8-K

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549




                                    FORM 8-K

                                 CURRENT REPORT

     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

               Date of Report: (Date of Earliest Event Reported):
                       February 3, 2004 (February 3, 2004)





              AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 86
             (Exact name of registrant as specified in its charter)

          Delaware                      1-12704                  13-2943272
(State or other jurisdiction          (Commission             (I.R.S. Employer
     of incorporation)                File Number)           Identification No.)







                              11200 Rockville Pike
                            Rockville, Maryland 20852
   (Address of principal executive offices, including zip code, of Registrant)

                                 (301) 816-2300
              (Registrant's telephone number, including area code)



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Item 5.  Other Events.

     Attached  as an  exhibit  to this  Current  Report  on Form  8-K is a press
release issued by the General  Partner on February 3, 2004  announcing the final
liquidating distribution of the Partnership.  The above referenced press release
is incorporated by reference herein.


Item 7.  Financial Statements, Pro Forma Information and Exhibits.

(c)  Exhibits. The following exhibits are filed with this report:

     Exhibit 99.1 - Press Release dated February 3, 2004




SIGNATURE

     Pursuant to the  requirements  of the  Securities  Exchange Act of 1934, as
amended,  the  Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.



                                                    AMERICAN INSURED MORTGAGE
                                                    INVESTORS L.P.- SERIES 86

                                                    By: CRIIMI, Inc.
                                                        General Partner


Dated: February 3, 2004                             By:/s/ Mark A. Libera
                                                    -------------------------
                                                       Mark A. Libera
                                                       Vice President
                                                       Senior Corporate Counsel

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                                  EXHIBIT INDEX

Exhibit
No.                                Description
- --------------------------------------------------------------------------------

*    99.1 Press Release dated February 3, 2004

*    Filed herewith.

EX-99.I

Contact:     Susan B. Railey                         Exhibit 99.1
             (301) 468-3120
             Sharon Bramell                          FOR IMMEDIATE RELEASE
             (301) 231-0351


        AIM 86 DECLARES FINAL LIQUIDATING DISTRIBUTION OF $1.28 PER UNIT

     AIM 86 to Close Stock Transfer Books on February 13, 2004 and Terminate
                                -----------------

     ROCKVILLE,  MD,  February  3, 2004 --  (AMEX/AIJ)  The  general  partner of
American Insured Mortgage Investors L.P. - Series 86 (AIM 86) today declared the
final  liquidating  distribution  to unitholders in the amount of $1.28 per unit
resulting in termination of the Partnership.

     AIM 86 will close its stock transfer books at close of business on February
13,  2004.  Unitholders  on  such  date  will be  required  to  surrender  their
certificate(s)  representing depositary units of limited partnership interest to
Registrar and Transfer Company, the Partnership's  transfer agent, pursuant to a
Letter of Transmittal to be mailed to unitholders on or about February 13, 2004,
in order to  receive  the  final  liquidating  distribution  of $1.28  per unit.
Certain  unitholders that do not hold a certificate because their units are held
in book entry form will not be  required to execute a Letter of  Transmittal  in
order to  receive  the final  liquidating  distribution  of $1.28 per unit.  The
American Stock Exchange will suspend  trading of AIM 86 units as of the close of
business on February 13, 2004.

     The final  liquidating  distribution  represents the  unitholder's pro rata
share of the aggregate proceeds from the disposition of the Partnership's assets
less  amounts  required  for payment of, or  provision  for,  the  Partnership's
remaining  expenses and distributions to the General Partner,  as more fully set
forth in the Partnership Agreement.

     Note:Forward-looking  statements  or  statements  that  contain  the  words
"believe", "anticipate",  "expect", "may" or similar expressions and projections
contained in this release  involve a variety of risks and  uncertainties.  These
risks and  uncertainties  include the risks and  uncertainties  set forth in the
Partnership's SEC reports, including its Annual Report on Form 10-K for the year
ended  December 31, 2002 and its  Quarterly  Report on Form 10-Q for the quarter
ended  September  30,  2003.  Such  statements  are  subject to these  risks and
uncertainties,  which could cause actual results to differ materially from those
projected.  The general partner of American  Insured  Mortgage  Investors L.P. -
Series 86 and the  Partnership  assume  no  obligation  to update or  supplement
forward-looking statements that become untrue because of subsequent events.

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