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)  August 16, 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

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
-----------------------------------------------------------------------

Cedar Crest Apartments

In 1985, a limited partnership (the "Limited Partnership") in which the
Partnership and an affiliate of the General Partner (the "Affiliate") are
limited partners acquired the Cedar Crest Apartments, Overland Park, Kansas.
The Partnership and the Affiliate contributed approximately $9,183,000 and
$351,000, respectively, towards the purchase of the property, and have
participating percentages in the Limited Partnership of approximately 96.32%
and 3.68%, respectively.  The property was purchased subject to first mortgage
financing in the amount of $16,710,000.

On October 8, 1996, the Limited Partnership contracted to sell the property for
a sale price of $21,550,000 to an unaffiliated party, ERP Operating Limited
Partnership, an Illinois limited partnership.  The purchaser has deposited
$300,000 in an escrow account as earnest money and will pay the remaining
portion of the sale price at closing, scheduled for October 31, 1996.  From the
proceeds of the sale, the Limited Partnership will repay the outstanding
balance of the first mortgage loan, which is expected to be approximately
$14,825,000 at closing, and will pay $431,000 to an unaffiliated party as a
brokerage commission.  An affiliate of the third party providing property
management services for the property will receive a fee of up to $161,625 for
services rendered in connection with the sale of the property.  The Limited
Partnership will receive the remaining proceeds of approximately $6,132,000.
Of such proceeds, $500,000 will be retained by the Limited Partnership and will
not be available for use or distribution by the Limited Partnership until 120
days after closing. The Partnership's share of total net proceeds is expected
to be approximately $5,906,000, less the Partnership's share of closing costs.

During 1996, two other properties in which the Partnership had an interest were
sold to the purchaser.  Affiliates of the General Partner have sold over 20
other properties to the purchaser during 1996. 

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 the sale of the property may not occur.


ITEM 5.  OTHER EVENTS
----------------------------------

a)  Brighton Townhomes

As previously reported, on May 6, 1996, the Partnership contracted to sell
Brighton Townhomes, Washington County, Oregon, to Security Capital Pacific
Trust, a Maryland real estate investment trust.  The sale price is $11,150,000.
The sale closed on August 16, 1996.  From the proceeds of the sale, the
Partnership repaid the outstanding balance of the first mortgage loan of
$6,858,644.  The holder of the first mortgage loan also received $1,377,156 in
additional interest representing 35% of the net sale proceeds.  The Partnership
paid $54,675 in closing costs and  $167,250 to an unaffiliated party as a
brokerage commission. The Partnership received $2,692,275 in  remaining
proceeds.
<PAGE>
b)  Lakeville Resort Apartments

As previously reported, on April 23, 1996, a joint venture consisting of the
Partnership and an affiliate which owns Lakeville Resort Apartments, Petaluma,
California, contracted to sell the property to an unaffiliated party, ERP
Operating Limited Partnership, an Illinois limited partnership, for a sale
price of $27,000,000.  The closing of the sale has been extended to November 1,
1996.

c)  Lake Ridge Apartments

In 1986, Lake Ridge Apartments, Fresno, California, was acquired by a joint
venture (the "Joint Venture") consisting of the Partnership and the seller of
the property (the "JV Partner") to the Joint Venture.  The Partnership
contributed approximately $2,577,000 towards the purchase of the property.  The
property was acquired subject to first mortgage financing in the amount of
$5,800,000.  In 1993, the seller relinquished its interest in the Joint Venture
to the Partnership.  Also in 1993, the first mortgage loan, which had a balance
of $6,339,368, including accrued interest, was repaid at a discount of
$1,281,439 and refinanced with a new $4,223,800 first mortgage loan and $86,200
second mortgage loan from an unaffiliated party.  The Partnership utilized
$675,209 of Partnership reserves towards the refinancing .

On October 1, 1996, the Partnership contracted to sell the property for a sale
price of $5,400,000 to an unaffiliated party, Fowlershore & Flanagan, a
California general partnership.  The purchaser has deposited $50,000 in an
escrow account as earnest money and will pay the remaining portion of the sale
price at closing, scheduled for December 1, 1996.  From the proceeds of the
sale, the Partnership will repay the outstanding balance of the first mortgage
loan, which is expected to be approximately $4,212,838 at closing and will pay
$108,000 to an unaffiliated party as a brokerage commission.  An affiliate of
the third party providing property management services for the property will
receive a fee of up to $67,500 for services rendered in connection with the
sale of the property.  The Partnership will receive the remaining proceeds of
approximately $1,012,000, less closing costs.

Affiliates of the General Partner have entered into contracts to sell two
additional properties to the purchaser during 1996. 

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 the sale of the property may not occur.
<PAGE>
ITEM 7.  FINANCIAL STATEMENTS AND EXHIBITS
----------------------------------------------------------------------

     (A)  FINANCIAL STATEMENTS AND EXHIBITS:

            None

     (B)  PRO FORMA FINANCIAL INFORMATION:

            None

     (C)  EXHIBITS:

          (2)  Agreement of Sale and attachment thereto relating to the sale
               of Cedar Crest Apartments, Overland Park, Kansas.

          (99) (a)  Letter Agreements dated August 20, 1996, September 19, 1996
                    and September 30, 1996 relating to the sale of Lakeville 
                    Resort Apartments, Petaluma, California.

               (b)  Agreement of Sale and attachment thereto relating to the 
                    sale of Lake Ridge Apartments, Fresno, California.

     No information is required under Items 1, 3, 4, 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:  October 23, 1996
<PAGE>
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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)  August 16, 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

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
-----------------------------------------------------------------------

Cedar Crest Apartments

In 1985, a limited partnership (the "Limited Partnership") in which the
Partnership and an affiliate of the General Partner (the "Affiliate") are
limited partners acquired the Cedar Crest Apartments, Overland Park, Kansas.
The Partnership and the Affiliate contributed approximately $9,183,000 and
$351,000, respectively, towards the purchase of the property, and have
participating percentages in the Limited Partnership of approximately 96.32%
and 3.68%, respectively.  The property was purchased subject to first mortgage
financing in the amount of $16,710,000.

On October 8, 1996, the Limited Partnership contracted to sell the property for
a sale price of $21,550,000 to an unaffiliated party, ERP Operating Limited
Partnership, an Illinois limited partnership.  The purchaser has deposited
$300,000 in an escrow account as earnest money and will pay the remaining
portion of the sale price at closing, scheduled for October 31, 1996.  From the
proceeds of the sale, the Limited Partnership will repay the outstanding
balance of the first mortgage loan, which is expected to be approximately
$14,825,000 at closing, and will pay $431,000 to an unaffiliated party as a
brokerage commission.  An affiliate of the third party providing property
management services for the property will receive a fee of up to $161,625 for
services rendered in connection with the sale of the property.  The Limited
Partnership will receive the remaining proceeds of approximately $6,132,000.
Of such proceeds, $500,000 will be retained by the Limited Partnership and will
not be available for use or distribution by the Limited Partnership until 120
days after closing. The Partnership's share of total net proceeds is expected
to be approximately $5,906,000, less the Partnership's share of closing costs.

During 1996, two other properties in which the Partnership had an interest were
sold to the purchaser.  Affiliates of the General Partner have sold over 20
other properties to the purchaser during 1996. 

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 the sale of the property may not occur.

ITEM 5.  OTHER EVENTS
----------------------------------

a)  Brighton Townhomes

As previously reported, on May 6, 1996, the Partnership contracted to sell
Brighton Townhomes, Washington County, Oregon, to Security Capital Pacific
Trust, a Maryland real estate investment trust.  The sale price is $11,150,000.
The sale closed on August 16, 1996.  From the proceeds of the sale, the
Partnership repaid the outstanding balance of the first mortgage loan of
$6,858,644.  The holder of the first mortgage loan also received $1,377,156 in
additional interest representing 35% of the net sale proceeds.  The Partnership
paid $54,675 in closing costs and  $167,250 to an unaffiliated party as a
brokerage commission. The Partnership received $2,692,275 in  remaining
proceeds.
b)  Lakeville Resort Apartments

As previously reported, on April 23, 1996, a joint venture consisting of the
Partnership and an affiliate which owns Lakeville Resort Apartments, Petaluma,
California, contracted to sell the property to an unaffiliated party, ERP
Operating Limited Partnership, an Illinois limited partnership, for a sale
price of $27,000,000.  The closing of the sale has been extended to November 1,
1996.

c)  Lake Ridge Apartments

In 1986, Lake Ridge Apartments, Fresno, California, was acquired by a joint
venture (the "Joint Venture") consisting of the Partnership and the seller of
the property (the "JV Partner") to the Joint Venture.  The Partnership
contributed approximately $2,577,000 towards the purchase of the property.  The
property was acquired subject to first mortgage financing in the amount of
$5,800,000.  In 1993, the seller relinquished its interest in the Joint Venture
to the Partnership.  Also in 1993, the first mortgage loan, which had a balance
of $6,339,368, including accrued interest, was repaid at a discount of
$1,281,439 and refinanced with a new $4,223,800 first mortgage loan and $86,200
second mortgage loan from an unaffiliated party.  The Partnership utilized
$675,209 of Partnership reserves towards the refinancing .

On October 1, 1996, the Partnership contracted to sell the property for a sale
price of $5,400,000 to an unaffiliated party, Fowlershore & Flanagan, a
California general partnership.  The purchaser has deposited $50,000 in an
escrow account as earnest money and will pay the remaining portion of the sale
price at closing, scheduled for December 1, 1996.  From the proceeds of the
sale, the Partnership will repay the outstanding balance of the first mortgage
loan, which is expected to be approximately $4,212,838 at closing and will pay
$108,000 to an unaffiliated party as a brokerage commission.  An affiliate of
the third party providing property management services for the property will
receive a fee of up to $67,500 for services rendered in connection with the
sale of the property.  The Partnership will receive the remaining proceeds of
approximately $1,012,000, less closing costs.

Affiliates of the General Partner have entered into contracts to sell two
additional properties to the purchaser during 1996. 

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 the sale of the property may not occur.
ITEM 7.  FINANCIAL STATEMENTS AND EXHIBITS
----------------------------------------------------------------------

     (A)  FINANCIAL STATEMENTS AND EXHIBITS:

            None

     (B)  PRO FORMA FINANCIAL INFORMATION:

            None

     (C)  EXHIBITS:

          (2)  Agreement of Sale and attachment thereto relating to the sale
               of Cedar Crest Apartments, Overland Park, Kansas.

          (99) (a)  Letter Agreements dated August 20, 1996, September 19, 1996
                    and September 30, 1996 relating to the sale of Lakeville 
                    Resort Apartments, Petaluma, California.

               (b)  Agreement of Sale and attachment thereto relating to the 
                    sale of Lake Ridge Apartments, Fresno, California.

     No information is required under Items 1, 3, 4, 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:  October 23, 1996