HUTTON CONAM REALTY INVESTORS 2
10-K, 1996-03-29
REAL ESTATE
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                UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-K

[X]     ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
        EXCHANGE ACT OF 1934 [Fee Required]

                  For the fiscal year ended December 31, 1995

                                       OR

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

                 For the transition period from _____ to _____

Commission file number:  0-11085 

                        HUTTON/CONAM REALTY INVESTORS 2
              Exact name of Registrant as specified in its charter
	
California
State or other jurisdiction of incorporation or organization

13-3100545                                         10285
I.R.S. Employer Identification No.                 Zip Code

Attention:  Andre Anderson
3 World Financial Center, 29th Floor, New York, New York								    10285
Address of principal executive offices									     			  zip code

Registrant's telephone number, including area code: (212) 526-3237

Securities registered pursuant to Section 12(b) of the Act:  None

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


                     UNITS OF LIMITED PARTNERSHIP INTEREST
                                 Title of Class

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

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 the 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)

Documents Incorporated by Reference: 

Portions of Prospectus of Registrant dated July 9, 1982 (included in Amendment
No. 1 to Registration Statement, No. 2-75519, of Registrant filed July 9, 1982)
are incorporated by reference into Part III of this report.

Portions of Parts I, II, III and IV are incorporated by reference to the
Partnership's Annual Report to Unitholders for the year ended December 31,
1995.

                                     PART I

Item 1.  Business 

General Development of Business

Hutton/ConAm Realty Investors 2 (the "Registrant" or the "Partnership") is a
California limited partnership in which RI 2 Real Estate Services Inc. ("RI 2
Services", formerly Hutton Real Estate Services V, Inc.), a Delaware
corporation, and ConAm Property Services II, Ltd., a California limited
partnership ("ConAm Services"), are the general partners (together, the
"General Partners"). 

Commencing July 9, 1982, the Registrant began offering through E.F. Hutton &
Company Inc., of the Registrant, up to a maximum of 80,000 units of limited
partnership interest (the "Units") at $500 per Unit.  Investors who purchased
the Units (the "Limited Partners") are not required to make any additional
capital contributions.  The Units were registered under the Securities Act of
1933, as amended (the "Act"), under Registration Statement No. 2-75519, which
Registration Statement was declared effective on July 9, 1982.  The offering of
Units was terminated on October 8, 1982.  Upon termination of the offering, the
Registrant had accepted subscriptions for 80,000 Units for an aggregate of
$40,000,000. 

Narrative Description of Business

The Registrant is engaged in the business of acquiring, operating and holding
for investment multifamily residential properties, which by virtue of their
location and design and the nature of the local real estate market have the
potential for capital appreciation and generation of current income.  All of
the proceeds available for investment in real estate were originally invested
in four joint ventures and one limited partnership, each of which owned a
specified property.  Funds held as a working capital reserve are invested in
unaffiliated money market funds or other highly liquid short-term investments
where there is appropriate safety in principal in accordance with the
Registrant's investment objectives and policies.  

The Registrant's principal investment objectives with respect to its interests
in real property are: 

(1)	capital appreciation;

(2)     distributions of Net Cash From Operations attributable to rental
        income; and

(3)	preservation and protection of capital.

Distributions of Net Cash From Operations will be the Registrant's objective
during its operational phase, while preservation and appreciation of capital
continues to be the Registrant's longer term objectives.  The attainment of the
Registrant's objectives will depend on many factors, including future economic
conditions in the United States as a whole and, in particular, in the
localities in which the Registrant's properties are located, especially with
regard to achievement of capital appreciation.

From time to time the Registrant expects to sell its real property investments
taking into consideration such factors as the amount of appreciation in value,
if any, to be realized and the possible risks of continued ownership.  In
consideration of these factors and improving market conditions, the General
Partners have commenced marketing certain of the properties for sale.  No
property will be sold, financed or refinanced by the Registrant without the
agreement of both General Partners.  Proceeds from any future sale, financing
or refinancing of the properties will not be reinvested and may be distributed
to the Limited Partners and General Partners (sometimes referred to herein as
the "Partners"), so that the Registrant will, in effect, be self-liquidating.
If deemed necessary, the Registrant may retain a portion of the proceeds from
any sale, financing or refinancing as capital reserves.  As partial payment for
properties sold, the Registrant may receive purchase money obligations secured
by mortgages or deeds of trust.  In such cases, the amount of such obligations
will not be included in Net Proceeds From Sale or Refinancing (distributable to
the Partners) until and only to the extent the obligations are realized in
cash, sold or otherwise liquidated.

Originally, the Registrant acquired five residential apartment complexes
(collectively, the "Properties") through investments in joint ventures and one
limited partnership.  One of these, Country Place Village I, was sold on July
20, 1995.  As of December 31, 1995, the Registrant had interests in the
Properties as follows: (1) Creekside Oaks, a 120-unit apartment complex located
in Jacksonville, Florida; (2) Ponte Vedra Beach Village I, a 122-unit apartment
complex located in Ponte Vedra Beach, Florida; (3) Rancho Antigua, a 220-unit
apartment complex located in the McCormick Ranch area of Scottsdale, Arizona;
and (4) Village at the Foothills I, a 60-unit apartment complex located in
Tucson, Arizona.  For a further description of the Properties, see Item 2 of
this report and Note 4 to the Consolidated Financial Statements, incorporated
herein by reference to the Partnership's Annual Report to Unitholders for the
year ended December 31, 1995, which is filed as an exhibit under Item 14. 
 

Competition

The Registrant's real property investments are subject to competition from
similar types of properties in the vicinities in which they are located and
such competition has increased since the Registrant's investment in the
Properties due principally to the addition of newly- constructed apartment
complexes offering increased residential and recreational amenities.  The
Properties have also been subject to competition from condominiums and
single-family properties, especially during periods of low mortgage interest
rates.  The Registrant competes with other real estate owners and developers in
the rental and leasing of its Properties by offering competitive rental rates
and, if necessary, leasing incentives.  Such competition may affect the
occupancy levels and revenues of the Properties.  The occupancy levels at all
four Properties reflect some seasonality, which is also reflected in the
markets.  In some cases, the Registrant may compete with other partnerships
affiliated with either General Partner of the Registrant.

For a discussion of current market conditions in each of the areas where the
Partnership's Properties are located, see Item 2 below.   

Employees

The Registrant has no employees.  General services are performed by RI 2
Services, ConAm Services, ConAm Management Corporation ("ConAm Management"), an
affiliate of ConAm Services, as well as Service Data Corporation and First Data
Investor Services Group, both unaffiliated companies.  The Registrant has
entered into management agreements pursuant to which ConAm Management provides
management services with respect to the Properties.  First Data Investor
Services Group has been retained by the Registrant to provide all accounting
and investor communication functions, while Service Data Corporation provides
transfer agent services.  See Item 13 for a further description of the service
and management agreements between the Registrant and affiliated entities.


Item 2.  Properties

Below is a description of the Properties and a discussion of current market
conditions in each of the areas where the Properties are located.  For
information on the purchase of the Properties, reference is made to Note 4 to
the Consolidated Financial Statements in the Partnership's Annual Report to
Unitholders for the year ended December 31, 1995, which is filed as an exhibit
under Item 14.   Average occupancy rates and appraised values of the
Partnership's Properties are incorporated by reference to the Partnership's
Annual Report to Unitholders for the year ended December 31, 1995, which is
filed as an exhibit under Item 14.  

Creekside Oaks - Jacksonville, Florida 
This 120-unit apartment complex is situated ten miles west of the Intercostal
Waterway in the Baymeadows/Deerwood section of southeast Jacksonville.  Market
conditions in the Southeast submarket of Jacksonville remain competitive,
reflecting the lingering effects of prior overbuilding, much of which was
concentrated in this area.  The use of rental concessions has diminished in
recent years, and average rental rates in the Southeast submarket increased
1.7% from the second quarter of 1994 to the second quarter of 1995.   Average
occupancy increased from 93.3% to 94.3% during the same period.  Construction
of new units, relatively dormant in 1992 and 1993, has increased since 1994,
with 373 units permitted in 1994 and 593 units permitted as of June 30, 1995.
The area's favorable demographics (i.e. growing population and job growth), are
expected to absorb the new supply.  

Ponte Vedra Beach Village I - Ponte Vedra Beach, Florida
Ponte Vedra Beach Village I is a 122-unit apartment community in southeast
Jacksonville.  The Ponte Vedra Beach area has experienced notable population
growth and limited new construction in recent years, resulting in strong
occupancy for area apartment complexes.  A local survey of the Ponte Vedra
Beach area reported an average apartment occupancy rate of 95% in the fourth
quarter of fiscal 1995.  The use of rental concessions in the market is
virtually non-existent.  Given the strong market conditions, several apartment
projects are in the planning or construction phase.  In July 1995, construction
of phase one of a new development containing 240 units was completed.  Phase
two of this project, which will contain an additional 178 units, is expected to
be completed by the end of 1996.  A separate project containing 252 units is to
be built in the Ponte Vedra area and a project with an additional 200 to 300
units is awaiting permits to begin construction.  This construction is expected
d to intensify competition in the Ponte Vedra area market.

Rancho Antigua - Scottsdale, Arizona
This 220-unit apartment community is located eight miles northeast of Phoenix
in southwest Scottsdale.  The Scottsdale apartment market evidenced strong
competition during 1995, reflecting increasing construction in the area and
notable competition from condominiums and single family houses as affordable
prices and low mortgage rates entice renters to buy.  Average vacancy in the
Scottsdale submarket increased from 4.6% as of June 30, 1994 to 5.6% at June
30, 1995, reflecting the addition of recently completed units in the area.
Following a two year lull, construction of new units picked up pace beginning
in 1993 with 1,058 units opened in 1993, 1,533 units opened in 1994 and 2,240
new units within the submarket either under construction or permitted as of
June 30, 1995.  While the area's strong population and job growth are likely to
absorb some of this new supply, competition for tenants is expected to remain
strong, affecting area occupancies and limiting rental rate increases in t he
coming year.

Village at the Foothills I - Tucson, Arizona
This 60-unit apartment community is situated in the "foothills" section of
Tucson in the Catalina Foothill submarket.  Village at the Foothills I competes
with a number of apartment complexes and condominium developments within the
Tucson area.  Tucson's economy began to weaken as population and job growth
slowed during 1995.  Despite the economic slowdown, construction of multifamily
properties has increased significantly.  As of the third quarter of 1995, 1,123
units were under construction in the Catalina Foothills submarket with an
additional 656 units not yet begun.  These units are being added to the 7,226
completed units in the market.  There are an additional seven projects planned
for the Catalina Foothills market although all of these projects may not
proceed to construction.  In addition, the multifamily market has been
unfavorably impacted by a decline in interest rates which has made home
ownership a viable alternative for renters.  As a result, vacancy rates are
beginning to rise and increases in rental rates are moderating. A local survey
of metropolitan Tucson conducted in the fourth quarter of fiscal 1995 showed an
average occupancy rate of 92% among multifamily properties with five or more
units, down from 96% at the same period in 1994.

Three of the Partnership's four properties are encumbered by mortgage loans.
See Note 5 to the Consolidated Financial Statements for a description of such
mortgage financing.


Item 3.  Legal Proceedings

An offer dated August 3, 1995, was sent by Everest Investors, LLC and W. Robert
Kohorst (collectively, "Everest") to limited partners of the Partnership to
purchase up to 4.9% of their limited partnership interests for $70 per unit
less any distributions paid prior to the expiration of the offer on September
8, 1995.

On August 16, 1995, the General Partners of the Partnership sent a letter to
limited partners recommending against the offer because the price was
inadequate especially in view of the Net Asset Value of the units and the
capital return that was to be made from the July 20, 1995 sale of one of its
properties.

On August 29, 1995, the Partnership filed a complaint with the United States
District Court, Central District of California (the "Court") that Everest's
solicitation letter constituted a tender offer which violated Section 14(e) of
the Securities Exchange Act of 1934, which prohibits false or misleading
statements of material fact in connection with any tender offer.

Additionally, the Partnership requested a Temporary Restraining Order against
Everest until Everest issues a disclosure that complies with Section 14(e) of
the Securities Exchange Act of 1934 and offers rescission to any limited
partners that have tendered their limited partnership interests.

On August 31, 1995, the Court dismissed the Partnership's request for a
Temporary Restraining Order.  As a result, the Partnership dropped its
complaint.


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

During the fourth quarter of the year ended December 31, 1995, no matter was
submitted to a vote of security holders through the solicitation of proxies or
otherwise. 

                                    PART II

Item 5.  Market for the Registrant's Limited Partnership Units and Related
Security Holder Matters

As of December 31, 1995, the number of Unitholders of record was 4,235.  

No established public trading market exists for the Units, and it is not
anticipated that such a market will develop in the future. 

Distributions of Net Cash Flow From Operations, when made, are paid on a
quarterly basis, with distributions generally occurring approximately 45 days
after the end of each quarter.  Such distributions have been made primarily
from net operating income with respect to the Registrant's investment in the
Properties and from interest on short-term investments, and partially from
excess cash reserves.   Information on cash distributions paid by the
Partnership for the past two years is incorporated by reference to the
Partnership's Annual Report to Unitholders for the year ended December 31,
1995, which is filed as an exhibit under Item 14.  The level of future
distributions will be evaluated on a quarterly basis and will depend on the
Partnership's operating results and future cash needs.  Reference is made to
Item 7 for a discussion of the General Partners' expectations for future cash
distributions.


Item 6.  Selected Financial Data

Incorporated by reference to the Partnership's Annual Report to Unitholders for
the year ended December 31, 1995, which is filed as an exhibit under Item 14.  


Item 7.  Management's Discussion and Analysis of Financial Condition and
Results of Operations

Liquidity and Capital Resources

At December 31, 1995, the Partnership had cash and cash equivalents of $710,686
which was invested in unaffiliated money market funds, compared with $1,183,787
at December 31, 1994.  The decrease is primarily attributable to cash used for
distributions, mortgage payments and additions to real estate, which exceeded
net cash provided by operating activities and proceeds from the sale of Country
Place Village I.  The Partnership also maintained a restricted cash balance of
$651,661 at December 31, 1995, compared with $779,328 at December 31, 1994. The
restricted cash balance represents escrows for insurance, real estate taxes,
and property replacements and repairs, required under the terms of the current
mortgage loans.  Pursuant to the refinancing of the Creekside Oaks loan, the
lender required funds escrowed for various repairs including roofing work and
exterior painting.  Following an inspection of the complete work by the lender,
the balance of the repair escrow will be returned to the Partnership.

The General Partners expect sufficient cash flow to be generated from
operations to meet its current operating expenses and debt service
requirements.

In light of improving market conditions in certain of the areas where the
Partnership's properties are located, the General Partners have begun marketing
some of the properties for sale.  On July 20, 1995, Country Place Village I was
sold to an unaffiliated party.  The property was sold for a gross price of
$3,665,000, which included the assumption by the buyer of the property's
mortgage payable in the amount of $2,051,078.  The sale resulted in the
Partnership receiving net proceeds of approximately $1,522,000.  Primarily as a
result of the sale, investments in real estate, other assets and mortgages
payable decreased from December 31, 1994 to December 31, 1995.  The Partnership
recognized a gain on sale of $232,402 in the third quarter and on August 17,
1995 paid a special distribution of $1,600,000, or $20.00 per Unit, to the
partners.  The special distribution was comprised of net proceeds from the sale
of Country Place Village I and Partnership cash reserves.

Cash distributions to the Limited Partners were suspended from the first
quarter of 1992 through the second quarter of 1994 in consideration of the
costs related to the refinancing of the Partnership's four mortgage loans.
Cash distributions to investors were reinstated commencing with the third
quarter 1994 distribution in the quarterly amount of $2.75 per Unit.  This
quarterly level was reduced to $2.25 per Unit commencing with the 1995 first
quarter distribution.  The level was reduced due to increased capital
expenditures and, to a lesser extent, the sale of Country Place Village I.
This quarterly level was maintained for the remainder of 1995.  The level of
future distributions will be evaluated on a quarterly basis and will be based
on cash flow generated by the Partnership.

On March 15, 1996, based upon, among other things, the advice of Partnership
counsel, Skadden, Arps, Slate, Meagher & Flom, the General Partners adopted a
resolution that states, among other things, if a Change of Control (as defined
below) occurs, the General Partners may distribute the Partnership's cash
balances not required for its ordinary course day-to-day operations.  "Change
of Control" means any purchase or offer to purchase more than 10% of the Units
that is not approved in advance by the General Partners.  In determining the
amount of the distribution, the General Partners may take into account all
material factors.  In addition, the Partnership will not be obligated to make
any distribution to any partner and no partner will be entitled to receive any
distribution until the General Partners have declared the distribution and
established a record date and distribution date for the distribution.  The
Partnership filed a Form 8-K disclosing this resolution on March 21, 1996.
<PAGE>
Results of Operations 

1995 versus 1994

Partnership operations for the year ended December 31, 1995 resulted in a net
loss of $112,522, compared with net income of $37,325 in 1994.  As a result of
the sale of Country Place Village I in July 1995, the Partnership realized a
gain of $232,402.  Excluding this gain, the Partnership incurred a loss from
operations of $344,924 for the year ended December 31, 1995 compared with
income from operations of $37,325 in 1994.  The change from income to loss is
primarily the result of (i) reduced rental income following the sale of Country
Place Village I, (ii) increased property operating expense and, (iii) an
increase in general and administrative expense.  

Rental income totaled $4,448,549 for the year ended December 31, 1995 compared
with $4,669,676 in 1994.  The decrease is primarily due to the sale of Country
Place Village I in July 1995.  This was partially offset by increases in rental
income at Rancho Antigua and Village at the Foothills I, reflecting rate
increases instituted during the year.    

Interest income totaled $67,819 for the year ended December 31, 1995 compared
with $48,289 for the year ended December 31, 1994.  The increase is primarily
due to higher rates earned on the Partnership's cash balances. 

Property operating expenses totaled $2,515,717 for the year ended December 31,
1995, compared with $2,262,915 in 1994.  The increase primarily reflects higher
repair and maintenance expenses at Creekside Oaks and Rancho Antigua due
primarily to exterior painting work.  Interest expense and depreciation and
amortization expense both decreased from 1994, primarily due to the sale of
Country Place Village I.  General and administrative expense totaled $222,881
for the year ended December 31, 1995 compared with $144,052 for the year ended
December 31, 1994.  The increases primarily reflect legal expenses due to the
Partnership's response to the offer for the limited partnership units in the
third quarter of 1995.  (See Item 3)

1994 versus 1993

Partnership operations for the year ended December 31, 1994 resulted in net
income of $37,325, compared with a net loss of $527,539 in 1993.  The change
from net loss to net income in 1994 is primarily the result of increased rental
income and lower interest expense.

Rental income totaled $4,669,676 for the year ended December 31, 1994 compared
with $4,429,975 in 1993.  The increase in 1994 reflects higher rental income at
all the properties, primarily due to rental rate increases instituted over the
past year.  

Property operating expenses totaled $2,262,915 for the year ended December 31,
1994, compared with $2,069,986 in 1993.  The increase primarily reflects higher
expenses at Rancho Antigua as repair and maintenance expense increased due to
carpet replacement, asphalt resealing and general repairs, while rental
administration expenses increased primarily due to higher utilities expense.
Interest expense totaled $1,110,434 for the year ended December 31, 1994,
compared with $1,686,402 in 1993.  The decrease is due to lower interest rates
and the reduction of approximately $1.1 million of the principal balances as a
result of the replacement financing secured in late 1993 (see Note 5 of Notes
to the Consolidated Financial Statements included in Exhibit 13 to this report
for a description of the refinancing).  General and administrative expenses
totaled $144,052 for the year ended December 31, 1994, compared with $153,236
in 1993.  The decrease primarily reflects one-time expenses incurred i n 1993
relating to the attempt at securing a loan for the Village at the Foothills I.

The average occupancy levels at each of the properties for the years ended
December 31, 1995, 1994 and 1993 were as follows:

                                         Twelve Months Ended December 31,
        Property                               1995    1994    1993
        Creekside Oaks                          93%     96%     94%
	Ponte Vedra Beach Village I     	96%	96%	96%
        Rancho Antigua                          92%     95%     95%
        Village at the Foothills I              95%     96%     96%


Item 8.  Financial Statements and Supplementary Data

The financial statements are incorporated by reference to the Partnership's
Annual Report to Unitholders for the year ended December 31, 1995, which is
filed as an exhibit under Item 14.  Supplementary Data is incorporated by
reference to pages F-1 and F-4 of this report.


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

None. 


                                    PART III

Item 10.  Directors and Executive Officers of the Registrant

The Registrant has no officers or directors.  RI 2 Services and ConAm Services,
the co-General Partners of the Registrant, jointly manage and control the
affairs of the Registrant and have general responsibility and authority in all
matters affecting its business.

RI 2 Services

RI 2 Services (formerly Hutton Real Estate Services V, Inc.) is a Delaware
Corporation, formed on October 30, 1980, and is an affiliate of Lehman
Brothers, Inc.  See the section captioned "Certain Matters Involving Affiliates
of RI 2 Services" for a description of the Hutton Group's acquisition by
Shearson Lehman Brothers, Inc. ("Shearson") and the subsequent sale of certain
of Shearson's domestic retail brokerage and asset management businesses to
Smith Barney, Harris Upham & Co. Incorporated ("Smith Barney"), which was
followed by a change in the general partner's name.  

Certain officers and directors of RI 2 Services are now serving (or in the past
have served) as officers or directors of entities which act as general partners
of a number of real estate limited partnerships which have sought protection
under the provisions of the Federal Bankruptcy Code.  The partnerships which
have filed bankruptcy petitions own real estate which has been adversely
affected by the economic conditions in the markets in which the real estate is
located and, consequently, the partnerships sought the protection of the
bankruptcy laws to protect the partnerships' assets from loss through
foreclosure.  

The names and positions held by the directors and executive officers of RI 2
Services are set forth below.  There are no family relationships between any
executive officers or directors.

        Name                    Office

	Paul L. Abbott		Director, President, Chief Financial
                                Officer and Chief Executive Officer
        Donald E. Petrow        Vice President
	Kate D. Hobson		Vice President

Paul L. Abbott, 50, is a Managing Director of Lehman Brothers.  Mr. Abbott
joined Lehman Brothers in August 1988, and is responsible for investment
management of residential, commercial and retail real estate.  Prior to joining
Lehman Brothers, Mr. Abbott was a real estate consultant and a senior officer
of a privately held company specializing in the syndication of private real
estate limited partnerships.  From 1974 through 1983, Mr. Abbott was an officer
of two life insurance companies and a director of an insurance agency
subsidiary.  Mr. Abbott received his formal education in the undergraduate and
graduate schools of Washington University in St. Louis.

Donald E. Petrow, 39, is a First Vice President of Lehman Brothers Inc.  Since
March 1989, he has been responsible for the investment management and
restructuring of various investment portfolios, including but not limited to,
federal insured mortgages, tax exempt bonds, multifamily and commercial real
estate.  From November 1981 to February 1989, Mr. Petrow, as Vice President of
Lehman, was involved in investment banking activities relating to partnership
finance and acquisitions.  Prior to joining Lehman, Mr. Petrow was employed in
accounting and equipment leasing firms.  Mr. Petrow holds a B.S. Degree in
accounting from Saint Peters College and an M.B.A in Finance from Pace
University.

Kate D. Hobson, 29, is an Assistant Vice President of Lehman Brothers and has
been a member of the Diversified Asset Group since 1992.  Prior to joining
Lehman Brothers, Ms. Hobson was associated with Cushman & Wakefield serving as
a real estate accountant from 1990 to 1992.  Prior to that, Ms. Hobson was
employed by Cambridge Systematics, Inc. as a junior land planner.  Ms. Hobson
received a B.A. degree in sociology from Boston University in 1988.

ConAm Services

ConAm Services is a California limited partnership organized on August 30,
1982.  The sole general partner of ConAm Services is Continental American
Development, Inc. ("ConAm Development").  The names and positions held by the
directors and executive officers of ConAm Development are set forth below.
There are no family relationships between any executive officers or directors.

        Name                       Office

        Daniel J. Epstein          President and Director
        E. Scott Dupree            Vice President/Director
        Robert J. Svatos           Vice President/Director
        Ralph W. Tilley            Vice President
        J. Bradley Forrester       Vice President

Daniel J. Epstein, 56, has been the President and a Director of ConAm
Development and ConAm Management (or its predecessor firm) and a general
partner of Continental American Properties, Ltd. ("ConAm"), an affiliate of
ConAm Services, since their inception.  Prior to that time Mr. Epstein was Vice
President and a Director of American Housing Guild, which he joined in 1969.
At American Housing Guild, he was responsible for the formation of the
Multi-Family Division and directed its development and property management
activities.  Mr. Epstein holds a Bachelor of Science degree in Engineering from
the University of Southern California.

E. Scott Dupree, 45, is a Vice President and general counsel of ConAm
Management responsible for negotiation, documentation, review and closing of
acquisition, sale and financing proposals.  Mr. Dupree also acts as principal
legal advisor on general legal matters ranging from issues and contracts
involving the management company to supervision of litigation and employment
issues.  Prior to joining ConAm Management in 1985, he was corporate counsel to
Trusthouse Forte, Inc., a major international hotel and restaurant corporation.
Mr. Dupree holds a B.A. from United States International University and a Juris
Doctorate degree from the University of San Diego.

Robert J. Svatos, 37, is a Vice President and Chief Financial Officer of ConAm
Management, and has been with the company since 1988.  His responsibilities
include the accounting, treasury and data processing functions of the
organization.  Mr. Svatos is part of the firm's due diligence team, analyzing a
broad range of projects for ConAm Management's fee client base.  Prior to
joining ConAm Management, he was the Chief Financial Officer for AmeriStar
Financial Corporation, a nationwide mortgage banking firm.  Mr. Svatos holds an
M.B.A. in Finance from the University of San Diego and a Bachelor of Science
degree in Accounting from the University of Illinois.  Mr. Svatos is a
Certified Public Accountant.

Ralph W. Tilley, 41, is a Vice President and Treasurer of ConAm Management.  He
is responsible for the financial aspects of syndications and acquisitions,
ConAm Management's asset management portfolio and risk management activities.
Prior to joining ConAm Management in 1980, he was a senior accountant with KPMG
Peat Marwick, specializing in real estate.  He holds a Bachelor of Science
degree in Accounting from San Diego State University and is a Certified Public
Accountant.

J. Bradley Forrester, 38, currently serves as a Senior Vice President of ConAm
Management Corporation.  He is responsible for property acquisition and
disposition on a nationwide basis.  Additionally, he is involved with the
company's real estate development activities.  Prior to joining ConAm, Mr.
Forrester served as Senior Vice President - Commercial Real Estate for First
Nationwide Bank in San Francisco, where he was responsible for a $2 billion
problem asset portfolio including bank-owned real estate and non-performing
commercial real estate loans.  His past experience includes significant
involvement in real estate development and finance, property acquisitions and
dispositions and owner's representation matters.  Prior to entering the real
estate profession, he worked for KPMG Peat Marwick in Dallas, Texas.  Mr.
Forrester holds a Bachelor of Science degree in Accounting from Louisiana State
University.  He received his CPA certification in the state of Texas.

Certain Matters Involving Affiliates of RI 2 Services

On July 31, 1993, Shearson sold certain of its domestic retail brokerage and
asset management businesses to Smith Barney.  Subsequent to the sale, Shearson
changed its name to "Lehman Brothers Inc."  The transaction did not affect the
ownership of the Partnership's General Partners.  However, the assets acquired
by Smith Barney included the name "Hutton."  Consequently, the Hutton Real
Estate Services general partner changed its name to "RI 2 Real Estate Services
Inc.," and the Hutton Group changed its name to "LB I Group Inc." to delete any
reference to "Hutton."

Item 11.  Executive Compensation

Neither of the General Partners nor any of their directors or executive
officers received any compensation from the Registrant.  See Item 13 below with
respect to a description of certain costs of the General Partners or their
affiliates reimbursed by the Registrant.


Item 12.  Security Ownership of Certain Beneficial Owners and Management

As of December 31, 1995, no person was known by the Registrant to be the
beneficial owner of more than five percent of the Units of the Registrant.  No
other directors or executive officers of the General Partners own any Units.


Item 13.  Certain Relationships and Related Transactions

Pursuant to the Amended and Restated Certificate and Agreement of Limited
Partnership of the Registrant, for the year ended December 31, 1995, $228,953
of Registrant's net income was allocated to the General Partners ($152,636 to
RI 2 Services and $76,317 to ConAm Services).  For a description of the share
of Net Cash From Operations and the allocation of income and loss to which the
General Partners are entitled, reference is made to the material contained on
pages 78 through 80 of the Prospectus of the Registrant dated July 9, 1982 (
the "Prospectus"), contained in Amendment No. 1 to Registrant's Registration
Statement No. 2-75519, filed July 9, 1982, under the section captioned "Profit
and Losses and Cash Distributions," which section is incorporated herein by
reference thereto.

The Registrant has entered into property management agreements with ConAm
Management pursuant to which ConAm Management has assumed direct responsibility
for day-to-day management of the Properties.  It is the responsibility of ConAm
Management to select resident managers and monitor their performance.   ConAm
Management's services also include the supervision of leasing, rent collection,
maintenance, budgeting, employment of personnel, payment of operating expenses,
and related services.  For such services, ConAm Management is entitled to
receive a management fee as described on pages 33 and 34 of the Prospectus
under the caption "Investment Objectives and Policies - Management of
Properties," which description is herein incorporated by reference.  A summary
of property management fees earned by ConAm Management during the past three
fiscal years is incorporated by reference to Note 6 to the Consolidated
Financial Statements included in the Partnership's Annual Report to Unitholders
f or the year ended December 31, 1995, which is filed as an exhibit under Item
14.

Pursuant to Section 12(g) of Registrant's Certificate and Agreement of Limited
Partnership, the General Partners may be reimbursed by the Registrant for
certain of their costs as described on page 16 of the Prospectus, which
description is incorporated herein by reference thereto.  First Data Investor
Services Group provides partnership accounting and investor relations services
for the Registrant.  Prior to May 1993, these services were provided by an
affiliate of a general partner.  The Registrant's transfer agent and certain
tax reporting services are provided by Service Data Corporation.  Both First
Data Investor Services Group and Service Data Corporation are unaffiliated
companies.  A summary of amounts paid to the General Partners or their
affiliates during the past three years is incorporated by reference to Note 6
to the Consolidated Financial Statements, included in the Partnership's Annual
Report to Unitholders for the fiscal year ended December 31, 1995, which is
filed as a n exhibit under Item 14.

                                    PART IV

Item 14.  Exhibits, Financial Statement Schedule and Reports on Form 8-K

(a)(1)  Financial Statements:
                                                                      Page

        Consolidated Balance Sheets - December 31, 1995 and 1994      (1)

        Consolidated Statements of Partners' Capital (Deficit) -
        For the years ended December 31, 1995, 1994 and 1993          (1)
		
        Consolidated Statements of Operations -
        For the years ended December 31, 1995, 1994 and 1993          (1)

        Consolidated Statements of Cash Flows -
        For the years ended December 31, 1995, 1994 and 1993          (1)

        Notes to the Consolidated Financial Statements                (1)

        Report of Independent Accountants                             (1)

(a)(2)  Financial Statement Schedule:

        Schedule III - Real Estate and Accumulated Depreciation       F-1

        Report of Independent Accountants                             F-4


(1) Incorporated by reference to the Partnership's Annual Report to Unitholders
for the year ended December 31, 1995 filed as an exhibit under Item 14.
	
	(a)(3)	Exhibits: 

        (3)(A)  Amended and Restated Certificate and Agreement of Limited
        Partnership (included as, and incorporated herein by reference to,
        Exhibit A to the Prospectus of Registrant dated July 9, 1982 (the
        "Prospectus"), contained in Amendment No. 1 to Registration Statement,
        No. 2-75519, of Registrant filed July 9, 1982).

           (B)  Subscription Agreement and Signature Page (included as, and
        incorporated herein by reference to, Exhibit B to the Prospectus).


        (10)(A)  Settlement Agreement by and among the Managing Joint Venturers
        and the Epoch Joint Venturers dated July 1, 1992 (included as, and
        incorporated herein by reference to Exhibit 10.1 to the Registrant's
        Quarterly Report on Form 10-Q (Commission File No. 0-11085)).

                (B)  Amended and Restated Agreement of General Partnership
                of Country Place Village I Joint Venture dated as of July 1,
                1992 (included as, and incorporated herein by reference to
                Exhibit 10.2 to the Registrant's Quarterly Report on Form 10-Q
                (Commission File No. 0-11085)).

                (C)  Amended and Restated Agreement of General Partnership of
                Creekside Oaks Joint Venture dated as of July 1, 1992 (included
                as, and incorporated herein by reference to Exhibit 10.3 to the
                Registrant's Quarterly Report on Form 10-Q (Commission File No.
                0-11085)).

                (D)  Amended and Restated Agreement of General Partnership of
                Ponte Vedra Beach Village I dated July 1, 1992 (included as,
                and incorporated herein by reference to Exhibit 10.4 of the
                Registrant's Quarterly Report on Form 10-Q (Commission File No.
                0-11085)).

                (E)  Joint Venture Agreement of Rancho Antigua (included as,
                and incorporated herein by reference to Exhibit 10(M) to the
                Registrant's 1991 Annual Report on Form 10-K for the year ended
                December 31, 1991  (Commission File No. 0-11085)).

                (F)  Amended and Restated Agreement of General Partnership of
                Village at the Foothills I Joint Venture Limited Partnership
                dated July 1, 1992 (included as, and incorporated herein by
                reference to Exhibit 10.5 to the Registrant's Quarterly Report
                on Form 10-Q  (Commission File No. 0-11085)).

                (G)  Property Management Agreement between Creekside Oaks Joint
                Venture and ConAm Management Corporation for the Creekside Oaks
                property (included as, and incorporated herein by reference to
                Exhibit 10-G to the Registrant's Annual Report on Form 10-K for
                the year ended December 31, 1993 (Commission File No.
                0-11085)).

                (H)  Property Management Agreement between Ponte Vedra Beach
                Joint Venture and ConAm Management Corporation for the Ponte
                Vedra Beach Village I property (included as, and incorporated
                herein by reference to Exhibit 10-H to the Registrant's Annual
                Report on Form 10-K for the year ended December 31, 1993
                (Commission File No. 0-11085)).

                (I)  Property Management Agreement between Rancho Antigua Joint
                Venture and ConAm Management Corporation for the Rancho Antigua
                property (included as, and incorporated herein by reference to
                Exhibit 10-I to the Registrant's Annual Report on Form 10-K for
                the year ended December 31, 1993 (Commission File No.
                0-11085)).

                (J)  Property Management Agreement between Country Place
                Village I Joint Venture and ConAm Management Corporation for
                the Country Place Village I property (included as, and
                incorporated herein by reference to Exhibit 10-J to the
                Registrant's Annual Report on Form 10-K for the year ended
                December 31, 1993 (Commission File No. 0-11085)).

                (K)  Property Management Agreement between Village at the
                Foothills I Joint Venture and ConAm Management for the Village
                at the Foothills I property (included as, and incorporated
                herein by reference to Exhibit 10-K to the Registrant's Annual
                Report on Form 10-K for the year ended December 31, 1993
                (Commission File No. 0-11085)).

                (L)  Loan Documents:  Mortgage and Security Agreement,
                Promissory Note and Assignment of Rents and Leases with respect
                to the refinancing of Country Place Village I, between
                Registrant and The Penn Mutual Insurance Company (included as,
                and incorporated herein by reference to Exhibit 10-L to the
                Registrant's Annual Report on Form 10-K for the year ended
                December 31, 1993 (Commission File No. 0-11085)).

                (M)  Loan Documents:  Mortgage and Security Agreement,
                Promissory Note and Assignment of Rents and Leases with respect
                to the refinancing of Creekside Oaks, between Registrant and
                The Penn Mutual Insurance Company (included as, and
                incorporated herein by reference to Exhibit 10-M to the
                Registrant's Annual Report on Form 10-K for the year ended
                December 31, 1993 (Commission File No. 0-11085)).

                (N)  Loan Documents:  Mortgage and Security Agreement,
                Promissory Note and Assignment of Rents and Leases with respect
                to the refinancing of Ponte Vedra Beach Village I, between
                Registrant and The Penn Mutual Insurance Company (included as,
                and incorporated herein by reference to Exhibit 10-N to the
                Registrant's Annual Report on Form 10-K for the year ended
                December 31, 1993 (Commission File No. 0-11085)).
	  
                (O)  Loan Documents:  Deed of Trust and Assignment of Rents
                with Security Agreement and Financing Statement with respect to
                the refinancing of Rancho Antigua, between Registrant and The
                Penn Mutual Insurance Company (included as, and incorporated
                herein by reference to Exhibit 10-O to the Registrant's Annual
                Report on Form 10-K for the year ended December 31, 1993
                (Commission File No. 0-11085)).
	  
        (13)  Annual Report to Unitholders for the year ended December 31,
        1995.

        (21)  List of Subsidiaries - Joint Ventures (included as, and
        incorporated herein by reference to Exhibit 22 to the Registrant's
        Annual Report for the year ended December 31, 1994, on Form 10-K
        (Commission File No. 0-11085)).

        (27)  Financial Data Schedule

        (99)  Portions of Prospectus of Registrant dated July 9, 1983 (included
        as, and incorporated herein by reference to Exhibit 28 of the
        Registrant's 1988 Annual Report filed on Form 10-K for the fiscal year
        ended December 31, 1988 (Commission File No. 0-11085)).

        (b)  Reports on Form 8-K:

                        No reports on Form 8-K were filed in the fourth quarter
                        of 1995.

                                   SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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.  



Dated:  March 27, 1996
       
                        HUTTON/CONAM REALTY INVESTORS 2

                 BY:             RI 2 Real Estate Services Inc.
                                 General Partner



                  BY:  /S/  Paul L. Abbott
                  Name:  Paul L. Abbott
                  Title: Director, President, and
                         Chief Executive Officer
															and Chief Financial Officer
                  BY:    ConAm Property Services II, Ltd.
                         General Partner

                  BY:    Continental American Development, Inc.
                         General Partner

                  BY:  /S/  Daniel J. Epstein
                  Name: Daniel J. Epstein
                  Title:President, Director and
                        Principal 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 the
Registrant in the capabilities and on the dates indicated. 

                         RI 2 REAL ESTATE SERVICES INC.
                         A General Partner

Date:  March 27, 1996
                         BY:  /S/  Paul L. Abbott
                              Paul L. Abbott
                              Director, President, and
                              Chief Executive Officer
															and Chief Financial Officer

Date:  March 27, 1996
                          BY:  /S/  Donald Petrow
                               Donald Petrow
                               Vice President



Date:  March 27, 1996        
                           BY:  /S/  Kate Hobson
                                Kate Hobson
                                Vice President

Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
Registrant in the capacities and on the dates indicated.  

                        CONAM PROPERTY SERVICES II, LTD.
                        A General Partner

                          By:  Continental American Development, Inc.
                               General Partner

Date: March 27, 1996      BY:  /S/  Daniel J. Epstein
                               Daniel J. Epstein
                               Director and President
                                    

Date:  March 27, 1996                   
                          BY:  /S/  E. Scott Dupree
                               E. Scott Dupree
                               Vice President/Director

Date:  March 27, 1996
                          BY:  /S/  Robert J. Svatos
                               Robert J. Svatos
                               Vice President/Director

Date:  March 27, 1996                        
                          BY:  /S/  Ralph W. Tilley
                               Ralph W. Tilley
                               Vice President

Date:  March 27, 1996
                          BY:  /S/  J. Bradley Forrester
                               J. Bradley Forrester
                               Vice President



                        Hutton/ConAm Realty Investors 2

                               1995 Annual Report


                        HUTTON/CONAM REALTY INVESTORS 2

Hutton/ConAm Realty Investors 2 is a California limited partnership formed in
1982 to acquire, operate and hold for investment multifamily housing
properties.  At December 31, 1995, the Partnership's portfolio consisted of
four apartment properties located in Arizona and Florida.  Provided below is a
comparison of average occupancy levels for the years ended December 31, 1995
and 1994

		
                                                             Average Occupancy
  Property                       Location                       1995  1994
  --------------------------------------------------------------------------
   Creekside Oaks                Jacksonville, Florida           93%   96%
   Ponte Vedra Beach Village I   Ponte Vedra Beach, Florida      96%   96%
   Rancho Antigua                Scottsdale, Arizona             92%   95%
   Village at the Foothills I    Tucson, Arizona                 95%   96%
  --------------------------------------------------------------------------

   Administrative Inquiries        Performance Inquiries/Form 10-Ks
   Address Changes/Transfers       First Data Investor Services Group
   Service Data Corporation        P.O. Box 1527
   2424 South 130th Circle         Boston, Massachusetts 02104-1527
   Omaha, Nebraska 68144-2596      Attn:  Financial Communications
   800-223-3464 (select option 1)  800-223-3464 (select option 2)

                                


	   Contents

	1	Message to Investors
	2	Performance Summary
	3	Financial Highlights
	4	Consolidated Financial Statements
	7	Notes to the Consolidated Financial Statements
	13	Report of Independent Accountants
        14      Net Asset Valuation

                              MESSAGE TO INVESTORS

Presented for your review is the 1995 Annual Report for Hutton/ConAm Realty
Investors 2.  In this report, we review Partnership operations and discuss
general market conditions affecting the Partnership's properties.  We have also
included a performance summary which addresses operating results at each of the
properties and financial highlights for the year.

Country Place Village I Sale
The most significant event during 1995 was the sale of Country Place Village I
on July 20, 1995 to an unaffiliated institutional buyer.  Country Place Village
I was sold for $3,665,000, which includes the assumption of the mortgage
payable on the property by the buyer in the amount of $2,051,078.  The
Partnership received net sales proceeds of $1,522,242 and recorded a gain of
$232,402 on the sale.  

Cash Distributions
The Partnership paid cash distributions totaling $29 per Unit for the year
ended December 31, 1995, including the fourth quarter distribution of $2.25 per
Unit, which was credited to your brokerage account or sent directly to you on
February 7, 1996.  This amount also includes the special return of capital
distribution of $20 per Unit which was paid on August 17, 1995 and resulted
primarily from the sale of Country Place Village I.  Since inception, the
Partnership has paid distributions totaling $328.19 per original $500 Unit,
including $220 per Unit in return of capital payments.  The level of future
distributions will be evaluated on a quarterly basis and will depend on the
Partnership's operating results and future cash needs.  It is anticipated that
cash from reserves may be required to fund a portion of the distributions
during 1996 as a result of the expenditures for improvements required at the
Partnership's properties which are discussed in this report.

Operations Overview
The solid recovery of multifamily housing in most regions of the country began
to level off during 1995. New construction intensified competition in many
areas with building permits for multifamily units up almost 22% in 1995
compared to 1994 levels.  In addition, falling interest rates induced many
renters to purchase homes.  Despite these trends, strong population and job
growth in the areas where the Partnership's properties are located helped
strengthen the demand for multifamily housing, and brought about stable
performance at the Partnership's properties.  All four properties sustained
average occupancy rates for the year at or above 92%, and both Rancho Antigua
and Village at the Foothills I recorded higher rental income from the prior
year.

During the remainder of 1996, we intend to implement an extensive improvement
program, which includes roof repairs at three of the four properties and
improvements to unit interiors at all four properties.  This program is
intended to maintain the properties' positions within their respective markets,
which are growing increasingly competitive with the addition of new apartment
properties.  This is particularly true in the Jacksonville market where two of
the Partnership's four properties are located.  It is also hoped that these
improvements will allow for greater increases in rental rates, thereby
improving each property's revenue and value, and making them better positioned
for eventual sale.  Updates on the improvements at each property will be
included in future correspondence.

Summary
During 1996, we will continue to seek to maintain high occupancy levels,
implement rental rate increases as conditions permit, and make property
improvements necessary to keep the properties competitive in their respective
markets.  We will keep you apprised of significant developments affecting your
investment in future reports.  

Very truly yours,

	

/s/ Paul L. Abbott                         /s/ Daniel J. Epstein
President                                  President
RI 2 Real Estate Services, Inc.            Continental American Development Inc.
                                           General Partner of ConAm Property
                                           Services II, Ltd.

March 27, 1996

                              PERFORMANCE SUMMARY

Creekside Oaks, Jacksonville, Florida 

Creekside Oaks, a 120-unit apartment community, is situated in the
Baymeadows-Deerwood neighborhood of southeast Jacksonville.  The average
occupancy level at Creekside Oaks was 93% in 1995 compared with 96% during
1994.  The decline in occupancy was offset by rental rate increases instituted
during the year, and rental income remained in line with 1994.  Market
conditions in the Baymeadows-Deerwood area remain competitive, with a number of
newer apartment properties offering greater amenities and commanding higher
rents.  Additionally, two new properties are scheduled to open in the area
during 1996.  Although the use of rental concessions diminished considerably in
the last two years, asking rental rates in this submarket increased only 2% in
1995.  Average occupancy increased from 93% in the second quarter of 1994 to
94% in the second quarter of 1995.  Improvements at the property during 1995
included exterior painting and carpet replacement in selected units.


Ponte Vedra Beach Village I, Ponte Vedra Beach, Florida

Located in an oceanside residential area south of Jacksonville, this 122-unit
property reported stable occupancy of 96% during 1995.  The property's average
occupancy rate has remained consistent at 96% for the past three years.  While
modest rental rate increases were instituted in renewal units during the year,
rental income remained largely unchanged from 1994, reflecting a seasonal dip
in occupancy during the second quarter.  Property improvements during 1995
primarily consisted of roof repairs and the replacement of carpet and tile.  A
local survey of the Ponte Vedra Beach area reported an average apartment
occupancy rate of 95% in the third quarter of 1995.  The use of rental
concessions in the market is virtually non-existent.  Given the strong market
conditions, several apartment projects are in the planning or construction
phase.  This construction is expected to intensify competition in the Ponte
Vedra area market.


Rancho Antigua, Scottsdale, Arizona

This 220-unit complex, located approximately eight miles northeast of Phoenix,
achieved average occupancy of 92% in 1995, compared with 95% in 1994.  Despite
the decrease in average occupancy, the property was able to achieve a small
increase in rental income as a result of rate increases instituted during the
year.  The lower average occupancy reflects a number of tenants not renewing
leases to purchase condominiums and single family homes.  Affordable home
prices in the area and low mortgage rates have induced a large number of
renters to purchase homes and increased competition for tenants.  While
population and job growth remain strong in the Phoenix area, construction of
new apartment projects has picked up in recent years and a number of new units
are planned or under construction in the Scottsdale/Paradise Valley submarket.
The addition of new apartment units resulted in a decrease in the market's
average occupancy to 94% at the end of the second quarter of 1995.  Given
increased ed construction and continued strong competition from condominiums and
single family housing, competition for tenants is likely to increase in the
coming year.  Property improvements during 1995 included the painting of the
property's exterior and carpet and appliance replacement in renewal units.


Village at the Foothills I, Tucson, Arizona

Village at the Foothills I is a 60-unit apartment and townhouse community,
located in the Catalina Foothills, overlooking Tucson.  Occupancy at this
property averaged 95% in 1995 compared with 96% in 1994.  Rental income
increased 6% from 1994, reflecting rental rate increases on renewals and
turnover during the year.  Property improvements during 1995 were minimal and
consisted primarily of carpet replacement in selected units.  The property
continued to perform well despite intensifying competition in the metro Tucson
area brought on by new construction.  Competition for tenants is also
increasing as renters take advantage of low interest rates on mortgages and opt
to purchase homes.  Evidence of the intensifying competition can be seen in the
area's vacancy rate, which has reached 8%, its highest level since 1990.

                              FINANCIAL HIGHLIGHTS

Selected Financial Data

For the Periods Ended December 31,
(dollars in thousands, except per Unit data)

                              1995      1994       1993     1992      1991
Total Revenue             $  4,516  $  4,718   $  4,479 $  4,316  $  4,263

Gain on Sale of Property       232     -----      -----    -----     -----

Net Income (Loss)             (113)       37       (528)    (409)     (513)

Net Cash Provided by (used for)
Operating Activities           864     1,150       (180)     680       380
Long-term Obligations       11,969    14,219     14,418   15,636    15,750
Total Assets at Year End    19,931    24,772     25,237   26,946    27,579
Net Income (Loss) per
Limited Partnership Unit*    (4.27)      .42      (6.53)   (5.06)    (6.34)
Distributions per 
Limited Partnership Unit*     9.00      5.50      -----     -----     5.20

Special Distributions per 
Limited Partnership Unit*    20.00       -----     -----     -----   -----

* 80,000 units outstanding

*       Total revenue decreased 4% from 1994, reflecting the sale of Country
        Place Village I on July 20, 1995.  This was partially offset by
        increased rental income at Rancho Antigua and Village at the Foothills
        I and higher interest income.

*       The change from net income in 1994 to a net loss in 1995 and the
        reduction in cash provided by operating activities is primarily
        attributable to the decrease in rental income following the sale of
        Country Place Village I, as well as an increase in property operating
        expenses and general and administrative expenses.  Property operating
        expenses increased due primarily to painting and repair costs at
        Creekside Oaks and Rancho Antigua.  General and administrative expenses
        increased largely due to higher legal costs in the 1995 period.

Cash Distributions
Per Limited Partnership Unit
                                      1995            1994


Special Distributions*              $ 20.00         $ -----
First Quarter                          2.25           -----
Second Quarter                         2.25           -----
Third Quarter                          2.25            2.75
Fourth Quarter                         2.25            2.75


Total                               $ 29.00          $ 5.50

*       On August 17, 1995, the Partnership paid a special cash distribution
        totaling $20 per Unit, reflecting a return of capital from the net
        proceeds of the sale of Country Place Village I and Partnership cash
        reserves.

Consolidated Balance Sheets December 31, 1995 and 1994

Assets                                 1995             1994

Investments in real estate:
     Land                             $  5,744,972    $  6,797,328
     Buildings and improvements         23,442,403      27,258,895

                                        29,187,375      34,056,223
     Less accumulated depreciation     (10,931,382)    (11,699,378)

                                        18,255,993      22,356,845
Cash and cash equivalents                  710,686       1,183,787
Restricted cash                            651,661         779,328
Other assets, net of accumulated
amortization of $135,458 in 1995
and $88,397 in 1994                        312,359         452,164

                Total Assets          $ 19,930,699    $ 24,772,124


Liabilities and Partners' Capital

Liabilities:
 Mortgages payable                    $ 11,968,504    $ 14,218,948
 Accounts payable and accrued
 expenses                                  121,445         106,337
 Due to general partners and affiliates     33,949          40,523
 Security deposits                         106,218         133,210
 Distribution payable                      200,000         244,445

                Total Liabilities       12,430,116      14,743,463

Partners' Capital (Deficit):
  General Partners                        (485,103)       (618,500)
  Limited Partners                       7,985,686      10,647,161

  Total Partners' Capital                7,500,583      10,028,661

  Total Liabilities and
  Partners' Capital                   $ 19,930,699    $ 24,772,124




Consolidated Statements of Partners' Capital (Deficit)
For the years ended December 31, 1995, 1994 and 1993

                                        General       Limited
                                        Partners      Partners      Total

Balance at January 1, 1993            $ (568,068) $ 11,575,832 $ 11,007,764
Net loss                                  (5,275)     (522,264)    (527,539)

Balance at December 31, 1993            (573,343)   11,053,568   10,480,225
Net income                                 3,732        33,593       37,325
Distributions                            (48,889)     (440,000)    (488,889)

Balance at December 31, 1994            (618,500)   10,647,161   10,028,661
Net income (loss)                        228,953      (341,475)    (112,522)
Distributions                            (95,556)   (2,320,000)  (2,415,556)

Balance at December 31, 1995          $ (485,103) $  7,985,686 $  7,500,583

Consolidated Statements of Operations
For the years ended December 31, 1995, 1994 and 1993

Income                               1995            1994           1993

Rental                           $ 4,448,549     $ 4,669,676    $ 4,429,975
Interest                              67,819          48,289         48,981

        Total Income               4,516,368       4,717,965      4,478,956

Expenses

Property operating                 2,515,717       2,262,915       2,069,986
Depreciation and amortization      1,099,215       1,163,239       1,096,871
Interest                           1,023,479       1,110,434       1,686,402
General and administrative           222,881         144,052         153,236

        Total Expenses             4,861,292       4,680,640       5,006,495

Income (loss) from operations       (344,924)         37,325        (527,539)

Gain on sale of property             232,402           -----           -----

          Net Income (Loss)      $  (112,522)    $    37,325    $   (527,539)

Net Income (Loss) Allocated:

To the General Partners          $   228,953     $     3,732    $     (5,275)
To the Limited Partners             (341,475)         33,593        (522,264)

          Net Income (Loss)      $  (112,522)    $    37,325    $   (527,539)


Per Limited Partnership Unit 
	(80,000 outstanding)

  Income (loss) from operations  $     (4.27)    $       .42    $      (6.53)
  Gain on sale of property               ---             ---             ---

        Net Income (Loss)        $     (4.27)    $       .42   $       (6.53)



Consolidated Statements of Cash Flows
For the years ended December 31, 1995, 1994 and 1993

Cash Flows from Operating Activities:      1995          1994           1993

Net income (loss)                      $ (112,522)    $   37,325   $ (527,539)
Adjustments to reconcile net income
(loss) to net cash provided by (used for)
operating activities:
   Depreciation and amortization        1,099,215      1,163,239    1,096,871
   Gain on sale of property              (232,402)      -----       -----
   Increase (decrease) in cash
   arising from changes
   in operating assets and liabilities:
          Fundings to restricted cash    (361,130)      (407,336)  (1,057,502)
          Release of restricted cash      488,797        409,471      276,039
          Other assets                     -----           6,310       (5,317)
          Accounts payable and accrued
          expenses                         15,108        (59,566)      40,477
          Due to general partners
          and affiliates                   (6,574)         3,616      (11,199)
                Security deposits         (26,992)        (2,961)       7,848

Net cash provided by (used for)
operating activities                      863,500      1,150,098     (180,322)

Cash Flows from Investing Activities:

Net proceeds from sale of property      1,522,242
Additions to real estate                 (199,476)      (114,067)     (34,711)

Net cash provided by (used for)
investing activities                    1,322,766       (114,067)     (34,711)

Cash Flows from Financing Activities:

Distributions                          (2,460,001)      (244,444)     -----
Mortgage principal payments              (199,366)      (199,306) (15,667,949)
Receipt (payment) of deposit on
mortgage refinancing                     -------          72,058      (74,631)
Mortgage fees                            -------         (39,283)    (491,095)
Mortgage proceeds                        -------         -------   14,450,000

Net cash used for financing activities (2,659,367)      (410,975)  (1,783,675)

Net increase (decrease) in cash and
cash equivalents                         (473,101)       625,056   (1,998,708)
Cash and cash equivalents at beginning
of year                                 1,183,787        558,731    2,557,439

Cash and cash equivalents at
end of year                            $  710,686   $  1,183,787  $   558,731

Supplemental Disclosure of Cash Flow Information:

Cash paid during the year
for interest                           $1,023,479    $ 1,110,434 $  1,686,402

Supplemental Disclosure of Non-Cash Financing Activities:

In connection with the sale of Country Place Village I, the $2,051,078 mortgage
obligation on the property was assumed by the buyer, thereby releasing the
Partnership from its mortgage obligation.

Notes to the Consolidated Financial
Statements For the years ended December 31, 1995, 1994 and 1993

1. Organization
Hutton/ConAm Realty Investors 2 (the "Partnership") was organized as a limited
partnership under the laws of the State of California pursuant to a Certificate
and Agreement of Limited Partnership (the "Partnership Agreement") dated
December 17, 1981, as amended and restated October 8, 1982.  The Partnership
was formed for the purpose of acquiring and operating certain types of
residential real estate.  The General Partners of the Partnership are RI 2 Real
Estate Services Inc., an affiliate of Lehman Brothers Inc. (see below), and
ConAm Property Services II, Ltd. ("ConAm"), an affiliate of Continental
American Properties, Ltd (the "General Partners").  The Partnership will
continue until December 31, 2010 unless sooner terminated pursuant to the terms
of the Partnership Agreement.

On July 31, 1993, Shearson Lehman Brothers Inc. sold certain of its domestic
retail brokerage and asset management businesses to Smith Barney, Harris Upham
& Co. Incorporated ("Smith Barney").  Subsequent to the sale, Shearson Lehman
Brothers Inc. changed its name to Lehman Brothers Inc. ("Lehman Brothers").
The transaction did not affect the ownership of the General Partners.  However,
the assets acquired by Smith Barney included the name "Hutton."  Consequently,
effective January 13, 1994, the Hutton Real Estate Services V, Inc. general
partner changed its name to "RI 2 Real Estate Services, Inc."

On March 15, 1996, based upon, among other things, the advice of Partnership
counsel, Skadden, Arps, Slate, Meagher & Flom, the General Partners adopted a
resolution that states, among other things, if a Change of Control (as defined
below) occurs, the General Partners may distribute the Partnership's cash
balances not required for its ordinary course day-to-day operations.  "Change
of Control" means any purchase or offer to purchase more than 10% of the Units
that is not approved in advance by the General Partners.  In determining the
amount of the distribution, the General Partners may take into account all
material factors.  In addition, the Partnership will not be obligated to make
any distribution to any partner and no partner will be entitled to receive any
distribution until the General Partners have declared the distribution and
established a record date and distribution date for the distribution.  The
Partnership filed a Form 8-K disclosing this resolution on March 21, 1996.

2. Significant Accounting Policies

Financial Statements
The consolidated financial statements include the accounts of the Partnership
and its affiliated ventures.  The effect of transactions between the
Partnership and its ventures have been eliminated in consolidation.

Real Estate Investments
Real estate investments are recorded at cost less accumulated depreciation
which includes the initial purchase price of the property, legal fees,
acquisition and closing costs.

Leases are accounted for under the operating method.  Under this method,
revenue is recognized as rentals are earned and expenses (including
depreciation) are charged to operations when incurred.  Leases are generally
for terms of one year or less.

Depreciation is computed using the straight-line method based upon the
estimated useful lives of the properties.  Maintenance and repairs are charged
to operations as incurred.  Significant betterments and improvements are
capitalized and depreciated over their estimated useful lives.

For assets sold or otherwise disposed of, the cost and related accumulated
depreciation are removed from the accounts, and any resulting gain or loss is
reflected in income for the period.

Accounting for Impairment
In March 1995, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 121, "Accounting for the Impairment of
Long-Lived Assets and for Long-Lived Assets to Be Disposed Of" ("FAS 121"),
which requires impairment losses to be recorded on long-lived assets used in
operations when indicators of impairment are present and the undiscounted cash
flow estimated to be generated by those assets are less than the assets'
carrying amount.  FAS 121 also addresses the accounting for long-lived assets
that are expected to be disposed of.  The Partnership has adopted FAS 121 in
the fourth quarter of 1995.  Based on current circumstances, the adoption of
FAS 121 had no impact on the financial statements.

Fair Value of Financial Instruments
Statement of Financial Accounting Standards No. 107, "Disclosures about Fair
Value of Financial Instruments" ("FAS 107"), requires that the Partnership
disclose the estimated fair values of its financial instruments.  Fair values
generally represent estimates of amounts at which a financial instrument could
be exchanged between willing parties in a current transaction other than in
forced liquidation.

Fair value estimates are subjective and are dependent on a number of
significant assumptions based on management's judgment regarding future
expected loss experience, current economic conditions, risk characteristics of
various financial instruments, and other factors.  In addition, FAS 107 allows
a wide range of valuation techniques, therefore, comparisons between entities,
however similar, may be difficult.

Other Assets
Included in other assets are deferred mortgage costs incurred in connection
with obtaining financing on four of the Partnership's properties.  Such costs
are amortized over the term of the loans.

Offering Costs
Costs relating to the sale of limited partnership units were deferred during
the offering period and charged to the limited partners' capital accounts upon
the consummation of the public offering.

Income Taxes
No provision for income taxes has been made in the financial statements since
income, losses and tax credits are passed through to the individual partners.

Cash and Cash Equivalents
Cash equivalents consists of short-term highly liquid investments which have
maturities of three months or less from the date of issuance.  The carrying
amount approximates fair value because of the short maturity of these
instruments.  Cash and cash equivalents include security deposits of $79,936
and $106,213 at December 31, 1995 and 1994, respectively, restricted under
certain state statutes.

Restricted Cash
Restricted cash consists of escrows for real estate taxes, casualty insurance,
and replacement reserves as required by the first mortgage lender in the amount
of $651,661 and $779,328 at December 31, 1995 and 1994, respectively.

Concentration of Credit Risk
Financial instruments which potentially subject the Partnership to a
concentration of credit risk principally consist of cash and cash equivalents
in excess of the financial institutions' insurance limits.  The Partnership
invests available cash with high credit quality financial institutions.

Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the 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.

3. The Partnership Agreement 
The Partnership Agreement provides that net cash from operations, as defined,
will be distributed quarterly, 90% to the limited partners and 10% to the
General Partners.

Net loss and all depreciation will be allocated 99% to the limited partners and
1% to the General Partners. Net income will generally be allocated in
accordance with the distribution of net cash from operations.

Net proceeds from sales or refinancing will be distributed 99% to the limited
partners and 1% to the General Partners until each limited partner has received
an amount equal to his adjusted capital value (as defined) and an annual,
cumulative 7% return thereon.  The balance, if any, will be distributed 85% to
the limited partners and 15% to the General Partners.  Gain from sales will be
allocated to each partner having a negative capital account balance, pro-rata,
to the extent of such negative balance.  Thereafter, such gain will be
allocated in accordance with the distribution of net proceeds from sale or
refinancing, with the balance allocated to the limited partners.

4. Real Estate Investments
Real estate investments consist of four residential apartment complexes
acquired through investments in joint ventures as follows:

                    Apartment                          Date         Purchase
Property Name         Units     Location             Acquired         Price

Creekside Oaks          120   Jacksonville, FL       11/18/83       $ 5,960,045

Ponte Vedra Beach
Village I               122   Ponte Vedra Beach, FL   2/10/84         6,804,000

Rancho Antigua          220   Scottsdale, AZ           3/8/84        10,873,757

Village at the           60   Tucson, AZ              2/27/85         3,623,741
Foothills I

To each venture, the Partnership contributed the apartment projects as its
initial capital contribution.

On July 20, 1995, the Partnership sold Country Place Village I to an
institutional buyer (the "Buyer"), which is unaffiliated with the Partnership.
The selling price was determined by arm's length negotiations between the
Partnership and the Buyer.  Country Place Village I was sold for $3,665,000,
which includes the assumption of the mortgage payable on Country Place Village
I by the Buyer in the amount of $2,051,078.  The Partnership received net
proceeds of $1,522,242.  

On August 17, 1995, the Partnership paid a special distribution of $1,600,000
to the partners.  The special distribution was comprised of net proceeds from
the sale of Country Place Village I and Partnership cash reserves.  The
transaction resulted in a gain on sale of $232,402 which included a $69,926
write off of unamortized mortgage fees.  The gain was allocated in accordance
with the Partnership Agreement. 

The initial joint venture agreements of Country Place Village I, Creekside
Oaks, Ponte Vedra Beach Village I, Village at the Foothills I and Rancho
Antigua substantially provide that:

        a.      Net cash from operations will be distributed 100% to the
                Partnership until it has received an annual, noncumulative 12%
                return on its adjusted capital contribution.  Any remaining
                balance will be distributed 60% to the Partnership and 40% to
                the co-venturer.

        b.      Net income of the joint venture and gain from sale will be
                allocated basically in accordance with the distribution of net
                cash from operations, as defined, and net proceeds from sales,
                respectively. All net losses will be allocated 98% to 100% to
                the Partnership depending on the joint venture agreement.

        c.      Net proceeds from a sale or refinancing will be distributed
                100% to the Partnership until it has received an amount equal
                to 120% of its adjusted capital contribution and an annual,
                cumulative 12% return on its adjusted capital contribution.
                Thereafter, the Partnership will receive approximately 50% to
                75% of the balance depending on the joint venture agreement.

The amended joint venture agreements and limited partnership agreements of
Country Place Village I, Creekside Oaks, Ponte Vedra Beach Village I and
Village at the Foothills I substantially provide that:

        a.      Available cash from operations will be distributed 100% to the
                Partnership until it has received an annual, non-cumulative
                preferred return, as defined.  Any remaining balance will be
                distributed 99% to the Partnership and 1% to the corporate
                General Partners.

        b.      Net income will be allocated first, proportionately to partners
                with negative capital accounts, as defined, until such capital
                accounts, as defined, have been increased to zero.  Then, to
                the Partnership up to the amount of any payments made on
                account of its preferred return; thereafter, 99% to the
                Partnership and 1% to the corporate General Partners.  All
                losses will be allocated first, to the partners with positive
                capital accounts, as defined, until such accounts have been
                reduced to zero.  Then 99% to the Partnership and 1% to the
                corporate General Partners.

        c.      Income from a sale will be allocated first, to the Partnership
                until the Partnership's capital accounts, as defined, are equal
                to the fair market value of the ventures' assets at the date of
                the amendments.  Then, any remaining balance will be allocated
                99% to the Partnership and 1% to the corporate General
                Partners.  Net proceeds from a sale or refinancing will be
                distributed first to the partners with a positive capital
                account balance, as defined; thereafter, 99% to the Partnership
                and 1% to the corporate General Partners.

5. Mortgages Payable
On October 28, 1993, the extended maturity date, the Partnership obtained
replacement financing on its Creekside Oaks, Ponte Vedra Beach I, Rancho
Antigua and Country Place Village I properties from The Penn Mutual Life
Insurance Company and a subsidiary, both unaffiliated parties.  Total proceeds
of $14,450,000 were received and collateralized by Mortgages and Security
Agreements and Assignments of Rents and Leases Agreements encumbering the
respective properties.  Each of the loans is a non-recourse loan with periodic
payments of principal and interest based on a twenty-five year amortization
schedule with the balance of the principal due at maturity.  On July 20, 1995,
County Place Village I was sold and the underlying mortgage, in the amount of
$2,051,078, was assumed by the Buyer.  Mortgages payable at December 31, 1995,
consist of the following first mortgage loans:

                                                 Interest        Maturity
Property                            Principal      Rate            Date

Creekside Oaks                    $ 2,568,141     7.75%        11/01/2000
Ponte Vedra Beach Village I       $ 3,876,438     7.75%        11/01/2000
Rancho Antigua                    $ 5,523,925     7.75%        11/01/2000

The proceeds of this financing along with Partnership cash reserves were used
to repay the outstanding amounts due Aetna Life Insurance Company on the
Partnership's four prior mortgages.

                                               Interest          Original
Property                           Principal     Rate            Maturity
                                                                     Date

Creekside Oaks                    $ 2,921,071    10.50%          05/01/93
Ponte Vedra Beach Village I       $ 3,115,809    10.50%          05/01/93
Rancho Antigua                    $ 7,024,911    10.27%          05/20/93
Country Place Village I           $ 2,531,595    10.50%          05/01/93

Partnership cash reserves were also used to pay refinancing expenses of
$491,095 and fund escrows of $995,372.  The escrowed funds are applied to the
payment of taxes, insurance and repairs and improvements.

Annual maturities of mortgage notes principal over the next five years are as
follows:

        Year                      Amount

        1996                $    198,801
        1997                     214,768
        1998                     232,016
        1999                     250,650
        2000                  11,072,269

                            $ 11,968,504


Based on the borrowing rates currently available to the Partnership for
mortgage loans with similar terms and average maturities, the fair value of
long-term debt approximates carrying value.

6. Transactions With Related
Parties The following is a summary of fees earned and reimbursable expenses for
the years ended December 31, 1995, 1994, and 1993, and the unpaid portion at
December 31, 1995:

				Unpaid at
                                December 31,               Earned
                                1995              1995       1994       1993

Reimbursement of:
  Out-of-pocket expenses       $ -----        $   2,577  $   1,390  $      82
  Administrative salaries
    and expenses                 16,500          62,150     46,124     38,103
  Property operating salaries    -----          336,760    345,626    340,913

  Property management fees       17,449         223,677    233,152    221,231

                               $ 33,949       $ 625,164  $ 626,292  $ 600,329


The above amounts have been paid and/or accrued to the General Partners and
affiliates as follows:

                             Unpaid at
                           December 31,                     Earned
                                  1995             1995      1994        1993

RI 2 Real Estate Services Inc. $ 16,500       $  64,727  $  47,514  $   38,185

        ConAm and affiliates     17,449         560,437    578,778     562,144

                               $ 33,949       $ 625,164  $ 626,292  $  600,329


7. Reconciliation of Financial Statement and Tax Information
The following is a reconciliation of the net income (loss) for financial
statement purposes to net income (loss) for federal income tax purposes for the
years ended December 31, 1995, 1994 and 1993:

                                                1995       1994          1993

Net income (loss) per financial statements  $ (112,522) $  37,325    $ (527,539)

Tax basis joint venture net
    loss in excess of GAAP basis
    joint venture net income (loss)           (233,232)  (270,609)     (339,161)

	Gain on sale of property for tax 
          purposes in excess of gain per
          financial statements               1,536,333      -----         -----

        Other                                   (5,457)    (1,438)       (5,603)

        Taxable net income (loss)           $1,185,122  $(234,722)  $  (872,303)

The following is a reconciliation of partners' capital for financial statement
purposes to partners' capital for federal income tax purposes as of December
31, 1995, 1994 and 1993:

                                             1995         1994        1993

	Partners' capital per 
                financial statements     $ 7,500,583 $ 10,028,661 $ 10,480,225
	Adjustment for cumulative
         difference between tax basis
         loss and income (loss) per
         financial statements             (4,793,353)  (6,090,997)  (5,818,950)

        Partners' capital per tax return $ 2,707,230 $  3,937,664  $ 4,661,275


8. Distributions Paid
Cash distributions, per the consolidated statements of partners' capital are
recorded on the accrual basis, which recognizes specific record dates for
payments within each calendar year.  The consolidated statements of cash flows
recognize actual cash distributions paid during the calendar year.  The
following table discloses the annual differences as presented on the
consolidated financial statements:

    Distributions                                 Distributions
          Payable   Distributions   Distributions       Payable
Beginning of Year      Declared            Paid     December 31

1995     $244,445    $2,415,556      $2,460,001       $200,000
1994      -------       488,889         244,444        244,445
1993      -------       -------         -------        -------


                       REPORT OF INDEPENDENT ACCOUNTANTS

To the Partners of
Hutton/ConAm Realty Investors 2:

We have audited the consolidated balance sheets of Hutton/ConAm Realty
Investors 2, a California limited partnership, and Consolidated Ventures as of
December 31, 1995 and 1994, and the related consolidated statements of
operations, partners' capital (deficit) and cash flows for each of the three
years in the period ended December 31, 1995.  These consolidated financial
statements are the responsibility of the Partnership's management.  Our
responsibility is to express an opinion on these consolidated 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 consolidated financial statements referred to above present
fairly, in all material respects, the consolidated financial position of
Hutton/ConAm Realty Investors 2, a California limited partnership, and
Consolidated Ventures as of December 31, 1995 and 1994, and the consolidated
results of their operations and their cash flows for each of the three years in
the period ended December 31, 1995, in conformity with generally accepted
accounting principles.


COOPERS & LYBRAND L.L.P.

Hartford, Connecticut
February 1, 1996

Comparison of Acquisition Costs to Appraised Value and Determination of Net
Asset Value Per $280 Unit at December 31, 1995 (Unaudited)

                                    Acquisition Cost
                                     (Purchase Price      Partnership's
                                        Plus General           Share of
                                            Partners'       December 31,
                                         Acquisition     1995 Appraised
Property          Date of Acquisition           Fees)         Value (1)

Creekside Oaks      11-18-83            $  6,238,445      $    5,450,000
Ponte Vedra Beach
Village I           02-10-84               7,123,950           7,650,000
Rancho Antigua      03-08-84              11,446,176          11,700,000
Village at the
Foothills I         02-27-85               3,756,741           2,300,000

                                        $ 28,565,312      $   27,100,000

Cash and cash equivalents                                      1,362,347
Other assets                                                      10,183

                                                              28,472,530
Less:
        Total liabilities                                    (12,430,116)

Partnership Net Asset Value (2)                           $   16,042,414

Net Asset Value Allocated:
        Limited Partners                                  $   15,800,007
        General Partners                                         242,407

                                                          $   16,042,414

Net Asset Value Per Unit
        (80,000 units outstanding)                        $       197.50


(1)     This represents the Partnership's share of the December 31, 1995
        Appraised Values which were determined by an independent property
        appraisal firm.

(2)     The Net Asset Value assumes a hypothetical sale at December 31, 1995 of
        all the Partnership's properties at a price based upon their value as a
        rental property as determined by an independent property appraisal
        firm, and the distribution of the proceeds of such sale, combined with
        the Partnership's cash after liquidation of the Partnership's
        liabilities, to the Partners.

Limited Partners should note that appraisals are only estimates of current
value and actual values realizable upon sale may be significantly different.  A
significant factor in establishing an appraised value is the actual selling
price for properties which the appraiser believes are comparable.  In addition,
the appraised value does not reflect the actual costs which would be incurred
in selling the properties.  As a result of these factors and the illiquid
nature of an investment in Units of the Partnership, the variation between the
appraised value of the Partnership's properties and the price at which Units of
the Partnership could be sold may be significant.  Fiduciaries of Limited
Partners which are subject to ERISA or other provisions of law requiring
valuations of Units should consider all relevant factors, including, but not
limited to Net Asset Value per Unit, in determining the fair market value of
the investment in the Partnership for such purposes.



           HUTTON/CONAM REALTY INVESTORS 2 and Consolidated Ventures

            Schedule III - Real Estate and Accumulated Depreciation

                               December 31, 1995


                                                          Costs Capitalized
                                                                 Subsequent
                        Initial Cost to Partnership          To Acquisition


                                                                       Land,
                                              Buildings and   Buildings and
Description           Encumbrances    Land     Improvements    Improvements

Residential Property:
Consolidated Ventures:

Creekside Oaks
Jacksonville, FL     $  2,568,141   $    400,317 $  5,854,636   $   248,258

Ponte Vedra Beach
Village I
Ponte Vedra Beach, FL   3,876,438      1,015,028    6,181,290       105,430

Rancho Antigua
Scottsdale, AZ          5,523,925      3,490,498    7,975,346       100,653

Village at the Foothills I
Tucson, AZ               -------         798,823    3,005,280        11,816

                     $ 11,968,504    $ 5,704,666 $ 23,016,552   $   466,157



                           Gross Amount at Which Carried at
                                    Close of Period

                                      Buildings and               Accumulated
Description             Land          Improvements     Total      Depreciation

Residential Property:
Consolidated Ventures:

Creekside Oaks
Jacksonville, FL        $   403,193    $  6,100,018    $  6,503,211 $  2,876,365

Ponte Vedra Beach
Village I
Ponte Vedra Beach, FL     1,045,472       6,256,276       7,301,748    2,953,265

Rancho Antigua
Scottsdale, AZ            3,497,484       8,069,013      11,566,497    3,797,147

Village at the Foothills I
Tucson, AZ                  798,823       3,017,096       3,815,919    1,304,605

                        $ 5,744,972    $ 23,442,403    $ 29,187,375 $ 10,931,382
                                                                (1)          (2)


                                                               Life on which
                                                                Depreciation
                                                                   in Latest
                         Date of                Date       Income Statements
Description         Construction            Acquired             is Computed

Residential Property:
Consolidated Ventures:

Creekside Oaks
Jacksonville, FL          1982              11/18/83                  (3)

Ponte Vedra Beach
Village I
Ponte Vedra Beach, FL     1983              02/10/84                  (3)

Rancho Antigua
Scottsdale, AZ            1984              03/08/84                  (3)

Village at the Foothills
Tucson, AZ                1984              02/27/85                  (3)

(1)  Represents aggregate cost for both financial reporting and Federal income
     tax purposes.
(2)  The amount of accumulated depreciation for Federal income tax purposes is
     $19,633,341
(3)  Buildings and improvements - 25 years; personal property - 10 years.

A reconciliation of the carrying amount of real estate and accumulated
depreciation for the years ended December 31, 1995, 1994 and 1993 follows:

Real Estate Investments:               1995         1994          1993

Beginning of year                 $ 34,056,223 $ 33,942,156  $ 33,907,445
Additions                              199,476      114,067        34,711
Dispositions                        (5,068,324)

End of year                       $ 29,187,375 $ 34,056,223  $ 33,942,156

Accumulated Depreciation:

Beginning of year                 $ 11,699,378 $ 10,612,843  $  9,527,665
Depreciation expense                 1,029,336    1,086,535     1,085,178
Dispositions                        (1,797,332)    --------      --------

End of year                       $ 10,931,382 $ 11,699,378  $ 10,612,843


Report of Independent Accountants

Our report on the consolidated financial statements of Hutton/ConAm Realty
Investors 2, a California limited partnership, and Consolidated Ventures has
been incorporated by reference in this Form 10-K from the Annual Report to
unitholders of Hutton/ConAm Realty Investors 2 for the year ended December 31,
1995.  In connection with our audits of such financial statements, we have also
audited the related financial statement schedule listed in the index of this
Form 10-K.

In our opinion, the financial statement schedule referred to above, when
considered in relation to the basic financial statements taken as a whole,
presents fairly, in all material respects, the information required to be
included therein.


COOPERS & LYBRAND L.L.P.

Hartford, Connecticut
February 1, 1996


<TABLE> <S> <C>

<ARTICLE>			5
       
<S>				<C>
<PERIOD-TYPE>			12-MOS
<FISCAL-YEAR-END>               DEC-31-1995
<PERIOD-END>			DEC-31-1995
<CASH>				1,362,347
<SECURITIES>			0
<RECEIVABLES>			0
<ALLOWANCES>			0
<INVENTORY>			0
<CURRENT-ASSETS>                0
<PP&E>				29,187,375
<DEPRECIATION>                 (10,931,382)
<TOTAL-ASSETS>			19,930,699
<CURRENT-LIABILITIES>           0
<BONDS>                         11,968,504
<COMMON>			0
		0
			0
<OTHER-SE>			7,500,583
<TOTAL-LIABILITY-AND-EQUITY>	19,930,699
<SALES>                         0
<TOTAL-REVENUES>                4,516,368
<CGS>				0
<TOTAL-COSTS>			2,515,717
<OTHER-EXPENSES>                1,322,096
<LOSS-PROVISION>                0
<INTEREST-EXPENSE>              1,023,479
<INCOME-PRETAX>			0
<INCOME-TAX>			0
<INCOME-CONTINUING>             0
<DISCONTINUED>			0
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<CHANGES>			0
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