July 31, 1998

		QUARTERLY REPORT TO THE LIMITED PARTNERS
			OF DSI REALTY INCOME FUND XI


DEAR LIMITED PARTNERS:

We are pleased to enclose the Partnership's unaudited financial statements 
for the period ended June 30, 1998.  The  following  is  Management's 
discussion and analysis of the Partnership's financial condition and 
results of its operations.

For the  three month  periods ended  June 30, 1998, and 1997, total revenues
increased 5.9% from $464,979 to $492,423 and total expenses increased 5.2%
from $279,874 to $294,445.  As a result, net income increased 7.0% from
$185,105 for the three month period ended June 30, 1997, to $197,978 for the
same period in 1998.  Rental revenue increased as a result of higher occupancy
and unit rental rates.  Occupancy levels for the Partnership's four mini-
storage facilities averaged 86.5% for the three month period ended June 30,
1998 as compared to  85.3%  for the  same  period in 1997.  The Partnership is
continuing its marketing efforts to attract and keep new tenants in its various
mini-storage facilities.  Operating expenses increased approximately $11,800
(4.7%) primarily  as a  result  of  higher  maintenance and repair expenses.
General and administrative expenses increased approximately $2,800 (9.4%)
primarily as a result of an increase in incentive management fees.  As this
fee is computed as a percentage of distributions made to the Limited Partners,
the increase in distributions as discussed below, resulted in an increase in
the incentive management fee.

For the  six month  periods ended  June 30, 1998, and 1997, total revenues
increased 4.0% from $931,077 to $968,367 and total expenses increased 2.9%
from $549,852 to $565,911.  As a result, net income increased 5.6% from
$381,225 for the six month period ended June 30, 1997, to $402,456 for the
same period in 1998.  Rental revenue increased for the same reasons as
discussed above.  Operating expenses increased approximately 11,000 (2.3%)
primarily as a result of higher yellow pages advertising costs, maintenance
and repair and office expenses partially offset by lower salaries and wages.
General and administrative expenses increased approximately $5,100 (6.8%)
for the same reason as discussed above.

The General Partners determined that effective with the second quarter 1998
distribution which was paid on April 15, 1998, distributions to the limited
partners would be increased to an amount which yields an 8% annual return on
the capital contributed by the limited partners from an annual return of 7%
paid previously.

The General Partners plan to continue their policy of funding improvements
and  maintenance of  Partnership  properties  with  cash generated  from
operations.  The Partnership's financial resources appear to be adequate
to meet its needs.

We are not enclosing a copy of the Partnership Form 10-Q as filed with the 
Securities and Exchange Commission since all the  information  set forth 
therein is contained either in this letter or in the attached  financial 
statements. However, if you wish to receive a copy of said report, please 
send a written request to DSI Realty Income Fund XI, P.O. Box 357, Long 
Beach, California 90801. 

                              Very truly yours,

                              DSI REALTY INCOME FUND XI
                              By: DSI Properties, Inc., as
                              General Partner



                              By  /s/ Robert J. Conway
                                  ____________________________
                                 ROBERT J. CONWAY, President