July 31, 1999

		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, 1999.  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, 1999, and 1998, total revenues
increased 7.0% from $492,423 to $527,092 and total expenses increased 8.0%
from $294,445 to $317,492.  As a result, net income increased 5.9% from
$197,978 for the three-month period ended June 30, 1998, to $209,600 for the
same period in 1999.  Rental revenue increased as a result of higher unit
rental rates.  Occupancy levels for the Partnership's four mini-storage
facilities averaged 85.76% for the three month period ended June 30, 1999 as
compared to 86.5% for the same period in 1998.  The Partnership is continuing
its marketing efforts to attract and keep new tenants in its various mini-
storage facilities.  Operating expenses increased approximately $24,700 (9.4%)
primarily as a result of higher maintenance and repair, salaries and wage
expenses and property management fees.  Property management fees, which are
computed as a percentage of rental revenue, increased as a result of the
increase in rental revenue as well as an increase in the percentage charged
from 5% to 6% effective January 1, 1999.  General and administrative expenses
decreased approximately $1,600 (5.0%) primarily as a result of the decrease
in legal and professional expenses.

For the  six month  periods ended  June 30, 1999, and 1998, total revenues
increased 8.7% from $968,367 to $1,053,006 and total expenses increased 7.6%
from $565,911 to $609,072.  As a result, net income increased 10.3% from
$402,456 for the six-month period ended June 30, 1998, to $443,934 for the
same period in 1999.  Rental revenue increased for the same reasons as
discussed above.  Operating expenses increased approximately $45,400 (9.3%)
primarily as a result of higher maintenance and repair, real estate tax,
salaries and wages, power and sweeping expenses and property management fees.
The increase in property management fees was discussed above.  Power and
sweeping expenses increased as a result of the substantial snow removal
costs associated with the blizzard that hit Illinois and Michigan where two
of the Partnership's properties are located.  General and administrative
expenses decreased approximately $2,300 (2.8%) for the same reason as
discussed above.

The General Partners determined that effective with the first 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.

The Year 2000 issue refers to the inability of certain computer systems to
recognize a date using "00" as the Year 2000.  The Partnership has implemented
a Year 2000 program, which has three phases:  (1) identification; (2)
remediation; and (3) testing and verification.  The Partnership, as well as
the property management company and the Partnership's warehouse facilities
have completed those phases.  Computer programs have been upgraded and tested
to function properly with respect to the dates in the Year 2000 and thereafter.
Year 2000 compliance costs are nominal and have been expensed in the regular
course of business.  The Partnership provides no assurance that third-party
suppliers and customers will be compliant.  Nevertheless, the Partnership
does not believe that the Year 2000 issue will have a material adverse effect
on its financial condition or results of operations.

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