BALCOR REALTY INVESTORS 86-Series I
                       A Real Estate Limited Partnership
                                 P.O. Box 7190
                        Deerfield, Illinois 60015-7190

                                April 10, 1996

Dear Investor:

     As you know, on March 11, 1996, Metropolitan Acquisition VII, L.L.C.
("Metropolitan") announced an unsolicited offer to purchase up to approximately
30% of the outstanding limited partnership interests ("Units") of Balcor Realty
Investors 86-Series I A Real Estate Limited Partnership (the "Partnership") at
a price of $155 per Unit.  In our letter to you dated March 22, 1996, we
informed you that we were expressing no opinion and remaining neutral with
respect to Metropolitan's offer.  While our position with respect to the offer
has not changed, we wanted to provide you with certain additional information
that may be useful to you in evaluating the offer.

     As you may recall, in our March 22 letter, we informed you that an
unaffiliated third party had contacted The Balcor Company to discuss the
potential for a sale of substantially all of the remaining properties of the
Partnership.  While these  discussions did not lead to a definitive offer for
the sale of all of the Partnership's properties, this third party, Equity
Residential Properties Trust ("Equity"), made a non-binding proposal to the
Partnership on April 8, 1996 to purchase one of the Partnership's four
remaining properties.  We are in serious negotiations with Equity and intend to
sign a letter of intent with them.

     The proposed sale price of the one property included in the Equity
proposal is $16,320,000.  Taking into account closing costs, mortgage
indebtedness, and prorations, and provided that there are no adjustments to the
sale price as contained in the Equity proposal, we estimate that the net
proceeds per Unit available for distribution will be approximately $64 (see
attachment hereto for computation).  Keep in mind that Metropolitan's offer is
$155 per Unit and that the Partnership will continue to own three properties if
the sale contemplated by the Equity proposal is consummated.

     You should also keep in mind that, as we advised you in our March 22, 1996
letter, the mid-April, 1996 distribution payable to you in the amount of $74
will be deducted from Metropolitan's offering price for your Units if you elect
to tender your Units to Metropolitan.

     Also, in the March 22 letter, we advised you that one of the Partnership's
four remaining assets was under a letter of intent.  When we sign a letter of
intent with Equity, of the four remaining assets two will be under letters of
intent.  This illustrates our belief that the market for multifamily housing
properties has become increasingly favorable to sellers of these properties.

     Please note that the sale of the property to Equity is contingent upon
many factors, including the negotiation of a mutually acceptable sale contract.
Therefore, there can be no assurance that the sale to Equity will ultimately be
completed.  Even in the event that all of the contemplated sales are
consummated, there can be no assurance that the distribution level described
above will actually be paid to the limited partners.

     Please note that pursuant to an amendment dated April 8, 1996,
Metropolitan has extended their offer and cannot purchase any tendered Units
prior to April 12, 1996.  If you wish to withdraw any Units tendered to
Metropolitan at any time prior to 5:00 p.m., Eastern Standard Time, on
April 12, 1996, you may do so by complying with the withdrawal procedures set
forth in the Metropolitan offer.

     Your General Partner will continue to act in the manner that it believes
to be in the best interests of the Partnership.

                              Very truly yours,

                              /s/Thomas E. Meador
                              Thomas E. Meador
                              Chairman, Balcor Partners - XIX,
                              the General Partner

                      BALCOR REALTY INVESTORS 86-Series I

                  CALCULATION OF DISTRIBUTABLE PROCEEDS FROM
                      PROPOSED SALE TO EQUITY RESIDENTIAL


                       Proposed        Mortgage      Distributable
Name of Property    Purchase Price(1)   Debt(2)        Proceeds
- ----------------    --------------      ----           --------

Lakeville(3)        $16,320,000      ($12,498,300)     $3,821,700
                    -----------      -------------     ----------
      Total         $16,320,000      ($12,498,300)     $3,821,700
                                                       ==========

Number of Limited Partnership Units:                       59,791

      Total Distributable Proceeds per
      Limited Partnership Unit ($3,821,700 / 59,791)       $63.92
                                                           ======




- --------------------
   (1)Equity Residential will pay mortgage assumption fees (if any) and
related closing costs.  There are no brokerage commissions.  We are assuming
that prorations or other closing costs payable by the Partnership (if any) will
come from Partnership working capital.

   (2)Estimated loan balance assuming a June, 1996 closing.

   (3)Represents the 60% ownership position of Balcor Realty Investors
86-Series I in this property.