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                                                                  EXHIBIT 99.4



                        WESTLAKE VILLAGE OFFICE BUILDING

                              STATEMENT OF REVENUES
                          AND DIRECT OPERATING EXPENSES
                         YEAR ENDED DECEMBER 31, 1996

















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                          Independent Auditors' Report


To the Board of Trustees
Income Opportunity Realty Investors, Inc.

We have audited the accompanying statement of revenues and direct operating
expenses of Westlake Village Office Building for the year ended December 31,
1996. This statement of revenues and direct operating expenses is the
responsibility of the Property's management. Our responsibility is to express an
opinion on this statement of revenues and direct operating expenses based on our
audit.

We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the statement of revenues and direct operating expenses
is free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the statement of revenues and
direct operating expenses. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall statement of revenues and direct operating expenses
presentation. We believe that our audit provides a reasonable basis for our
opinion.

The accompanying financial statement is prepared for the purpose of complying
with the rules and regulations of the Securities and Exchange Commission (for
inclusion in Form 8-K of Income Opportunity Realty Investors, Inc.) and, as
described in Note 1, is not intended to be a complete presentation of the
results of operations.

In our opinion, the statement of revenues and direct operating expenses referred
to above presents fairly, in all material respects, the revenues and direct
operating expenses of Westlake Village Office Building for the year ended
December 31, 1996, in conformity with generally accepted accounting principles.



FARMER, FUQUA, HUNT & MUNSELLE, P.C.

Dallas, Texas
January 6, 1998


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                        WESTLAKE VILLAGE OFFICE BUILDING
                              STATEMENT OF REVENUES
                          AND DIRECT OPERATING EXPENSES
                          Year Ended December 31, 1996



                                                    
REVENUES
         Net rental revenues                           $      504,330
         Late fees                                              3,002
                                                       --------------

                  Total revenues                              507,332

OPERATING EXPENSES
         Repairs and maintenance                               94,746
         Utilities                                             58,527
         Property taxes                                        37,832
         Insurance                                              8,519
                                                       --------------

                  Total direct operating expenses             199,624

REVENUES IN EXCESS OF DIRECT OPERATING EXPENSES        $      307,708
                                                       ==============


         The accompanying notes are an integral part of this statement.



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                        WESTLAKE VILLAGE OFFICE BUILDING
                         NOTES TO STATEMENT OF REVENUES
                          AND DIRECT OPERATING EXPENSES
                                December 31, 1996


NOTE 1:   ORGANIZATION AND BASIS OF PRESENTATION

          Westlake Village Office Building is a 45,500 square foot office 
          building located in Westlake Village, California. During 1996, the
          property was owned by RBP #5 Limited.

          The accompanying financial statement does not include a provision for
          depreciation and amortization, bad debt expense, interest expense or
          income taxes. Accordingly, this statement is not intended to be a
          complete presentation of the results of operations.

NOTE 2:   ACCOUNTING 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 revenues and
          expenses during the reporting period. Actual results could differ from
          those estimates.

NOTE 3:   SUBSEQUENT EVENT

          The property was sold to Income Opportunity Realty Investors, Inc., a
          Nevada corporation, on November 19, 1997.



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