UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10K


[ X ] ANNUAL  REPORT  PURSUANT  TO  SECTION  13 OR  15(d)  OF THE  SECURITIES
      EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 1997:

                                       OR


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

                         Commission File Number 0-16856

                   RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.
             (Exact name of registrant as specified in its charter)

          Delaware                                   13-3368726
(State or other jurisdiction of                   (I.R.S. Employer
incorporation or organization)                    Identification No.)

 411 West Putnam Avenue, Greenwich, CT                 06830
 (Address or principal executive offices)            (Zip Code)

         Registrant's telephone number, including area code 203-862-7444

           Securities registered pursuant to Section 12(b) of the Act: 
                               
                                                      Name of each exchange on
Title of Each Class                                   which registered
-------------------                                   ----------------
      None                                                 None

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


              Units of Limited Partnership Interest, $250 per Unit
                                (Title of Class)

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

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

Item 1.       Business

General

Registrant  is a Delaware  limited  partnership  formed on August 14, 1986.  RAM
Funding,  Inc., a Delaware  corporation  that is a  wholly-owned  subsidiary  of
Presidio Capital Corp.  ("Presidio"),  is Registrant's  managing general partner
("Managing  General  Partner").  RAM Funding Inc.,  was until November 3, 1994 a
wholly owned subsidiary of Integrated Resources Inc. (Integrated").  On November
3, 1994,  Integrated  consummated its plan of reorganization under Chapter 11 of
the United  States  Bankruptcy  Code,  at which  time,  pursuant to such plan of
reorganization,  the  newly  formed  Presidio  purchased  substantially  all  of
Integrated's assets.

In December  1994,  Z Square G Partners  II, the  Associate  General  Partner of
Registrant whose partners were previously  associated with Integrated,  notified
Registrant of its withdrawal as the Associate  General  Partner.  The withdrawal
became  effective,  after 60 days prior written notice to Limited  Partners,  on
February 28, 1995.  Upon the  effective  date of such  withdrawal,  Presidio AGP
Corp. ("Presidio AGP"), which is a wholly-owned  subsidiary of Presidio,  became
the  Associate  General  Partner.  (The Managing  General  Partner and Associate
General  Partner  are  hereinafter  collectively  referred  to as  the  "General
Partners").

Registrant  invested  primarily in "zero coupon" first and junior mortgage loans
("Mortgage Loans") on properties owned or acquired  principally by privately and
publicly syndicated limited  partnerships  originally sponsored by affiliates of
Integrated.  The Mortgage Loans had original terms of approximately twelve years
with all interest and principal due and payable at the maturity or prepayment of
the Mortgage Loan.

Effective with the consummation of Integrated's plan of reorganization, Presidio
entered into an Administrative  Services  Agreement with Concurrency  Management
Corp.  ("Concurrency")  to provide  administrative  services to Presidio and its
subsidiaries.  Effective  January 1, 1996,  Wexford  Management Corp.  (formerly
Concurrency) assigned this agreement to Wexford Management LLC ("Wexford").

On August 28, 1997, an affiliate of NorthStar  Capital Partners  acquired all of
the Class B shares of Presidio,  the corporate  parent of the General  Partners.
This acquisition,  when aggregated with previous acquisitions,  caused NorthStar
Capital Partners to acquire indirect control of the General Partners.

On November 2, 1997, the Administrative  Services Agreement between Presidio and
Wexford  expired.  Pursuant  to that  agreement  Wexford  had the  authority  to
designate directors of the General Partners. Effective November 3, 1997, Wexford
and Presidio entered into a new  Administrative  Services Agreement (the "ASA"),
which expires on May 3, 1998.  Under the terms of the ASA,  Wexford will provide
consulting and administrative services to Presidio and its affiliates, including
the General Partners and Registrant.  On August 28, 1997,  Presidio also entered
into a management  agreement with NorthStar  Presidio  Management  Company,  LLC
("NorthStar Presidio").  Under the terms of the management agreement,  NorthStar
Presidio will provide the  day-to-day  management of Presidio and its direct and
indirect subsidiaries and affiliates.
<PAGE>
Effective  November 3, 1997,  the  officers  and  employees  of Wexford that had
served as officers  and/or  directors  of the General  Partners  tendered  their
resignation.  On the same date, the Board of Directors of Presidio appointed new
individuals to serve as officers and/or directors of the General Partners.

Registrant offered 400,000 units of limited  partnership  interest (the "Units")
pursuant to the Prospectus dated April 12, 1988 (the "Prospectus") of Registrant
which  was  filed  with  the  Securities  and  Exchange  Commission  as  part of
Post-Effective  Amendment No. 2 to Registrant's  Registration  Statement on Form
S-11,  Commission File No. 33-9705,  as amended (the "Registration  Statement").
The Prospectus was supplemented by supplements  dated August 12, 1988,  February
8,  1989,  March 10,  1989,  April 28,  1989 and June 26,  1989.  In June  1988,
Registrant  had its initial  admission  of limited  partners,  and its  offering
terminated on September 20, 1989. As of its final  admission on October 1, 1989,
Registrant had accepted  subscriptions  for 187,919 Units (including Units owned
by the initial limited partner) resulting in total gross proceeds of $46,979,750
of which  $18,405,847 of the offering  proceeds was not invested or committed by
April 12, 1990 and was  returned in  accordance  with the terms of  Registrant's
partnership agreement  ("Partnership  Agreement").  For the years ended December
31, 1997, 1996 and 1995, the percentage of Registrant's  revenue attributable to
interest on short term investments was 88.0%, 6.6% and 8.3%,  respectively.  For
the years ended December 31, 1997,  1996 and 1995, the Sierra Loan accounted for
approximately 0.0%, 91.1% and 90.7%, respectively, of Registrant's revenues.

Investments of Registrant

Registrant  originally  invested 100% of its net proceeds in four Mortgage Loans
in the original amount of $23,323,513,  including  interest of $23,513.  In June
1992,  the  senior  mortgage  lender  on one of  Registrant's  investments,  the
Promenade  Loan,  foreclosed on the property  securing its loan,  and Registrant
lost its entire  investment.  As of March 1, 1998  Registrant had investments in
the  remaining  three  Mortgage  Loans in the original  amounts of  $17,700,000,
including interest of $23,513.  All interest and principal is due and payable at
maturity and there are no current  payments  due on any of the  Mortgage  Loans.
Following is a description of the status of Registrant's investments:

Sierra Marketplace Loan

A $6,500,000 first Mortgage Loan (the "Sierra Loan") to High Cash Partners, L.P.
(the "Sierra Borrower"),  a public limited partnership  originally  sponsored by
Integrated,  which is secured by a shopping  center commonly known as the Sierra
Marketplace located in Reno, Nevada (the "Sierra Property"). The Sierra Property
consists of approximately 233,000 square feet of net rentable area. The shopping
center  occupies 18.67 acres,  consisting of two main buildings and three anchor
tenant buildings with surface parking for 1,184 automobiles.

The Sierra Loan was funded on February 10, 1989 and bears  interest at a rate of
11.22% per annum,  compounded  monthly and is due on February 28, 2001, at which
time a balloon  payment of $24,966,653,  together with  additional  interest (as
described below) if any, will be due and payable.  Under the terms of the Sierra
Loan, the Sierra Borrower must provide,  on request,  a current appraisal of the
Sierra Property. If the sum of (i) the principal balance of the Sierra Loan plus
all other then outstanding indebtedness secured by the Sierra Property plus (ii)
all  accrued  and  unpaid  interest  in excess of 5% per annum of the  principal
balance of such mortgages, exceed 85% of the current appraised value, the Sierra
Borrower  shall be immediately  obligated to pay such excess.  In the event that
such excess becomes due, the Sierra Borrower may not have  sufficient  liquidity
to satisfy its obligation to Registrant.  The Sierra Borrower could be forced to
<PAGE>
sell  its  property  or  seek  other  relief,  including  protection  under  the
bankruptcy  laws.  Management has prepared a valuation of the Property and based
on that valuation,  no additional amounts are presently due. However, it appears
possible  that  the  Sierra  loan  could  accrue  to a value  in  excess  of the
property's market at some point in the future.

Registrant  is  entitled  to  additional  interest  equivalent  to  23.9% of the
appreciation  in the value of the Sierra  Property  after payment of a specified
return to the Sierra  Borrower.  The maximum annual rate of interest,  including
the additional interest,  cannot exceed 16% compounded annually.  It is unlikely
that  Registrant will realize any additional  interest from the  appreciation of
the property.

The total amount,  including  fees,  allocated to the Sierra Loan from the gross
proceeds  of  Registrant's  offering  was  $7,715,134  including  payment to the
Managing General Partner of a mortgage placement fee of $385,757.

During the first quarter of 1997, the Sierra  Borrower wrote the Sierra Property
down on its  books to what its  management  believed  to be its  estimated  fair
market value of $15,875,000. The balance of the Sierra Loan at December 31, 1996
was approximately  $15,979,000 and it was unlikely that any additional  interest
accrued on the Sierra Loan would  ultimately be recovered  from the value of the
underlying  property.  Consequently,  as of January 1, 1997,  Registrant  ceased
accruing interest on the Sierra Loan.

Harborista Loan

A  $10,000,000  second  Mortgage  Loan (the  "Harborista  Loan")  to  Harborista
Associates  L.P. (the  "Harborista  Borrower"),  a private  limited  partnership
originally  sponsored by Integrated,  is secured by an office building  commonly
known as the Harbor Plaza,  located in Boston,  Massachusetts  ("Harbor Plaza").
Harbor  Plaza  consists of a 13-story  office  building on .88 acres  containing
approximately  334,000 square feet of rentable space,  located in the Fort Point
Channel  section of downtown  Boston.  Harbor Plaza is 100% leased pursuant to a
master  net  lease  (the  "Master  Lease")  which,  subject  to a right of early
termination by the Harborista Borrower, expires on November 30, 1998.

The Harborista Loan was funded on February 13, 1989 and bears interest at a rate
of 13.307% per annum,  compounded  monthly and was originally due on December 1,
1998 at which time a balloon payment of $36,568,146 would have been payable.

The total amount,  including fees, allocated to the loan from the gross proceeds
of  Registrant's  offering  was  $11,897,345  including  payment to the Managing
General Partner of a mortgage placement fee of $594,867.

Harbor  Plaza is also  encumbered  by a first  mortgage  loan in the  amount  of
$24,475,000  (the  "Northwestern  Mortgage")  held by  Northwestern  Mutual Life
Insurance Co.  ("Northwestern").  The Northwestern Mortgage was due to mature on
December 1, 1995, but was extended until December 1, 1999.

In 1993,  based  upon  information  that the cash flow from the tenant at Harbor
Plaza was far below the amount of rental  payments  due under the Master  Lease,
the  condition  of the Boston real  estate  market and the  likelihood  that the
public  works  construction  which had  adversely  affected  Harbor  Plaza would
continue for some time,  there was a substantial  likelihood that the Harborista
Borrower  would  not be able to  refinance  the  Northwestern  Mortgage  when it
<PAGE>
matured. For these reasons,  during 1993 management  determined that interest on
the Harborista Loan should cease to accrue and that an allowance for loan losses
was necessary for the entire  carrying  value of the Harborista  Loan which,  at
that time, was $10,618,380.  In addition,  if 470 Atlantic  Management Corp. was
successful  in the  lawsuit  referred  to  below,  it may  have  resulted  in an
attempted foreclosure by Northwestern.

The Master  Lessee and  Registrant  consummated  an agreement  during the fourth
quarter  of 1995,  pursuant  to which  Registrant  received  $341,038  (which is
included in other income for the year ended  December 31,  1995).  In accordance
with this agreement, Registrant subordinated its lien to any new monies invested
in Harbor Plaza and extended its loan (as did the first  mortgagor)  until 1999,
among other things.  For additional  information  concerning the Harborista Loan
see Item 7,  "Management's  Discussion  and Analysis of Financial  Condition and
Results of Operations" and Item 8 "Financial Statements and Supplementary Data."

Twin Oak Loan

A  $1,200,000  second  Mortgage  Loan (the  "Twin  Oak  Loan") to Twin Oak Plaza
Associates (the "Twin Oak Borrower"), a limited partnership originally sponsored
by Integrated, which is secured by the Twin Oak Shopping Center, located in Fort
Lauderdale, Florida (the "Twin Oak Property").

The Twin Oak Property is a 113,217 square foot community  retail shopping center
which  includes a 15,000  square foot  addition  built by the Twin Oak Borrower,
which had been fully  leased to McCrory  until March 1995 at which time  McCrory
vacated.  McCrory filed a voluntary petition for reorganization under Chapter 11
of the United  States  Bankruptcy  Code in February  1992.  In July,  1993,  the
Bankruptcy  Court approved  McCrory's  application  for a Lease  Amendment which
allowed for a reduction in its rental rates to current market levels. The tenant
had been current with its rent  payments  since the  Bankruptcy  Court  hearing,
however,  McCrory had petitioned the Bankruptcy Court to terminate its Lease and
vacated the premises on March 31, 1995.  During 1996 and 1997 the McCrory  space
was leased to Scotty's Hardware,  who began paying rent to the Twin Oak Borrower
in April 1997.

The Twin Oak Loan was  funded on April 3, 1990 and bears  interest  at a rate of
12.23% per annum, compounded annually, and is due on May 1, 2002 at which time a
balloon  payment of $4,843,839  will be due and payable.  Under the terms of the
Twin Oak Loan, the Twin Oak Borrower must provide,  at Registrant's  request,  a
current  appraisal  of the Twin Oak  Property.  If the sum of (i) the  principal
balances of the Twin Oak Loan plus the first  mortgage plus (ii) all accrued and
unpaid  interest  in  excess of 5% per annum of the  principal  balance  of such
mortgages exceeds 85% of the then current appraised value, the Twin Oak Borrower
shall be immediately  obligated to pay such excess.  Based on management's  cash
flow projections and analyses,  the Twin Oak Borrower is currently  failing this
test.  Registrant will not take action against Twin Oak at this time as there is
not an adequate remedy for the Registrant.  By Registrant  calling its mortgage,
Twin Oak would most likely seek protection under Chapter 11 of the United States
Bankruptcy  Code.  Since  the  estimated  value of the  underlying  property  is
currently  approximately  equal to the first mortgage plus the carrying value of
Registrant's  mortgage,  by calling its loan,  Registrant  would  jeopardize its
potential of realizing any proceeds from the Twin Oak Loan.

The total amount,  including fees, allocated to the loan from the gross proceeds
of  Registrant's  offering  was  $1,424,332,  including  payment to the Managing
General Partner of a mortgage placement fee of $71,217.
<PAGE>
The Twin Oak  Property is also  encumbered  by a first  mortgage in the original
amount of  $4,250,000,  held by Southern Life  Assurance  Company (the "Southern
Life  Mortgage").  The Southern Life Mortgage bore interest at a rate of 10% per
annum  plus  contingent   interest,   and  was  payable  in  119  equal  monthly
installments  of $36,550.  The  maturity  date of the  Southern  Life  Mortgage,
originally  July 1, 1993,  was  extended by three years to July 1, 1996.  During
October 1997, the Twin Oak Borrower and Southern Life Assurance Company formally
agreed to extend the maturity date of the first mortgage until July 1, 1998. The
outstanding balance of the extended first mortgage loan at December 31, 1997 was
$3,810,937.

In  order  for the Twin Oak  Borrower  to  consummate  its loan  extension  with
Southern Life  Assurance  Company,  the consent of the  Registrant was required.
Registrant  agreed to consent on the condition that the Twin Oak Borrower either
refinance its first  mortgage loan and the Twin Oak Loan before July 1,1998,  or
give to Registrant a deed-in-lieu  of foreclosure of the Twin Oak Property.  The
Twin Oak Borrower has not yet  refinanced  either of its mortgage  loans.  It is
impossible to predict at this time whether the Twin Oak Borrower will be able to
refinance its mortgage loans on or before July 1, 1998.

In January 1995, Registrant ceased accruing interest on the Twin Oak loan due to
the fact that McCrory, a tenant occupying approximately 13% of the retail space,
filed a voluntary  petition for  reorganization  under  Chapter 11 of the United
States Bankruptcy Code which significantly reduced the value of the Property.

During the year ended 1996, a $1,515,000  provision for loan losses was recorded
on the Twin Oak Loan. As a result of the continued vacancy of the former McCrory
space and  uncertainties  regarding  its lease up, a decline in the  standard of
living in the surrounding  area of the Twin Oak Shopping Center and negotiations
with the first mortgage lender  regarding an extension of its loan which was due
July 1, 1996, cash flow  projections were performed during the second quarter of
1996 which  indicated that the estimated fair value of the Twin Oak property was
approximately  $4,530,000  at that time.  The  contractual  balance of the first
mortgage  at  June  30,  1996  was  approximately  $3,890,000,  necessitating  a
provision for loan losses of $1,515,000 to reduce the carrying value of the loan
to approximately $640,000.

Employees

Registrant  does not have any employees.  Certain  services are performed by the
General Partners and/or their affiliates in connection with the servicing of the
Mortgage Loans pursuant to a mortgage  servicing  agreement.  NorthStar Presidio
currently performs accounting, secretarial, transfer and administrative services
for  Registrant  and  Registrant  pays for its pro rata amount of such services.
NorthStar  Presidio also performs  similar  services for other affiliates of the
General Partners.  See Item 10, "Directors and Executive  Officers of Registrant
", Item 11,  "Executive  Compensation"  and Item 13, "Certain  Relationship  and
Related Transactions."
<PAGE>
Item 2.       Properties

None.



Item 3.       Legal Proceedings

None.


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

None.

<PAGE>
PART II

Item 5.       Market for Registrant's Securities and Related Security Holder
              Matters

There is no established public trading market for the Units of Registrant.

There are  restrictions  set forth in the Partnership  Agreement which may limit
the ability of a limited  partner to transfer  units.  Such  restrictions  could
impair the ability of a limited partner to liquidate its investment in the event
of an emergency or for any other reason.

As of  March  1,  1998  there  were  approximately  4,200  holders  of  Units of
Registrant,  owning an aggregate of 187,919 Units  (including  Units held by the
initial limited partner).

There are no material legal restrictions set forth in the Partnership  Agreement
upon  Registrant's   present  or  future  ability  to  make  distributions.   No
distributions  were made in 1997, 1996 and 1995. No distributions from cash flow
are  anticipated to be made in as much as all payments due from borrowers  under
the Mortgage  Loans are deferred and payable upon  maturity or prepayment of the
respective  Mortgage  Loans.  Where deemed  appropriate,  the  Managing  General
Partner will consider accepting prepayments on a negotiated basis.


Item 6.  Selected Financial Data.
<TABLE>
<CAPTION>
                                                                   Year ended December 31,
                            --------------------------------------------------------------------------------------------------
                                   1997               1996                 1995                1994              1993
                            --------------      -------------       --------------      --------------      ------------- 
<S>                         <C>                 <C>                 <C>                 <C>                 <C>   

Revenues                    $      165,064      $   1,794,213       $    1,946,240      $    1,885,747      $   1,797,318
Net Income (Loss)           $       72,682      $     123,888 (2)   $    1,765,545      $    1,723,537      $  (9,056,306) (1)
Net Income (Loss)
     Per Unit               $          .38      $         .64 (2)   $         9.16      $         8.94      $      (46.99) (1)
Total Assets                $   19,537,040      $  19,501,016       $   19,346,908      $   17,554,159      $  15,853,759

</TABLE>

(1) Net of provision for loan losses of  $10,618,380 or $55.09 per Unit. 
(2) Net of provision for loan losses of $1,515,000 or $7.86 per Unit.
<PAGE>
Item 7.       Management's Discussion and Analysis of Financial Condition and
              Results of Operations

Liquidity and Capital Resources

Registrant has invested the net proceeds of its public offering in "zero coupon"
first and junior  mortgage  loans secured by  properties  owned  principally  by
privately and publicly syndicated limited  partnerships  originally sponsored by
affiliates of Integrated.  The initial admission of limited partners occurred on
June 1, 1988 and as of the  termination  of its offering on  September  20, 1989
Registrant  had raised gross proceeds of  $46,979,750.  Since all gross proceeds
that were raised had not been invested or committed for  investment,  Registrant
was obligated under the terms of the Prospectus to return such uninvested funds.
The  Managing  General  Partner  distributed  these  proceeds  in the  amount of
$19,263,445 (including interest of $857,598) in August, 1990. This represented a
return of capital of $90.06 per unit and an  allocation  of  interest  earned on
uninvested  gross  proceeds,  ranging  from  $6.42 per unit to  $17.90  per unit
depending  on the  date of  admission.  Additionally,  Registrant  made a second
related distribution of $606,978, or $3.23 per unit, on October 30, 1990.

The General Partners hold a 2.5% equity interest in Registrant.  However, at the
inception of Registrant,  the General Partners' equity account was credited with
only the actual capital  contributed in cash,  $1,000.  Registrant's  management
determined  that this  accounting  does not  appropriately  reflect  the Limited
Partners' and the General Partners' relative  participations in Registrant's net
assets,  since it does not reflect the General Partners' 2.5% equity interest in
Registrant. Thus, Registrant has restated its financial statements to reallocate
$733,757 (2.5% of the gross proceeds  raised at  Registrant's  formation) of the
partners' equity to the General Partners' equity account.  This reallocation was
made  as of the  inception  of  Registrant  and  all  periods  presented  in the
financial  statements  have been  restated  to  reflect  the  reallocation.  The
reallocation  has no impact  on  Registrant's  financial  position,  results  of
operations,  cash flows,  distributions to partners,  or the partners' tax basis
capital accounts.

Registrant  had  invested  in  four  Mortgage  Loans  aggregating  approximately
$23,300,000 in principal.  In June,  1992  Registrant lost its investment in the
Promenade Loan which represented original loan proceeds of $5,600,000 leaving an
aggregate of original investments of approximately $17,700,000.

In October 1997, the Twin Oak borrower and the first  mortgage  lender agreed to
extend the  maturity  date of the Twin Oak loan  until July 1, 1998.  Registrant
agreed to consent on the condition that the Twin Oak borrower  either  refinance
both the first and Registrant's  mortgage,  or give Registrant a deed-in-lieu of
foreclosure  to the Twin Oak  property.  To date,  the Twin Oak borrower has not
refinanced  either  mortgage.  Registrant  is unable to  determine  the ultimate
outcome of this matter.

Registrant  uses  working  capital  reserves  provided  from the proceeds of its
public offering and subsequent  settlement amounts,  and interest earned thereon
as its primary measure of liquidity.  Registrant does not anticipate  making any
distributions  from cash flow during its first 8 to 12 years of  operations,  or
until such time as the Mortgage  Loans mature or are  prepaid.  Working  capital
reserves  are  invested  in  short-term  instruments  and  are  expected  to  be
sufficient to pay administrative  expenses during the term of Registrant.  As of
December 31, 1997,  Registrant  had working  capital  reserves of  approximately
$2,827,000.
<PAGE>
Except as discussed  above,  management  is not aware of any other known trends,
events,  commitments,  or uncertainties  that will have a significant  impact on
liquidity.

Real Estate Market

The real estate  market has begun to recover  from the effects of the  recession
which included a substantial decline in the market value of existing properties.
However,  market  values  have  been slow to  recover,  and high  vacancy  rates
continue to exist in some areas.  These  factors may  continue to reduce  rental
rates. As a result,  Registrant's  potential for realizing the full value of its
investment in certain mortgages is considered unlikely.

Allowance for Loan Losses

An allowance  for loan losses is  established  based upon a quarterly  review of
each of the mortgage loans in Registrant's  portfolio. In performing the review,
management  considers  the  estimated  net  realizable  value of the property or
collateral as well as other factors,  such as the current occupancy,  the amount
and status of senior  debt,  if any,  the  prospects  for the  property  and the
economic  situation in the region  where the  property is located.  Because this
determination  of net  realizable  value  is based  upon  projection  of  future
economic events which are inherently subjective, the amounts ultimately realized
at disposition may differ materially from the carrying values as of December 31,
1997.

For the quarter ended June 30, 1996, a $1,515,000  allowance for loan losses was
recorded on the Twin Oak Loan. As a result of the vacancy of the former  McCrory
space and  uncertainties  regarding  its lease up, a decline in the  standard of
living in the surrounding  area of the Twin Oak Shopping Center and negotiations
with the first mortgage lender  regarding an extension of its loan which was due
July 1, 1996, cash flow projections were performed which indicated the estimated
fair value of the Twin Oak property to be  approximately  $4,530,000 at June 30,
1996.  The  contractual  balance  of the  first  mortgage  at June 30,  1996 was
approximately $3,890,000, necessitating a write-down of $1,515,000 to reduce the
carrying value of the loan to approximately $640,000.

Additionally,  during 1993 management of Registrant determined that any recovery
from the  Harborista  Loan would be unlikely and recorded an allowance  for loan
losses of $10,618,380.

The  allowance  is  inherently  subjective  and is  based on  management's  best
estimate of current conditions and assumptions about expected future conditions.
Registrant may provide additional losses in subsequent years and such provisions
could be material.

Year 2000

Costs  associated  with the year 2000  conversion  are not  expected to have any
impact on the operations of the Registrant.

Results of Operations

1997 vs. 1996

Net income  decreased  for the year  December  31, 1997  compared  to 1996.  The
decrease  was due to a greater  decrease in revenues  than the decrease in costs
and expenses.
<PAGE>
Revenues  decreased  compared  to the same  period  in 1996  primarily  due to a
decrease in mortgage interest income.  Mortgage interest income decreased due to
the  cessation  of the  interest  accrual on the Sierra  Loan.  During the first
quarter of 1997,  High Cash Partners,  L.P. the owner of the Sierra property and
the  borrower  under  the  Sierra  loan  wrote  the  property  down to what  its
management  believed to be its estimated fair market value of  $15,875,000.  The
balance of the Sierra loan at December  31, 1996 was  approximately  $15,979,000
and its was unlikely  that any  additional  interest  accrued on the Sierra loan
would  ultimately  be  recovered  from  the  value of the  underlying  property.
Consequently, as of January 1, 1997, the Partnership ceased accruing interest on
the Sierra loan.

Costs and expenses  decreased  compared to the year ended December 31, 1996. The
decrease  was due to an allowance  for loan losses  recorded in 1996 on the Twin
Oak loan,  while no allowance  was recorded in 1997,  coupled with a decrease in
general  and  administrative  expenses.   General  and  administrative  expenses
decreased primarily due to a decrease in payroll costs in 1997.

1996 vs. 1995

Net income  decreased  for the year  December  31, 1996  compared  to 1995.  The
decrease was primarily due to the provision for loan losses recorded on the Twin
Oak loan during the second quarter of 1996, as discussed above.

Revenues  decreased  compared  to the same  period  in 1995.  The  decrease  was
primarily a result of a decrease in other  income due to the receipt of $341,038
relating to the  settlement of the Harbor Plaza  Litigation  in 1995,  partially
offset by an  increase in the  contractual  value of the Sierra loan (due to the
deferral of interest) on which the mortgage interest income is calculated.

Costs and expense increased for the year ended December 31, 1996 compared to the
same period in 1995.  The increase was  primarily  due to the provision for loan
losses recorded on the Twin Oak loan,  partially offset by a decrease in general
and  administrative  expenses.  General and  administrative  expenses  decreased
primarily as a result of decreased payroll related costs.
<PAGE>
Item 8.       Financial Statements and Supplementary Data

                   RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.

                              FINANCIAL STATEMENTS

                  YEARS ENDED DECEMBER 31, 1997, 1996, AND 1995


                                      INDEX




          Independent Auditor's Report                   
                                                         
          Financial Statements - Years ended                                   
            December 31, 1997, 1996 and 1995             
                                                         
                                                         
                 Balance sheets                          
                                                         
                                                                               
                 Statements of income                    
                                                         
                                                                               
                 Statement of partners' equity           
                                                         
                                                                               
                 Statements of cash flows                
                                                         
                                                                               
                 Notes to financial statements           
                                                         
                                




All financial statement schedules are omitted because they are not applicable or
the required information is shown in the financial statements or notes thereto.

<PAGE>
To the Partners of
Resources Accrued Mortgage Investors 2 L.P.
Greenwich, Connecticut


                          INDEPENDENT AUDITOR'S REPORT



We have audited the  accompanying  balance sheets of Resources  Accrued Mortgage
Investors 2 L.P. ( a limited  partnership) as of December 31, 1997 and 1996, and
the related  statements of income,  partners'  equity and cash flows for each of
the  three  years  in the  period  ended  December  31,  1997.  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  generally   accepted  auditing
standards.  Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement.  An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An audit also includes
assessing the  accounting  principles  used and  significant  estimates  made by
management,  as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material  respects,  the financial  position of Resources  Accrued  Mortgage
Investors  2 L.P.  as of  December  31,  1997 and 1996,  and the  results of its
operations  and its cash flows for each of the three  years in the period  ended
December 31, 1997 in conformity with generally accepted accounting principles.



Hays & Company


February 12, 1998
New York, New York
<PAGE>
<TABLE>
<CAPTION>
                            RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.

                                          BALANCE SHEETS


                                                                                December 31,
                                                                      ---------------------------
                                                                          1997           1996
                                                                      -----------     -----------
<S>                                                                   <C>             <C>
ASSETS

     Investments in mortgage loans (net of allowance
        for loan losses of $12,133,380 at
        December 31, 1997 and 1996) .............................     $16,616,033     $16,616,033
     Cash and cash equivalents ..................................       2,908,425       2,873,084
     Other receivable ...........................................          12,582          11,899
                                                                      -----------     -----------

                                                                      $19,537,040     $19,501,016
                                                                      ===========     ===========


LIABILITIES AND PARTNERS' EQUITY

Liabilities
     Accounts payable and accrued expenses ......................     $    94,140     $   130,798
                                                                      -----------     -----------


Commitments and contingencies (Notes 3 and 4)

Partners' equity
     Limited partners' equity (as restated) (187,919 units issued
        and outstanding) ........................................      18,956,853      18,885,988
     General partners' equity (as restated) .....................         486,047         484,230
                                                                      -----------     -----------

        Total partners' equity ..................................      19,442,900      19,370,218
                                                                      -----------     -----------

                                                                      $19,537,040     $19,501,016
                                                                      ===========     ===========

</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
                            RESOU0CES ACCRUED MORTGAGE INVESTORS 2 L.P.

                                        STATEMENTS OF INCOME


                                                                   Year ended December 31,
                                                          1997             1996            1995
                                                        ----------      ----------      ----------
<S>                                                     <C>             <C>             <C>
Revenues
     Short term investment interest ..............      $  145,249      $  144,945      $  133,136
     Other income ................................          19,815          29,388         357,488
     Interest income on mortgage loans ...........            --         1,619,880       1,455,616
                                                        ----------      ----------      ----------

                                                           165,064       1,794,213       1,946,240
                                                        ----------      ----------      ----------
Costs and expenses
     General and administrative expenses .........          92,382         155,325         180,695
     Provision for loan losses ...................            --         1,515,000            --
                                                        ----------      ----------      ----------

                                                            92,382       1,670,325         180,695
                                                        ----------      ----------      ----------

Net income .......................................      $   72,682      $  123,888      $1,765,545
                                                        ==========      ==========      ==========

Net income attributable to
     Limited partners ............................      $   70,865      $  120,791      $1,721,406
     General partners ............................           1,817           3,097          44,139
                                                        ----------      ----------      ----------

                                                        $   72,682      $  123,888      $1,765,545
                                                        ==========      ==========      ==========

Net income per unit of limited partnership
     interest (187,919 units outstanding) ........      $      .38      $      .64      $     9.16
                                                        ==========      ==========      ==========

</TABLE>

See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
                             RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.

                                    STATEMENT OF PARTNERS' EQUITY

                            YEARS ENDED DECEMBER 31, 1995, 1996 AND 1997



                                                      General          Limited            Total
                                                      Partners'        Partners'         Partners'
                                                      Equity            Equity            Equity
                                                   ------------      ------------      ------------
<S>                                                <C>               <C>               <C>
Balance, January 1, 1995 .....................     $   (296,763)     $ 17,777,548      $ 17,480,785

Reallocation of partners' equity (Note 6) ....          733,757          (733,757)             --
                                                   ------------      ------------      ------------

Balance, January 1, 1995 (as restated) .......          436,994        17,043,791        17,480,785

Net income - 1995 ............................           44,139         1,721,406         1,765,545
                                                   ------------      ------------      ------------

Balance, December 31, 1995 (as restated) .....          481,133        18,765,197        19,246,330

Net income - 1996 ............................            3,097           120,791           123,888
                                                   ------------      ------------      ------------

Balance, December 31, 1996 (as restated) .....          484,230        18,885,988        19,370,218

Net income - 1997 ............................            1,817            70,865            72,682
                                                   ------------      ------------      ------------

Balance, December 31, 1997 ...................     $    486,047      $ 18,956,853      $ 19,442,900
                                                   ============      ============      ============
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
                               RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.

                                        STATEMENTS OF CASH FLOWS


                                                                    Year ended December 31,
                                                          ---------------------------------------------
                                                             1997              1996            1995
                                                          -----------      -----------      -----------
<S>                                                       <C>              <C>              <C>
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS

Cash flows from operating activities

     Net income .....................................     $    72,682      $   123,888      $ 1,765,545

     Adjustments to reconcile net income to
       net cash provided by operating activities
        Provision for loan losses ...................            --          1,515,000             --
        Non-cash interest earned
            on mortgage loans .......................            --         (1,619,880)      (1,455,616)

     Changes in assets and liabilities
        Other receivables ...........................            (683)         (11,899)            --
        Accounts payable and accrued expenses .......         (36,658)          30,220           27,204
                                                          -----------      -----------      -----------

            Net cash provided by operating activities          35,341           37,329          337,133
                                                          -----------      -----------      -----------

Net increase in cash and cash equivalents ...........          35,341           37,329          337,133

Cash and cash equivalents, beginning of year ........       2,873,084        2,835,755        2,498,622
                                                          -----------      -----------      -----------

Cash and cash equivalents, end of year ..............     $ 2,908,425      $ 2,873,084      $ 2,835,755
                                                          ===========      ===========      ===========

</TABLE>
See notes to financial statements.
<PAGE>
                   RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.

                          NOTES TO FINANCIAL STATEMENTS

                  YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995


1      ORGANIZATION

      Resources Accrued Mortgage  Investors 2 L.P.  (formerly  Resources Accrued
      Mortgage  Investors  L.P.  -  Series  87 and  Resources  Accrued  Mortgage
      Investors  L.P.  -  Series  88),  a  Delaware  limited   partnership  (the
      "Partnership"),  was  formed in August  1986  under the  Delaware  Revised
      Uniform Limited  Partnership Law for the purpose of investing primarily in
      senior and junior accrued  interest  mortgage loans on properties owned or
      acquired   principally  by  publicly  or  privately   syndicated   limited
      partnerships  sponsored  by  affiliates  of  Integrated  Resources,   Inc.
      ("Integrated"), the former parent of the General Partners.

      The Partnership  originally  offered 400,000 units of limited  partnership
      interest (the  "Units")  pursuant to the  Prospectus  dated April 12, 1988
      (the  "Prospectus")  which  was filed  with the  Securities  and  Exchange
      Commission as part of Post-Effective  Amendment No. 2 to the Partnership's
      Registration  Statement  on Form S-11,  Commission  File No.  33-9705,  as
      amended by supplements dated August 12, 1988,  February 8, 1989, March 10,
      1989,  April 28, 1989 and June 26, 1989. In June 1988 the  Partnership had
      its initial admission of limited partners,  and its offering terminated on
      September 20, 1989. As of its final admission, which was effective October
      1, 1989,  the  Partnership  had accepted  subscriptions  for 187,919 Units
      (including Units owned by the initial limited partner)  resulting in total
      gross proceeds of  $46,979,750.  Since all gross proceeds that were raised
      had not been invested or committed for  investment,  the  Partnership  was
      obligated,  under the terms of the  Prospectus,  to return such uninvested
      funds.  The  Partnership   distributed   these  funds  in  the  amount  of
      $19,263,445,   including   interest   of   $857,598,   in  August,   1990.
      Additionally,  the  Partnership  made a  second  related  distribution  of
      $606,978 on October 30, 1990.

      In August 1986, the Partnership  admitted  Resources  Capital Corp. as the
      Administrative  General  Partner;  RAM  Funding,  Inc.  as the  Investment
      General  Partner;  and Z Square G  Partners  II as the  Associate  General
      Partner (collectively,  the "General Partners").  In September,  1986, the
      General  Partners made capital  contributions  to the Partnership of $960,
      $20, and $20, respectively.  The General Partners were originally entitled
      to receive  4.8%,  .1% and .1%,  respectively,  of the Adjusted  Cash From
      Operations,  Disposition  Proceeds and Allocations of Net Income and Loss,
      each as  defined  in the  Prospectus.  The  initial  limited  partner  was
      admitted in August,  1986, and made a capital  contribution  of $2,500 for
      ten Units. In May 1987, RAM Funding, Inc. purchased from Resources Capital
      Corp. its 4.8% general  partner  interest in the Partnership for $960. RAM
      Funding, Inc. then became the Managing General Partner of the Partnership.
      All  of  the  undertakings  and  responsibilities  originally  assumed  by
      Resources Capital Corp. were assumed by RAM Funding,  Inc. as the Managing
      General  Partner.  Integrated,  the parent of the Managing General Partner
      until November 3, 1994, agreed to such changes.
<PAGE>
                   RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.

                          NOTES TO FINANCIAL STATEMENTS

                  YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995

1      ORGANIZATION (continued)

      In December  1987,  RAM  Funding,  Inc. and Z Square G Partners II reduced
      their general partner interests from 4.9% and .1%, respectively,  to 2.45%
      and .05%,  respectively;  accordingly,  RAM  Funding,  Inc. and Z Square G
      Partners II were then entitled to receive 2.45% and .05%, respectively, of
      Adjusted Cash From Operations, Disposition Proceeds and Allocations of Net
      Income and Loss. In addition,  the Limited Partners'  interest in Adjusted
      Cash from Operations,  Disposition  Proceeds and Allocations of Net Income
      and Loss had increased from 95% to 97.5%.


2      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

      Investments in mortgage loans

      The  Partnership  principally  invests in "zero coupon"  senior and junior
      mortgage  loans on  properties  owned or acquired by limited  partnerships
      originally  sponsored by affiliates of the General  Partners.  These loans
      generally  contain  provisions  whereby the Partnership may be entitled to
      additional  interest  represented by  participation in the appreciation of
      the underlying property.

      The  Partnership  accounts for its investments in mortgage loans under the
      following methods:

           Investment method

           Mortgage loans representing  transactions in which the Partnership is
           considered to have substantially the same risks and potential rewards
           as the  borrower  are  accounted  for as  investments  in real estate
           rather than as loans.  Although the  transactions  are  structured as
           loans,  due to the  terms  of the  zero  coupon  mortgage,  it is not
           readily  determinable at inception that the borrower will continue to
           maintain a minimum  investment in the property.  Under this method of
           accounting,  the Partnership  will recognize as revenue the lesser of
           the amount of interest as contractually  provided for in the mortgage
           loan,  or its pro rata share of the actual cash flow from  operations
           of the underlying  property  inclusive of  depreciation  and interest
           expense on any senior indebtedness.

           Interest method

           Under this method of accounting,  the Partnership  recognizes revenue
           as  interest  income  over  the  term of the  mortgage  loan so as to
           produce a constant periodic rate of return.  Interest income will not
           be  recognized  as revenue  during  periods  where there are concerns
           about the ultimate realization of the interest or loan principal.

      Allowance for loan losses

      An allowance for loan losses is established  based upon a quarterly review
      of each of the mortgage loans in the Partnership's portfolio. In
<PAGE>
                   RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.

                          NOTES TO FINANCIAL STATEMENTS

                  YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995


2      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

      performing this review,  management considers the estimated net realizable
      value of the mortgage loan or collateral as well as other factors, such as
      the  current  occupancy,  the amount and  status of any senior  debt,  the
      prospects for the property and the economic  situation in the region where
      the property is located.  Because  this  determination  of net  realizable
      value is based  upon  projections  of  future  economic  events  which are
      inherently subjective,  the amounts ultimately realized at disposition may
      differ  materially from the carrying value at each year end.  Accordingly,
      the Partnership may provide for additional  losses in subsequent years and
      such provisions could be material.

      Financial statements

      The  financial  statements  include  only those  assets,  liabilities  and
      results of operations which relate to the business of the Partnership.

      Cash and cash equivalents

      For the purpose of the statements of cash flows, the Partnership considers
      all short-term  investments which have original maturities of three months
      or less to be cash equivalents.

      Substantially all of the Partnership's  cash and cash equivalents are held
      at one financial institution.

      Fair value of financial instruments

      The fair value of  financial  instruments  is  determined  by reference to
      market  data  and  other   valuation   techniques  as   appropriate.   The
      Partnership's  financial instruments include cash and cash equivalents and
      investments in mortgage loans. Unless otherwise disclosed,  the fair value
      of financial instruments approximates their recorded values.

      Net income per unit of limited partnership interest

      Net income per unit of limited partnership interest is computed based upon
      the number of units outstanding (187,919) during the year.

      Income taxes

      No  provisions  have been made for federal,  state and local income taxes,
      since they are the personal responsibility of the partners.

      The income tax returns of the  Partnership  are subject to  examination by
      federal,  state and local  taxing  authorities.  Such  examinations  could
      result in adjustments to  Partnership  income,  which changes could effect
      the income tax liability of the individual partners.
<PAGE>
                   RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.

                          NOTES TO FINANCIAL STATEMENTS

                  YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995

2      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

      Reclassifications

      Certain reclassifications have been made to the financial statements shown
      for  the  prior  years  in  order  to  conform  to  the   current   year's
      classifications.

      Estimates

      The  preparation  of financial  statements  in conformity  with  generally
      accepted  accounting  principles requires management to make estimates and
      assumptions that affect the reported amounts of assets and liabilities and
      disclosure  of  contingent  assets  and  liabilities  at the  date  of the
      financial  statements  and the  reported  amounts of revenues and expenses
      during the  reporting  period.  Actual  results  could  differ  from those
      estimates.

      Recently issued accounting pronouncements

      The Financial  Accounting  Standards Board has recently issued several new
      accounting  pronouncements.   Statement  No.  128,  "Earnings  Per  Share"
      established standards for computing and presenting earnings per share, and
      became  effective  for  financial  statements  for both interim and annual
      periods ending after December 15, 1997.  Statement No. 129, "Disclosure of
      Information about Capital Structure"  established standards for disclosing
      information about an entity's capital structure,  and became effective for
      financial statements for periods ending after December 15, 1997. Statement
      No.  130,  "Reporting  Comprehensive  Income"  establishes  standards  for
      reporting and display of comprehensive  income and its components,  and is
      effective for fiscal years  beginning  after December 15, 1997.  Statement
      No.  131,  "Disclosures  about  Segments  of  an  Enterprise  and  Related
      Information"  establishes  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 issued
      to  shareholders.  It also establishes  standards for related  disclosures
      about products and services, geographic areas, and major customers, and is
      effective for financial  statements for periods  beginning  after December
      15, 1997.

      Management  of the  Partnership  does not believe that these new standards
      have,  or  will  have a  material  effect  on the  Partnership's  reported
      operating results, per unit amounts, financial position or cash
      flows.
<PAGE>
                   RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.

                          NOTES TO FINANCIAL STATEMENTS

                  YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995


3      CONFLICTS OF INTEREST AND TRANSACTIONS WITH RELATED PARTIES

      The Managing  General Partner of the Partnership,  RAM Funding,  Inc., was
      until  November 3, 1994 a  wholly-owned  subsidiary of Integrated at which
      time, pursuant to the consummation of Integrated's Plan of Reorganization,
      the assets of Integrated were sold to Presidio Capital Corp. ("Presidio").
      As of February 28, 1995, the Associate  General Partner of the Partnership
      is Presidio AGP Corp.,  a Delaware  Corporation  ("Presidio  AGP"),  which
      replaced Z Square G Partners II, a New York general partnership  comprised
      of a general  partnership and  individuals  who were all former  officers,
      directors and significant  shareholders  of Integrated.  Presidio AGP is a
      wholly-owned  subsidiary  of  Presidio.  The General  Partners and certain
      affiliates of the General Partners,  are general partners in several other
      limited  partnerships  which are also affiliated with Presidio,  and which
      are engaged in  businesses  that are,  or may be in the future,  in direct
      competition with the Partnership.

      Presidio  controls  the  Partnership   through  its  direct  and  indirect
      ownership of the General  Partners.  On August 28,  1997,  an affiliate of
      NorthStar Capital Partners acquired all of the Class B shares of Presidio.
      This  acquisition,  when  aggregated  with previous  acquisitions,  caused
      NorthStar  Capital  Partners  to acquire  indirect  control of the General
      Partners.

      Wexford  Management  Corp.  had been  engaged  to perform  management  and
      administrative   services   for  Presidio  and  its  direct  and  indirect
      subsidiaries as well as the Partnership under an  Administrative  Services
      Agreement.  Wexford  Management  Corp.  was  engaged  to  perform  similar
      services for other similar  entities that may be in  competition  with the
      Partnership. Effective January 1, 1996, Wexford Management Corp., formerly
      Concurrency Management Corp., assigned its agreement to provide management
      and  administrative  services to Presidio and its  subsidiaries to Wexford
      Management LLC  ("Wexford").  Under this  agreement,  Wexford also had the
      authority to designate directors of the General Partners.

      On November 2, 1997, the  Administrative  Services  Agreement with Wexford
      expired.  Effective  November 3, 1997, Wexford and Presidio entered into a
      new Administrative Services Agreement (the "ASA"), which expires on May 3,
      1998.  Under the terms of the ASA,  Wexford  will provide  consulting  and
      administrative  services to Presidio  and its  affiliates,  including  the
      General  Partners  and  the  Partnership.  Presidio  also  entered  into a
      management  agreement  with  NorthStar  Presidio  Management  Company  LLC
      ("NorthStar  Presidio").  Under  the  terms of the  management  agreement,
      NorthStar Presidio will provide the day-to-day  management of Presidio and
      its direct and  indirect  subsidiaries  and  affiliates.  During the years
      ended December 31, 1997 and 1996, the Partnership paid Wexford $24,153 and
      $30,813 for management and administrative services rendered.
<PAGE>
                  RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.

                          NOTES TO FINANCIAL STATEMENTS

                  YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995

3      CONFLICTS OF INTEREST AND TRANSACTIONS WITH RELATED PARTIES (continued)

      Effective November 3, 1997, the officers and employees of Wexford that had
      served as officers and/or directors of the General Partners tendered their
      resignation.  On the  same  date,  The  Board  of  Directors  of  Presidio
      appointed new  individuals  to serve as officers  and/or  directors of the
      General Partners.

      Presidio is a liquidating  company.  Although it has no immediate plans to
      do so, it will  ultimately  seek to dispose of the  interests  it acquired
      from Integrated through liquidation; however, there can be no assurance of
      the  timing  of  such  transaction  or  the  effect  it  may  have  on the
      Partnership.

      The Partnership  has invested  principally in mortgage loans on properties
      owned or acquired by privately syndicated limited partnerships  originally
      sponsored by Integrated. Transactions entered into between the Partnership
      and  affiliates  of  Integrated  are  subject  to  inherent  conflicts  of
      interest.

4      INVESTMENTS IN MORTGAGE LOANS AND ALLOWANCE FOR LOAN LOSSES

      The  Partnership  invests in  zero-coupon,  nonrecourse  senior and junior
      mortgage loans.  Collection of the amounts due on the Partnership's junior
      mortgage  loans is solely  dependent  upon the sale or  refinancing of the
      underlying  properties at amounts  sufficient to satisfy the Partnership's
      mortgage  notes  after  payment  of the  senior  mortgage  notes  owned by
      unaffiliated third parties.

      All of  the  Partnership's  mortgage  notes,  with  the  exception  of the
      Harborista  Loan,  contain a provision  which  requires  the  borrowers to
      provide current  appraisals based upon certain conditions or in some cases
      upon request.

      The Partnership has prepared internal  valuations for the properties owned
      by Twin Oak Plaza  Associates,  L.P.  ("Twin Oak") and High Cash Partners,
      L.P. ("High Cash"). The general partners of High Cash were, until June 13,
      1997,  affiliated with the General  Partners.  All of the loans,  with the
      exception of the Harborista  Loan,  contain a provision that requires that
      if the appraisal  indicates that the value of all  indebtedness  senior to
      and including the  Partnership's  loan, taking into account principal plus
      accrued  interest  in  excess  of 5% per  annum,  exceeds  85% of the then
      current  appraisal,  the borrower must repay the  indebtedness  to a point
      where the 85% loan to value ratio is restored.  The Twin Oak and High Cash
      borrowers may not have sufficient  liquidity  available to restore the 85%
      loan to value ratio should this amount be called by the Partnership.

      While there are risks  inherent  in a  zero-coupon  nonrecourse  senior or
      junior  mortgage  loan  portfolio,  the above  described  provisions  were
      intended to provide some mitigation of these risks.  However, in the event
      a borrower is required to make a payment under such loan provisions, there
      can be no assurance that the borrower will be able to make such payments.
<PAGE>
                  RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.

                          NOTES TO FINANCIAL STATEMENTS

                  YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995


4      INVESTMENTS IN MORTGAGE LOANS AND ALLOWANCE FOR LOAN LOSSES (continued) 

      Harborista Loan

      A $10,000,000  second mortgage loan (`the Harborista  Loan") to Harborista
      Associates,  L.P. is secured by an office building,  commonly known as the
      Harbor Plaza,  located in Boston,  Massachusetts (the "Harbor Plaza"). The
      Harborista  Loan was funded on February 13, 1989 and bears interest at the
      rate of 13.307% per annum,  compounded  monthly and was  originally due to
      mature  on  December  1,  1998,  at  which  time  a  balloon   payment  of
      approximately $36,000,000 would have been due and payable. Harbor Plaza is
      also  encumbered  by a first  mortgage  loan  in the  original  amount  of
      $24,475,000    held   by   Northwestern    Mutual   Life   Insurance   Co.
      ("Northwestern").  The first  mortgage  was due to mature on  December  1,
      1995, but was extended until December 1, 1999.

      In 1993,  based  upon  information  that the cash flow from the  tenant at
      Harbor  Plaza was far below the  amount of rental  payments  due under the
      Master  Lease,  the  condition  of the Boston real  estate  market and the
      likelihood that the public works construction which had adversely affected
      Harbor  Plaza  would  continue  for some  time,  there  was a  substantial
      likelihood that Harborista Associates, L.P. would not be able to refinance
      the Northwestern Mortgage when it matured. For these reasons,  during 1993
      management determined that interest on the Harborista Loan should cease to
      accrue and that an allowance  for loan losses was necessary for the entire
      carrying value of the Harborista  Loan which amounted to  $10,618,380.  In
      addition,  if 470 Atlantic Management Corp. ("470"),  the Master Lessee of
      Harbor Plaza, was successful in the lawsuit referred to below, it may have
      resulted in an attempted foreclosure by Northwestern.

      On  December  13,  1991 a Summons  and  Complaint  was issued by 470.  The
      defendants in the lawsuit were Harborista  Associates  L.P.,  Harbor Plaza
      Property Credit Corp., an unsecured lender to Harborista Associates, L.P.,
      which  was  also  an  affiliate  of  Integrated,  and  Northwestern.   The
      Partnership  was not named as a  defendant  in this  lawsuit.  Each of the
      defendants  to this lawsuit had filed  separate  motions to dismiss.  In a
      joint hearing held in June 1992,  the Court denied the motions to dismiss.
      An  attempt  was  made to join  the  Commonwealth  of  Massachusetts  as a
      party-defendant  in the lawsuit.  This attempt to join the Commonwealth to
      this action was dismissed by the Court in July,  1993.  In its  complaint,
      470 requested a declaratory judgment that a Substantial Taking (as defined
      in the Master Lease) of Harbor Plaza had occurred,  thus permitting 470 to
      terminate their Master Lease.

      In December 1995, this litigation was settled.  As part of the settlement,
      the Partnership  received a payment of $341,038  (included in other income
      for 1995 in the  accompanying  statement of income) in exchange for, among
      other things, extending its mortgage until 1999 and subordinating its lien
      to any new monies invested in the Harbor Plaza.
<PAGE>
                  RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.

                          NOTES TO FINANCIAL STATEMENTS

                  YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995


4      INVESTMENTS IN MORTGAGE LOANS AND ALLOWANCE FOR LOAN LOSSES (continued)


      Twin Oak Loan

      The  Partnership  holds a  $1,200,000  second  mortgage  on the  Twin  Oak
      property.  The  first  mortgage  on  this  property,  which  is held by an
      unaffiliated  third  party,  was due to mature on July 1,  1993.  However,
      during 1993,  the mortgage loan was extended for three years until July 1,
      1996.  For the period  between July,  1996 and October 1997,  the Twin Oak
      borrower continued to make reduced mortgage payments to the first mortgage
      lender in  anticipation  of a loan extension or  modification.  In October
      1997, the Twin Oak borrower and its first mortgage  lender formally agreed
      to extend the maturity date of the first mortgage until July 1, 1998.

      In order for the Twin Oak borrower to consummate this loan extension,  the
      consent of the Partnership was required. The Partnership agreed to consent
      on the  condition  that the Twin Oak borrower  either  refinance  both the
      first mortgage and the Partnership's mortgage on or before July 1, 1998 or
      give  the  Partnership  a  deed-in-lieu  of  foreclosure  to the  Twin Oak
      Property.  To date, the Twin Oak borrower has not yet refinanced either of
      its mortgage  loans.  The  Partnership is unable to determine at this time
      the ultimate outcome of this matter.

      In January 1995, the Partnership  ceased  accruing  interest on its second
      mortgage loan to Twin Oak due to the fact that McCrory, a tenant occupying
      approximately  13% of the retail  space,  filed a voluntary  petition  for
      reorganization under Chapter 11 of the United States Bankruptcy Code which
      significantly  reduced  the value of the  property.  McCrory  successfully
      petitioned  the Court to  terminate  its lease and vacated the premises in
      March 1995.

      As a result of the  continued  vacancy  of the  former  McCrory  space and
      uncertainties   regarding  its   lease-up,   a  decline  in  the  economic
      environment in the  surrounding  area of the Twin Oak Shopping  Center and
      negotiations  with the first mortgage lender regarding an extension of its
      loan  which was due July 1, 1996,  cash flow  projections  were  performed
      during the second quarter of 1996 which  indicated that the estimated fair
      value of the Twin Oak property was approximately  $4,530,000 at that time.
      The  contractual  balance of the first  mortgage loan at June 30, 1996 was
      approximately  $3,890,000,  necessitating  a provision  for loan losses of
      $1,515,000  to  reduce  the  carrying  value of the loan to  approximately
      $640,000.

      Sierra Loan

      A  $6,500,000  first  mortgage  loan to High Cash is secured by a shopping
      center located in Reno,  Nevada.  Interest on the loan accrues at the rate
      of 11.22% per annum with no payments  due until  maturity on February  28,
      2001.
<PAGE>
                  RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.

                          NOTES TO FINANCIAL STATEMENTS

                  YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995

4      INVESTMENTS IN MORTGAGE LOANS AND ALLOWANCE FOR LOAN LOSSES (continued)

      Sierra Loan (continued)

      During the first  quarter of 1997,  High Cash wrote the  property  down to
      what its  management  believed to be its  estimated  fair market  value of
      $15,875,000.  Management of the  Partnership  performed its own evaluation
      and determined that this amount was a fair estimate of the property value.
      The outstanding balance of the loan at December 31, 1996 was approximately
      $15,979,000  and it was unlikely that any additional  interest  accrued on
      the  Sierra  loan  would  ultimately  be  recovered  from the value of the
      underlying property.  Consequently,  as of January 1, 1997 the Partnership
      ceased accruing interest on the Sierra loan.

      On June 13, 1997,  the general  partners of High Cash,  who were  formerly
      affiliated with the General Partners, sold their general partner interests
      to Pembroke HCP LLC and Pembroke AGP Corp., unaffiliated third parties.

      Interest  recognized  by year  for each  mortgage  loan is  summarized  as
      follows:
<TABLE>
<CAPTION>
                                                        Year ended December 31,
                                          ------------------------------------------------
              Description                       1997             1996              1995
         -----------------------          -------------     -------------    -------------
<S>                                       <C>               <C>              <C>
         Shopping Center
              Sierra Marketplace
              Reno, Nevada                $       -         $   1,619,880    $   1,455,616
                                          =============     =============    =============
</TABLE>
<PAGE>
                  RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.

                          NOTES TO FINANCIAL STATEMENTS

                  YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995

4      INVESTMENTS IN MORTGAGE LOANS AND ALLOWANCE FOR LOAN LOSSES (continued)

      Information with respect to the Partnership's mortgage loans is summarized
      as follows:
<TABLE>
<CAPTION>
                                                                                           Mortgage      Mortgage      Mortgage    
                                    Interest  Compound             Loan      Maturity       Amount      Purchased      Placement   
Description                          Rate %   Period    Type       Date        Date        Advanced      Interest        Fees      
-----------                          ------   ------    ----       ----        ----        --------      --------        ----      
<S>                                  <C>      <C>        <C>     <C>           <C>        <C>             <C>        <C>           
Office Building
  Harbor Plaza                       13.307   Monthly    2nd     13-Feb-89    1-Dec-98    $10,000,000     $23,513      $594,867    
  Boston, Mass (a)(e)
 
Shopping Centers
  Sierra Marketplace (b)(c)          11.220   Monthly    1st     10-Feb-89    28-Feb-01     6,500,000          -        385,757    
  Reno, Nevada
 
  Twin Oak (b)                       12.280   Annually   2nd     3-Apr-90      1-May-02     1,200,000          -         71,218    
  Ft. Lauderdale, Florida
                                                                                          -----------     -------    ----------    
                                                                                          $17,700,000     $23,513    $1,051,842    
                                                                                          ===========     =======    ==========   
<CAPTION>
                                   Interest Recognized                       Carrying Value             Contractual Balance
                              ------------------------                  -----------------------------  ----------------------------
                              December 31,    1996 and                    December 31,   December 31,   December 31,   December 31,
Description                        1997        Prior       Reserves          1997           1996            1997            1996 
-----------                  ------------  -----------   ------------   --------------  -------------  -------------   ------------
<S>                          <C>           <C>           <C>            <C>             <C>            <C>             <C> 
Office Building
  Harbor Plaza ............  $       --    $       --    $(10,618,380)  $       --      $       --     $ 32,401,302    $ 28,385,002
  Boston, Mass (a)

Shopping Centers
  Sierra Marketplace (b)(c)          --       9,093,598          --       15,979,355     15,979,355      17,529,616      15,688,574
  Reno, Nevada

  Twin Oak (b) ............          --         880,460    (1,515,000)       636,678        636,678       2,934,380       2,614,938
  Ft. Lauderdale, Florida
                            -------------  ------------  ------------   ------------    -----------    ------------    ------------
                             $  1,619,880     9,974,058  $(12,133,380)  $ 16,616,033    $16,616,033    $ 52,865,298    $ 46,688,514 
                             ------------     ---------  ------------   ------------    -----------    ------------    ------------ 
</TABLE>
(a)  This loan is accounted for under the investment method.
(b)  These loans are accounted for under the interest method.
(c)  The Partnership may be entitled to additional  interest in the appreciation
     of  the  property  which  is  subordinated  to a  specified  return  to the
     borrower.  It is unlikely that the Partnership  will realize any additional
     interest from this loan.
(d)  Contractual balance represents the amount that would be required to be paid
     by the borrower if the loan was liquidated (principal plus accrued interest
     earned to date).
(e)  This mortgage loan was extended until December 1, 1999.
<PAGE>
                   RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.

                          NOTES TO FINANCIAL STATEMENTS

                  YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995


4      INVESTMENTS IN MORTGAGE LOANS AND ALLOWANCE FOR LOAN LOSSES (continued)

      A summary of mortgage loan activity is as follows:
<TABLE>
<CAPTION>
                                  Investment        Interest
                                    Method           Method             Total
                                ------------     ------------      ------------
<S>                             <C>              <C>               <C>
Balance, January 1, 1995 ..     $       --       $ 15,055,537      $ 15,055,537

Interest recognized .......             --          1,455,616         1,455,616
                                ------------     ------------      ------------

Balance, December 31, 1995              --         16,511,153        16,511,153

Interest recognized .......                         1,619,880         1,619,880

Provision for loan losses .             --         (1,515,000)       (1,515,000)
                                ------------     ------------      ------------

Balance, December 31, 1996              --         16,616,033        16,616,033

Interest recognized .......             --               --                --
                                ------------     ------------      ------------

Balance, December 31, 1997      $       --       $ 16,616,033      $ 16,616,033
                                ============     ============      ============
</TABLE>
      Unaudited financial information for Harbor Plaza, which is a mortgage loan
      accounted  for  under  the  investment  method  which  exceeds  10% of the
      Partnership's original capital contributions, is not presently available.

5      ACCOUNTS PAYABLE AND ACCRUED EXPENSES

      Accounts payable and accrued expenses consist of the following:
<TABLE>
<CAPTION>
                                                            December 31,
                                                     ---------------------------
                                                        1997              1996
                                                     --------           --------
<S>                                                  <C>                <C>
Expense reimbursements ...................           $ 37,888           $ 73,041
Professional fees ........................             39,323             35,312
Printing charges .........................             11,204              8,466
Other ....................................              5,725             13,979
                                                     --------           --------

                                                     $ 94,140           $130,798
                                                     ========           ========
</TABLE>
<PAGE>
                   RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.

                          NOTES TO FINANCIAL STATEMENTS

                  YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995


6      PARTNERS' EQUITY

      The  General  Partners  hold a 2.5% equity  interest  in the  Partnership.
      However, at the inception of the Partnership, the General Partners' equity
      account was credited  with only the actual  capital  contributed  in cash,
      $1,000. The Partnership's  management determined that this accounting does
      not appropriately  reflect the Limited Partners' and the General Partners'
      relative participations in the Partnership's net assets, since it does not
      reflect the General  Partners'  2.5% equity  interest in the  Partnership.
      Thus, the Partnership has restated its financial  statements to reallocate
      $733,757  (2.5%  of  the  gross  proceeds  raised  at  the   Partnership's
      formation)  of the  partners'  equity  to  the  General  Partners'  equity
      account. This reallocation was made as of the inception of the Partnership
      and all periods  presented in the financial  statements have been restated
      to  reflect  the  reallocation.  The  reallocation  has no  impact  on the
      Partnership's  financial  position,  results of  operations,  cash  flows,
      distributions to partners, or the partners' tax basis capital accounts.

7      RECONCILIATION OF  NET INCOME AND  NET ASSETS PER FINANCIAL STATEMENTS TO
       TAX BASIS

      The  Partnership  presently  recognizes  interest  income  on  all  of its
      investments in mortgage loans using the interest  method for tax purposes.
      For financial statement  purposes,  mortgage loans accounted for under the
      investment method recognize income as described in Note 2.

      A reconciliation  of net income per financial  statements to the tax basis
      of accounting is as follows:
<TABLE>
<CAPTION>
                                                     Year ended December 31
                                           ----------------------------------------
                                              1997           1996           1995
                                           ----------     ----------     ----------
<S>                                        <C>            <C>            <C>
Net income per financial
   statements ........................     $   72,682     $  123,888     $1,765,545

Interest income recognized for tax
   purposes in excess of amounts
   recognized for financial statements      5,974,947      3,682,033      3,249,413

Provision for loan losses ............           --        1,515,000           --
                                           ----------     ----------     ----------

Net income per tax basis .............     $6,047,629     $5,320,921     $5,014,958
                                           ==========     ==========     ==========
</TABLE>
<PAGE>
                   RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.

                          NOTES TO FINANCIAL STATEMENTS

                  YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995



7      RECONCILIATION OF  NET INCOME AND  NET ASSETS PER FINANCIAL STATEMENTS TO
       TAX BASIS (continued)


      The  differences  between  the  Partnership's  net  assets  per  financial
      statements and tax basis of accounting are as follows:
<TABLE>
<CAPTION>
                                                              December 31
                                                     ---------------------------
                                                         1997            1996
                                                     -----------     -----------
<S>                                                  <C>             <C>
Net assets per financial statements ............     $19,442,900     $19,370,218

Interest income recognized for tax purposes
  in excess of amounts recognized for financial
  statements ...................................      24,577,060      18,602,113

Allowance for loan losses ......................      12,133,380      12,133,380

Syndication costs ..............................       2,230,944       2,230,944
                                                     -----------     -----------

Net assets per tax basis .......................     $58,384,284     $52,336,655
                                                     ===========     ===========
</TABLE>
<PAGE>


 
Item 9.       Changes in and Disagreements with Accountants on Accounting 
              and Financial Disclosure.

              None.
 
<PAGE>
PART III

Item 10.      Directors and Executive Officers of Registrant.

There are no officers or directors of Registrant.  The Managing  General Partner
has overall  administrative  responsibility for Registrant's  operations and for
the selection,  evaluation,  negotiation and disposition of Mortgage Loans.  The
Associate  General  Partner will not devote any material  amount of its business
time and attention to the affairs of Registrant. The Managing General Partner is
a  wholly-owned  subsidiary  of  Presidio  and was  incorporated  in Delaware in
September  1985.  The Managing  General  Partner  also serves as the  investment
general partner of Resources  Accrued Mortgage  Investor L.P. -- Series 86 ("RAM
86"), an indirect subsidiary of Presidio.

Based  on a  review  of  Forms  3 and  4 and  amendments  thereto  furnished  to
Registrant  pursuant to Rule 16a-3(e) under the Securities Exchange Act of 1934,
as amended (the "Exchange Act"),  during its most recent fiscal year and Forms 5
and amendments  thereto  furnished to Registrant with respect to its most recent
fiscal year and written  representations  received pursuant to Item 405(b)(2)(i)
of Regulation S-K, none of the directors or officers of the General Partners, or
beneficial owners of more than 10% of the Units failed to file on a timely basis
reports  required by Section  16(a) of the  Exchange  Act during the most recent
fiscal or prior fiscal years. However, no written  representations were received
from the partners of the former Associate General Partner.

As of March 15, 1998,  the names and ages of, as well as the positions  held by,
the officers and directors of the Managing and Associate  General  Partners were
as follows:
<TABLE>
<CAPTION>
                                                                                           Has served as a
                                                                                           Director and/or 
                                                                                           Officer of the
                                                                                          Managing General
        Name                   Age            Position                                     Partner since
        ----                   ---            --------                                      -------------
<S>                             <C>     <C>                                                   <C>         
 W. Edward Scheetz              33      Director                                             November 1997
 David Hamamoto                 38      Director                                             November 1997
 Richard Sabella                42      President, Director                                  November 1997
 David King                     35      Executive VP, Director, Assistant Treasurer          November 1997
 Lawrence R. Schachter          41      Senior VP, Chief Financial Officer                   January 1998
 Kevin Reardon                  39      VP, Secretary, Treasurer, Director                   November 1997
 Allan B. Rothschild            36      Executive VP                                         December 1997
 Marc Gordon                    33      VP                                                   November 1997
 Charles Humber                 24      VP                                                   November 1997
 Adam Anhang                    24      VP                                                   November 1997
 Gregory Peck                   23      Assistant Secretary                                  November 1997
</TABLE>

W. Edward Scheetz  co-founded  NorthStar Capital Partners with David Hamamoto in
July 1997,  having previously been a partner at Apollo Real Estate Advisors L.P.
since 1993.  From 1988 to 1993,  Mr.  Scheetz was a principal with Trammell Crow
Ventures.
<PAGE>
David Hamamoto  co-founded  NorthStar Capital Partners with W. Edward Scheetz in
July 1997,  having  previously  been a partner  and a co-head of the Real Estate
Principal Investment Area at Goldman, Sachs & Co., where he initiated the effort
to build a real estate principal  investment business in 1988 under the auspices
of the Whitehall Funds.

Richard  Sabella joined  NorthStar  Capital  Partners in November  1997,  having
previously been the head of real estate and a partner at the law firm of Cahill,
Gordon & Reindel since 1989. Mr. Sabella has also been  associated  with the law
firms of Milgrim, Thomajian, Jacobs & Lee, P.C. and Cravath, Swaine & Moore.

David King joined NorthStar Capital Partners in November 1997, having previously
been a Senior Vice President of Finance at Olympia & York Companies (USA). Prior
to joining Olympia & York in 1990, Mr. King worked for Bankers Trust in its real
estate finance group.

Lawrence  R.  Schachter  joined  NorthStar  Presidio  in  January  1998,  having
previously held the position as Controller at CB Commercial/Hampshire,  LLC from
1996 to 1997. Prior to joining CB, Mr. Schachter held the position of Controller
at Goodrich Associates in 1996 and at Greenthal/Harlan  Realty Services Co. from
1992 to 1995. Mr.  Schachter,  who holds a CPA,  graduated from Miami University
(Ohio).

Kevin  Reardon  joined  NorthStar  Capital  Partners  in  October  1997,  having
previously  held the  position  of  Controller  at  Lazard  Freres  Real  Estate
Investors from 1996 to 1997. Prior to joining Lazard Freres, Mr. Reardon was the
Director  of Finance in charge of  European  expansion  at the law firm of Dewey
Ballantine  from  1993 to 1996.  Prior to 1993,  Mr.  Reardon  held a  financial
position at Hearst - ABC - Viacom Entertainment Services. Mr. Reardon, who holds
a CPA, graduated from Fordham University with a B.S. in Accounting.

Allan  B.  Rothschild  joined  NorthStar   Presidio  in  December  1997,  having
previously been the Senior Vice President and General Counsel of Newkirk Limited
Partnership where he managed a large portfolio of net-leased real estate assets.
Prior to joining  Newkirk,  Mr.  Rothschild was associated  with the law firm of
Proskauer, Rose LLP in its real estate group.

Marc Gordon joined NorthStar Capital Partners in October 1997, having previously
been a Vice  President in the Real Estate  Investment  Banking  Group at Merrill
Lynch where he executed corporate finance and strategic  transactions for public
and private  real  estate  ownership  companies,  including  REITs,  real estate
service  companies,  and real estate  intensive  operating  companies.  Prior to
joining  Merrill  Lynch in 1993,  Mr.  Gordon was in the Real Estate and Banking
Group at the law firm of Irell & Manella.  Mr. Gordon  graduated  from Dartmouth
College with an A.B. in economics  and also holds a J.D. from the UCLA School of
Law.

Charles  Humber joined  NorthStar  Capital  Partners in September  1997,  having
previously worked for Merrill Lynch's Real Estate Investment  Banking Group from
1996 to  1997.  Mr.  Humber  graduated  from  Brown  University  with a B.A.  in
international  relations and  organizational  behavior and  management  which is
where he was prior to 1996.

Adam Anhang joined NorthStar  Capital Partners in August 1997, having previously
worked for The Athena  Group's Russia and Former Soviet Union  development  team
from  1996 to  1997.  Mr.  Anhang  graduated  from  the  Wharton  School  of the
University  of  Pennsylvania  with a B.S. in economics  with  concentrations  in
finance and real estate, which is where he was prior to 1996.
<PAGE>
Gregory Peck joined NorthStar  Capital Partners in July 1997,  having previously
worked for the Morgan  Stanley  Realty  Real  Estate  Funds  (MSREF)  and Morgan
Stanley's  Real  Estate  Investment  Banking  Group from 1996 to 1997.  Prior to
joining Morgan Stanley,  Mr. Peck worked for Lazard Freres & Co. LLC in the Real
Estate  Investment  Banking  Group from 1994 to 1996.  Mr. Peck  graduated  from
Columbia College with an A.B. in mathematics and an A.B. in economics.

There  are no family  relations  between  any  executive  officer  and any other
executive officer or director of the Managing General Partner.

Many of the above  officers and  directors of the Managing  General  Partner and
Associate  General  Partner are also  officers  and/or  directors of the general
partners of other public  partnerships  affiliated  with  Presidio or of various
subsidiaries of Presidio.

Item 11.      Executive Compensation.

Registrant is not required to and did not pay  remuneration  to the officers and
directors of the Managing  General Partner or the general partners of the former
Associate  General  Partner.  Certain  officers  and  directors  of the Managing
General Partner  receive  compensation  from affiliates of the Managing  General
Partner and/or its affiliates (but not from  Registrant) for services  performed
for various  affiliated  entities,  which may  include  services  performed  for
Registrant; however, the Managing General Partner believes that any compensation
attributable to services performed for Registrant is not material.  See Item 13,
"Certain Relationships and Related Transactions."
<PAGE>
Item 12.      Security Ownership of Certain Beneficial Owners and Management.

As of March 1, 1998, only the following entity was known by Registrant to be the
beneficial owner of more than 5% of the Units of Registrant.
<TABLE>
<CAPTION>
                                                                                 Percentage of Units
Limited Partner                                   Number of Units Owned              Outstanding    
---------------                                   ---------------------              -----------    
<S>                                                      <C>                             <C>  
Los Angeles County                                       12,000                          6.39%
Painting Industry Pension Trust Fund
P.O. Box 7887
3601 Alameda Avenue #300
Burbank, CA  91510
</TABLE>

As of March 1,  1998,  neither  the  General  Partners  nor their  officers  and
directors  were known by  Registrant to be  beneficially  own Units or shares of
Presidio, the parent of the General Partners.

                  To the knowledge of the  Registrant,  the following sets forth
certain information  regarding ownership of the Class A shares of Presidio as of
March 11, 1998 (except as otherwise noted) by (i) each person or entity who owns
of record or beneficially five percent or more of the Class A shares,  (ii) each
director  and  executive  officer  of  Presidio,  and  (iii) all  directors  and
executive officers of Presidio as a group. To the knowledge of Presidio, each of
such  shareholders  has sole voting and investment  power as to the shares shown
unless otherwise noted.

                  All  outstanding  shares of  Presidio  are  owned by  Presidio
Capital Investment Company,  LLC ("PCIC"), a Delaware limited liability company.
The interest in PCIC (and beneficial ownership in Presidio) are held as follows:
<TABLE>
<CAPTION>
                                         Percentage Ownership
                                        in PCIC and Percentage
                                         Beneficial Ownership
 Name of Beneficial Owner                     in Presidio
 ------------------------               -----------------------
<S>                                              <C>
Five Percent Holders:
Presidio Holding Company, LLC(1)                 71.93%
AG Presidio Investors, LLC(2)                    14.12%
DK Presidio Investors, LLC(3)                     8.45%
Stonehill Partners, LP(4)                         5.50%
</TABLE>
 
The holdings of the directors and executive officers of Presidio are as follows:
<TABLE>
<CAPTION>
<S>                                              <C>
Directors and Officers:
Adam Anhang(5)                                       0%
Marc Gordon(5)                                       0%
David Hamamoto(5)                                71.93%
Charles Humber(5)                                    0%
David King(5)                                        0%
Gregory Peck(5)                                      0%
Kevin Reardon(5)                                     0%
Allan Rothschild(5)                                  0%
Richard J. Sabella(5)                                0%
Lawrence Schachter(5)                                0%
W. Edward Scheetz(5)                             71.93%

Directors and Officers as a group:               71.93%
 
</TABLE>

(1)               Presidio Holding Company,  LLC is a New York limited liability
                  company whose address is 527 Madison Avenue,  16th Floor,  New
                  York, New York 10022. PHC has two members,  Polaris  Operating
                  LLC  ("Polaris")  which  holds a 1%  interest,  and  Northstar
                  Operating,  LLC  ("Northstar")  which  holds  a 99%  interest.
                  Polaris is a Delaware limited  liability company whose address
                  is 527 Madison Avenue,  16th Floor,  New York, New York 10022.
                  Polaris has two members,  Sextant Operating Corp. ("Sextant"),
<PAGE>
                  which holds a 1% interest,  and  Northstar,  which holds a 99%
                  interest.  Sextant is a Delaware  corporation whose address is
                  527 Madison Avenue,  16th Floor,  New York, New York 10022 and
                  whose sole  shareholder is Northstar.  Northstar is a Delaware
                  limited liability company whose address is 527 Madison Avenue,
                  16th  Floor,  New  York,  New York  10022.  Northstar  has two
                  members, Northstar Capital Partners ("NCP"), which holds a 99%
                  interest,  and  Northstar  Capital  Holdings I, LLC  ("NCHI"),
                  which  holds a 1%  interest.  Both NCP and  NCHI are  Delaware
                  limited  liability  companies,  whose business  address is 527
                  Madison Avenue,  16th Floor, New York, New York 10022. NCP has
                  two  members,   NCHI,  which  holds  a  74.75%  interest,  and
                  Northstar  Capital  Holdings II LLC  ("NCHII"),  which holds a
                  25.25%  interest.  The business  address for NCHII, a Delaware
                  limited liability  company is 527 Madison Avenue,  16th Floor,
                  New York, New York 10022. NCHII has three members, NCHI, which
                  holds  a 99%  interest,  Edward  Scheetz,  who  holds  a  0.5%
                  interest and David  Hamamoto,  who holds a 0.5% interest.  Mr.
                  Scheetz,  a U.S. citizen whose business address is 527 Madison
                  Avenue,  16th Floor,  New York, New York 10022,  is a founding
                  member of NCP. Mr.  Hamamoto,  a U.S.  citizen whose  business
                  address is 527 Madison Avenue,  16th Floor, New York, New York
                  10022, is a founding member of NCP. NCHI has two members,  Mr.
                  Scheetz and Mr. Hamamoto, each of whom holds a 50% interest.

                  Pursuant  to that  certain  Amended  and  Restated  Pledge and
                  Security  Agreement  (the "Pledge  Agreement")  dated March 5,
                  1998  made by PHC in  favor  of  Credit  Suisse  First  Boston
                  Mortgage  Capital  LLC  ("CSFB"),   PHC  pledged  all  of  its
                  membership  interest  in PCIC to CSFB as  security  for  loans
                  issued under the Loan Agreement  dated as of February 20, 1998
                  by and  among  PHC and CSFB and the  First  Amendment  thereon
                  dated  March 5, 1998  (together,  the "Loan  Agreement").  The
                  Pledge  Agreement and Loan Agreement  contain standard default
                  and event of default provisions which may at a subsequent date
                  result in a change of  control  of PCIC  and,  therefore,  the
                  Registrant.

(2)               Each of Angelo,  Gordon & Company,  LP, as sole  manager of AG
                  Presidio  Investors,  LLC,  and John M.  Angelo and Michael L.
                  Gordon,  as general partners of the general partner of Angelo,
                  Gordon &  Company,  LP may be deemed to  beneficially  own for
                  purposes of rule 13 d-3 of the Exchange  Act,  the  securities
                  beneficially owned by AG Presidio Investors, LLC. Each of John
                  M.  Angelo and  Michael L.  Gordon  disclaim  such  beneficial
                  ownership.  The  business  address  for  such  persons  is c/o
                  Angelo, Gordon & Company, LP, 345 Park Avenue, 26th Floor, New
                  York, New York 10167.

(3)               M.H. Davidson & Company,  Inc., as sole manager of DK Presidio
                  Investors,  LLC may be deemed to beneficially own for purposes
                  of Rule 13d-3 of the Exchange Act, the securities beneficially
                  owned by DK Presidio Investors,  LLC. The business address for
                  such person is c/o M.H. Davidson & Company,  885 Third Avenue,
                  New York, New York 10022.
<PAGE>
(4)               Includes  shares  of  PCIC  beneficially  owned  by  Stonehill
                  Offshore   Partners   Limited  and   Stonehill   Institutional
                  Partners,  LP. John A. Motulsky is a managing  general partner
                  of Stonehill Partners, LP, a managing member of the investment
                  advisor  to  Stonehill  Offshore  Partners  Limited  and  is a
                  general partner of Stonehill  Institutional Partners, LP. John
                  A. Motulsky disclaims  beneficial ownership of the shares held
                  by these entities. The business address for such person is c/o
                  Stonehill  Investment  Corporation,  110 East 59th Street, New
                  York, New York 10022.

(5)               The  business  address for such person is 527 Madison  Avenue,
                  16th Floor, New York, New York 10022.

<PAGE>

Item 13.      Certain Relationships and Related Transactions.

The General Partners,  during  Registrant's year ended December 31, 1997, earned
or  received  compensation  or payments  for  services  from or with  respect to
Registrant (or Integrated or Presidio) as follows:
<TABLE>
<CAPTION>
                                Capacity in Which Served or Services
       Name of Recipient                  Performed                              Compensation
       -----------------                  ---------                              ------------
<S>                              <C>                                                   <C>
RAM Funding, Inc.                Managing General Partner                              (1)
Presidio AGP Corp.               Associate General Partner                             (1)
</TABLE>
<PAGE>
(1)      The General Partners were not entitled to any payment for services from
         or with respect to  Registrant,  Integrated or Presidio.  However,  the
         General Partners,  pursuant to the Partnership Agreement,  are entitled
         to receive 2.5% of Registrant's income, loss, capital and distributions
         (2.45%  to the  Managing  General  Partner  and  .05% to the  Associate
         General Partner)  including without  limitation  Registrant's cash flow
         from operations and disposition proceeds. No distributions are expected
         to be made from  operations  inasmuch as all interest and principal due
         on the  Mortgage  Loans is deferred  until  maturity,  unless there are
         prepayments  of Mortgage  Loans.  For the year ended December 31, 1997,
         the General Partners were allocated an aggregate of $152,610 of taxable
         income  ($149,558  to the  Managing  General  Partner and $3,052 to the
         Associate General Partner).
 
In addition,  certain  officers and  directors of the General  Partners  receive
compensation  from the General  Partners  and/or their  affiliates (but not from
Registrant) for services  performed for various affiliated  entities,  which may
include services performed for Registrant.
<PAGE>
PART IV

Item 14.      Exhibits, Financial Statements Schedules and Reports on Form 8-K

(a)(1)   Financial Statements
         See Item 8, "Financial Statements and Supplementary Data."

(a)(2)   Financial Statement Schedules
         None.

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

(a)(3)   Exhibits
3.       Certificate of Limited  Partnership filed August 14, 1986 (incorporated
         by reference to Exhibit 3B as filed as part of Pre-Effective  Amendment
         No.  1  filed  on  May  14,  1987  ("Pre-Effective  Amendment")  to the
         Registration  Statement)  and  Amendments  to  Certificate  of  Limited
         Partnership  filed on March  12,  1987,  May 7, 1987  (incorporated  by
         reference  as  filed  as  part  of   Pre-Effective   Amendment  to  the
         Registration Statement) and February 5, 1988 (incorporated by reference
         to Post-Effective Amendment No. 2 to the Registration Statement).

4.
         (A) Amended and Restated Agreement of Limited Partnership (incorporated
         by reference to Exhibit 3A as filed as part of Post-Effective Amendment
         No. 2 filed on March 23, 1988 ("Post-Effective Amendment No. 2") to the
         Registration Statement).

         (B) Amendment No. 1 to Amended and Restated Partnership Agreement dated
         as of June 1, 1988,  incorporated  by  reference to Exhibit 4(B) of the
         1988 10-K.

         (C)  Amendment  No. 2 to Amended  and  Restated  Partnership  Agreement
         (incorporated by reference to Supplement No. 1 dated August 12, 1988 to
         the Prospectus as filed pursuant to Rules 424(b)(3) and 424(c).

10.
         (A) Agreement with Associate  General  Partner dated as of May 17, 1988
         among  Integrated,  RAM  Funding,  Inc.  and Z  Square G  Partners  II,
         incorporated by reference to Exhibit 10(B) of the 1988 10-K.

         (B)  Mortgage  Services  Agreement  dated as of April 12, 1988  between
         Registrant and RAM Funding, Inc.,  incorporated by reference to Exhibit
         10(C) of the 1988 10-K.

         (C) Deed of Trust,  Assignment  of Rents,  Fixture  Filing and Security
         Agreement among High Cash Partners,  L.P.,  Truster;  First  Commercial
         Title,  Inc.,  Trustee and Resources Accrued Mortgage Investors 2 L.P.,
         Beneficiary,  dated  February  10, 1989  (incorporated  by reference to
         Exhibit 10(a) of Registrant's Current Report on Form 8-K dated February
         13, 1989 (hereinafter referred to as the February 13, 1989 Form 8-K)).

         (D) Registered Note among High Cash Partners L.P. and Resources Accrued
         Mortgage  Investors 2 L.P.,  dated February 10, 1989  (incorporated  by
         reference to Exhibit 10(b) of the February 13, 1989 Form 8-K).
<PAGE>

         (E)  Assignment  of Leases and Rents among High Cash  Partners L.P. and
         Resources  Accrued  Mortgage  Investors 2 L.P., dated February 10, 1989
         (incorporated by reference to Exhibit 10(c) of the February 13,
         1989 Form 8-K).

         (F) Power of Sale Mortgage,  Assignment of Rents and Security Agreement
         (also  constituting a financing  statement) from Harborista  Associates
         Limited Partnership Mortgagor,  to Resources Accrued Mortgage Investors
         2 L.P. Mortgagee,  dated January 31, 1989 (incorporated by reference to
         Exhibit 10(d) of the February 13, 1989 Form 8-K).

         (G) Note among Harborista  Associates Limited Partnership and Resources
         Accrued Mortgage  Investors 2 L.P. dated January 31, 1989 (incorporated
         by reference to Exhibit 10(e) of the February 13, 1989 Form 8-K).

         (H) Assignment of Leases and Rents from Harborista  Associates  Limited
         Partnership  Assigns to Resources  Accrued  Mortgage  Investors 2 L.P.,
         Assignee,  dated January 31, 1989 (incorporated by reference to Exhibit
         10(f) of the February 13, 1989 Form 8-K).

         (I) Mortgage,  Assignment of Rents and Security  Agreement  dated as of
         April 1, 1990 between  Twin Oak Plaza  Associates,  L.P. and  Resources
         Accrued Mortgage Investors 2 L.P. (incorporated by reference to Exhibit
         10(A) of the April 3, 1990 Form 8K).

         (J) Note as of April 3, 1990  between Twin Oak Plaza  Associates,  L.P.
         and  Resources  Accrued  Mortgage  Investors  2 L.P.  (incorporated  by
         reference to Exhibit 10(B) of the April 3, 1990 Form 8K).

         (K) Loan  Commitment  dated as of April 11, 1990 between Twin Oak Plaza
         Associates,  L.P. and Resources  Accrued  Mortgage  Investitures 2 L.P.
         (incorporated  by reference to Exhibit  10(D) of the April 3, 1990 Form
         8K).

         (L) Amendment to Agreement dated as of June 20, 1990 among  Registrant,
         the  Managing  General  Partner  and  Rosenberg  and  Rosenberg,   Ltd.
         (incorporated  by reference  to Exhibit  10(O) to  Registrant's  Annual
         Report on Form 10-K for the fiscal year ended December 31, 1990.)

         (M)  Amended  and   Restated   Intercreditor   Agreement   between  The
         Northwestern  Mutual Life Insuance Company and Registrant,  dated as of
         November 1, 1994.

         (N)  Amendment  of  Mortgage,  Note and Other  Loan  Documents  between
         Harborista  Associates Limited Partnership and Registrant,  dated as of
         November 1, 1994.

         (b) Reports on Form 8-K None.
<PAGE>



                                   SIGNATURES

Pursuant to the  requirements of Section 13 or 15(d) of the Securities  Exchange
Act of 1934,  Registrant  has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized, on the 27th day of March, 1998.

RESOURCES ACCRUED MORTGAGE
INVESTORS 2 L.P.


By:     RAM FUNDING, INC.,
        Managing General Partner
                                                                      Date

By:     /s/Richard Sabella                                        March 27, 1998
        ------------------
        Richard Sabella
        Director, President
        (Chief Executive Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following  persons on behalf of  Registrant  and in
their  capacities  as directors  and/or  officers  (with respect to the Managing
General Partner) and on the dates indicated.
<TABLE>
<CAPTION>

   Signature                        Title                                        Date
   ---------                        -----                                        ----

<S>                           <C>                                          <C>
/s/Kevin Reardon              Director, Vice President,                    March 27, 1998
----------------
Kevin Reardon                 Treasurer and Secretary
                               

/s/Larry Schachter            Senior Vice President,                       March 27, 1998
------------------
Larry Schachter               (Principal Financial Officer
                              and Principal Accounting Officer)

/s/Richard Sabella            Director, President,                         March 27, 1998
------------------            (Chief Executive Officer)
Richard Sabella               

/s/David King                 Director, Executive Vice President,          March 27, 1998
-------------                 and Assistant Treasurer
David King                    

</TABLE>
<PAGE>

                                  EXHIBIT INDEX


                                       
Exhibit              

3.       Certificate of Limited  Partnership filed August 14, 1986 (incorporated
         by reference to Exhibit 3B as filed as part of Pre-Effective  Amendment
         No.  1  filed  on  May  14,  1987  ("Pre-Effective  Amendment")  to the
         Registration  Statement)  and  Amendments  to  Certificate  of  Limited
         Partnership  filed on March  12,  1987,  May 7, 1987  (incorporated  by
         reference  as  filed  as  part  of   Pre-Effective   Amendment  to  the
         Registration Statement) and February 5, 1988 (incorporated by reference
         to Post-Effective Amendment No. 2 to the Registration Statement).

4.
(A)      Amended and Restated Agreement of Limited Partnership  (incorporated by
         reference  to Exhibit 3A as filed as part of  Post-Effective  Amendment
         No. 2 filed on March 23, 1988 ("Post-Effective Amendment No. 2") to the
         Registration Statement).

(B)      Amendment No. 1 to Amended and Restated Partnership  Agreement dated as
         of June 1, 1988,  incorporated by reference to Exhibit 4(B) of the 1988
         10-K.

(C)      Amendment  No.  2  to  Amended  and  Restated   Partnership   Agreement
         (incorporated by reference to Supplement No. 1 dated August 12, 1988 to
         the Prospectus as filed pursuant to Rules
         424(b)(3) and 424(c).

10.
(A)      Agreement with Associate General Partner dated as of May 17, 1988 among
         Integrated,  RAM Funding, Inc. and Z Square G Partners II, incorporated
         by reference to Exhibit 10(B) of the 1988 10-K.

(B)      Mortgage  Services  Agreement  dated  as  of  April  12,  1988  between
         Registrant and RAM Funding, Inc.,  incorporated by reference to Exhibit
         10(C) of the 1988 10-K.

(C)      Deed of  Trust,  Assignment  of  Rents,  Fixture  Filing  and  Security
         Agreement among High Cash Partners,  L.P.,  Truster;  First  Commercial
         Title,  Inc.,  Trustee and Resources Accrued Mortgage Investors 2 L.P.,
         Beneficiary,  dated  February  10, 1989  (incorporated  by reference to
         Exhibit 10(a) of Registrant's Current Report on Form 8-K dated February
         13, 1989 (hereinafter referred to as the February 13, 1989 Form 8-K)).

(D)      Registered  Note among High Cash Partners  L.P. and  Resources  Accrued
         Mortgage  Investors 2 L.P.,  dated February 10, 1989  (incorporated  by
         reference to Exhibit 10(b) of the February 13, 1989 Form 8-K).

(E)      Assignment  of Leases  and Rents  among  High Cash  Partners  L.P.  and
         Resources  Accrued  Mortgage  Investors 2 L.P., dated February 10, 1989
         (incorporated  by reference  to Exhibit  10(c) of the February 13, 1989
         Form 8-K).
<PAGE>

(F)      Power of Sale  Mortgage,  Assignment  of Rents and  Security  Agreement
         (also  constituting a financing  statement) from Harborista  Associates
         Limited Partnership Mortgagor,  to Resources Accrued Mortgage Investors
         2 L.P. Mortgagee,  dated January 31, 1989 (incorporated by reference to
         Exhibit 10(d) of the February 13, 1989 Form 8-K).

(G)      Note among  Harborista  Associates  Limited  Partnership  and Resources
         Accrued Mortgage  Investors 2 L.P. dated January 31, 1989 (incorporated
         by reference to Exhibit 10(e) of the February 13, 1989 Form 8-K).

(H)      Assignment  of Leases  and Rents  from  Harborista  Associates  Limited
         Partnership  Assigns to Resources  Accrued  Mortgage  Investors 2 L.P.,
         Assignee,  dated January 31, 1989 (incorporated by reference to Exhibit
         10(f) of the February 13, 1989 Form 8-K).

(I)      Mortgage,  Assignment of Rents and Security Agreement dated as of April
         1, 1990 between Twin Oak Plaza  Associates,  L.P. and Resources Accrued
         Mortgage  Investors 2 L.P.  (incorporated by reference to Exhibit 10(A)
         of the April 3, 1990 Form 8K).

(J)      Note as of April 3, 1990  between Twin Oak Plaza  Associates,  L.P. and
         Resources Accrued Mortgage Investors 2 L.P.  (incorporated by reference
         to Exhibit 10(B) of the April 3, 1990 Form 8K).

(K)      Loan  Commitment  dated as of April  11,  1990  between  Twin Oak Plaza
         Associates,  L.P. and Resources  Accrued  Mortgage  Investitures 2 L.P.
         (incorporated  by reference to Exhibit  10(D) of the April 3, 1990 Form
         8K).

(L)      Amendment to Agreement dated as of June 20, 1990 among Registrant,  the
         Managing   General   Partner  and   Rosenberg   and   Rosenberg,   Ltd.
         (incorporated  by reference  to Exhibit  10(O) to  Registrant's  Annual
         Report on Form 10-K for the fiscal year ended December 31, 1990.)

(M)      Amended and Restated  Intercreditor  Agreement between The Northwestern
         Mutual Life Insuance  Company and  Registrant,  dated as of November 1,
         1994.

(N)      Amendment of Mortgage, Note and Other Loan Documents between Harborista
         Associates Limited Partnership and Registrant,  dated as of November 1,
         1994.


*        Filed herewith