content: SECURITIES AND EXCHANGE COMMISSION
                                Washington, DC 20549
  
                                      FORM 8-K
  
                               Current Report Pursuant
                            to Section 13 or 15(d) of the
                           Securities Exchange Act of 1934
  
  
         Date of report (Date of earliest event reported) September 22, 2003
  
  
                 Resources Accrued Mortgage Investors LP - Series 86
                 ---------------------------------------------------
               (Exact Name of Registrant as Specified in Its Charter)
  
  
                                      Delaware
                                      --------
                   (State or Other Jurisdiction of Incorporation)
  
  
                    00-15724                       13-3294835
                ----------------              -------------------
            (Commission File Number) (I.R.S. Employer Identification No.)
  
  
              7 Bulfinch Place, Suite 500, Boston, Massachusetts 02114
          ----------------------------------------------------------------
                 (Address of Principal Executive Offices) (Zip Code)
  
  
                                   (617) 570-4600
                                   --------------
                (Registrant's Telephone Number, Including Area Code)
  
  
                                         N/A
                                         ---
            (Former Name or Former Address, if Changed Since Last Report)
  
  
  <PAGE>
  
  
  
  Item 2. Acquisition or Disposition of Assets
  
  As of September 22, 2002, the Registrant had received written consents of its
  limited partners sufficient to approve the Registrant's merger into KFI
  Properties, L.P. ("KFI O.P.") and the exchange of Registrant's units of limited
  partnership interest for units of limited partnership interest in KFI O.P. or
  common shares of Knight Fuller, Inc. ("KFI"), all as described in the
  registration statements (the "Registration Statements") on Form S-4 filed by KFI
  O.P. and KFI (Registration Nos. 333-87968 and 333-87968-01), and the consent
  solicitation/prospectus (the "Prospectus") included in Part I of the
  Registration Statements. The vote was therefore terminated, the Agreement and
  Plan of Merger in the form attached to the Prospectus as Appendix C was executed
  and consummated as of such date, and a certificate of merger was filed with the
  Delaware Secretary of State on September 22, 2003 effecting the merger under
  Delaware law.
  
  The Registrant had 330,004 units of limited partnership interest outstanding and
  entitled to vote on the proposed merger and exchange, and a total of 7,530 unit
  holders of record. As of the date the vote was terminated, the Registrant had
  received votes approving the proposed merger and exchange from holders of a
  total of 169,492 units (approximately 51.4% of the total outstanding units),
  votes disapproving the merger and exchange from holders of a total of 14,308
  units (approximately 4.3% of the outstanding units), and votes abstaining from
  approval or disapproval from holders of a total of 2,920 units (or approximately
  0.9% of the outstanding units). A total of 69 holders and two of the
  Registrant's general partners elected to receive KFI O.P. units of limited
  partnership interest rather than KFI common shares in return for their interests
  in the Registrant, and a total of 22,140 KFI O.P. units were issued to these 71
  holders. In consummation of the balance of the exchange, a total of 325,233 KFI
  common shares were issued to approximately 7,462 holders of record in exchange
  for their interests in the Registrant.
  
  The complete terms of the merger and exchange are set forth in the Prospectus
  attached as Exhibit 99.1 hereto.
  
  Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
  
  (b)  Pro Forma Financial Information
  
          Pro Forma Financial Information is included in the Consent
          Solicitation/Prospectus attached hereto as Exhibit 99.1 under the
          caption "Selected Financial Data, Including Unaudited Proforma
          Financial Information" and is incorporated herein by reference
  
  (c) Exhibits
  
  2.1     Form of Merger Agreement (included as Appendix C to the Consent
          Solicitation/Prospectus attached as Exhibit 99.1 to this
          Current Report, and incorporated herein by reference).
  
  99.1    Consent Solicitation/Prospectus
  
  
  
  
  
  <PAGE>
  
  
  
  
  
  
                                     SIGNATURES
  
       Pursuant to the requirements of the Securities Exchange Act of 1934, the
  Registrant has duly caused this report to be signed on its behalf by the
  undersigned hereunto duly authorized on this 2nd day of October, 2003.
  
  
  
                        Resources Accrued Mortgage Investors LP - Series 86
  
                        By: RAM Funding, Inc., Investment General Partner
  
                            By: /s/ Robert E. Dixon
                                ------------------------------
                                Robert E. Dixon
                                Chief Executive Officer
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
                                         2
  <PAGE>
  
  
  
                                    EXHIBIT INDEX
  
  
  EXHIBIT                                                                 PAGE NO.
  --------                                                                --------
  
  2.1      Form of Merger Agreement (included as Appendix C to the Consent
           Solicitation/Prospectus attached as Exhibit 99.1 to this Current
           Report, and incorporated herein by reference).
  
  99.1     Consent Solicitation/Prospectus
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metadata_filer: {"company-data": {"conformed-name": "RESOURCES ACCRUED MORTGAGE INVESTORS LP SERIES 86", "cik": "0000779231", "assigned-sic": "6500", "irs-number": "133294835", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-15724", "film-number": "03923818"}, "business-address": {"street1": "5 CAMBRIDGE CENTER", "city": "CAMBRIDGE", "state": "MA", "zip": "02142", "phone": "6172343000"}, "mail-address": {"street1": "5 CAMBRIDGE CENTER", "city": "CAMBRIDGE", "state": "MA", "zip": "02142"}}
text: SECURITIES AND EXCHANGE COMMISSION
                                Washington, DC 20549
  
                                      FORM 8-K
  
                               Current Report Pursuant
                            to Section 13 or 15(d) of the
                           Securities Exchange Act of 1934
  
         Date of report (Date of earliest event reported) September 22, 2003
  
                 Resources Accrued Mortgage Investors LP - Series 86
                 ---------------------------------------------------
               (Exact Name of Registrant as Specified in Its Charter)
  
                                      Delaware
                                      --------
                   (State or Other Jurisdiction of Incorporation)
  
                    00-15724                       13-3294835
                ----------------              -------------------
            (Commission File Number) (I.R.S. Employer Identification No.)
  
              7 Bulfinch Place, Suite 500, Boston, Massachusetts 02114
          ----------------------------------------------------------------
                 (Address of Principal Executive Offices) (Zip Code)
  
                                   (617) 570-4600
                                   --------------
                (Registrant's Telephone Number, Including Area Code)
  
                                         N/A
                                         ---
            (Former Name or Former Address, if Changed Since Last Report)
  Item 2. Acquisition or Disposition of Assets
  
  As of September 22, 2002, the Registrant had received written consents of its
  limited partners sufficient to approve the Registrant's merger into KFI
  Properties, L.P. ("KFI O.P.") and the exchange of Registrant's units of limited
  partnership interest for units of limited partnership interest in KFI O.P. or
  common shares of Knight Fuller, Inc. ("KFI"), all as described in the
  registration statements (the "Registration Statements") on Form S-4 filed by KFI
  O.P. and KFI (Registration Nos. 333-87968 and 333-87968-01), and the consent
  solicitation/prospectus (the "Prospectus") included in Part I of the
  Registration Statements. The vote was therefore terminated, the Agreement and
  Plan of Merger in the form attached to the Prospectus as Appendix C was executed
  and consummated as of such date, and a certificate of merger was filed with the
  Delaware Secretary of State on September 22, 2003 effecting the merger under
  Delaware law.
  
  The Registrant had 330,004 units of limited partnership interest outstanding and
  entitled to vote on the proposed merger and exchange, and a total of 7,530 unit
  holders of record. As of the date the vote was terminated, the Registrant had
  received votes approving the proposed merger and exchange from holders of a
  total of 169,492 units (approximately 51.4% of the total outstanding units),
  votes disapproving the merger and exchange from holders of a total of 14,308
  units (approximately 4.3% of the outstanding units), and votes abstaining from
  approval or disapproval from holders of a total of 2,920 units (or approximately
  0.9% of the outstanding units). A total of 69 holders and two of the
  Registrant's general partners elected to receive KFI O.P. units of limited
  partnership interest rather than KFI common shares in return for their interests
  in the Registrant, and a total of 22,140 KFI O.P. units were issued to these 71
  holders. In consummation of the balance of the exchange, a total of 325,233 KFI
  common shares were issued to approximately 7,462 holders of record in exchange
  for their interests in the Registrant.
  
  The complete terms of the merger and exchange are set forth in the Prospectus
  attached as Exhibit 99.1 hereto.
  
  Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
  
  (b)  Pro Forma Financial Information
  
          Pro Forma Financial Information is included in the Consent
          Solicitation/Prospectus attached hereto as Exhibit 99.1 under the
          caption "Selected Financial Data, Including Unaudited Proforma
          Financial Information" and is incorporated herein by reference
  
  (c) Exhibits
  
  2.1     Form of Merger Agreement (included as Appendix C to the Consent
          Solicitation/Prospectus attached as Exhibit 99.1 to this
          Current Report, and incorporated herein by reference).
  
  99.1    Consent Solicitation/Prospectus
  SIGNATURES
  
       Pursuant to the requirements of the Securities Exchange Act of 1934, the
  Registrant has duly caused this report to be signed on its behalf by the
  undersigned hereunto duly authorized on this 2nd day of October, 2003.
  
                        Resources Accrued Mortgage Investors LP - Series 86
  
                        By: RAM Funding, Inc., Investment General Partner
  
                            By: /s/ Robert E. Dixon
                                ------------------------------
                                Robert E. Dixon
                                Chief Executive Officer
  
                                         2
  EXHIBIT INDEX
  
  EXHIBIT                                                                 PAGE NO.
  --------                                                                --------
  
  2.1      Form of Merger Agreement (included as Appendix C to the Consent
           Solicitation/Prospectus attached as Exhibit 99.1 to this Current
           Report, and incorporated herein by reference).
  
  99.1     Consent Solicitation/Prospectus