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

FORM 10-Q

[X]  Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Quarterly Period Ended March 31, 2001

or

[ ]  Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from __________ to __________


Commission File #0-17593


Inland Monthly Income Fund II, L.P.
(Exact name of registrant as specified in its charter)

Delaware	#36-3587209
(State or other jurisdiction	(I.R.S. Employer Identification Number)
of incorporation or organization)

2901 Butterfield Road, Oak Brook, Illinois	60523
(Address of principal executive office)	(Zip Code)

Registrant's telephone number, including area code:  630-218-8000

                    N/A                    
(Former name, former address and former fiscal
year, if changed since last report)

Indicate by check mark whether the 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 the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  X  No     

INLAND MONTHLY INCOME FUND II, L.P.
(a limited partnership)

Balance Sheets

March 31, 2001 and December 31, 2000
(unaudited)


Assets

		2001	2000
Current assets:
Cash and cash equivalents	$	1,231,823	1,413,462
Accounts and rents receivable		84,846	4,094
Other assets		72	167
Total current assets		1,316,741	1,417,723
Investment properties (including acquisition fees paid to Affiliates of     $1,250,037 at December 31, 2001 and 2000):
Land		3,187,438	3,187,438
Buildings and improvements		12,423,443	12,423,443
		15,610,881	15,610,881
Less accumulated depreciation		4,524,415	4,428,736
Net investment properties		11,086,466	11,182,145
Other assets:
Deferred leasing fees to Affiliates (net of accumulated amortization of     $180,325 and $178,812 at March 31, 2001 and December 31, 2000,     respectively)		47,407	48,920
Deferred rent receivable (Note 2)		137,812	137,812
Total other assets		185,219	186,732
Total assets	$	12,588,426	12,786,600

See accompanying notes to financial statements.

INLAND MONTHLY INCOME FUND II, L.P.
(a limited partnership)

Balance Sheets
(continued)

March 31, 2001 and December 31, 2000
(unaudited)

Liabilities and Partners' Capital

		2001	2000
Current liabilities:
Accounts payable	$	6,421	39,045
Distributions payable (Note 4)		124,169	123,832
Due to Affiliates (Note 3)		2,091	6,839
Deposits held for others		290,090	406,637
Total current liabilities		422,771	576,353
Commission payable to Affiliate (Note 3)		132,000	132,000
Total liabilities		554,771	708,353
Partners' capital:
General Partner:
Capital contribution		500	500
Cumulative net income		55,209	56,166
		55,709	56,666
Limited Partners:
Units of $500. Authorized 80,000 Units, 50,095.50 Units outstanding       (net of offering costs of $3,148,734, of which $653,165 was paid to         Affiliates)		21,916,510	21,916,510
Cumulative net income		17,236,128	16,919,461
Cumulative distributions		(27,174,692)	(26,814,390)
		11,977,946	12,021,581
Total Partners' capital		12,033,655	12,078,247
Total liabilities and Partners' capital	$	12,588,426	12,786,600

See accompanying notes to financial statements.

INLAND MONTHLY INCOME FUND II, L.P.
(a limited partnership)

Statements of Operations

For the three months ended March 31, 2001 and 2000
(unaudited)

		2001	2000
Income:
Rental income (Note 2)	$	443,838	418,458
Additional rental income		2,260	-
Interest income		11,358	25,548
Other income		109	-
		457,565	444,006
Expenses:
Professional services to Affiliates		6,336	6,486
Professional services to non-affiliates		16,253	20,337
General and administrative expenses to Affiliates		7,996	9,689
General and administrative expenses to non-affiliates		7,570	18,578
Property operating expenses to Affiliates		4,144	4,992
Property operating expenses to non-affiliates		2,364	3,059
Depreciation		95,679	95,679
Amortization		1,513	4,523
		141,855	163,343
Net income	$	315,710	280,663
Net income (loss) allocated to:
General Partner	$	(957)	(957)
Limited Partners		316,667	281,620
Net income	$	315,710	280,663
Net loss allocated to the one General Partner Unit:	$	(957)	(957)
Net income per Unit allocated to Limited Partners per weighted average   Limited Partnership Units of 50,095.50	$	6.32	5.62

See accompanying notes to financial statements.

INLAND MONTHLY INCOME FUND II, L.P.
(a limited partnership)

Statements of Cash Flows

For three months ended March 31, 2001 and 2000
(unaudited)

		2001	2000
Cash flows from operating activities:
Net income	$	315,710	280,663
Adjustments to reconcile net income to net cash provided by   operating activities:
Depreciation		95,679	95,679
Amortization		1,513	4,523
Changes in assets and liabilities:
Accounts and rents receivable		(80,752)	9,092
Other assets		95	95
Deferred rent receivable		-	19,827
Accounts payable		(32,624)	34,343
Due to Affiliates		(4,748)	9,971
Net cash provided by operating activities		294,873	454,193
Cash flows from financing activities:
Deposits held for others		(116,547)	(114,356)
Cash distributions		(359,965)	(2,789,129)
Net cash used in financing activities		(476,512)	(2,903,485)
Net decrease in cash and cash equivalents		(181,639)	(2,449,292)
Cash and cash equivalents at beginning of period		1,413,462	3,665,630
Cash and cash equivalents at end of period	$	1,231,823	1,216,338

See accompanying notes to financial statements.

INLAND MONTHLY INCOME FUND II, L.P.
(a limited partnership)

Notes to Financial Statements

March 31, 2001
(unaudited)

Readers of this Quarterly Report should refer to the Partnership's audited financial statements for the fiscal year ended December 31, 2000, which are included in the Partnership's 2000 Annual Report, as certain footnote disclosures which would substantially duplicate those contained in such audited financial statements have been omitted from this Report.

(1)  Organization and Basis of Accounting

The Registrant, Inland Monthly Income Fund II, L.P. (the "Partnership"), was formed on June 20, 1988 pursuant to the Delaware Revised Uniform Limited Partnership Act, to invest in improved residential, retail, industrial and other income producing properties. On August 4, 1988, the Partnership commenced an Offering of 50,000 (subject to increase to 80,000) Limited Partnership Units pursuant to a Registration under the Securities Act of 1933. The Offering terminated on August 4, 1990, with total sales of 50,647.14 Units at $500 per Unit, resulting in gross offering proceeds of $25,323,569, not including the General Partner's contribution for $500. All of the holders of these Units have been admitted to the Partnership. Inland Real Estate Investment Corporation is the General Partner. The Limited Partners of the Partnership share in the benefits of ownership of the Partnership's real property investments in proportion to the number of Units held. The Partnership repurchased 551.64 Units for $260,285 from various Limited Partners through the Unit Repurchase Program. There are no funds remaining for the repurchase of Units through this program.

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 periods. Actual results could differ from those estimates.

In the opinion of management, the financial statements contain all the adjustments necessary, which are of a normal recurring nature, to present fairly the financial position and results of operations for the periods presented herein. Results of interim periods are not necessarily indicative of the results to be expected for the year.

(2)  Deferred Rent Receivable

Certain tenant leases contain provisions providing for stepped rent increases. Generally accepted accounting principles require that rental income be recorded for the period of occupancy using the straight-line basis. The accompanying financial statements include decreases of $0 and $19,827 for the three months ended March 31, 2001 and 2000, respectively, of rental income for the period of occupancy for which stepped rent increases apply and $137,812 in related deferred rent receivable as of March 31, 2001 and December 31, 2000. These amounts will be collected over the terms of the related leases as scheduled rent payments are made.

Elite, the tenant of the Colonial Manor Nursing Home, failed to make the deferred rental payment, which was due on February 1, 2001. The General Partner and Elite are discussing a possible rent reduction requested by Elite. Elite's request includes an initial rent concession, a partial reduction of the guaranty and an agreement to pay the deferred rent which is owed.

INLAND MONTHLY INCOME FUND II, L.P.
(a limited partnership)

Notes to Financial Statements
(continued)

March 31, 2001
(unaudited)

(3)   Transactions with Affiliates

The General Partner and its Affiliates are entitled to reimbursement for salaries and expenses of employees of the General Partner and its Affiliates relating to the administration of the Partnership. Such costs are included in professional services and general and administrative expenses to Affiliates, of which $2,091 and $6,839 was unpaid as of March 31, 2001 and December 31, 2000, respectively.

An Affiliate of the General Partner earned Property Management Fees of $4,144 and $4,992 for the three months ended March 31, 2001 and 2000, respectively, in connection with managing the Partnership's properties. Such fees are included in property operating expenses to Affiliates, all of which was paid as of March 31, 2001.

In connection with the sale of The Wholesale Club on January 8, 1991, the Partnership recorded $132,000 of sales commission payable to an Affiliate of the General Partner. Such commission has been deferred until the Limited Partners receive their Original Capital plus a return as specified in the Partnership Agreement.

(4)  Subsequent Events

During April 2001, the Partnership paid a distribution of $124,169 to the Limited Partners.

Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations

Certain statements in this "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in this quarterly report on Form 10-Q constitute "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Partnership's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. These factors include, among other things, federal, state or local regulations; adverse changes in general economic or local conditions; inability of borrower to meet financial obligations; uninsured losses; and potential conflicts of interest between the Partnership and its Affiliates, including the General Partner.

Liquidity and Capital Resources

On August 4, 1988, the Partnership commenced an Offering of 50,000 (subject to increase to 80,000) Limited Partnership Units pursuant to a Registration Statement on Form S-11 under the Securities Act of 1933. The Offering terminated on August 4, 1990, with total sales of 50,647.14 Units at $500 per Unit, resulting in gross offering proceeds of $25,323,569, not including the General Partner's contribution of $500. All of the holders of these Units have been admitted to the Partnership. The Partnership has acquired five properties utilizing $21,224,542 of capital proceeds collected. On January 8, 1991, the Partnership sold one of its properties, The Wholesale Club. On November 30, 1999, the Partnership sold another of its properties, Eurofresh Plaza. As of March 31, 2001, cumulative distributions to Limited Partners totaled $27,174,692, of which $4,395,565 represents proceeds from the sale of The Wholesale Club, $2,392,818 represents proceeds from the sale of Eurofresh Plaza, and $20,386,309 represents distributable cash flow from the properties. The Partnership repurchased 551.64 Units for $260,285 from various Limited Partners through the Unit Repurchase Program. There are no funds remaining for the repurchase of Units through this program.

As of March 31, 2001, the Partnership had cash and cash equivalents of approximately $1,232,000 which includes approximately $290,000 held in an unrestricted escrow account for the payment of real estate taxes for Colonial Manor Living Center. The Partnership intends to use such remaining funds for property upgrades, distributions and for other working capital requirements.

The properties owned by the Partnership are generating cash flow in excess of the 8% annualized distributions to the Limited Partners (paid monthly), in addition to covering all the operating expenses of the Partnership. As of March 31, 2001, the Partnership has made cumulative distributions of $253,868 in addition to the 8% annualized return to the Limited Partners from excess cash flow. To the extent that the cash flow from the properties is insufficient to meet the Partnership's needs, the Partnership may rely on advances from Affiliates of the General Partner, other short-term financing, or may sell one or more of the properties.

Results of Operations

At March 31, 2001, the Partnership owns three operating properties. Two of the Partnership's three operating properties, Scandinavian Health Spa and Colonial Manor Living Center, are leased on a "triple-net" basis which means that all expenses of the property are passed through to the tenant. The lease of the other property owned by the Partnership, K mart, provides that the Partnership be responsible for maintenance of the structure and the parking lot and the tenant is required to reimburse the Partnership for portions of insurance, real estate taxes and common area maintenance.

Rental income increased for the three months ended March 31, 2001, as compared to the three months ended March 31, 2001, due to the increased rental amounts received on the Colonial Manor Living Center.

Elite, the tenant of the Colonial Manor Nursing Home, failed to make the deferred rental payment, which was due on February 1, 2001. The General Partner and Elite are discussing a possible rent reduction requested by Elite. Elite's request includes an initial rent concession, a partial reduction of the guaranty and an agreement to pay the deferred rent which is owed.

Interest income decreased for the three months ended March 31, 2001, as compared to the three months ended March 31, 2000, due to an increase in cash available to invest in short-term investments during the first quarter of 2000 due to the sale of Eurofresh Plaza. Proceeds of $2,392,818 were distributed in February 2000.

Professional services to non-affiliates decreased for the three months ended March 31, 2001, as compared to the three months ended March 31, 2000, due to a decrease in accounting fees.

General and administrative expenses to Affiliates decreased for the three months ended March 31, 2001, as compared to the three months ended March 31, 2000, due to a decrease in data processing expenses. General and administrative expenses to non-affiliates decreased for the three months ended March 31, 2001, as compared to the three months ended March 31, 2000, due to a decrease in the Illinois replacement tax expense.

The following is a list of approximate occupancy levels for the Partnership's investment properties as of the end of each quarter during 2000 and 2001:

	2000				2001
Properties	03/31	06/30	09/30	12/31	03/31	06/30	09/30	12/31
Scandinavian Health Spa	100%	100%	100%	100%	100%
Broadview Heights, Ohio
Colonial Manor	100%	100%	100%	100%	100%
LaGrange, Illinois
K mart	100%	100%	100%	100%	100%
Chandler, Arizona

PART II - Other Information

Items 1 through 6(b) are omitted because of the absence of conditions under which they are required.

SIGNATURES

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

	INLAND MONTHLY INCOME FUND II, L.P.
By:	Inland Real Estate Investment Corporation
	General Partner
	/S/ ROBERT D. PARKS
By:	Robert D. Parks
	Chairman
Date:	May 15, 2001
	/S/ PATRICIA A. DELROSSO
By:	Patricia A. DelRosso
	Senior Vice President
Date:	May 15, 2001
	/S/ KELLY TUCEK
By:	Kelly Tucek
	Principal Financial Officer and
	Principal Accounting Officer
Date:	May 15, 2001

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