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) January 25, 1996

                     BALCOR REALTY INVESTORS 86 - SERIES I
                       A REAL ESTATE LIMITED PARTNERSHIP
                      -----------------------------------
                           Exact Name of Registrant

Illinois                                     0-15649
---------------------------                  ----------------------
State or other jurisdiction                  Commission file number
of organization

2355 Waukegan Road
Suite A200
Bannockburn, Illinois                        36-3327914
--------------------------                   ---------------------
Address of principal                         I.R.S. Employer 
executive offices                            Identification
                                             Number

60015
---------------------------
Zip Code

              Registrant's telephone number, including area code:
                                (847) 267-1600
<PAGE>
ITEM 2.  ACQUISITION OR DISPOSITION OF ASSETS
---------------------------------------------

In 1986, the Partnership acquired Phases I and II of the Pines of Cloverlane
apartment complex (together, the "Property") utilizing approximately $7,200,000
of offering proceeds.  The Partnership financed the acquisition of the Property
with a first mortgage loan in the amount of $16,300,000.

On January 25, 1996, the Partnership contracted to sell the Property for a sale
price of $19,300,000 to an unaffiliated party, ERP Operating Limited
Partnership, an Illinois limited partnership.  The purchaser has deposited
$400,000 into an escrow account as earnest money.  The remaining $18,900,000 of
the sale price will be paid in cash by the purchaser at closing, scheduled for
March 7, 1996.  From the proceeds of the sale, the Partnership will pay the
outstanding balance of the first mortgage loan, expected to be approximately
$14,200,000 at closing, and a brokerage commission of $193,000 to an 
unaffiliated party.  The General Partner will be reimbursed by the Partnership
for its actual expenses incurred in connection with the sale.

The closing is subject to the satisfaction of numerous terms and conditions.
There can be no assurance that all of the terms and conditions will be complied
with and, therefore, it is possible that the sale of the Property may not
occur. 


ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
------------------------------------------

     (A)  FINANCIAL STATEMENTS:

          None

     (B)  PRO FORMA FINANCIAL INFORMATION:

          None

     (C)  EXHIBITS:

          (2)  Agreement of Sale and attachment there to relating              
               to the sale of the Pines of Cloverlane apartment complex.

No information is required under Items 1, 3, 4, 5, 6 and 8 and these items
have, therefore, been omitted.
<PAGE>
Signature
----------

     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.


                         BALCOR REALTY INVESTORS 86 - SERIES I 
                         A REAL ESTATE LIMITED PARTNERSHIP

                              By:  Balcor Partners-XIX,
                                   an Illinois general 
                                   partnership, its general 
                                   partner
                   
                              By:  The Balcor Company,
                                   a Delaware corporation,
                                   a partner


                              By: /s/ Jerry M. Ogle
                                 -------------------------------
                                  Jerry M. Ogle, Vice President 
                                  and Secretary


Dated: February 6, 1996
<PAGE>
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{"company-data": {"conformed-name": "BALCOR REALTY INVESTORS 86 SERIES I", "cik": "0000777574", "assigned-sic": "6500", "irs-number": "363327914", "state-of-incorporation": "IL", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-15649", "film-number": "96511814"}, "business-address": {"street1": "BALCOR PLZ", "street2": "4849 GOLF RD", "city": "SKOKIE", "state": "IL", "zip": "60077", "phone": "7086772900"}, "mail-address": {"street2": "4849 GOLF ROAD", "city": "SKOKIE", "state": "IL", "zip": "60077"}}
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) January 25, 1996

                     BALCOR REALTY INVESTORS 86 - SERIES I
                       A REAL ESTATE LIMITED PARTNERSHIP
                      -----------------------------------
                           Exact Name of Registrant

Illinois                                     0-15649
---------------------------                  ----------------------
State or other jurisdiction                  Commission file number
of organization

2355 Waukegan Road
Suite A200
Bannockburn, Illinois                        36-3327914
--------------------------                   ---------------------
Address of principal                         I.R.S. Employer 
executive offices                            Identification
                                             Number

60015
---------------------------
Zip Code

              Registrant's telephone number, including area code:
                                (847) 267-1600
ITEM 2.  ACQUISITION OR DISPOSITION OF ASSETS
---------------------------------------------

In 1986, the Partnership acquired Phases I and II of the Pines of Cloverlane
apartment complex (together, the "Property") utilizing approximately $7,200,000
of offering proceeds.  The Partnership financed the acquisition of the Property
with a first mortgage loan in the amount of $16,300,000.

On January 25, 1996, the Partnership contracted to sell the Property for a sale
price of $19,300,000 to an unaffiliated party, ERP Operating Limited
Partnership, an Illinois limited partnership.  The purchaser has deposited
$400,000 into an escrow account as earnest money.  The remaining $18,900,000 of
the sale price will be paid in cash by the purchaser at closing, scheduled for
March 7, 1996.  From the proceeds of the sale, the Partnership will pay the
outstanding balance of the first mortgage loan, expected to be approximately
$14,200,000 at closing, and a brokerage commission of $193,000 to an 
unaffiliated party.  The General Partner will be reimbursed by the Partnership
for its actual expenses incurred in connection with the sale.

The closing is subject to the satisfaction of numerous terms and conditions.
There can be no assurance that all of the terms and conditions will be complied
with and, therefore, it is possible that the sale of the Property may not
occur. 

ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
------------------------------------------

     (A)  FINANCIAL STATEMENTS:

          None

     (B)  PRO FORMA FINANCIAL INFORMATION:

          None

     (C)  EXHIBITS:

          (2)  Agreement of Sale and attachment there to relating              
               to the sale of the Pines of Cloverlane apartment complex.

No information is required under Items 1, 3, 4, 5, 6 and 8 and these items
have, therefore, been omitted.
Signature
----------

     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.

                         BALCOR REALTY INVESTORS 86 - SERIES I 
                         A REAL ESTATE LIMITED PARTNERSHIP

                              By:  Balcor Partners-XIX,
                                   an Illinois general 
                                   partnership, its general 
                                   partner
                   
                              By:  The Balcor Company,
                                   a Delaware corporation,
                                   a partner

                              By: /s/ Jerry M. Ogle
                                 -------------------------------
                                  Jerry M. Ogle, Vice President 
                                  and Secretary

Dated: February 6, 1996