area improvements,
furniture and fixtures, and structural upgrades.  These improvements were funded
from operating cash flow and replacement reserves.  The Partnership is currently
evaluating the capital  improvement needs of the property for the upcoming year.
The minimum amount to be budgeted is expected to be $275 per unit or $55,000. In
addition, the property is expected to spend approximately $56,000 on common area
water heaters.  Additional improvements may be considered and will depend on the
physical  condition  of  the  property  as  well  as  replacement  reserves  and
anticipated cash flow generated by the property.

Shadow Brook

During the year ended December 31, 2000, the Partnership expended  approximately
$200,000 for capital  improvements  and  replacements at Shadow Brook consisting
primarily  of  roof  replacement,   carpet  and  vinyl   replacement,   lighting
improvements,  and appliance  replacements.  These improvements were funded from
operating  cash flow and  replacement  reserves.  The  Partnership  is currently
evaluating the capital  improvement needs of the property for the upcoming year.
The  minimum  amount to be  budgeted is expected to be $275 per unit or $82,500.
Additional  improvements  may be  considered  and will  depend  on the  physical
condition of the property as well as replacement  reserves and anticipated  cash
flow generated by the property.

The  capital  improvements  planned  for  the  year  2001  at the  Partnership's
properties will be made only to the extent of cash available from operations and
Partnership  reserves. To the extent that such budgeted capital improvements are
completed,  the Registrant's  distributable  cash flow, if any, may be adversely
affected at least in the short term.

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. 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  purports to assert claims on
behalf of a class of limited  partners and derivatively on behalf of a number of
limited  partnerships  (including  the  Partnership)  which are named as nominal
defendants,  challenging,  among other things,  the  acquisition of interests in
certain general partner entities by Insignia Financial Group, Inc.  ("Insignia")
and entities which 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 Insignia  Merger.  The
plaintiffs  seek  monetary  damages and  equitable  relief,  including  judicial
dissolution of the  Partnership.  On June 25, 1998, the General  Partner filed a
motion seeking dismissal of the action. In lieu of responding to the motion, the
plaintiffs  filed an amended  complaint.  The General Partner filed demurrers to
the amended complaint which were heard February 1999.

Pending the ruling on such  demurrers,  settlement  negotiations  commenced.  On
November 2, 1999,  the parties  executed and filed a Stipulation  of Settlement,
settling claims, subject to court approval, on behalf of the Partnership and all
limited partners who owned units as of November 3, 1999. Preliminary approval of
the  settlement  was obtained on November 3, 1999 from the Court,  at which time
the Court set a final  approval  hearing for  December  10,  1999.  Prior to the
December  10,  1999  hearing,  the  Court  received  various  objections  to the
settlement, including a challenge to the Court's preliminary approval based upon
the alleged lack of authority of prior lead counsel to enter the settlement.  On
December  14,  1999,  the General  Partner  and its  affiliates  terminated  the
proposed settlement.  In February 2000, counsel for some of the named plaintiffs
filed a motion to disqualify plaintiff's lead and liaison counsel who negotiated
the settlement.  On June 27, 2000, the Court entered an order disqualifying them
from the case and an appeal was taken  from the order on  October  5,  2000.  On
December 4, 2000, the Court  appointed the law firm of Lieff Cabraser  Heimann &
Bernstein  LLP as new  lead  counsel  for  plaintiffs  and the  putative  class.
Plaintiffs  filed a third  amended  complaint on January 19,  2001.  On March 2,
2001,  the  General  Partner  and its  affiliates  filed a demurrer to the third
amended complaint. The General Partner does not anticipate that costs associated
with this case will be material to the Partnership's overall operations.

The  Partnership is unaware of any other pending or outstanding  litigation that
is not of a routine nature arising in the ordinary course of business.

Item 4.     Submission of Matters to a Vote of Partners

During the quarter ended  December 31, 2000, 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 Registrant's Units of Depository Receipts and
            Related Security Holder Matters

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

(B)   Title of Class:                     Number of Record Unit holders:

      Units of Depositary Receipts
               A Units                    385 as of December 31, 2000
               B Units                    531 as of December 31, 2000

      The  Partnership  offered and sold 172,436 "A" and "B" Units.  At December
      31,  2000,  the  Partnership  had  96,284  "A" Units and  75,152 "B" Units
      outstanding.  Affiliates  of the  General  Partner  held  61,230 "A" Units
      (63.59%) and 38,455 "B" Units (51.17%) at December 31, 2000.

(C)   The  following  table  sets  forth  the  distributions   declared  by  the
      Partnership  for the years ended December 31, 1999 and 2000 and subsequent
      to December 31, 2000 (see "Item 6. Management's Discussion and Analysis or
      Plan of Operation" for more details).
<TABLE>
<CAPTION>

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

<S> <C>   <C>  <C>   <C>        <C>        <C>        <C>                  <C>
    01/01/99 - 12/31/99         $  427,000 (1)        $ 4.39               $ --

    01/01/00 - 12/31/00          6,849,000 (2)         54.33               21.10

  Subsequent to 12/31/00           590,000 (1)          0.63                5.58
</TABLE>

(1)   Distribution  was made from cash from operations (see "Item 6" for further
      details).

(2)   Distribution  consists of $1,512,000 of cash from  operations and consists
      of $5,337,000  of cash from the sale  proceeds of Carlin Manor  Apartments
      (see "Item 6" for further details).

Future cash  distributions  will depend on the levels of net cash generated from
operations,   the  availability  of  cash  reserves,  and  the  timing  of  debt
maturities,  refinancings, and/or property sales. The Partnership's distribution
policy is reviewed on a quarterly  basis.  There can be no  assurance,  however,
that the  Partnership  will  generate  sufficient  funds from  operations  after
required capital expenditures to permit further distributions to its partners in
the  year   2001  or   subsequent   periods.   See  "Item  2.   Description   of
Properties-Capital Improvements" for information relating to anticipated capital
expenditures at the properties.

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership,  AIMCO and its  affiliates  currently own 61,230 "A" and 38,455 "B"
limited  partnership units in the Partnership  representing 63.59% and 51.17% of
the  outstanding "A" and "B" units,  respectively.  A number of these units were
acquired  pursuant  to  tender  offers  made by AIMCO or its  affiliates.  It is
possible that AIMCO or its affiliates will make one or more additional offers to
acquire additional limited partnership  interests in the Partnership for cash or
in  exchange  for  units  in the  operating  partnership  of  AIMCO.  Under  the
Partnership Agreement,  unitholders holding a majority of the Units are entitled
to take action with respect to a variety of matters which would include  without
limitation, voting on certain amendments to the Partnership Agreement and voting
to remove the General Partner. As a result of its ownership of 63.59% and 51.17%
of the  outstanding "A" and "B" units,  respectively,  AIMCO is in a position to
influence all voting  decisions with respect to the  Registrant.  When voting on
matters,  AIMCO would in all  likelihood  vote the Units it acquired in a manner
favorable to the interest of the General  Partner  because of their  affiliation
with the General Partner.

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

The  matters  discussed  in this Form  10-KSB  contain  certain  forward-looking
statements  and  involve  risks and  uncertainties  (including  changing  market
conditions,   competitive  and  regulatory   matters,   etc.)  detailed  in  the
disclosures  contained  in this  Form  10-KSB  and the  other  filings  with the
Securities and Exchange Commission made by the Registrant from time to time. The
discussions of the  Registrant's  business and results of operations,  including
forward-looking  statements  pertaining  to such  matters,  does not  take  into
account the effects of any changes to the  Registrant's  business and results of
operations.  Accordingly,  actual  results  could differ  materially  from those
projected in the forward-looking  statements as a result of a number of factors,
including those identified herein.

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

Results of Operations

The  Partnership had net income of  approximately  $4,865,000 for the year ended
December  31,  2000 as  compared to  approximately  $582,000  for the year ended
December 31, 1999.  The increase in net income is primarily  attributable  to an
increase  in total  revenues  resulting  from the gain  recorded  on the sale of
Carlin Manor Apartments as discussed below.

Excluding the  operations of Carlin Manor  Apartments as well as the gain on the
sale  and the  extraordinary  loss on the  early  extinguishment  of the debt at
Carlin Manor, the Partnership had net income of  approximately  $102,000 for the
year ended  December 31, 2000 compared to net income of  approximately  $206,000
for the year ended  December 31,  1999.  The decrease in net income for the year
ended December 31, 2000 is due to an increase in total expenses partially offset
by an  increase in total  revenues.  The  increase  in total  revenues is due to
increases in rental  income and other income  partially  offset by a decrease in
gain on sale of  equipment  from the sale of equipment  in 1999.  Rental  income
increased due primarily to increased  occupancy  and  increased  average  annual
rental rates at Hunt Club Apartments,  despite a slight decrease in occupancy at
Shadow  Brook  Apartments.  Other  income  increased  as a result  of  increased
interest income due to higher average cash balances in interest bearing accounts
and  increased  telephone   commissions  and  tenant  charges  at  both  of  the
Partnership's  properties.  The gain on sale of equipment  during the year ended
December 31, 1999 was due to the sale of cable equipment at Shadow Brook.

Excluding the operations of Carlin Manor,  total expenses increased for the year
ended December 31, 2000 due to increased depreciation, property tax, and general
and administrative  expenses partially offset by decreased  operating  expenses.
Depreciation  expense  increased  primarily  due to  property  improvements  and
replacements  completed  during the past  twelve  months.  Property  tax expense
increased  due to the  receipt  of a tax  refund in 1999 on a prior  year's  tax
payment for Hunt Club. General and administrative  expenses increased  primarily
due  to the  payment  of  Partnership  management  fees  on  distributions  from
operations  during 2000. There were no distributions  from operations during the
year ended December 31, 1999, so no such fees were paid during 1999. General and
administrative  expenses  also  increased  due to an  increase  in the  cost  of
services  included in the management  reimbursements  to the General  Partner as
allowed  under  the  Partnership  Agreement  and  increased   professional  fees
necessary  to manage the  Partnership.  Included in general  and  administrative
expenses at both December 31, 2000 and 1999 are management reimbursements to the
General  Partner  allowed under the Partnership  Agreement.  In addition,  costs
associated  with the  quarterly  and annual  communications  with  investors and
regulatory  agencies and the annual audit required by the Partnership  Agreement
are also included.  Operating expenses  decreased  primarily due to reduced snow
removal  costs and reduced  maintenance  expenses  at both of the  Partnership's
properties,  reduced advertising  expenses at Hunt Club Apartments,  and reduced
payroll bonuses at Shadow Brook Apartments.

On  June  12,  2000,  the  Partnership   sold  Carlin  Manor  Apartments  to  an
unaffiliated  third  party for  $8,100,000.  After  payment of closing  costs of
approximately  $95,000,  the net sales proceeds received by the Partnership were
approximately $8,005,000.  The Partnership used a portion of the proceeds to pay
off  the  mortgage   encumbering  the  property  of  $2,500,000.   Approximately
$5,337,000  of the proceeds  were  distributed  to the partners  during the year
ended  December  31,  2000.  The  remaining  proceeds  were  used  to  establish
additional cash reserves for the Partnership. The Partnership's gain on the sale
was  approximately  $4,910,000  and  there  was an  extraordinary  loss on early
extinguishment  of debt of  approximately  $105,000  consisting  of a prepayment
penalty and the write-off of unamortized loan costs.

As part of the ongoing  business plan of the  Partnership,  the General  Partner
monitors the rental market  environment of each of its investment  properties 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,  due to changing  market
conditions,  which  can  result  in the use of  rental  concessions  and  rental
reductions to offset softening market conditions, there is no guarantee that the
General Partner will be able to sustain such a plan.

Liquidity and Capital Resources

At  December  31,  2000,  the  Partnership  had  cash and  cash  equivalents  of
approximately  $892,000 as compared to approximately  $2,280,000 at December 31,
1999. Cash and cash equivalents decreased approximately  $1,388,000 for the year
ended December 31, 2000,  from the  Partnership's  year ended December 31, 1999,
due to approximately $9,752,000 of cash used in financing activities,  which was
partially  offset by  approximately  $7,528,000  of cash  provided by  investing
activities and approximately  $836,000 of cash provided by operating activities.
Cash used in financing activities consisted primarily of the payoff of mortgages
encumbering Hunt Club Apartments and Carlin Manor  Apartments and  distributions
to partners, and to a lesser extent, loan costs paid, payments of principal made
on the mortgage  encumbering Hunt Club Apartments and prepayment  penalties paid
for the payoff of the mortgage  encumbering  Carlin Manor  Apartments  partially
offset by the proceeds  received from the  refinancing of Hunt Club  Apartments.
Cash  provided by investing  activities  consisted of proceeds  from the sale of
Carlin  Manor  Apartments   partially   offset  by  property   improvements  and
replacements and net deposits to restricted  escrows  maintained by the mortgage
lender.  The Partnership  invests its working  capital  reserves in money market
accounts.

On August 31, 2000, the  Partnership  refinanced the mortgage  encumbering  Hunt
Club  Apartments.   The  refinancing  replaced   indebtedness  of  approximately
$3,582,000 with a new mortgage of $3,900,000.  The new mortgage carries a stated
interest  rate of  8.05%  as  compared  to the  8.30%  interest  rate on the old
mortgage.  Payments on the mortgage  loan are due monthly until the loan matures
on September 1, 2020. In addition,  the  Partnership was required to establish a
repair  escrow of  approximately  $239,000  with the lender for certain  capital
replacements.  Total  capitalized  loan costs  were  approximately  $157,000  at
December 31, 2000. The Partnership recognized an extraordinary loss on the early
extinguishment  of  debt  of  approximately  $3,000  due  to  the  write-off  of
unamortized loan costs.

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  properties  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 Partnership is currently
evaluating  the  capital  improvement  needs of both of its  properties  for the
upcoming year. The minimum amount to be budgeted for the Partnership is expected
to be $275 per unit or $137,500.  In addition,  Hunt Club Apartments is expected
to  spend  approximately  $56,000  on  common  area  water  heaters.  Additional
improvements may be considered and will depend on the physical  condition of the
property as well as replacement  reserves and anticipated cash flow generated by
the properties.

The  additional  capital  expenditures  for the year  2001 at the  Partnership's
properties will be made only to the extent of cash available from operations and
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.

Until  October  17,  2000,  the  Partnership  was  required  by the  Partnership
Agreement to maintain  working capital  reserves for  contingencies  of not less
than 5% of Net Invested Capital, as defined in the Partnership Agreement. In the
event  expenditures were made from this reserve,  operating  revenues were to be
allocated  to such reserve to the extent  necessary  to maintain  the  foregoing
level.  During the third  quarter,  the  Partnership  solicited  the vote of the
Limited  Partners to approve an  amendment  to the  Partnership  Agreement.  The
effect of the amendment was to change such provision to require the  Partnership
to maintain  reasonable reserves for normal working capital and contingencies in
an  amount  determined  from  time to time by the  General  Partner  in its sole
discretion.  The  Solicitation  Statement was mailed to the Limited  Partners on
September 16, 2000.  Upon the  expiration of the  solicitation  period (close of
business on October  16,  2000),  the  requisite  number of positive  votes were
received to effect this amendment.

The  Partnership's  assets  are  currently  thought  to be  sufficient  for  any
near-term needs  (exclusive of capital  improvements)  of the  Partnership.  The
mortgage  indebtedness  of  approximately  $9,880,000 is amortized  over varying
periods with the Shadow Brook Apartments mortgage requiring a balloon payment in
November 2003. Hunt Club Apartments' mortgage  indebtedness is amortized over 20
years and  matures  September  1, 2020.  The  General  Partner  will  attempt to
refinance such  indebtedness  and/or sell the properties  prior to such maturity
dates. If the properties  cannot be refinanced or sold for a sufficient  amount,
the Partnership will risk losing such properties through foreclosure.

During  the year  ended  December  31,  1999  the  Partnership  declared  a cash
distribution  from operations of approximately  $427,000 of which  approximately
$423,000  ($4.39  per  limited  partnership  "A"  Unit) was paid to the "A" Unit
limited partners. This distribution was accrued at December 31, 1999 and paid in
January 2000. During the year ended December 31, 2000, the Partnership  declared
and   paid   distributions   from   operations   of   approximately   $1,512,000
(approximately  $1,497,000 to "A" Unit holders or $15.55 per limited partnership
"A"  Unit)  and of  proceeds  from  the  sale  of  Carlin  Manor  Apartments  of
approximately $5,337,000 (approximately $3,734,000 to "A" Unit holders or $38.78
per  limited  partnership  "A" Unit  and  approximately  $1,586,000  to "B" Unit
holders or $21.10 per limited partnership "B" Unit).  Subsequent to December 31,
2000, the Partnership  declared a distribution  from operations of approximately
$590,000  (approximately  $47,000  to "A"  Unit  holders  or $0.49  per  limited
partnership "A" Unit and approximately $537,000 to "B" Unit holders or $7.14 per
limited partnership "B" Unit). The Partnership's distribution policy is reviewed
on a quarterly basis. Future cash distributions will depend on the levels of net
cash generated  from  operations,  the  availability  of cash reserves,  and the
timing of debt maturities,  refinancings, and/or property sales. There can be no
assurance,  however,  that the Partnership  will generate  sufficient funds from
operations after required capital  expenditures to permit further  distributions
to its partners in the year 2001 or subsequent periods.

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership,  AIMCO and its  affiliates  currently own 61,230 "A" and 38,455 "B"
limited  partnership units in the Partnership  representing 63.59% and 51.17% of
the  outstanding "A" and "B" units,  respectively.  A number of these units were
acquired  pursuant  to  tender  offers  made by AIMCO or its  affiliates.  It is
possible that AIMCO or its affiliates will make one or more additional offers to
acquire additional limited partnership  interests in the Partnership for cash or
in  exchange  for  units  in the  operating  partnership  of  AIMCO.  Under  the
Partnership Agreement,  unitholders holding a majority of the Units are entitled
to take action with respect to a variety of matters which would include  without
limitation, voting on certain amendments to the Partnership Agreement and voting
to remove the General Partner. As a result of its ownership of 63.59% and 51.17%
of the  outstanding "A" and "B" units,  respectively,  AIMCO is in a position to
influence all voting  decisions with respect to the  Registrant.  When voting on
matters,  AIMCO would in all  likelihood  vote the Units it acquired in a manner
favorable to the interest of the General  Partner  because of their  affiliation
with the General Partner.

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, 2000

      Consolidated  Statements of  Operations - Years ended  December 31, 2000
      and 1999

      Consolidated  Statements of Changes in Partners' (Deficit) Capital - Years
      ended December 31, 2000 and 1999

      Consolidated  Statements  of Cash Flows - Years ended  December 31, 2000
      and 1999

      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,  2000,  and the  related  consolidated
statements of operations, changes in partners' (deficit) capital, and cash flows
for each of the two years in the period ended December 31, 2000. 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,  2000,  and the  consolidated  results of its
operations  and its cash  flows  for each of the two years in the  period  ended
December 31, 2000, in conformity with accounting  principles  generally accepted
in the United States.


                                                          /s/ERNST & YOUNG LLP


Greenville, South Carolina
March 2, 2001


<PAGE>




                       MULTI-BENEFIT REALTY FUND '87-1

                           CONSOLIDATED BALANCE SHEET
                       (in thousands, except unit data)

                                December 31, 2000

<TABLE>
<CAPTION>


Assets
<S>                                                                          <C>
   Cash and cash equivalents                                                 $   892
   Receivables and deposits (net of $34,000 allowance
      for bad debt)                                                               85
   Restricted escrows                                                            281
   Other assets                                                                  253
   Investment properties (Notes C and G):
      Land                                                    $ 1,447
      Buildings and related personal property                   17,253
                                                                18,700
      Less accumulated depreciation                             (9,715)        8,985
                                                                            $ 10,496

Liabilities and Partners' (Deficit) Capital
Liabilities
      Accounts payable                                                       $   192
      Tenant security deposit liabilities                                         58
      Accrued property taxes                                                     152
      Other liabilities                                                          277
      Mortgage notes payable (Note C)                                          9,880

Partners' (Deficit) Capital
   General Partner                                             $ (117)
   Limited Partner "A" Unit holders -
      96,284 units issued and outstanding                       (4,667)
   Limited Partner "B" Unit holders -
      75,152 units issued and outstanding                        4,721           (63)
                                                                            $ 10,496

        See Accompanying Notes to Consolidated Financial Statements
</TABLE>


<PAGE>


                       MULTI-BENEFIT REALTY FUND '87-1

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                       (in thousands, except unit data)
<TABLE>
<CAPTION>



                                                            Years Ended December 31,
                                                                2000         1999
Revenues:
<S>                                                           <C>          <C>
  Rental income                                               $ 4,167      $ 4,997
  Gain on sale of equipment                                        --          100
  Other income                                                    366          311
  Gain on sale of investment property                           4,910           --
      Total revenues                                            9,443        5,408

Expenses:
  Operating                                                     1,883        2,176
  General and administrative                                      444          287
  Depreciation                                                    978        1,059
  Interest                                                        879          991
  Property taxes                                                  286          313
      Total expenses                                            4,470        4,826

Income before extraordinary loss on early extinguishment
  of debt                                                       4,973          582
Extraordinary loss on early extinguishment of debt               (108)          --

Net income (Note D)                                           $ 4,865       $ 582

Net income allocated to general partner (1%)                    $ 49         $ 6
Net income allocated to limited partners (99%)                  4,816          576
                                                              $ 4,865       $ 582
Per limited partnership "A" and "B" units:
  Income before extraordinary loss on early
   extinguishment of debt                                     $ 28.71       $ 3.36
  Extraordinary loss on early extinguishment of debt            (0.62)          --

Net income                                                    $ 28.09       $ 3.36

Distributions per limited partnership "A" units               $ 54.33       $ 4.39
Distributions per limited partnership "B" units               $ 21.10        $ --

        See Accompanying Notes to Consolidated Financial Statements
</TABLE>

<PAGE>

                       MULTI-BENEFIT REALTY FUND '87-1

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

<TABLE>
<CAPTION>


                                                                              Total
                                                                            Partners'
                                        General       Limited Partners      (Deficit)
                                        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, 2000 and
  December 31, 1999                         --       96,284       75,152     171,436

Partners' (deficit) capital at
  December 31, 1998                     $ (136)     $(2,044)     $ 3,946     $ 1,766

Distribution to partners                    (4)        (423)          --        (427)

Net income for the year ended
  December 31, 1999                          6          326          250         582

Partners' (deficit) capital at
  December 31, 1999                       (134)      (2,141)       4,196       1,921

Distributions to partners                  (32)      (5,231)      (1,586)     (6,849)

Net income for the year ended
  December 31, 2000                         49        2,705        2,111       4,865

Partners' (deficit) capital at
  December 31, 2000                     $ (117)     $(4,667)     $ 4,721      $ (63)

        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,
                                                                  2000        1999
Cash flows from operating activities:
<S>                                                             <C>           <C>
  Net income                                                    $ 4,865       $  582
  Adjustments to reconcile net income to net cash provided
   by operating activities:
     Depreciation                                                   978        1,059
     Amortization of loan costs                                      51           64
     Gain on disposal of property                                    --         (100)
     Gain on sale of investment property                         (4,910)          --
     Extraordinary loss on early extinguishment of debt             108           --
     Change in accounts:
      Receivables and deposits                                      245           87
      Other assets                                                   12          (35)
      Accounts payable                                             (155)         143
      Tenant security deposit liabilities                           (29)         (24)
      Accrued property taxes                                       (184)          61
      Other liabilities                                            (145)         183
          Net cash provided by operating activities                 836        2,020

Cash flows from investing activities:
  Property improvements and replacements                           (439)      (1,076)
  Net (deposits to) withdrawals from restricted escrows             (38)         122
  Proceeds from sale of investment property                       8,005           --
          Net cash provided by (used in) investing
            activities                                            7,528         (954)

Cash flows from financing activities:
  Payments on mortgage notes payable                                (75)         (77)
  Repayment of mortgage notes payable                            (6,082)          --
  Proceeds from mortgage note payable                             3,900           --
  Prepayment penalty paid                                           (62)          --
  Loan costs paid                                                  (157)          --
  Distributions to partners                                      (7,276)          --
          Net cash used in financing activities                  (9,752)         (77)

Net (decrease) increase in cash and cash equivalents             (1,388)         989
Cash and cash equivalents at beginning of year                    2,280        1,291
Cash and cash equivalents at end of year                         $  892      $ 2,280

Supplemental disclosure of cash flow information:
  Cash paid for interest                                         $  851        $ 928

Supplemental disclosure of non-cash activity:
  Property improvements and replacements included in
   accounts payable                                              $ 125        $ --
  Distribution payable                                            $ --        $ 427

        See Accompanying Notes to Consolidated Financial Statements
</TABLE>


<PAGE>

                         MULTI-BENEFIT REALTY FUND '87-1

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                December 31, 2000


Note A - Organization and 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 date on
which  impound  requirements  were met. The  Partnership  operates two apartment
properties,  one each located in the Mid-west and West.  ConCap  Equities,  Inc.
("CEI" or the "General  Partner") is a subsidiary  of Apartment  Investment  and
Management Company ("AIMCO") (see "Note B - Transfer of Control"). The directors
and officers of the General  Partner also serve as executive  officers of AIMCO.
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  Units  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 this
consolidated  partnership  is  the  General  Partner  of  the  Registrant.   The
Partnership  may  remove  the  general  partner  of Hunt Club  Associates,  Ltd;
therefore,  the  consolidated  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 generally  accepted
accounting principles 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' (Deficit) 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  ("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  2000  and 1999 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, in banks and money market accounts. At certain times, the
amount of cash  deposited  at a bank may exceed  the limit on insured  deposits.
Cash  balances  include  approximately  $781,000 at  December  31, 2000 that are
maintained by the 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 and such deposits are included in receivables  and deposits.  Deposits are
refunded when the tenant vacates,  provided the tenant has not damaged its space
and is current on rental payments.

Escrows for Taxes

Escrows for Hunt Club are held by the  mortgagor.  Escrows for Shadow  Brook are
held by the  Partnership.  All escrowed  funds are designated for the payment of
real  estate  taxes  and   insurance.   The  escrows  for  Hunt  Club   totaling
approximately  $26,000 and the escrows for Shadow Brook  totaling  approximately
$8,000 are included in receivables and deposits.

Restricted Escrows

In relation to the mortgages at Shadow Brook Apartments, the mortgage lender has
required a "replacement reserve" for certain capital  improvements.  At December
31, 2000, the balance was approximately $42,000.

In relation to the mortgage at Hunt Club  Apartments,  the  mortgage  lender has
required a "repair  escrow" for certain  capital  replacements.  At December 31,
2000, the balance was approximately $239,000.

Investment Properties

Investment properties consist of two apartment complexes and are stated at cost.
Acquisition  fees are  capitalized as a cost of real estate.  In accordance with
Statement of Financial  Accounting  Standards ("SFAS") No. 121,  "Accounting for
the  Impairment of Long-Lived  Assets and for  Long-Lived  Assets to be Disposed
Of," 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, 2000 and 1999.

Depreciation

Depreciation is provided by the straight-line method over the estimated lives of
the investment properties and related personal property.  For Federal income tax
purposes,  the  accelerated  cost recovery  method is used (1) 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   $318,000  less   accumulated   amortization  of
approximately  $95,000 are included in other assets and are being amortized on a
straight-line basis over the life of the respective loans.

Leases

The Partnership generally leases apartment units for twelve-month terms or less.
The Partnership  recognizes  income as earned on leases.  The General  Partner's
policy is to offer  rental  concessions  during  particularly  slow months or in
response  to  heavy  competition  from  other  similar  complexes  in the  area.
Concessions are charged against rental income as incurred.

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 establishes 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.  The General
Partner  believes  that  segment-based  disclosures  will not  result  in a more
meaningful  presentation than the consolidated financial statements as currently
presented.

Advertising

Advertising  costs of  approximately  $87,000 and  $126,000  for the years ended
December 31, 2000 and 1999, respectively, are charged to expense as incurred and
are included in operating expenses.

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  amount of its
financial  instruments (except for long term debt) approximates their fair value
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  based on  borrowing  rates  currently  available  to the  Partnership,
approximates its carrying amount.

Note B - Transfer of Control

Pursuant  to a series  of  transactions  which  closed  on  October  1, 1998 and
February 26, 1999,  Insignia Financial Group, Inc. and Insignia Properties Trust
merged into AIMCO, a publicly traded real estate  investment  trust,  with AIMCO
being the surviving  corporation  (the "Insignia  Merger").  As a result,  AIMCO
acquired 100% ownership  interest in the General  Partner.  The General  Partner
does not believe that this transaction has had or will have a material effect on
the affairs and operations of the Partnership.

Note C - Mortgage Notes Payable

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

                        Principal      Monthly                           Principal
                       Balance At      Payment    Stated                  Balance
                      December 31,    Including  Interest   Maturity       Due At
Property                  2000        Interest     Rate       Date        Maturity
                           (in thousands)                              (in thousands)
Hunt Club
<S>                      <C>            <C>        <C>      <C>   <C>       <C>
  1st mortgage           $ 3,880        $ 33       8.05%    09/01/20        $ --
Shadow Brook
  1st mortgage             6,000          37       7.33%    11/01/03        6,000

                         $ 9,880        $ 70                              $ 6,000
</TABLE>

The mortgage  notes  payable are  non-recourse  and are secured by pledge of the
respective  apartment  properties  and by pledge of revenues from the respective
apartment  properties.  Both of the notes require prepayment penalties if repaid
prior to maturity  and  prohibit  resale of the  properties  subject to existing
indebtedness.

On August 31, 2000, the  Partnership  refinanced the mortgage  encumbering  Hunt
Club  Apartments.   The  refinancing  replaced   indebtedness  of  approximately
$3,582,000 with a new mortgage of $3,900,000.  The new mortgage carries a stated
interest  rate of  8.05%  as  compared  to the  8.30%  interest  rate on the old
mortgage.  Payments on the mortgage  loan are due monthly until the loan matures
on September 1, 2020. In addition,  the  Partnership was required to establish a
repair  escrow of  approximately  $239,000  with the lender for certain  capital
replacements.  Total  capitalized  loan costs  were  approximately  $157,000  at
December 31, 2000. The Partnership recognized an extraordinary loss on the early
extinguishment  of  debt  of  approximately  $3,000  due  to  the  write-off  of
unamortized loan costs.

Scheduled  principal  payments  of the  mortgage  notes  payable  subsequent  to
December 31, 2000 are as follows (in thousands):

                               2001              $   84
                               2002                  91
                               2003               6,098
                               2004                 106
                               2005                 115
                            Thereafter            3,386
                                                 $9,880

Note D - 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):

                                              2000          1999

Net income as reported                       $ 4,865        $  582
Add (deduct)
  Depreciation differences                       (19)          (15)
  Unearned income                                (94)           18
  Gain on sale of investment property         (1,975)           --
  Other                                          (37)           (4)
Federal taxable income                       $ 2,740        $  581
Federal taxable income per limited
  partnership unit                           $ 15.83        $ 3.36

The following is a reconciliation between the Partnership's reported amounts and
Federal tax basis of net assets and  liabilities  (in  thousands) as of December
31, 2000:

Net liabilities as reported                          $  (63)
Land and buildings                                      313
Accumulated depreciation                                735
Syndication fees                                      1,975
Other                                                   141

Net assets - tax basis                              $ 3,101

Note E - 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) certain  payments to affiliates for
services and (ii)  reimbursement of certain  expenses  incurred by affiliates on
behalf of the Partnership.  The following  transactions with the General Partner
and/or its affiliates  were incurred during each of the years ended December 31,
2000 and 1999:

                                                   2000        1999
                                                    (in thousands)
Property management fees (included in
   operating expense)                             $ 228        $ 266
Reimbursement for services of affiliates
   (included in general and administrative
   expenses and investment properties)              191          105
Partnership management fees (included in
   general and administrative expense)              135           38
Refinancing fee (included in loan costs)             39           --

During the years ended  December  31, 2000 and 1999,  affiliates  of the General
Partner  were  entitled  to  receive  5% of  gross  receipts  from  all  of  the
Partnership's  properties  as  compensation  for providing  property  management
services.  The Partnership  paid to such affiliates  approximately  $228,000 and
$266,000 for the years ended December 31, 2000 and 1999, respectively.

An  affiliate  of the General  Partner  received  reimbursement  of  accountable
administrative expenses amounting to approximately $191,000 and $105,000 for the
years ended December 31, 2000 and 1999, respectively.

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 $135,000 and $38,000
were earned during the years ended December 31, 2000 and 1999, respectively,  in
association with the distributions.

An affiliate of the General  Partner  received  $39,000 in conjunction  with the
refinancing of the mortgage encumbering Hunt Club Apartments in August 2000 (see
"Note C").

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership,  AIMCO and its  affiliates  currently own 61,230 "A" and 38,455 "B"
limited  partnership units in the Partnership  representing 63.59% and 51.17% of
the  outstanding "A" and "B" units,  respectively.  A number of these units were
acquired  pursuant  to  tender  offers  made by AIMCO or its  affiliates.  It is
possible that AIMCO or its affiliates will make one or more additional offers to
acquire additional limited partnership  interests in the Partnership for cash or
in  exchange  for  units  in the  operating  partnership  of  AIMCO.  Under  the
Partnership Agreement,  unitholders holding a majority of the Units are entitled
to take action with respect to a variety of matters which would include  without
limitation, voting on certain amendments to the Partnership Agreement and voting
to remove the General Partner. As a result of its ownership of 63.59% and 51.17%
of the  outstanding "A" and "B" units,  respectively,  AIMCO is in a position to
influence all voting  decisions with respect to the  Registrant.  When voting on
matters,  AIMCO would in all  likelihood  vote the Units it acquired in a manner
favorable to the interest of the General  Partner  because of their  affiliation
with the General Partner.

Note F - Commitment

Until  October  17,  2000,  the  Partnership  was  required  by the  Partnership
Agreement to maintain  working capital  reserves for  contingencies  of not less
than 5% of Net Invested Capital, as defined in the Partnership Agreement. In the
event  expenditures were made from this reserve,  operating  revenues were to be
allocated  to such reserve to the extent  necessary  to maintain  the  foregoing
level.  During the third  quarter,  the  Partnership  solicited  the vote of the
Limited  Partners to approve an  amendment  to the  Partnership  Agreement.  The
effect of the amendment was to change such provision to require the  Partnership
to maintain  reasonable reserves for normal working capital and contingencies in
an  amount  determined  from  time to time by the  General  Partner  in its sole
discretion.  The  Solicitation  Statement  was  mailed to  Limited  Partners  on
September 16, 2000.  Upon the  expiration of the  solicitation  period (close of
business on October  16,  2000),  the  requisite  number of positive  votes were
received to effect this amendment.

Note G - 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           $ 3,880        $  485      $ 5,673         $ 1,463
Shadow Brook Apartments          6,000           961        8,263           1,855

          Totals               $ 9,880       $ 1,446      $13,936         $ 3,318
</TABLE>

<TABLE>
<CAPTION>


                 Gross Amount At Which
                        Carried
                  At December 31, 2000
                     (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    $ 7,136   $ 7,621     $ 4,471         1979       05/87      5-30
Shadow Brook     962     10,117    11,079       5,244         1985       05/87      5-30

Totals        $1,447    $17,253   $18,700     $ 9,715
</TABLE>



Reconciliation of "Real Estate and Accumulated Depreciation"

                                              Years Ended December 31,
                                                 2000          1999
                                                   (in thousands)
Real Estate
Balance at beginning of year                    $25,487       $24,411
  Property improvements                             564         1,076
  Sale of investment property                    (7,351)           --
Balance at end of year                          $18,700       $25,487

Accumulated Depreciation
Balance at beginning of year                    $12,993       $11,934
  Additions charged to expense                      978         1,059
  Sale of investment property                    (4,256)           --
Balance at end of year                          $ 9,715       $12,993

The  aggregate  cost of the real  estate  for  Federal  income tax  purposes  at
December  31,  2000 and 1999,  is  approximately  $19,013,000  and  $27,764,000,
respectively. The accumulated depreciation taken for Federal income tax purposes
at December 31, 2000 and 1999,  is  approximately  $8,980,000  and  $12,128,000,
respectively.

Note H - Distributions

During  the year  ended  December  31,  1999,  the  Partnership  declared a cash
distribution  from operations of approximately  $427,000 of which  approximately
$423,000  ($4.39  per  limited  partnership  "A"  Unit) was paid to the "A" Unit
limited partners. This distribution was accrued at December 31, 1999 and paid in
January 2000. During the year ended December 31, 2000, the Partnership  declared
and   paid   distributions   from   operations   of   approximately   $1,512,000
(approximately  $1,497,000 to "A" Unit holders or $15.55 per limited partnership
"A"  Unit)  and of  proceeds  from  the  sale  of  Carlin  Manor  Apartments  of
approximately $5,337,000 (approximately $3,734,000 to "A" Unit holders or $38.78
per  limited  partnership  "A" Unit  and  approximately  $1,586,000  to "B" Unit
holders or $21.10 per limited partnership "B" Unit).  Subsequent to December 31,
2000, the Partnership  declared a distribution  from operations of approximately
$590,000  (approximately  $47,000  to "A"  Unit  holders  or $0.49  per  limited
partnership "A" Unit and approximately $537,000 to "B" Unit holders or $7.14 per
limited partnership "B" Unit).

Note I - Sale of Investment Property

On  June  12,  2000,  the  Partnership   sold  Carlin  Manor  Apartments  to  an
unaffiliated  third  party for  $8,100,000.  After  payment of closing  costs of
approximately  $95,000,  the net sales proceeds received by the Partnership were
approximately $8,005,000.  The Partnership used a portion of the proceeds to pay
off  the  mortgage   encumbering  the  property  of  $2,500,000.   Approximately
$5,337,000  of the proceeds  were  distributed  to the partners  during the year
ended  December  31,  2000.  The  remaining  proceeds  were  used  to  establish
additional cash reserves for the Partnership. The Partnership's gain on the sale
was approximately  $4,910,000 and an extraordinary loss on early  extinguishment
of debt was  recorded  of  approximately  $105,000  consisting  of a  prepayment
penalty and the write-off of unamortized loan costs.

Note J - Legal Proceedings

In March 1998, several putative unit holders of limited partnership units of the
Partnership  commenced an action  entitled  Rosalie  Nuanes,  et al. v. Insignia
Financial  Group,  Inc., et al. in the Superior Court of the State of California
for the County of San Mateo. The plaintiffs  named as defendants,  among others,
the   Partnership,   its  General  Partner  and  several  of  their   affiliated
partnerships  and corporate  entities.  The action  purports to assert claims on
behalf of a class of limited  partners and derivatively on behalf of a number of
limited  partnerships  (including  the  Partnership)  which are named as nominal
defendants,  challenging,  among other things,  the  acquisition of interests in
certain general partner entities by Insignia Financial Group, Inc.  ("Insignia")
and entities which 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 Insignia  Merger.  The
plaintiffs  seek  monetary  damages and  equitable  relief,  including  judicial
dissolution of the  Partnership.  On June 25, 1998, the General  Partner filed a
motion seeking dismissal of the action. In lieu of responding to the motion, the
plaintiffs  filed an amended  complaint.  The General Partner filed demurrers to
the amended complaint which were heard February 1999.

Pending the ruling on such  demurrers,  settlement  negotiations  commenced.  On
November 2, 1999,  the parties  executed and filed a Stipulation  of Settlement,
settling claims, subject to court approval, on behalf of the Partnership and all
limited partners who owned units as of November 3, 1999. Preliminary approval of
the  settlement  was obtained on November 3, 1999 from the Court,  at which time
the Court set a final  approval  hearing for  December  10,  1999.  Prior to the
December  10,  1999  hearing,  the  Court  received  various  objections  to the
settlement, including a challenge to the Court's preliminary approval based upon
the alleged lack of authority of prior lead counsel to enter the settlement.  On
December  14,  1999,  the General  Partner  and its  affiliates  terminated  the
proposed settlement.  In February 2000, counsel for some of the named plaintiffs
filed a motion to disqualify plaintiff's lead and liaison counsel who negotiated
the settlement.  On June 27, 2000, the Court entered an order disqualifying them
from the case and an appeal was taken  from the order on  October  5,  2000.  On
December 4, 2000, the Court  appointed the law firm of Lieff Cabraser  Heimann &
Bernstein  LLP as new  lead  counsel  for  plaintiffs  and the  putative  class.
Plaintiffs  filed a third  amended  complaint on January 19,  2001.  On March 2,
2001,  the  General  Partner  and its  affiliates  filed a demurrer to the third
amended complaint. The General Partner does not anticipate that costs associated
with this case will be material to the Partnership's overall operations.

The  Partnership is unaware of any other pending or outstanding  litigation that
is not of a routine nature arising in the ordinary course of business.


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

            None.

                                    PART III

Item 9.     Directors,  Executive  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 executive 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

Patrick J. Foye              43    Executive Vice President and Director

Martha L. Long               41    Senior Vice President and Controller

Patrick J. Foye has been  Executive Vice President and Director of the General
Partner  since  October  1,  1998.  Mr.  Foye has  served  as  Executive  Vice
President  of AIMCO  since May 1998.  Prior to joining  AIMCO,  Mr. Foye was a
partner in the law firm of Skadden,  Arps, Slate, Meagher & Flom LLP from 1989
to 1998 and was Managing Partner of the firm's  Brussels,  Budapest and Moscow
offices from 1992 through 1994.  Mr. Foye is also Deputy  Chairman of the Long
Island  Power  Authority  and  serves  as a  member  of  the  New  York  State
Privatization  Council.  He received a B.A.  from  Fordham  College and a J.D.
from Fordham University Law School.

Martha L. Long has been  Senior Vice  President  and  Controller  of the General
Partner since October 1998 as a result of the acquisition of Insignia  Financial
Group, Inc. As of February 2001, Ms. Long was also appointed head of the service
business for AIMCO.  From June 1994 until January 1997,  she was the  Controller
for Insignia, and was promoted to Senior Vice President - Finance and Controller
in January 1997,  retaining  that title until  October  1998.  From 1988 to June
1994,  Ms. Long was Senior Vice  President and  Controller for The First Savings
Bank, FSB in Greenville, South Carolina.

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  executive  officers  and  director  of  the  General  Partner  fulfill  the
obligations  of the Audit  Committee  and  oversee the  Partnership's  financial
reporting  process on behalf of the General Partner.  Management has the primary
responsibility for the financial  statements and the reporting process including
the systems of internal controls. In fulfilling its oversight  responsibilities,
the executive  officers and director of the General Partner reviewed the audited
financial  statements with management including a discussion of the quality, not
just the  acceptability,  of the accounting  principles,  the  reasonableness of
significant  judgments,   and  the  clarity  of  disclosures  in  the  financial
statements.

The  executive  officers and director of the General  Partner  reviewed with the
independent  auditors,  who are  responsible  for  expressing  an opinion on the
conformity  of  those  audited  financial  statements  with  generally  accepted
accounting  principles,  their  judgments  as  to  the  quality,  not  just  the
acceptability, of the Partnership's accounting principles and such other matters
as are required to be discussed with the Audit Committee or its equivalent under
generally  accepted  auditing  standards.   In  addition,  the  Partnership  has
discussed  with  the  independent  auditors  the  auditors'   independence  from
management and the Partnership  including the matters in the written disclosures
required by the Independence Standards Board and considered the compatibility of
non-audit services with the auditors' independence.

The executive  officers and director of the General  Partner  discussed with the
Partnership's  independent auditors the overall scope and plans for their audit.
In  reliance on the reviews and  discussions  referred to above,  the  executive
officers and director of the General  Partner has approved the  inclusion of the
audited financial  statements in the Form 10-KSB for the year ended December 31,
2000 for filing with the Securities and Exchange Commission.

The General Partner has reappointed Ernst & Young LLP as independent auditors to
audit the financial  statements of the  Partnership for the current fiscal year.
Fees for the last  fiscal  year were  annual  audit  services  of  approximately
$49,000  and  non-audit  services  (principally  tax-related)  of  approximately
$24,000.

Item 10.    Executive Compensation

Neither  the  director  nor the  officers of the General  Partner  received  any
remuneration from the Registrant.

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, 2000.

                                               Number of         Percent
                                                 Units           of Total

      AIMCO Properties LP (1)               32,347 A units        33.59%
         (an affiliate of AIMCO)            20,015 B units        26.63%

      Insignia Properties LP (2)             2,243 A units        2.33%
         (an affiliate of AIMCO)               210 B units        0.28%

      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 2000 South Colorado Blvd., Denver, Colorado 80222.

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

(b)   Beneficial Owners of Management

      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, 2000,  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) certain  payments to affiliates for
services and (ii)  reimbursement of certain  expenses  incurred by affiliates on
behalf of the Partnership.  The following  transactions with the General Partner
and/or its affiliates  were incurred during each of the years ended December 31,
2000 and 1999:

                                                   2000        1999
                                                    (in thousands)
Property management fees                          $ 228        $ 266
Reimbursement for services of affiliates            191          105
Partnership management fees                         135           38
Refinancing fee                                      39           --

During the years ended  December  31, 2000 and 1999,  affiliates  of the General
Partner  were  entitled  to  receive  5% of  gross  receipts  from  all  of  the
Partnership's  properties  as  compensation  for providing  property  management
services.  The Partnership  paid to such affiliates  approximately  $228,000 and
$266,000 for the years ended December 31, 2000 and 1999, respectively.

An  affiliate  of the General  Partner  received  reimbursement  of  accountable
administrative expenses amounting to approximately $191,000 and $105,000 for the
years ended December 31, 2000 and 1999, respectively.

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 $135,000 and $38,000
were earned during the years ended December 31, 2000 and 1999, respectively,  in
association with the distributions.

An affiliate of the General  Partner  received  $39,000 in conjunction  with the
refinancing of the mortgage encumbering Hunt Club Apartments in August 2000.

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership,  AIMCO and its  affiliates  currently own 61,230 "A" and 38,455 "B"
limited  partnership units in the Partnership  representing 63.59% and 51.17% of
the  outstanding "A" and "B" units,  respectively.  A number of these units were
acquired  pursuant  to  tender  offers  made by AIMCO or its  affiliates.  It is
possible that AIMCO or its affiliates will make one or more additional offers to
acquire additional limited partnership  interests in the Partnership for cash or
in  exchange  for  units  in the  operating  partnership  of  AIMCO.  Under  the
Partnership Agreement,  unitholders holding a majority of the Units are entitled
to take action with respect to a variety of matters which would include  without
limitation, voting on certain amendments to the Partnership Agreement and voting
to remove the General Partner. As a result of its ownership of 63.59% and 51.17%
of the  outstanding "A" and "B" units,  respectively,  AIMCO is in a position to
influence all voting  decisions with respect to the  Registrant.  When voting on
matters,  AIMCO would in all  likelihood  vote the Units it acquired in a manner
favorable to the interest of the General  Partner  because of their  affiliation
with the General Partner.

Item 13.    Exhibits and Reports on Form 8-K

      (a)   Exhibits:

            None.

      (b)   Reports on Form 8-K filed during the fourth quarter of calendar year
            2000:

            None.


<PAGE>


                                   SIGNATURES



In accordance  with Section 13 or 15(d) of the Exchange Act, the  Registrant has
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.
                                          Its General Partner


                                    By:   /s/Patrick J. Foye
                                          Patrick J. Foye
                                          Executive Vice President


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


                                    Date:


In  accordance  with the Exchange  Act, this report has been signed below by the
following  persons on behalf of the Partnership and in the capacities and on the
dates indicated.


/s/Patrick J. Foye      Executive Vice President      Date:
Patrick J. Foye         and Director


/s/Martha L. Long       Senior Vice President         Date:
Martha L. Long          and Controller


<PAGE>


                                  EXHIBIT INDEX



Exhibit

 2.1              Agreement  and Plan of Merger,  dated as of October 1, 1998,
                  by and between AIMCO and IPT,  incorporated  by reference to
                  Registrant's  Current  Report on Form 8-K dated  October  1,
                  1998.

 3                Certificate of Limited Partnership, 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).

10.1              Property  Management  Agreement  No. 310 dated  October  23,
                  1990, by and between the Partnership and CCEC  (Incorporated
                  by  reference to the  Quarterly  Report on Form 10-Q for the
                  quarter ended September 30, 1990).

10.2              Bill of Sale and  Assignment  dated October 23, 1990, by and
                  between CCEC and ConCap Services  Company  (Incorporated  by
                  reference  to the  Quarterly  Report  on Form  10-Q  for the
                  quarter ended September 30, 1990).

10.3              Assignment and Assumption Agreement dated October 23, 1990, by
                  and between  CCEC and ConCap  Management  Limited  Partnership
                  ("CCMLP")  (Incorporated  by reference to the Quarterly Report
                  on Form 10-Q for the quarter ended September 30, 1990).

10.4              Assignment  and  Agreement as to Certain  Property  Management
                  Services  dated  October 23,  1990,  by the between  CCMLP and
                  ConCap  Capital  Company  (Incorporated  by  reference  to the
                  Quarterly  Report on Form 10-Q for the quarter ended September
                  30, 1990).

10.5              Assignment and Assumption Agreement dated October 23, 1990, by
                  and  between  CCMLP  and Metro  ConCap,  Inc.  (300  Series of
                  Property Management  Contracts)  (Incorporated by reference to
                  the  Quarterly  Report  on Form  10-Q  for the  quarter  ended
                  September 30, 1990).

10.6              Construction  Management  Cost  Reimbursement  Agreement dated
                  January 1, 1991,  by and  between  the  Partnership  and Metro
                  ConCap,  Inc.  (Incorporated by reference to the Annual Report
                  on Form 10-K for the year ended December 31, 1991).

10.9              Construction  Management  Cost  Reimbursement  Agreement dated
                  January 1, 1991, by and between the Partnership and The Hayman
                  Company.  (Incorporated  by reference to the Annual  Report on
                  Form 10-K for the year ended December 31, 1991).

10.10             Investor  Services  Agreement  dated  October 23, 1990, by and
                  between the Partnership and CCEC (Incorporated by reference to
                  the  Quarterly  Report  on Form  10-Q  for the  quarter  ended
                  September 30, 1990).

10.11             Assignment  and  Assumption   Agreement  (Investor  Services
                  Agreement)  dated  October 23, 1990, by and between CCEC and
                  ConCap Services  Company  (Incorporated  by reference to the
                  Annual  Report on Form 10-K for the year ended  December 31,
                  1990).

10.12             Letter 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).

10.13             Financial  Services  Agreement  dated October 23, 1990, by and
                  between the Partnership and CCEC (Incorporated by reference to
                  the  Quarterly  Report  on Form  10-Q  for the  quarter  ended
                  September 30, 1990).

10.14             Assignment  and  Assumption  Agreement  (Financial  Services
                  Agreement)  dated  October 23, 1990, by and between CCEC and
                  ConCap  Capital  Company  (Incorporated  by reference to the
                  Quarterly   Report  on  Form  10-Q  for  the  quarter  ended
                  September 30, 1990).

10.15             Letter 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).

10.16             Property  Management  Agreement  No. 518 dated June 1, 1993,
                  by and between the Partnership and Coventry Management, Inc.

10.17             Assignment  and  Assumption  Agreement  (Financial  Services
                  Agreement)  dated  October 23, 1990, by and between CCEC and
                  ConCap  Capital  Company  (Incorporated  by reference to the
                  Quarterly   Report  on  Form  10-Q  for  the  quarter  ended
                  September 30, 1990).

10.18             Letter dated December 8, 1994 reporting a change in control of
                  the  General  Partner  of  the  Registrant.  (Incorporated  by
                  reference to Form 8-K dated December 8, 1994).

10.19             Multifamily   Note   dated   November   1,   1996,   between
                  Multi-Benefit   Realty  Fund  '87-1,  a  California  limited
                  partnership,  and Lehman Brokers Holdings, Inc. d/b/a Lehman
                  Capital, A Division of Lehman Brothers Holdings, Inc.

10.20             Multifamily   Note   dated   November   1,   1996,   between
                  Multi-Benefit   Realty  Fund  '87-1,  a  California  limited
                  partnership,  and Lehman Brokers Holdings, Inc. d/b/a Lehman
                  Capital, A Division of Lehman Brothers Holdings, Inc.

10.21             Purchase and Sale  Contract  between  Registrant  and Carlin
                  Manor Investors,  Ltd., an Ohio Limited  Liability  Company,
                  dated  April 7,  2000.  (Incorporated  by  reference  to the
                  Current Report on Form 8-K dated June 13, 2000.)

10.22             Multifamily  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.)

11                Statement  regarding  computation  of Net Income per Unit of
                  Depositary  Receipt  (Incorporated by reference to Note A of
                  Item 7. Financial Statements of this Form 10-KSB).

16                Letter,  dated  August  12,  1992,  from  Ernst & Young to the
                  Securities  and  Exchange   Commission   regarding  change  in
                  certifying accountant.  (Incorporated by reference to Form 8-K
                  dated August 6, 1992.)

16.1              Letter  dated  May  3,  1995,  from  Arthur  Anderson  to  the
                  Securities  and  Exchange   Commission   regarding  change  in
                  certifying accountant.  (Incorporated by reference to Form 8-K
                  dated May 3, 1995.)