July 31, 1997

		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, 1997.  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, 1997, and 1996, total revenues
increased 2.1% from  $455,600 to  $464,979 and  total expenses  increased 2%
from  $274,254 to  $279,874.  As a  result, net  income  increased 2.1% from
$181,346  for the  three month period  ended June 30, 1996, to  $185,105 for
the same period in 1997.  Rental  revenue  increased as a  result of  higher
unit rental rates.  Operating expenses increased approximately $8,700 (3.6%)
primarily as a  result of  higher  fire  and  liability  insurance  expense.
General and  administrative  expenses decreased  approximately $3,100 (9.4%)
primarily as a  result of  decreases  in Michigan  and Illinois  partnership
tax  payments.  Occupancy  levels for the  Partnership's  four mini-storage
facilities  averaged 85.3% for the  three month  period ended June 30, 1997
as  compared  to 88.8%  for the same  period  in 1996.  The  Partnership is
continuing its  marketing efforts to  attract  and  keep new tenants in its
various  mini-storage  facilities.

For the  six month  periods ended  June 30, 1997, and 1996, total revenues
increased 4% from $895,602 to $931,077 and  total expenses  decreased 0.8%
from $554,010 to $549,852.  As a result, net  income  increased 11.6% from
$341,592  for the  six month  period ended  June 30, 1996, to $381,225 for
the same  period in  1997.  Rental revenue  increased for the same reasons
as  discussed  above.  Operating expenses remained constant.  General and
administrative expenses decreased approximately $3,600 (4.6%) for the same
resaons  as above.

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