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 UNITED
STATES

 SECURITIES
AND EXCHANGE COMMISSION

 WASHINGTON,
D.C. 20549

 FORM

 (Mark
One)

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

 EXCHANGE
ACT OF 1934

 For
the fiscal year ended December 31, 2023

 OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

 EXCHANGE
ACT OF 1934

 For
the transition period from ____________ to ___________

 Commission
file number 0-17686

 (Exact
name of registrant as specified in its charter)

 Wisconsin

 39-1606834

 (State
 or other jurisdiction of

 (I.R.S.
 Employer

 incorporation
 or organization)

 Identification
 No.)

 1900
W 75 th Street, Suite
100 Prairie Village, Kansas
 66208

 (Address
of principal executive offices, including zip code)

 (816) 421-7444

 (Registrant's
telephone number, including area code)

 Securities
registered pursuant to Section 12(b) of the Act:

 Title
 of each class

 Trading
 Symbol(s)

 Name
 of each exchange on which registered

 N/A

 N/A

 N/A

 Securities
registered pursuant to Section 12(g) of the Act: Limited Partnership Interests

by check mark whether the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No

by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes No

by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or such shorter period that the registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days. Yes No

by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule
405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
 Yes No

by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
company, or emerging growth company. See the definitions of "large accelerated filer", "accelerated filer", "smaller
reporting company", and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 Large
 accelerated filer

 Accelerated
 filer

 Non-accelerated
 filer

 Smaller
 reporting company

 Emerging
 growth company

 If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness
of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered
public accounting firm that prepared or issued its audit report.

by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

 If
securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant
included in the filing reflect the correction of an error to previously issued financial statements.

by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation
received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b).

 The
aggregate market value of the voting securities held by non-affiliates of the Registrant: The aggregate market value of limited partnership
interests held by non-affiliates is not determinable since there is no public trading market for the limited partnership interests.

 As
of March 1, 2024 the registrant had 46,280.3
units of limited partnership interests issued and outstanding.

 TABLE
OF CONTENTS

 FORM

 FOR
THE YEAR ENDED DECEMBER 31, 2023

 Page

 PART
 I

 Item
 1. Business

 Item
 1A. Risk Factors

 Item
 1B. Unresolved Staff Comments

 Item 1C. Cybersecurity

 Item
 2. Properties

 Item
 3. Legal Proceedings

 Item
 4. Mine Safety Disclosures

 PART
 II

 Item
 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

 Item
 6. (Reserved)

 Item
 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

 Item
 7A. Quantitative and Qualitative Disclosures About Market Risk

 Item
 8. Financial Statements and Supplementary Data

 Item
 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

 Item
 9A. Controls and Procedures

 Item
 9B. Other Information

 PART
 III

 Item
 10. Directors and Executive Officers of the Registrant

 Item
 11. Executive Compensation

 Item
 12. Security Ownership of Certain Beneficial Owners and Management

 Item
 13. Certain Relationships and Related Transactions, and Director Independence

 Item
 14. Principal Accountant Firm Fees and Services

 PART
 IV

 Item
 15. Exhibits, Financial Statement Schedules

 Item
 16. Form 10-K Summary

 Signatures

 PART
I

 Item
1. Business

 Background

 DiVall
Insured Income Properties 2 Limited Partnership (the "Partnership"), is a limited partnership organized under the
Wisconsin Uniform Limited Partnership Act pursuant to a Certificate of Limited Partnership dated as of November 20, 1987, and
governed by a Limited Partnership Agreement, as amended from time to time (collectively, the "Partnership Agreement").
The Partnership is managed by its general partner, The Provo Group, Inc. ("TPG" or the "General Partner").
As of December 31, 2023, the Partnership had 1,092 limited partners owning an aggregate of 46,280.3 units of Limited Partnership
Interests (the "Interests").

 The
Partnership is engaged in the business of owning and operating its investment portfolio of commercial real estate properties (each a
"Property" and collectively, the "Properties"). At December 31, 2023, the Partnership owned three Properties,
all located in South Carolina.

 At
December 31, 2023, all of the Properties were (and continue to be) leased to Wendy's franchisees, with one of the Properties being
leased to Wendgusta, LLC ("Wendgusta"), one of the Properties being leased to JAI Hospitality RG, LLC ("JAI Hospitality)
and one of the Properties being leased to JAI Augusta, LLC ("JAI Augusta). At December 31, 2023, all three Properties were listed
and classified as held for sale.

 See
Properties under Item 2 below for the table of all Properties and lease expirations and a discussion of Properties with significant developments
during the year ended December 31, 2023.

 The
Partnership Agreement provides that the Partnership is scheduled to be dissolved on November 30, 2023, or earlier upon the prior occurrence
of any of the following events: (a) the disposition of all its Properties; (b) the written determination by the General Partner, that
the Partnership's assets may constitute "plan assets" for purposes of ERISA; (c) the agreement of limited partners
owning a majority of the outstanding Interests to dissolve the Partnership; or (d) the dissolution, bankruptcy, death, withdrawal, or
incapacity of the last remaining General Partner, unless an additional General Partner is elected previously by a majority of the limited
partners.

 As
previously disclosed by the Partnership, pursuant to a consent
solicitation that concluded on October 15, 2020, the Partnership solicited and obtained the affirmative consent of limited partners holding
more than a majority of the Partnership's outstanding Interests to authorize the General
Partner, to sell the Properties prior to November 30, 2023 if the General
Partner determined such sale to be in the best interest of the Partnership and, upon the sale of all Properties, to commence an orderly
liquidation, wind-up and dissolution of the Partnership. In connection with such consent, the limited partners approved a resolution
granting the General Partner the authority to sell all or substantially all of the Partnership's assets prior to November 30, 2023
and subsequently liquidate and dissolve the Partnership, without further approval from the limited partners.

 On
August 25, 2023, the General Partner adopted resolutions (a) determining that it is in the best interest of the Partnership to sell all
or substantially all of the Partnership's assets, and (b) providing that the General Partner will, upon the sale of such assets,
liquidate and dissolve the Partnership in accordance with applicable law and the terms of the Partnership Agreement. In addition,
the stated term of the Partnership ended on November 30, 2023, and, prior to that date the Partnership did not seek or obtain the consent
of the limited partners to amend the Partnership Agreement to extend the Partnership's term. As a result of the authority and authorization
provided to the General Partner, and because the Partnership's intended term lapsed on November 30, 2023, during the fiscal year
ended December 31, 2023 the General Partner caused the Partnership to dispose of five of its now former Properties and expects to continue
to pursue the orderly disposition of the Partnership's remaining Properties.

 The
Permanent Manager Agreement

 The
Permanent Manager Agreement ("PMA") was entered into on February 8, 1993, between the Partnership, DiVall 1 (which was dissolved
in December 1998), DiVall 3 (which was dissolved in December 2003), the now former general partners, Gary J. DiVall and Paul E. Magnuson,
their controlled affiliates, and TPG, naming TPG as the Permanent Manager. The PMA contains provisions allowing TPG to submit to the
PMA, election of TPG as General Partner, and the issue of acceptance of the resignations of the former general partners to a vote of
the limited partners through a solicitation of written consents.

 TPG,
as the General Partner, has been operating and managing the affairs of the Partnership in accordance with the provisions of the PMA and
the Partnership Agreement since February 8, 1993.

 Effective
January 1, 2023, the PMA was renewed by the General Partner for a two-year period ending December 31, 2024. The PMA can be terminated
earlier (a) by a vote at any time by a majority interest of the limited partners, (b) upon the dissolution and winding up of the Partnership,
(c) upon the entry of an order of a court finding that TPG has engaged in fraud or other like misconduct or has shown itself to be incompetent
in carrying out its duties under the Partnership Agreement, or (d) upon 60 days' written notice from TPG to the limited partners
of the Partnership.

 Advisory
Board

 The
concept of the Advisory Board was first introduced by TPG during the solicitation of written consents seeking to elect TPG as the General
Partner. The first Advisory Board was established in October 1993. Among other functions, the three-person Advisory Board has the following
rights and duties: to review operational policies and practices; to review extraordinary transactions; to review internal financial controls
and practices; and to review the performance of the independent auditors of the Partnership. The Advisory Board's powers are advisory
only and the Advisory Board does not have the authority to direct management decisions or policies of the Partnership or remove the General
Partner. The Advisory Board has full and free access to the Partnership's books and records, and individual Advisory Board members
have the right to communicate directly with the limited partners concerning Partnership business. Members of the Advisory Board are compensated
$1,500 annually and $500 for each quarterly meeting attended.

 The
Advisory Board currently consists of limited partners of the Partnership: Jesse Small and Albert Kramer. For a brief description of each
Advisory Board member, refer to Item 10, Directors and Executive Officers of the Registrant.

 No
Employees; Location of Business Operations

 The
Partnership has no employees.

 All
of the Partnership's business is conducted in the United States.

 Available
Information

 The
Partnership is required to file with the SEC annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form
8-K, along with any related amendments and supplements to these periodic and current reports. The SEC maintains a website containing
these reports and other information regarding our electronic filings at www.sec.gov.

 We
also make these reports and other information available either on or through our Internet Website at www.divallproperties.com as soon
as reasonably practicable after such reports are available. Please note that any internet addresses provided in this Annual Report on
Form 10-K are for information purposes only and are not intended to be hyperlinks. Accordingly, no information found and/or provided
at such internet addresses is intended or deemed to be incorporated by reference herein.

 Item
1A. Risk Factors

 The
Partnership's business, the ownership and lease of the Properties, is subject to a variety of risks attendant to the ownership
and lease of commercial real property, including risks related to: (i) changes in general economic conditions and macro-economic
factors such as effects of interest rate fluctuations, both nationally and in the local markets where the Properties are located,
(ii) changes in real estate conditions, including without limitation, decreases in valuations of real properties, increases in
property taxes and lack of buyers at times when the Partnership seeks to dispose of a Property, (iiii) ability of tenants to fulfill
their obligations to the Partnership under existing leases, (iv) declines in sales for tenants whose leases include a percentage
rent component, (v) adverse changes to the restaurant market, including declines in demand, (vi) entrance of competitors to the
Partnership's lessees in markets in which the Properties are located, (vii) the Partnership's ability to realize value
for Limited Partners upon disposition of the Properties, (viii) the fact that real property assets are generally not readily liquid, and the risk that the Partnership may
be unable to locate suitable purchasers for the Properties and monetize the Properties at the times and on terms and conditions that are
in the Partnership's and its limited partners' best interests, and (ix) various other factors.

 In
addition to the general risks identified above, the Partnership is also subject to various cyber security risks, including those generally
described below.

 Item
1B. Unresolved Staff Comments

 None.

 Item 1C. Cybersecurity

 The Partnership
has not adopted any formal cybersecurity risk management program or formal processes for assessing, identifying, and managing material
risks from cybersecurity threats. The General Partner has oversight responsibility for the Partnership's overall risk management,
including cybersecurity risk, and has not delegated oversight authority for cybersecurity risks to any committee. In fiscal year 2023,
we did not identify any cybersecurity threats that have materially affected or are reasonably likely to materially affect our business
strategy, results of operations, or financial condition.

 Item
2. Properties

 All
Properties are leased to franchisees of national quick service restaurants.

 Original
lease terms for the leased Properties are generally five to 20 years from their inception. All leases are triple-net, which require the
tenant to pay all property operating costs including maintenance, repairs, utilities, property taxes, and insurance. All of the leases
contain percentage rent provisions, which require the tenant to pay a specified percentage (seven percent) of gross sales above a threshold
amount. None of the Properties are mortgaged. The Partnership owns the buildings and land, and all improvements for all the Properties.
The Partnership owned the following Properties as of March 1, 2024:

 Acquisition Date

 Property Name & Address

 Lessee

 Purchase
Price (1)

 Operating
Rental Per

 Annum

 Lease
Expiration
Date

 Renewal
Options

 12/22/88

 Wendy's (2)
1721 Sam Rittenberg Blvd
Charleston, SC

 JAI
Hospitality
RG, LLC

 $
 596,781

 $
 166,848

 12-31-2040

 None

 02/21/89

 Wendy's (3)
343 Folly Rd
Charleston, SC

 JAI
Augusta, LLC

 528,125

 136,000

 12-31-2040

 None

 03/14/89

1004 Richland Ave
Aiken, SC

 Wendgusta, LLC

 633,750

 167,500

 12-31-2040

 None

 $
 1,758,656

 $

 Footnotes:

 (1)

 Purchase
 price includes all costs incurred by the Partnership to acquire the Property.

 (2)

 This
 Property, owned as of December 31, 2023 was leased to JAI Hospitality. Since all of the Properties, both by historical asset value
 and number are leased to Wendy's franchisees the financial status of the tenant may be considered relevant to investors. At
 the request of the Partnership, JAI Hospitality provided it with a copy of its internal financial statements for the fiscal years
 ended January 1, 2023 and December 31, 2023. Those internal financial statements are attached to this Annual Report on Form 10-K
 as Exhibit 99.2.

 (3)

 One Property owned
 by the Partnership as of December 31, 2022 was leased to JAI Augusta. Since all of the Properties, both by historical asset value
 and number, are leased to Wendy's franchisees, the financial status of the tenant may be considered relevant to investors.
 At the request of the Partnership, JAI Augusta provided it with a copy of its reviewed financial statements for the fiscal years
 ended January 1, 2023 and December 31, 2023. Those reviewed financial statements are attached to this Annual Report on Form 10-K
 as Exhibit 99.1.

 The
following summarizes significant developments during 2022 and 2023, by Property, for Properties with such developments.

 Sale
of Walton Way Property

 On
April 22, 2022, the Partnership sold the Property located at 1730 Walton Way, Augusta, GA for $1,600,000. The gain on the sale was approximately
$1,103,000.

 Sale
of Martintown Road Property

 On
March 31, 2023, the Martintown Road Property was sold for $1,350,000. The Partnership received proceeds from the sale of approximately
$1.28 million and the gain on the sale was approximately $1 million.

 Sale
of Mt. Pleasant, SC Property

 On
June 6, 2023, the Partnership executed a listing agreement with Matthews Real Estate Investment Services, Inc. for the sale of the Property
with an asking price of $3.2 million. The Property listing went active on July 12, 2023.

 On
July 20, 2023, the Partnership accepted an offer to sell the Property at asking price. The buyer negotiated a 1-day inspection period
and on August 31, 2023 the Partnership sold the Property for $3,212,124. The gain on the sale was approximately $2.76 million.

 Sale
of Applebee's Property

 On
April 11, 2023, the Partnership signed a listing agreement to offer its Applebee's Property for a sale price of $2.3 million. As
of June 27, 2023, the tenant waived its right of first offer contained in the lease.

 On
July 13, 2023, the Partnership accepted an offer to sell the Property for $2,125,000.

 On
September 7, 2023 the Partnership sold the Property and the gain on the sale was approximately $1.6
million.

– Peach Orchard Road, Augusta, GA Property

 On
October 30, 2022, the tenant Wendgusta, LLC closed on an asset purchase agreement with JAI Augusta, LLC to sell substantially all the
assets of the tenant and pursuant thereto, the lease was also assigned to JAI Augusta under the same terms and conditions of the lease
amendment effected January 1, 2021.

 On
June 6, 2023 the Partnership executed a listing agreement with Matthews Real Estate Investment Services, Inc. for the sale of the Property
with an asking price of $4.1 million. The Property listing went active on July 12, 2023.

 On
August 7, 2023 the Partnership accepted an offer to sell the Property for $3,822,000. The sale closed on November 1, 2023 and the gain
was approximately $3.37 million.

– Whiskey Road, Aiken, SC

 On
June 6, 2023, the Partnership executed a listing agreement with Matthews Real Estate Investment Services, Inc. for the sale of the Property
with an asking price of $4.0 million. The Property listing went active on July 12, 2023.

 On
October 6, 2023 the Partnership accepted an offer to sell the Property for $3.8 million. The sale closed on November 6, 2023 and the
gain was approximately $3.2 million.

– Folly Road, Charleston, SC

 On
December 19, 2022, the tenant Wendcharles I, LLC closed on an asset purchase agreement with JAI Augusta, LLC to sell substantially all
the assets of the tenant and pursuant thereto, the lease was also assigned to JAI Augusta under the same terms and conditions of the
lease amendment effected January 1, 2021.

 On
June 6, 2023, the Partnership executed a listing agreement with Matthews Real Estate Investment Services, Inc. for the sale of the Property
with an asking price of $3.5 million. The Property listing went active on July 12, 2023.

 The Property is held for
sale as of December 31, 2023.

– Richland Ave, Aiken, SC

 On
June 6, 2023, the Partnership executed a listing agreement with Matthews Real Estate Investment Services, Inc. for the sale of the Property
with an asking price of $3.4 million. The Property listing went active on July 12, 2023.

 The Property is held for
sale as of December 31, 2023.

– Sam Rittenberg, Charleston, SC

 On
June 6, 2023, the Partnership executed a listing agreement with Matthews Real Estate Investment Services, Inc. for the sale of the Property
with an asking price of $3.9 million. The Property listing went active on July 12, 2023.

 The Property is held for
sale as of December 31, 2023.

 Item
3. Legal Proceedings

 As
of the date of this report there are no material pending legal proceedings to which the Partnership is a party.

 Item
4. Mine Safety Disclosures

 Not
applicable.

 PART
II

 Item
5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

 (a)

 Although
 from time to time some Interests have been traded, there is no active public market for the Interests, and it is not anticipated
 that an active public market for the Interests will develop. As of January 1, 2022, the General Partner halted public trading in
 anticipation of the winding-up and liquidation of the Partnership.

 (b)

 As
 of March 1, 2024, there were 1,092 record holders of Interests.

 (c)

 The
Partnership does not pay dividends. However, the Partnership Agreement provides for net income and loss of the Partnership to be allocated
on a quarterly basis, 99% to the limited partners and 1% to the General Partner. The Partnership Agreement provides for the distribution
of net cash receipts and net proceeds to the limited partners and General Partner at times that the General Partner deems appropriate,
but no less often than semi-annually, subject to the limitations on distributions to the General Partner described in the Partnership
Agreement. See Note 3 to the financial statements for further information. During the liquidation process, the Partnership will distribute
net sales proceeds within 30-60 days of a property closing.

 (d)

 The
 Partnership has no equity compensation plans under which equity securities of the Partnership have been issued or are reserved for
 issuance.

 (e)

 The
Partnership has not conducted sales of unregistered securities during the period covering this Annual Report.

 (f)

 The Partnership did not repurchase or redeem any Interests during the 2023 fiscal year.

 Item
6. (Reserved)

 Item
7. Management's Discussion and Analysis of Financial Condition and Results of Operations

 CAUTIONARY
STATEMENT

 This
Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These forward-looking statements
are not historical facts but are the intent, belief or current expectations of the Partnership's management based on its knowledge
and understanding of the business and industry. Words such as "may," "anticipates," "expects," "intends,"
"plans," "believes," "seeks," "estimates," "would," "could,"
"should" and variations of these words and similar expressions are intended to identify forward-looking statements. Although
we believe that the expectations reflected in these forward-looking statements are reasonable, we can give no assurance that these expectations
will prove to have been correct. These statements are not guarantees of future performance and are subject to risks, uncertainties and
other factors, some of which are beyond our control, are difficult to predict and could cause actual results to differ materially from
those expressed or forecasted in the forward-looking statements.

 Examples
of forward-looking statements include, but are not limited to, statements we make regarding:

 our
 expectations regarding our financial condition or results of operations in any future period;

 our
 future sources of, and needs for, liquidity and capital resources;

 our
 expectations regarding economic and business conditions (both nationally and where the Properties are located);

 our
 decisions with respect to the potential retention or disposition of our remaining Properties as we wind-up the Partnership;

 our
 ability to timely find a suitable purchaser for any marketed Properties;

 our
 ability to agree on an acceptable purchase price or contract terms for any Property sales;

 our
 ability to collect rents on our leases;

 our
 ability to maintain relationships with our tenants, and if necessary extend lease terms or identify new tenants; and

 our
 future capital expenditures.

 Critical
Accounting Policies and Estimates

 The
following discussion and analysis of financial condition and results of operations is based upon the Partnership's financial statements,
which have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP").
The preparation of these financial statements requires persons performing the functions of the Partnership's management to make
estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent
assets and liabilities. On a regular basis, we evaluate these estimates, including investment impairment. These estimates are based on
the General Partner's historical industry experience and on various other assumptions that are believed to be reasonable under
the circumstances. Actual results may differ from these estimates.

 The
Partnership believes that its most significant accounting policies pertain to:

methods and lives - Depreciation of the properties is provided on a straight-line basis over the estimated useful life of the buildings
and improvements. Additionally, the value of real estate is typically based on market conditions and property performance. As a result,
depreciated book value of real estate may not reflect the market value of real estate assets.

 Revenue
recognition - Rental revenue from investment properties is recognized on the straight-line basis over the life of the respective lease
when collectability is reasonably assured. Percentage rents are accrued only when the tenant has reached the sales breakpoint stipulated
in the lease and collectability is reasonably assured.

 Impairment -The
Partnership periodically reviews its long-lived assets, primarily real estate, for impairment whenever events or changes in circumstances
indicate that the carrying amount of such assets may not be recoverable. The Partnership's review involves comparing current and
future operating performance of the assets, the most significant of which is undiscounted operating cash flows, to the carrying value
of the assets of the individual properties. Based on this analysis, if deemed necessary, a provision for possible loss is recognized.

 Investment
Properties and Properties Held for Sale

 As
of December 31, 2023, the Partnership owned three Properties, all of which feature tenants that are Wendy's
franchisees. The Properties are
all located in the state of South Carolina.

 Property
taxes, general maintenance, insurance and ground rent on the Properties are the responsibility of the respective tenants. A more detailed
discussion of tax payments, insurance and ground rent is provided in Item 2, and incorporated herein by this reference.

 There
were no building improvements capitalized during 2023 or 2022.

 Further
Information

 A
summary of significant developments as of December 31, 2023, by Property, for Properties with such developments, can be found in Item
2, Properties.

 Net
Income

 Net
income for the fiscal years ended December 31, 2023 and 2022 was $12,283,772 and $2,069,792, respectively. Net income per Limited Partner
Interest for the fiscal years ended December 31, 2023 and 2022 was $262,77 and $44.28, respectively.

 Results
of Operations

 Net
income for the fiscal years ended December 31, 2023 and 2022 was $12,283,772, and $2,069,792, respectively. See the paragraphs below
for further information as to variances in individual operating income and expense items.

 The increase in net income from 2022 to 2023 was the
gain on the Properties sold during the calendar year.

 We
are not aware of any material trends or uncertainties, other than national economic conditions and macro-economic factors affecting
values of real estate generally that may reasonably be expected to have a material impact, favorable or unfavorable, on Partnership
revenues and investment property value.

 Fiscal
year ended December 31, 2023 as compared to fiscal year ended December 31, 2022:

 Operating
Rental Income: Operating rental income for the fiscal years ended December 31, 2023 and 2022 was $1.165 million and $1.611 million,
respectively. The rental income was comprised of monthly lease obligations per the tenant leases and percentage rents obligations related
to operating tenants who had reached their sales breakpoint. The decrease in 2023 compared to 2022 was due to the lower base rental income
and percentage rent due to sales of Properties in each of 2022 and 2023.

 The
Partnership has begun the wind-up and liquidation process. Management expects to sell the three remaining Properties during calendar
year 2024.

 Partnership
Management Fees Expense: Partnership management fees expense for the fiscal years ended December 31, 2023 and 2022 were $272,316.
The General Partner receives a fee for managing the Partnership. See Note 5, Transactions with General Partner and Its Affiliates, for
further information.

 General
and Administrative Expense: General and administrative expenses for the fiscal years ended December 31, 2023 and 2022 were $34,558
and $39,842, respectively. General and administrative expenses were comprised of management expense, state/city registration and annual
report filing fees, office supplies and printing costs, outside storage expenses, copy/fax costs, postage and shipping expenses, long-distance
telephone expenses, website fees, and bank fees. Total operating general and administrative expenses for the fiscal year ended December
31, 2022 were higher than in the fiscal year ended December 31, 2023, primarily due to higher postage, printing and filing fee expenses.

 State
Income Tax Expense: During the year ended December 31, 2023, the Partnership began accruing the estimated state tax due for each
property sold. Because five Properties were sold during 2023, a total of $204,872 was accrued for payment of state tax that
will be paid with the state tax returns filed during Q1 2024.

 Professional
Services: Professional services expenses for the fiscal years ended December 31, 2023 and 2022 were $130,889 and $240,302, respectively.
Professional service expenses were primarily comprised of investor relations data processing, investor mailings processing, website design,
legal, auditing and tax preparation fees, electronic tax filings, and SEC report conversion and processing fees. The costs in 2023 decreased
due to switching investor relations firms and the related decrease in contract costs for the new investor relations services firm.

 Cash
Flow Analysis

 Net
cash flows provided by operating activities for the fiscal years ended December 31, 2023 and 2022 were $1,038,074 and $993,976, respectively.
Cash flows from operating activities was lower in 2023 primarily due to the increase in net income year over year offset by the gain
on the sale of the properties sold and the decrease in percentage rent receivable year over year.

and amortization are non-cash items and do not affect the current operating cash flow of the Partnership or distributions to the limited
partners.

 Cash
flows provided from investing activities for the fiscal years ended December 31, 2023 and 2022 were $13,409,990 and $1,448,425 and $584,379,
respectively. The 2023 amount is largely comprised of proceeds from the sales of five Properties during 2023. The 2022 amount is largely
comprised of proceeds from the sale of the Walton Way Property.

 For
the fiscal year ended December 31, 2023, cash flows used in financing activities were $14,439,555 and consisted of aggregate limited
partner distributions of $14,411,721 and General Partner distributions of $27,834. For the fiscal year ended December 31, 2022, cash
flows used in financing activities were $3,237,003 and consisted of aggregate limited partner distributions of $3,225,000 and General
Partner distributions of $12,003. Both limited partner and General Partner distributions have been, and will continue to be, made in
accordance with the Partnership Agreement.

 Liquidity
and Capital Resources

 The
Partnership's cash balance was $179,745 at December 31, 2023. Cash of approximately $35,514 is anticipated to be used in 2024 for
the payment of quarter-end accrued liabilities which are included in the balance sheet.

 The
Partnership's principal demands for funds historically have been, and are expected to continue to be, for the payment of operating
expenses and distributions. Management anticipates that cash generated through the operations of the Properties and potential sales of
Properties will primarily provide the sources for future liquidity and limited partner distributions. The amount
of cash to be distributed to our limited partners is determined by the General Partner and is dependent on a number of factors, including
funds available for payment of distributions, payment of state income taxes and Partnership operating costs.

 As
of December 31, 2023 and 2022, the Properties were 100% leased. In addition, the Partnership collected 100% of its base rent due from
current operating tenants for the years ended December 31, 2023 and 2022, which we believe is a good indication of overall tenant quality
and stability.

 All
three remaining Properties, plus four out of the five properties sold during 2023, were/are operated as Wendy's fast food restaurants
and are franchises of the International Wendy's Company. Operating base rents from these leases comprised approximately 91% of
the total 2023 operating base rents included in operating rental income of the Partnership. During the year ended December 31, 2023,
additional percentage rents totaled $145,120, all of which were unbilled and were accrued in relation to the Properties operated as Wendy's
restaurants. Therefore, during 2023, the Partnership generated approximately 92% of its total operating revenues from the Properties.

 Since
the Properties are leased to restaurant tenants, the restaurant market is the major market segment with a material impact on Partnership
operations. Historically, the success of customer marketing and the operating effectiveness of the Partnership's lessees will impact
the Partnership's future operating success in a very competitive restaurant and food service marketplace. The Partnership is currently
 liquidating.

 Off-Balance
Sheet Arrangements

 The
Partnership does not have any off-balance sheet arrangements that are reasonably likely to have a current or future material effect on
our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures
or capital resources.

 Disposition
Policies

 The
General Partner may exercise its discretion as to whether and when to sell a Property, and there is no obligation to sell any of the
Properties at any particular time, except upon the winding up and dissolution of the Partnership dissolution which is in process as,
pursuant to the Partnership Agreement, the Partnership's scheduled term ended on November 30, 2023. As such, all three remaining Properties have been, and continue to be listed for sale since
July, 2023. Management expects the three Properties to sell by the end of the third quarter in 2024.

 Inflation

 To
the extent that tenants can pass through commodity inflation in their sales prices, the Partnership will benefit from additional percentage
rent from increased sales. The majority of the Partnership's leases have percentage rental clauses. Revenues from operating percentage
rentals represented 12% and 21% of operating rental income for the fiscal years ended December 31, 2023 and 2022. If, however, inflation
causes sales to decrease, operating margins to deteriorate for lessees, or if expenses grow faster than revenues, then, inflation may
well negatively impact the portfolio through tenant defaults.

 Due
to the "triple-net" nature of the property leases, asset values generally move inversely with interest rates.

 Item
7A. Quantitative and Qualitative Disclosures About Market Risk

 The
Partnership is not subject to market risk as defined by Item 305 of Regulation S-K.

 Item
8. Financial Statements and Supplementary Data

 (A
Wisconsin limited partnership)

TO FINANCIAL STATEMENTS AND SCHEDULE

 Page

 Report of Independent Registered Public Accounting Firms (PCAOB - 542)

 Balance Sheets at December 31, 2023 and 2022

 16-17

 Statements of Income for the Years Ended December 31, 2023 and 2022

 Statements of Partners' Capital for the Years Ended December 31, 2023 and 2022

 Statements of Cash Flows for the Years Ended December 31, 2023 and 2022

 Notes to Financial Statements

 21-27

 Schedule III—Investment Properties and Accumulated Depreciation, December 31, 2023

 35-36

 REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 To
the Partners

of DiVall Insured Income Properties 2 Limited Partnership

 Opinion
on the Financial Statements

 We
have audited the accompanying balance sheets of DiVall Insured Income Properties 2 Limited Partnership (the Partnership) as of December
31, 2023 and 2022, and the related statements of income, partners' capital and cash flows for the years then ended, and the related
notes and schedules (collectively referred to as the financial statements). In our opinion, the financial statements present fairly,
in all material respects, the financial position of the Partnership as of December 31, 2023 and 2022, and the results of its operations
and its cash flows for each of the years in the two-year period ended December 31, 2023, in conformity with accounting principles generally
accepted in the United States of America.

 Basis
for Opinion

 These
financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on the
Partnership's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting
Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Partnership in accordance with the U.S.
federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 We
conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Partnership
is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits,
we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion
on the effectiveness of the Partnership's internal control over financial reporting. Accordingly, we express no such opinion.

 Our
audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error
or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding
the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant
estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits
provide a reasonable basis for our opinion.

 Critical
Audit Matters

 Critical
audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be
communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and
(2) involved our especially challenging, subjective, or complex judgments. We determined that there were no critical audit matters

 /s/
 Boulay PLLP

 We
have served as the Partnership's auditor since 2019.

 Minneapolis,
Minnesota

 April 1, 2024

 MN:
Eden Prairie, Mankato, Minneapolis (t) 952.893.9320 FL: Naples (t) 239.325.1100

 BoulayGroup.com

 BALANCE
SHEETS

 ASSETS

 December 31, 2023

 December 31, 2022

 INVESTMENT PROPERTIES: (Note 3)

 Land

 $
 -

 $
 1,944,934

 Buildings

 -

 2,843,881

 Accumulated depreciation

 -

 ( 2,843,881
)

 Net investment properties

 -

 1,944,934

 Properties held for sale

 250,859

 OTHER ASSETS:

 Cash and cash equivalents

 179,745

 171,236

 Investments held in Indemnification Trust (Note 8)

 487,947

 480,139

 Security deposits escrow

 17,356

 59,464

 Rents and other receivables

 145,120

 342,359

 Prepaid state income tax

 35,118

 28,376

 Deferred closing costs

 31,291

 12,413

 Prepaid insurance

 1,577

 2,515

 Deferred charges, net

 89,906

 258,394

 Total other assets

 988,060

 1,354,896

 Total assets

 $
 1,713,825

 $
 3,550,689

 The

 BALANCE
SHEETS

 LIABILITIES
AND PARTNERS' CAPITAL

 December 31, 2023

 December 31, 2022

 LIABILITIES:

 Accounts payable and accrued expenses

 $
 6,466

 $
 36,619

 Due to General Partner (Note 5)

 29,048

 2,090

 Accrued state income tax

 204,872

 -

 Distributions payable

 234,495

 -

 Unearned rental income

 -

 53,114

 Security deposits

 17,230

 52,320

 Total liabilities

 492,111

 144,143

 CONTINGENCIES AND COMMITMENTS (Notes 7 and 8)

 -

 -

 PARTNERS' CAPITAL: (Notes 1 and 4)

 General Partner (1993-2023)

 Cumulative net income (retained earnings)

 543,341

 420,502

 Cumulative cash distributions

 ( 232,466
)

 ( 175,584
)

 Total general partners' capital

 310,875

 244,918

 Limited Partners ( 46,280.3 interests outstanding at December 31, 2023 and 2022)

 Capital contributions

 46,280,300

 46,280,300

 Offering costs

 ( 6,921,832
)

 ( 6,921,832
)

 Cumulative net income (retained earnings)

 60,156,589

 47,995,656

 Cumulative cash distributions

 ( 97,763,989
)

 ( 83,352,268
)

 Total limited partners' capital

 1,751,068

 4,001,856

 Former General Partner (1987-1993)

 Cumulative net income (retained earnings)

 707,513

 707,513

 Cumulative cash distributions

 ( 1,547,742
)

 ( 1,547,742
)

 Total former general partners' capital

)

)

 Total partners' capital

 1,221,714

 3,406,545

 Total liabilities and partners' capital

 $
 1,713,825

 $
 3,550,689

 The

 STATEMENTS
OF INCOME

 For
the Years Ended December 31, 2023 and 2022

 2023

 2022

 OPERATING REVENUES:

 Rental income

 $
 1,164,512

 $
 1,611,173

 TOTAL OPERATING REVENUES

 1,164,512

 1,611,173

 EXPENSES:

 Partnership management fees (Note 5)

 Insurance

 2,732

 6,188

 General and administrative

 34,558

 39,842

 State income tax expense

 237,520

 80,628

 Advisory Board fees and expenses

 6,000

 7,000

 Professional services

 130,889

 240,302

 Amortization

 168,488

 43,254

 TOTAL OPERATING EXPENSES

 852,503

 689,530

 OTHER INCOME

 Other interest income

 23,993

 Other income

 -

 44,495

 Gain on sale of Property

 11,947,770

 1,103,208

 TOTAL OTHER INCOME

 11,971,763

 1,148,149

 NET INCOME

 12,283,772

 NET INCOME- GENERAL PARTNER

 122,839

 NET INCOME- LIMITED PARTNERS

 $
 12,160,933

 $

 PER LIMITED PARTNERSHIP INTEREST,

 Based on 46,280.3 interests outstanding:

 NET INCOME PER LIMITED PARTNERSHIP INTEREST (BASIC AND DILUTED)

 $
 262.77

 $
 44.28

 The

 STATEMENTS
OF PARTNERS' CAPITAL

 For
the Years Ended December 31, 2023 and 2022

Net
Income

Cash
Distributions

 Total

 Capital
Contributions,
Net of
Offering
Costs

Net Income

Cash
Distribution

 Reallocation

 Total

 Total
Partners'
Capital

 General Partner

 Limited Partners

Net
Income

Cash
Distributions

 Total

 Capital
Contributions,
Net of
Offering
Costs

Net Income

Cash
Distribution

 Reallocation

 Total

 Total
Partners'
Capital

 BALANCE AT DECEMBER 31, 2022

 $
 420,502

 $
 ( 175,584
)

 $
 244,918

 $

 $
 47,995,656

 $
 ( 83,352,268
)

 $
)

 $
 3,161,627

 $
 3,406,545

 2023 Net Income

 122,839

 -

 122,839

 -

 12,160,933

 -

 -

 12,160,933

 12,283,772

 Distributions declared

 -

 ( 56,882
)

 ( 56,882
)

 -

 -

 ( 14,411,721
)

 -

 ( 14,411,721
)

 ( 14,468,603
)

 BALANCE AT DECEMBER 31, 2023

 $
 543,341

 $
 ( 232,466
)

 $
 310,875

 $

 $
 60,156,589

 $
 ( 97,763,989
)

 $
)

 $
 910,839

 $
 1,221,714

 BALANCE AT DECEMBER 31, 2021

 $
 399,805

 $
 ( 166,024
)

 $
 233,781

 $

 $
 45,946,561

 $
 ( 80,127,268
)

 $
)

 $
 4,337,532

 $
 4,571,313

 BALANCE

 $
 399,805

 $
 ( 166,024
)

 $
 233,781

 $

 $
 45,946,561

 $
 ( 80,127,268
)

 $
)

 $
 4,337,532

 $
 4,571,313

 2022 Net Income

 -

 -

 -

 -

 Net Income

 -

 -

 -

 -

 Distributions declared

 -

 ( 9,560
)

 ( 9,560
)

 -

 -

 ( 3,225,000
)

 -

 ( 3,225,000
)

 ( 3,234,560
)

 BALANCE AT DECEMBER 31, 2022

 $
 420,502

 $
 ( 175,584
)

 $
 244,918

 $

 $
 47,995,656

 $
 ( 83,352,268
)

 $
)

 $
 3,161,627

 $
 3,406,545

 BALANCE

 $
 420,502

 $
 ( 175,584
)

 $
 244,918

 $

 $
 47,995,656

 $
 ( 83,352,268
)

 $
)

 $
 3,161,627

 $
 3,406,545

 The

 STATEMENTS
OF CASH FLOWS

 For
the Years Ended December 31, 2023 and 2022

 2023

 2022

 CASH FLOWS FROM OPERATING ACTIVITIES:

 Net income

 $
 12,283,772

 $

 Adjustments to reconcile net income to net cash from operating activities:

 Depreciation and amortization

 168,488

 43,254

 Gain on sale of Properties

 ( 11,947,770
)

 ( 1,103,208
)

 Changes in operating assets and liabilities:

 Decrease in rents and other receivables

 197,239

 24,114

 Decrease (increase) in security deposit escrow

 42,108

 ( 39
)

 Decrease in prepaid insurance

 3,170

 (Decrease) increase in accounts payable and accrued expenses

 ( 30,153
)

 9,412

 Increase in accrued state income tax

 204,872

 -

 Prepaid state income tax

 ( 6,743
)

 ( 28,376
)

 Prepaid rent

 ( 53,114
)

 ( 20,777
)

 Deferred closing costs

 ( 18,878
)

 3,654

 Distributions payable

 234,495

 -

 Security deposit refund

 ( 35,090
)

 ( 7,020
)

 Due to general partner

 ( 2,090
)

 -

 Net cash provided from operating activities

 $
 1,038,074

 $
 993,976

 CASH FLOWS USED IN INVESTING ACTIVITIES:

 Interest applied to Indemnification Trust account

 ( 7,808
)

 ( 115
)

 Proceeds from sale of Property, net

 13,417,798

 1,448,540

 Net cash provided from investing activities

 $
 13,409,990

 $
 1,448,425

 CASH FLOWS FROM FINANCING ACTIVITIES:

 Cash distributions to Limited Partners

 $
 ( 14,411,721
)

 $
 ( 3,225,000
)

 Cash distributions to General Partner

 ( 27,834
)

 ( 12,003
)

 Net cash used in financing activities

 $
 ( 14,439,555
)

 $
 ( 3,237,003
)

 NET INCREASE (DECREASE) IN CASH

 8,509

 ( 794,602
)

 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR

 171,236

 965,838

 CASH AND CASH EQUIVALENTS AT END OF YEAR

 $
 179,745

 $
 171,236

 Supplemental disclosure of cash flow information

 Noncash investing activities

 Distributions accrued, not yet paid

 $
 263,543

 $
 2,090

 The

 NOTES

 1.
 ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES:

 DiVall
Insured Income Properties 2 Limited Partnership (the "Partnership") was formed on November 20, 1987, pursuant to the
Uniform Limited Partnership Act of the State of Wisconsin. The initial capital, contributed during 1987, consisted of $ 300,
representing aggregate capital contributions of $ 200
by the former general partners and $ 100 by
the initial Limited Partner. A subsequent offering of limited partnership interests closed on February 22, 1990, with 46,280.3
units of limited partnership interests ("Interests") having been sold in that offering, resulting in total proceeds to
the Partnership, net of underwriting compensation and other offering costs, of $ 39,358,468.

 The
Partnership is currently beginning its liquidation process per the terms of Partnership Agreement as the Partnership's term expired November 30, 2023. The
Partnership had been in the business of owning and operating its investment portfolio of commercial real estate properties (the "Properties")
since the late 1980's. The Partnership has sold six Properties in the last two years. The three remaining Properties are leased
on a triple net basis to, and operated by, franchisees of the International Wendy's Company under leases with terms through December
31, 2040. As of December 31, 2023, the Partnership owned three Properties, which are all located in South Carolina.

 During the 2020 consent solicitation process, the Limited Partners approved two separate amendments
to the Partnership Agreement. The amendments served to: (i) extend the term of the Partnership by three (3) years to November 30, 2023,
and (ii) permit the General Partner to effect distributions at times that it deems appropriate, but no less often than semi-annually.

 Significant
Accounting Policies

 Financial
Statement Presentation

 The
accounts of the Partnership are maintained on the accrual basis of accounting for financial statement purposes.

 Accounting
Estimates

 The
preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities (and disclosure of contingent assets and liabilities) at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant
items, subject to such estimates and assumptions, include the carrying value of real estate held for investment.

 NOTES

 Cash
Equivalents

 All
highly liquid investments with maturities of three months or less at the date of purchase are classified as cash equivalents.

 Cash
Concentrations of Credit Risk

 The
Partnership generally maintains cash in federally insured accounts which, at times, may exceed federally insured limits. The Partnership
has not experienced any losses in such accounts and does not believe it is exposed to any significant credit risk.

 Financial
instruments that potentially subject the Partnership to significant concentrations of credit risk consist primarily of cash investments
and leases. As of December 31, 2023, the Partnership's three Properties are leased to three significant tenants, Wendgusta, LLC
("Wendgusta"), JAI Augusta, LLC ("JAI Augusta") and JAI Hospitality RG, LLC ("JAI Hospitality"),
all three of whom are Wendy's restaurant franchisees. The property lease (s) for these three tenants comprised approximately 91%
of the Partnership's total 2023 operating base rents reflected for the year ended December 31, 2023.

 Rent
and Other Receivables

 Rents
and other receivables are comprised of billed but uncollected amounts due for monthly rents and other charges and amounts due for scheduled
rent increases for which rentals have been earned and will be collected in the future under the terms of the leases. Receivables are
recorded at management's estimate of the amounts that will be collected.

 As
of December 31, 2023 and 2022 there were no
values for allowance for credit losses based on an analysis of specific accounts and historical experience.

 Revenue
Recognition

 Rental
revenue from investment properties is recognized on the straight-line basis over the life of the respective lease when collectability
is reasonably assured. Percentage rents are accrued only when the tenant has reached the sales breakpoint stipulated in the lease and
collectability is reasonably assured.

 Original
lease terms for the majority of the leased Properties were generally five to 20 years from their inception. The leases generally provide
for minimum rents and additional rents based upon percentages of gross sales in excess of specified breakpoints. The lessee is responsible
for occupancy costs such as maintenance, insurance, real estate taxes, and utilities. Accordingly, these amounts are not reflected in
the statements of income except in circumstances where, in the General Partner's opinion, the Partnership will be required to pay
such costs to preserve its assets (i.e., payment of past-due real estate taxes). Management has determined that the leases are properly
classified as operating leases; therefore, rental income is reported when earned on a straight-line basis and the cost of the property,
excluding the cost of the land, is depreciated over its estimated useful life.

 As
of December 31, 2023, the aggregate minimum operating lease payments to be received under the current operating leases for the Properties
are as follows:

 SCHEDULE OF AGGREGATE MINIMUM OPERATING LEASE PAYMENTS

 Year
ending December 31,

 2024

 $

 2025

 2026

 2027

 2028

 Thereafter

 5,644,176

 Total

 $
 7,995,916

 In
May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09 regarding ASC Topic 606,
Revenue from Contracts with Customers. This standard was developed to enable financial statement users to better understand the nature,
amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The update's core principle is
that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects
the consideration to which the entity expects to be entitled in exchange for those goods or services. Entities are to use a five-step
contract review model to ensure revenue is recognized, measured and disclosed in accordance with this principle. Those steps include
the following: (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine
the transaction price, (iv) allocate the transaction price to each performance obligation in the contract, and (v) recognize revenue
when or as the entity satisfies a performance obligation.

 NOTES

 Income
Taxes

 No
provision for federal income taxes has been made, as any liability for such taxes would be that of the individual partners rather than
the Partnership.

 At
December 31, 2023, the tax basis of the Partnership's assets exceeded the amounts reported in the December 31, 2023 financial statements
by approximately $ 6,732,699

 The
following represents an unaudited reconciliation of net income as stated on the Partnership statements of income to net income for tax
reporting purposes:

 SCHEDULE OF UNAUDITED RECONCILIATION OF NET INCOME FOR TAX REPORTING

 2023

 2022

 (Unaudited)

 (Unaudited)

 Net income, per statements of income

 $
 12,283,772

 $

 Book to tax depreciation difference

 -

 -

 Tax over (under) book gain from asset disposition

 74,684

 16,493

 Book to tax amortization difference

 Prepaid rent

 ( 53,114
)

 ( 20,777
)

 Nondeductible expenses

 29,092

 State tax deduction

 200,260

 -

 Net income for tax reporting purposes

 $
 12,534,850

 $
 2,065,557

 The
Partnership is not subject to federal income tax because its income and losses are includable in the tax returns of its partners but
may be subject to certain state taxes. FASB has provided guidance for how uncertain tax positions should be recognized, measured, disclosed
and presented in the financial statements. This requires the evaluation of tax positions taken or expected to be taken in the course
of preparing the entity's tax returns to determine whether the tax positions are more-likely-than-not to be sustained when challenged
or when examined by the applicable taxing authority. Management has determined that there were no material uncertain income tax positions.
Tax returns filed by the Partnership generally are subject to examination by U.S. and state taxing authorities for the years ended after
December 31, 2020.

 Ohio
 – Commercial Activities Tax CAT

 The
Commercial Activity Tax (CAT) is an annual tax imposed on the privilege of doing business in Ohio, measured by gross receipts from business
activities in Ohio. Businesses with Ohio taxable gross receipts of $ 150,000 or more per calendar year are subject to the CAT tax. Such
"taxable gross receipts", include i) gross rents and royalties from real property located in Ohio, and ii) gross receipts
from the sale of real property located in Ohio. For calendar years 2006 and thereafter, the first $ 1 million in taxable gross receipts
are taxed at $ 150, thereafter at a rate of 0.2600 %. For tax years prior to December 31, 2013, there is an annual minimum tax (AMT) of
$ 150.

 The
Partnership has gross receipts in excess of $ 150,000 for the period ended December 31, 2023 so, the CAT tax of $ 150 is applicable to
the Partnership for the period indicated.

 NOTES

 Reportable
Segments

 The
Partnership considers its operations to be in only one segment, the operation of a portfolio of commercial real estate leased on a triple
net basis, and therefore no segment disclosure is made.

 Investment
Properties and Properties Held for Sale

of the Properties is provided on a straight-line basis over the estimated useful lives of the buildings and improvements.

 Deferred
charges represent leasing commissions paid when the Properties are leased and upon the negotiated extension of a lease. Leasing commissions
are capitalized and amortized over the term of the lease. As of December 31, 2023 and 2022, accumulated amortization amounted to $ 45,140
and $ 82,703, respectively. Leasing commissions of $ 206,051 related to Properties that were sold were removed from the balance sheet in
2023.

 If
the Partnership makes the decision to sell a Property, it is reclassed from investment properties to properties held for sale. When properties
are considered held for sale, depreciation of the properties is discontinued, and the properties are valued at the lower of the depreciated
cost or fair value, less costs to dispose. If circumstances arise that were previously considered unlikely, and, as a result, the property
previously classified as held for sale is no longer to be sold, the property is reclassified as held and used. Such property is measured
at the lower of its carrying amount (adjusted for any depreciation and amortization expense that would have been recognized had the property
been continuously classified as held and used) or fair value at the date of the subsequent decision not to sell.

 Assets
are classified as held for sale, generally, when all criteria within GAAP applicable to "Accounting for the Impairment or Disposal
of Long Lived Assets" have been met.

 Property
held for sale

 The
Martintown Rd Property in North Augusta, SC was listed for sale on December 22, 2021 and the listing contract expired in 2023. The
Property was sold without agency directly to the tenant on March 31, 2023.

 The
remaining three Wendy's Properties were listed for sale on July 12, 2023.

 The
components of the properties held for sale in the condensed balance sheets as of December 31, 2023 and December 31, 2022 are outlined
below:

 SCHEDULE OF PROPERTY HELD FOR SALE

 2023

 2022

 Balance Sheet:

 Land

 $

 $
 250,859

 Building

 1,810,991

 409,297

 Accumulated Depreciation

 ( 1,810,991
)

 ( 409,297
)

 Properties held for sale

 $

 $
 250,859

 The
Partnership periodically reviews its long-lived assets, primarily real estate, for impairment whenever events or changes in
circumstances indicate that the carrying amount of such assets may not be recoverable. The Partnership's review involves
comparing current and future operating performance of the assets, the most significant of which is undiscounted operating cash
flows, to the carrying value of the assets. Based on this analysis, a provision for possible loss would be recognized, if any. There
were no adjustments to carrying values for the fiscal years ended December 31, 2023 and 2022.

 Fair
Value Measurements

 FASB
guidance on "Fair Value Measurements and Disclosure" defines fair value, establishes a framework for measuring fair value
and enhances disclosures about fair value measures required under other accounting pronouncements, but does not change existing guidance
as to whether or not an instrument is carried at fair value. See Note 9 for further disclosure.

 GAAP
applicable to disclosure about fair value of financial instruments requires entities to disclose the fair value of all financial assets
and liabilities for which it is practicable to estimate. Fair value is defined as the amount at which the instrument could be exchanged
in a current transaction between willing parties, other than in a forced or liquidation sale. The General Partner believes that the carrying
value of the Partnership's assets (exclusive of the Properties) and liabilities approximate fair value due to the relatively short
maturity of these instruments.

 2.
 RECENTLY ISSUED ACCOUNTING PRINCIPLES

 None
that would have a significant impact on the Partnership.

 3.
 INVESTMENT PROPERTIES:

 The
total cost of the Properties includes the original purchase price plus acquisition fees and other capitalized costs paid to an affiliate
of the former general partners of the Partnership.

 NOTES

 As
of December 31, 2023, the Partnership owned three Properties, all of which contained fully constructed Wendy's
restaurants. The Properties are all located in South Carolina and are included in Properties held for sale.

 4.
 PARTNERSHIP AGREEMENT:

 The
Limited Partnership Agreement, as amended from time to time (collectively, the "Partnership Agreement") was amended, effective
as of October 20, 2020, to extend the term of the Partnership to November 30, 2023, or until dissolution prior thereto pursuant to the
consent of the majority of the outstanding limited partnership interests.

 Under
the terms of the Partnership Agreement, net profits or losses from operations are allocated 99 %
to the limited partners and 1 %
to the current General Partner. The agreement also provided for distributions from Net Cash
Receipts, as defined, to be made 99 %
to limited partners and 1 %
to the current General Partner, provided that quarterly distributions are cumulative and are not to be made to the current General
Partner unless and until each limited partner has received a distribution from Net Cash Receipts in an amount equal to 10 %
per annum, cumulative simple return on his or her Adjusted Original Capital, as defined, from the Return Calculation Date, as
defined, except to the extent needed by the General Partner to pay its federal and state income taxes on the income allocated to it
attributable to such year.

 The
provisions regarding distribution of Net Proceeds, as defined, provide that Net Proceeds are to be distributed as follows: (a) to the
limited partners, an amount equal to 100 % of their Adjusted Original Capital; (b) then, to the limited partners, an amount necessary
to provide each limited partner a liquidation preference equal to a 13.5 % per annum, cumulative simple return on Adjusted Original Capital
from the Return Calculation Date including in the calculation of such return on all prior distributions of Net Cash Receipts and any
prior distributions of Net Proceeds under this clause, except to the extent needed by the General Partner to pay its federal and state
income tax on the income allocated to it attributable to such year; and (c) then, to limited partners, 99 %, and to the General Partner,
 1 %, of remaining Net Proceeds available for distribution.

 During
the 2020 consent solicitation process, the Limited Partners approved two separate amendments to the Partnership Agreement. The amendments
served to: (i) extend the term of the Partnership by three (3) years to November 30, 2023, and (ii) permit the General Partner to effect
distributions at times that it deems appropriate, but no less often than semi-annually.

 5.
 TRANSACTIONS WITH GENERAL PARTNER AND ITS AFFILIATES:

 Pursuant
to the terms of the Permanent Manager Agreement (the "PMA") executed in 1993 and renewed for an additional two-year term
as of January 1, 2023, the General Partner receives a Base Fee for managing the Partnership equal to four percent of gross receipts,
subject to an initial annual minimum amount of $ 159,000. The PMA also provides that the Partnership is responsible for reimbursement
of the General Partner for office rent and related office overhead ("Expenses") up to an initial annual maximum of $ 13,250.
Both the Base Fee and Expense reimbursement are subject to annual Consumer Price Index based adjustments. Effective March 1, 2021, Management
has elected to roll back the last five years of CPI increases to their 2016 level and suspend any future CPI adjustments. Therefore,
as of March 1, 2021, the minimum annual Base Fee paid by the Partnership was decreased to $ 272,316 and the maximum annual Expenses reimbursement
remained at $ 23,256.

 For
purposes of computing the four percent overall fees, gross receipts include amounts recovered in connection with the misappropriation
of assets by the former general partners and their affiliates. The fees received from the Partnership on the amounts recovered reduce
the four percent minimum fee by that same amount.

 NOTES

 Amounts
paid and/or accrued to the General Partner and its affiliates for the years ended December 31, 2023 and 2022, are as follows:

 SCHEDULE OF AMOUNTS PAID AND/OR ACCRUED TO GENERAL PARTNER AND ITS AFFILIATES

 Incurred for the
Year ended
2023

 Incurred for the
Year ended
2022

 General Partner

 Management fees (including non-contractual assumption of independent financial services)

 $

 $

 Overhead allowance

 23,256

 23,256

 Sales commissions

 267,899

 34,822

 Reimbursement for out-of-pocket expenses

 2,500

 2,500

 Distributions declared

 56,882

 9,560

 Amounts paid and/or accrued to General Partner

 $
 622,853

 $
 342,454

 At
December 31, 2023 and 2022, $ 29,048 and $ 2,090, respectively, were the distributions payable to the General Partner.

 6.
 TRANSACTIONS WITH OWNERS WITH GREATER THAN TEN PERCENT BENEFICIAL INTERESTS:

 As
of December 31, 2023, an Advisory Board Member, Jesse Small, beneficially owns greater than ten percent of the Partnership's outstanding
limited partnership interests. Amounts paid to Mr. Small for the fiscal years ended December 31, 2023 and 2022 are as follows:

 SCHEDULE OF ADVISORY BOARD FEES PAID TO JESSE SMALL

 2023

 2022

 Advisory Board Fees paid

 $
 3,000

 $
 3,500

 $
 3,000

 $
 3,500

 At
December 31, 2023 and 2022, there were no outstanding Advisory Board fees accrued and payable to Mr. Small.

 7.
 CONTINGENT LIABILITIES:

 According
to the Partnership Agreement, TPG, as General Partner of the Partnership, may receive a disposition fee not to exceed three percent of
the contract price on the sale of the properties of the Partnership and two affiliated publicly registered limited partnerships, DiVall
Insured Income Fund Limited Partnership ("DiVall 1"), which was dissolved December 1998, and DiVall Income Properties 3 Limited
Partnership, which was dissolved in December 2003 ("DiVall 3"), and together with the Partnership and DiVall 1, the "three
original partnerships"). In addition, fifty percent of all such disposition fees earned by TPG were to be escrowed until the aggregate
amount of recovery of the funds misappropriated from the three original partnerships by the former general partners was greater than
$ 4,500,000. Upon reaching such recovery level, full disposition fees would thereafter be payable and fifty percent of the previously
escrowed amounts would be paid to TPG. At such time as the recovery exceeded $ 6,000,000 in the aggregate, the remaining escrowed disposition
fees were to be paid to TPG. If such levels of recovery were not achieved, TPG would contribute the amounts escrowed toward the recovery
until the three original partnerships were made whole. In lieu of a disposition fee escrow, fifty percent of all such disposition fees
previously discussed were paid directly to a restoration account and then distributed among the three original partnerships; whereby
the three original partnerships recorded the recoveries as income. After the recovery level of $ 4,500,000 was exceeded, fifty percent
of the total disposition fee amount paid to the three original partnerships recovery through the restoration account (in lieu of the
disposition fee escrow) was refunded to TPG during March 1996. The remaining fifty percent amount allocated to the Partnership through
the restoration account, and which was previously reflected as Partnership recovery income, may be owed to TPG if the $ 6,000,000 recovery
level is met. As of December 31, 2023, the Partnership may owe TPG $ 16,296 if the $ 6,000,000 recovery level is achieved. TPG does not
expect any future refund, as it is uncertain that such a $ 6,000,000 recovery level will be achieved.

 NOTES

 7.
CONTINGENT LIABILITIES (cont'd):

 As
per the Partnership Agreement, it has been the consistent practice of the Partnership to compensate the General Partner ("G.P.")
for leasing and property sales commissions. To the extent a particular property is sold, any unamortized leasing commissions earned previously
by the G.P. for a property is applied as a reduction to the sales commission due the G.P.

 During
2021, six (6) Wendy's leases were extended twenty (20) years through 2040 with significant increases in fixed rents. Such extended
terms and future rentals are subject to market leasing commissions for the G.P. not to exceed 3 %, subject to the G.P.'s discretion.

 Although
the lease terms were extended twenty (20) years through December 31, 2040 and a 3 % commission would equate to $ 609,138 on guaranteed
fixed rentals, the G.P. believes a market negotiation would limit any lease commission to the first 10 years of term. Accordingly, the
commission for ten (10) years would equate to $ 304,569 payable on the commencement date of the extended term as of January 1, 2021. However,
it is the policy of the Partnership to reduce extended commissions due by the unamortized balance of deferred leasing commissions previously
paid. In the instant case, the unamortized balance remaining at December 31, 2020 for the previous term through November 6, 2026 for
the six (6) properties was $ 81,935; which reduces the commission due on January 1, 2021 to $ 222,634. If these properties are sold in two years the only amortized commission would be $ 44,526 and the balance paid of
$ 178,108 would reduce the future property sales commissions earned by $ 178,108. The Partnership made installment payments to the G.P.
during 2021 to satisfy the obligation.

 The impact of the General Partner initiated policy of reducing sales commissions (up to 3% of sales price) by the
unamortized leasing commissions at date of sale can be summarized below:

 SCHEDULE OF NET OF
UNAMORTIZED LEASING COMMISSION

 TPG Sales Commission Paid

 (Net of unamortized leasing commission)

 Property

 Amount

 Percentage

 2022 Sales

 Walton Way

 $
 34,821.79

 2.18
 %

 2023 Sales

 Martintown Rd

 $
 31,012.68

 2.30
 %

 Mt Pleasant, SC

 66,225.91

 2.06
 %

 Applebee's

 21,250.00

 1.00
 %

 Peach Orchard

 77,282.53

 2.02
 %

 Whiskey Rd

 72,128.03

 1.90
 %

 $
 267,899.15

 Had
leasing commissions been paid on the full twenty-year extension terms of the six (6) extended Wendy's leases, there would have
been only, approximately, a 1 % sales commission due on the five (5) Wendy's sold in 2023 after the related unamortized leasing
commissions.

 These
commission terms were negotiated in 1993 in exchange for eliminating the 10 %
General Partner distribution percentage from the Partnership Agreement as then in effect.

 8.
 PMA INDEMNIFICATION TRUST:

 The
PMA provides that TPG will be indemnified from any claims or expenses arising out of, or relating to, TPG serving as the General Partner,
so long as such claims do not arise from fraudulent or criminal misconduct by TPG. The PMA provides that the Partnership fund this indemnification
obligation by establishing a reserve of up to $ 250,000 of Partnership assets which would not be subject to the claims of the Partnership's
creditors. An Indemnification Trust ("Trust") serving such purposes has been established at United Missouri Bank, N.A. The
corpus of the Trust has been fully funded with Partnership assets. Funds are invested in U.S. Treasury securities. In addition, $ 230,139
of earnings has been credited to the Trust as of December 31, 2023. The rights of TPG to the Trust will be terminated upon the earliest
to occur of the following events: (i) the written release by TPG of any and all interest in the Trust; (ii) the expiration of the longest
statute of limitations relating to a potential claim which might be brought against TPG and which is subject to indemnification; or (iii)
a determination by a court of competent jurisdiction that TPG shall have no liability to any person with respect to a claim which is
subject to indemnification under the PMA. At such time as the indemnity provisions expire or the full indemnity is paid, any funds remaining
in the Trust will revert back to the general funds of the Partnership.

 9.
 FAIR VALUE DISCLOSURES:

 The
Partnership has determined the fair value based on hierarchy that gives the highest priority to quoted prices in active markets for identical
assets and liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). Inputs are broadly defined as assumptions
market participants would use in pricing an asset or liability. The three levels of the fair value hierarchy under the accounting principle
are described below:

 Level
 1.

 Quoted
 prices in active markets for identical assets or liabilities.

 Level
 2.

 Quoted
 prices for similar investments in active markets, quoted prices for identical or similar investments in markets that are not active,
 and inputs other than quoted prices that are observable for the investment.

 Level
 3.

 Unobservable
 inputs for which there is little, if any, market activity for the investment. The inputs into the determination of fair value are
 based upon the best information in the circumstances and may require significant management judgment or estimation and the use of
 discounted cash flow models to value the investment.

 The
fair value hierarchy is based on the lowest level of input that is significant to the fair value measurements. The Partnership's
assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors
specific to the investment. The assets held in the indemnification trust account are invested in one year treasury bills which are measured
using level 1 fair value inputs.

 Except
for the U.S. Treasury securities held by the PMA Indemnification Trust which are Level 1 securities, the Partnership did not have any
assets or liabilities measured at fair value on a recurring or nonrecurring basis at December 31, 2023 and 2022.

 10.
 SUBSEQUENT EVENTS

 We
have reviewed all material events through the date of the issuance of this report in accordance with ASC 855-10.

 Item
9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

 See
Item 14.

 Item
9A. Control and Procedures

 Disclosure
Controls and Procedures.

 Under
the supervision and with the participation of management, including the persons performing the functions of principal executive officer
and principal financial officer of the Partnership, evaluated the effectiveness of the design and operation of our disclosure controls
and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the "Exchange Act")), and, based upon
that evaluation, concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective
in ensuring that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded,
processed, summarized and reported within the time periods specified in applicable rules and forms and that such information is accumulated
and communicated to management in a manner that allows timely decisions regarding required disclosure.

 (b)
Internal Control Over Financial Reporting. The General Partner, through its management, is responsible for establishing and maintaining
adequate internal control over our financial reporting, as defined in Rule 13a-15(f) under the Exchange Act, and for performing an assessment
of the effectiveness of our internal control over financial reporting as of December 31, 2023. Internal control over financial reporting
is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with US GAAP. Our system of internal control over financial reporting includes those policies
and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions
and dispositions of the assets of the Company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with US GAAP, and that receipts and expenditures of the Company are being made only
in accordance with authorizations of management of the General Partner; and (iii) provide reasonable assurance regarding prevention or
timely detection of unauthorized acquisition, use, or disposition of the Company's assets that could have a material effect on
the financial statements.

 Management
of the General Partner performed an assessment of the effectiveness of our internal control over financial reporting as of December 31,
2023 based upon criteria in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway
Commission ("COSO"). Based on our assessment, management of the General Partner determined that our internal control over
financial reporting was effective as of December 31, 2023 based on the criteria in Internal Control-Integrated Framework (2013) issued
by the COSO.

 This
annual report does not include an attestation report of our registered public accounting firm regarding internal control over financial
reporting. Management's report was not subject to attestation by our registered public accounting firm pursuant to rules of the
Securities and Exchange Commission that permit us to provide only management's report in this annual report.

 (ii)
During the most recent period covered by this report, there has been no change in our internal control over financial reporting (as defined
in Rule 13a-15(f) under the Exchange Act) that has materially affected, or is reasonably likely to materially affect, our internal control
over financial reporting.

 Item
9B. Other Information

 During the fiscal quarter ended December 31,
2023, none of the General Partner, nor any affiliate thereof, adopted or t erminated any contract, instruction or written plan for the
purchase or sale of any of the Partnership's securities that was intended to satisfy the affirmative defense conditions of Rule
10b5-1(c) or any "non-Rule 10b5-1 trading arrangement."

 Item 9C. Disclosure Regarding Foreign Jurisdictions
that Prevent Inspections

 None.

 PART
III

 Item
10. Directors and Executive Officers of the Registrant

 The
Partnership itself does not have any employees, executive officers or directors and, therefore, has no board committees.

 The
General Partner of the Partnership is TPG. TPG's principal office is located at 1900 W 75 th Street, Suite 100, Prairie
Village, Kansas 66208. TPG was elected General Partner by vote of the Limited Partners effective on May 26, 1993. Prior to such date,
TPG had been managing the Partnership since February 8, 1993, under the terms of the PMA, which remains in effect. See Items 1 and 13
hereof for additional information about the PMA and the election of TPG as General Partner.

 The
executive officer and director of the General Partner who controls the affairs of the Partnership is:

 Bruce
A. Provo, Age –73 - President, Founder and Director, TPG.

 Mr.
Provo has been involved in the management of real estate and other asset portfolios since 1979. TPG was founded by Mr. Provo in 1985
and he has served as its President since its formation. TPG's focus has been to provide professional real estate services to outside
clients. Since the founding of TPG in 1985, Mr. Provo has also founded various entities engaged in unique businesses such as Rescue Services,
Owner Representation, Asset Management, Managed Financial and Accounting Systems, Investments, and Virtual Resort Services. The entities
are generally grouped under an informal umbrella known as The Provo Group of Companies. Since TPG was appointed General Partner to the
Partnership in 1993, Mr. Provo has been primarily responsible for making management, leasing and disposition decisions on behalf of the
Partnership.

 From
1982 to 1986, Mr. Provo also served as President and Chief Operating Officer of the North Kansas City Development Company ("NKCDC"),
North Kansas City, Missouri. NKCDC was founded in 1903 and the assets of the company were sold in December 1985 for $102,500,000. NKCDC
owned commercial and industrial properties, including an office park and a retail district, as well as apartment complexes, motels, recreational
facilities, fast food restaurants, and other properties. NKCDC's holdings consisted of over 100 separate properties and constituted
approximately 20% of the privately held real property in North Kansas City, Missouri (a four-square mile municipality). Following the
sale of the company's real estate, Mr. Provo served as the President, Chief Executive Officer and Liquidating Trustee of NKCDC
from 1986 to 1991.

 Mr.
Provo graduated from Miami University, Oxford, Ohio in 1972 with a B.S. in Accounting. He became a Certified Public Accountant in 1974
and was a manager in the banking and financial services division of Arthur Andersen LLP prior to joining Rubloff Development Corporation
in 1979. From 1979 through 1985, Mr. Provo served as Vice President - Finance and then as President of Rubloff Development Corporation.

 The
members of the Advisory Board of the Partnership are identified below. The Advisory Board provides guidance to management of the Partnership;
however, it does not have the express power or authority to oversee and direct the operations of the Partnership and its members are
not deemed "Directors" or "Executive Officers" of the Partnership.

 Jesse
Small – CPA. Mr. Small has been a tax and business consultant in Hallandale, FL for more than 30 years. Mr. Small has a
Master's Degree in Economics. Mr. Small is a Limited Partner, and the Partnership believes that as an Advisory Board member, he
generally represents the views of Limited Partners. During the past five years after retiring from the accounting profession, Mr. Small
has been developing property on the east and west coast of Florida.

 Albert
Kramer - Retired. Mr. Kramer is now retired, but previously worked as Tax Litigation Manager for Phillips Petroleum Company,
now known as ConocoPhillips. His education includes undergraduate and MBA degrees from Harvard and a J.D. Degree from South Texas College
of Law. Mr. Kramer is a Limited Partner, and the Partnership believes that as an Advisory Board member he generally represents the views
of Limited Partners.

 Code
of Ethics

 The
Partnership has no executive officers or any employees and, accordingly, has not adopted a formal code of ethics.

 Mr.
Provo and TPG require that all personnel, including all employees, officers and directors of TPG: engage in honest and ethical conduct;
ensure full, fair, accurate, timely and understandable disclosure; comply with all applicable governmental laws, rules and regulations;
and report to Mr. Provo any deviation from these principles. Because TPG has two employees (including Mr. Provo), and because Mr. Provo
is the ultimate decision maker in all instances, TPG has not adopted a formal code of ethics. Mr. Provo, as Chief Executive Officer and
Chairman of the Board of Directors of TPG, negotiates and resolves all conflicts to the best of his ability and determines appropriate
actions if necessary to deter violations and promote accountability, consistent with his fiduciary obligations to TPG and the fiduciary
obligations of TPG to the Partnership.

 Delinquent
Section 16(a) Reports

 Section
16(a) of the Exchange Act requires persons performing the functions of directors, executive officers, and persons who beneficially own
more than ten percent of a registered class of our equity securities to file with the SEC initial reports of ownership and reports of
changes in ownership of common stock and other equity securities of the Company. Executive officers, directors and greater than ten percent
stockholders are required by SEC regulations to furnish us with copies of all Section 16(a) forms they file.

 To
our knowledge, based solely upon a review of Forms 3 and 4 and amendments thereto furnished to us during the fiscal
year ended December 31, 2023, Forms 5 and any amendments thereto furnished to us with respect to the fiscal year ended December 31, 2023,
and the representations made by the reporting persons to us, we believe that during the fiscal year ended December 31, 2023, our executive
officers and directors and all persons who own more than ten percent of a registered class of our equity securities complied with all
Section 16(a) filing requirements.

 Item
11. Executive Compensation

 The
Partnership has not paid any executive compensation to the General Partner or to the directors and officers of the General Partner. The
person that performs the role of principal financial officer of the Partnership is a consultant to the General Partner and receives fees
from the General Partner (but not directly from the Partnership) pursuant to that relationship. The General Partner's participation
in the income of the Partnership is set forth in the Partnership Agreement, as amended. The General Partner received management fees
and expense reimbursements during the year.

 See
Item 13, below, and Note 5 to the Financial Statements in Item 8 hereof for further discussion of payments by the Partnership to the
General Partner and the former general partners. The principal executive officer of the General Partner is not directly compensated by
the Partnership for controlling the affairs of the Partnership.

 Item
12. Security Ownership of Certain Beneficial Owners and Management

 (a)
The following table sets forth certain information with respect to such beneficial ownership of the Partnership as of March 1, 2024.
Based on information known to the Partnership or filed by limited partners with the SEC, the following persons are known to beneficially
own 5% or more of the outstanding Interests as follows:

 Interests

 Percentage of

 Title of

 Name and Address of

 Beneficially

 Interests

 Class

 Beneficial Owner

 Owned

 Outstanding (1)

 Limited Partnership Interest

 Jesse Small

 7,519.94

 16.25
 %

 401 NW 10 th Terrace

 Hallandale, FL33009

 Limited Partnership Interest

 Ira Gaines

 4,160.03

 8.99
 %

 1819 E. Morten Ave. Suite 180

 Phoenix, AZ 85020

 Limited Partnership Interest

 Barry Zemel

 2,882.20

 6.23
 %

 1819 E. Morten Ave. Suite 180

 (1)
Based on 46,280.3 Interests outstanding as of March 1, 2024.

 (b)
As of March 1, 2024, the General Partner and the person who performs the functions of the principal executive officer of the General
Partner did not beneficially own any Interests.

 (c)
Management knows of no contractual arrangements, the operation or the terms of which may at a subsequent date result in a change of control
of the Partnership, except for provisions in the PMA.

 Item
13. Certain Relationships and Related Transactions and Director Independence

 Pursuant
to the terms of the PMA, the General Partner receives a Base Fee for managing the Partnership equal to four percent of gross receipts,
subject to a $159,000 minimum, annually. The PMA also provides that the Partnership is responsible for reimbursement for office rent
and related office overhead ("Expenses") up to a maximum of $13,250 annually. Both the Base Fee and Expense reimbursement
are subject to annual Consumer Price Index based adjustments. Effective March 1, 2021, the General Partner elected to roll back the last five
years of CPI increases to their 2016 level and suspend any future CPI adjustments. Therefore, as of March 1, 2021, the minimum annual
Base Fee paid by the Partnership was decreased to $272,316 and the maximum annual Expenses reimbursement remained at $23,256.

 Additionally,
TPG, or its affiliates, are allowed up to one-half of the commissions customarily charged by other brokers in arm's-length sales
transactions involving comparable properties in the same geographic area, but such TPG commissions are not to exceed three percent of
the contract price on the sale of an investment property. The payment of a portion of such fees is subordinated to TPG's success
at recovering the funds misappropriated by the former general partners. See Note 7 to the financial statements for further information.

 The
PMA had an original expiration date of December 31, 2002. The term of the PMA has been extended multiple times and is currently set to
expire on December 31, 2024. The PMA can be terminated earlier (a) by a vote at any time by a majority in interest of the Limited Partners,
(b) upon the dissolution and winding up of the Partnership, (c) upon the entry of an order of a court finding that TPG has engaged in
fraud or other like misconduct or has shown itself to be incompetent in carrying out its duties under the Partnership Agreement, or (d)
upon sixty (60) days written notice from TPG to the Limited Partners of the Partnership. Upon termination of the PMA, other than by the
voluntary action of TPG, TPG will be paid a termination fee of one month's Base Fee allocable to the Partnership, subject to a
minimum of $13,250. In the event that TPG is terminated by action of a substitute general partner, TPG shall also receive, as part of
this termination fee, 4% of any proceeds recovered with respect to the obligations of the former general partners, whenever such proceeds
are collected.

 Under
the PMA, TPG will be indemnified by the Partnership, DiVall and Magnuson, and their controlled affiliates, and held harmless from all
claims of any party to the Partnership Agreement and from any third party including, without limitation, the Limited Partners of the
Partnership, for any and all liabilities, damages, costs and expenses, including reasonable attorneys' fees, arising from or related
to claims relating to or arising from the PMA or its status as Permanent Manager. The indemnification does not extend to claims arising
from fraud or criminal misconduct of TPG as established by court findings. To the extent possible, the Partnership is to provide TPG
with appropriate errors and omissions, officer's liability or similar insurance coverage, at no cost to TPG. In addition, TPG was
granted the right to establish an Indemnification Trust in an original amount, not to exceed $250,000, solely for the purpose of funding
such indemnification obligations. Once a determination has been made that no such claims can or will be made against TPG, the balance
of the Trust will become unrestricted property of the Partnership. The corpus of the Trust has been fully funded with Partnership assets.

 Advisory
Board Member Independence

 Although
not "directors" or "officers" of the Partnership, the Partnership does evaluate whether the members of the Advisory
Board are "independent" by evaluating whether each member has any relationships or has engaged in any transactions that,
in the opinion of the General Partner, would interfere with any Advisory Board member's exercise of independent judgment with respect
to matters concerning the Partnership. As a part of this evaluation the General Partner considers, among other things, transactions and
relationships between any member of the Advisory Board or any member of his family and the Partnership. The General Partner believes
that each of Messrs. Small and Kramer are "independent".

 The
Partnership paid and/or accrued the following to the General Partner and its affiliates in 2023 and 2022:

 Incurred for the
Year ended
2023

 Incurred for the
Year ended
2022

 General Partner

 Management fees (including non-contractual assumption of independent financial services)

 $

 $

 Overhead allowance

 23,256

 23,256

 Sales commissions

 267,899

 34,822

 Reimbursement for out-of-pocket expenses

 2,500

 2,500

 Cash distribution

 56,882

 9,560

 $
 622,853

 $
 342,454

 Item
14. Principal Accountant Firm Fees and Services

 Audit
Fees

 Aggregate
billings for the fiscal year ended December 31, 2023 and 2022 for audit and interim review services provided to the Partnership by its
principal accounting firm, Boulay PLLP amounted to $59,093 and $48,573, respectively.

 Audit-Related
Fees

 For
the fiscal years ended December 31, 2023 and 2022, Boulay PLLP did not perform any assurance and related services that were reasonably
related to the performance of the audit or interim reviews.

 Tax
Fees

 Aggregate
billings for the fiscal year ended December 31, 2023 and 2022, for tax preparation services provided to the Partnership by its principal
accounting firm, Boulay PLLP amounted to $28,050 and $32,028, respectively.

 All
Other Fees

 For
the fiscal years ended December 31, 2023 and 2022, Boulay PLLP did not perform any management consulting or other services for the Partnership.

 PART
IV

 Item
15. Exhibits and Financial Statement Schedule

 (a)

 1.

 Financial
 Statements

 The
 following financial statements of DiVall Insured Income Properties 2 Limited Partnership are included in Part II, Item 8 of this
 Annual Report on Form 10-K:

 Report of Independent Registered Public Accounting Firm

 Balance Sheets at December 31, 2023 and 2022

 Statements of Income for the Years Ended December 31, 2023 and 2022

 Statements of Partners' Capital for the Years Ended December 31, 2023 and 2022

 Statements of Cash Flows for the Years Ended December 31, 2023 and 2022

 Notes to Financial Statements

 2.

 Financial
 Statement Schedule

 Schedule III – Investment Properties and Accumulated Depreciation, December 31, 2023

 All
 other schedules for which provision is made in the applicable accounting regulation of the Securities and Exchange Commission are
 not required under the related instruction or are inapplicable and, therefore, have been omitted.

 3.

 Listing
 of Exhibits

 3.1

 Agreement
 of Limited Partnership dated as of November 20, 1987, amended as of November 25, 1987, and February 20, 1988, filed as Exhibit 3A
 to Amendment No. 1 to the Partnership's Registration Statement on Form S-11 as filed on February 22, 1988, and incorporated
 herein by reference.

 3.2

 Amendments
 to Amended Agreement of Limited Partnership dated as of June 21, 1988, included as part of Supplement dated August 15, 1988, filed
 under Rule 424(b)(3), and incorporated herein by reference.

 3.3

 Amendment
 to Amended Agreement of Limited Partnership dated as of February 8, 1993, filed as Exhibit 3.3 to the Partnership's 10-K for
 the year ended December 31, 1992, Commission File 0-17686, and incorporated herein by reference.

 3.4

 Amendment
 to Amended Agreement of Limited Partnership dated as of May 26, 1993, filed as Exhibit 3.4 to the Partnership's 10-K for the
 year ended December 31, 1993, Commission File 0-17686, and incorporated herein by reference.

 3.5

 Amendment
 to Amended Agreement of Limited Partnership dated as of June 30, 1994, filed as Exhibit 3.5 to the Partnership's 10-K for the
 year ended December 31, 1994, Commission File 0-17686, and incorporated herein by reference.

 3.6

 Amendment to Amended Agreement of Limited Partnership dated as of November 9, 2009, filed as Exhibit 4.1 to the Partnership Quarterly Report on Form 10-Q filed November 12, 2009, Commission File 0-17686, and incorporated herein by reference.

 3.7

 Amendment to Amended Agreement of Limited Partnership dated as of October 22, 2020, filed as Exhibit 4.7 to the Partnership Quarterly Report on Form 10-Q filed November 13, 2020, Commission File 0-17686, and incorporated herein by reference.

 3.8

 Certificate of Limited Partnership dated November 20, 1987. Commission File 0-17686, filed March 22, 2013, and incorporated herein by reference.

 4.1

 Description of Securities, filed as exhibit 4.1 to the Annual Report on 10-K dated March 27, 2023, Commission File 0-17686, and incorporated herein by reference.

 10.0

 Permanent
 Manager Agreement filed as an exhibit to the Current Report on Form 8-K dated January 22, 1993, Commission File 33-18794, and incorporated
 herein by reference.

 10.5

 Amended and Restated Restaurant Absolutely Net Lease, Wendy's Restaurant, 343 Folly Road, Charleston, South Carolina, filed as exhibit 10.2 to the Current Report on Form 8-K dated July 28, 2021, Commission File 0-17686, and incorporated herein by reference.

 10.6

 Amended and Restated Restaurant Absolutely Net Lease, Wendy's Restaurant,1721 Sam Rittenberg, Charleston, South Carolina, filed as exhibit 10.3 to the Current Report on Form 8-K dated July 28, 2021, Commission File 0-17686, and incorporated herein by reference.

 31.1

 Sarbanes Oxley Section 302 Certifications.

 31.2

 Sarbanes Oxley Section 302 Certifications.

 32.1

 Certification of Periodic Financial Report Pursuant to 18 U.S.C. Section 1350.

 99.0

 Internal Financial Statements of JAI Hospitality RG, LLC for the fiscal years ended January 1, 2023 and December 31, 2023.

 99.1

 Internal Financial Statements of JAI Augusta, LLC for the fiscal year ended December 31, 2023.

 The
 Reporting Language): (i) Balance Sheets at December 31, 2023 and December 31, 2022, (ii) Statements of Income for the years ended
 December 31, 2023 and 2022, (iii) Statement of Cash Flows for the years ended December 31, 2023 and 2022, and (iv) Notes to the Financial
 Statements.

 Item
16. Form 10-K Summary

 None.

 SCHEDULE
III – INVESTMENT PROPERTIES AND ACCUMULATED DEPRECIATION

31, 2023

 Initial Cost

 to Partnership

 Costs

 Capitalized

 Subsequent

 Gross Amount at which

 Carried at End of Year

 in Life on which

 latest statement of

 operations is

 Building and

 to

 Building and

 Accumulated

 Date of

 Date

 computed

 Property

 Encumbrances

 Land

 Improvements

 Acquisitions

 Land

 Improvements

 Total

 Construction

 Acquired

 (years)

 Charleston, SC

 -

 $
 273,619

 $
 323,162

 $
 -

 $
 273,619

 $
 323,162

 $
 596,781

 $
 323,162

 -

 12/22/1988

 31.5

 Charleston, SC

 -

 273,625

 254,500

 -

 273,625

 254,500

 528,125

 254,500

 -

 2/21/1989

 31.5

 Aiken, SC

 -

 178,521

 455,229

 -

 178,521

 455,229

 633,750

 455,229

 -

 3/14/1989

 31.5

 $
 -

 $

 $
 1,032,891

 $
 -

 $

 $
 1,032,891

 $
 1,758,656

 $
 1,032,891

 SCHEDULE
III – INVESTMENT PROPERTIES AND ACCUMULATED DEPRECIATION

31, 2023

 (B)
Reconciliation of "Investment Properties and Accumulated Depreciation":

 Year Ended

 Year Ended

 Year Ended

 Year Ended

 Investment

 Accumulated

 Properties

 2023

 2022

 2023

 2022

 Balance at beginning of year

 $
 4,788,815

 $
 4,788,815

 Balance at beginning of year

 $
 2,843,881

 $
 2,843,881

 Additions charged to costs and expenses

 -

 -

 Deletions:

 Deletions:

 Sale of Mt Pleasant, SC property

 (546,947
)

 Sale of Mt Pleasant, SC property

 (294,878
)

 Sale of Columbus, OH property

 (1,059,464
)

 Sale of Columbus, OH property

 (708,139
)

 Sale of Peach Orchard Rd, Augusta, GA Property

 (647,404
)

 Sale of Peach Orchard Rd Property

 (434,178
)

 Sale of Whiskey Rd, Aiken, SC Property

 (776,344
)

 Sale of Whiskey Rd Property

 (373,795
)

 Balance at end of year

 $
 1,758,656

 $
 4,788,815

 Balance at end of year

 $
 1,032,891

 $
 2,843,881

 SIGNATURES

 Pursuant
to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.

 INSURED INCOME PROPERTIES 2, L.P.

 By:

 /s/
 Bruce A. Provo

 President,
 Chief Executive Officer and Director of The Provo Group, Inc., the General Partner of the Partnership

 (principal
 executive officer of the registrant)

 By:

 /s/
 Lynette L. DeRose

 Chief
 Financial Officer of the Partnership

 (principal
 financial officer and principal accounting officer of the registrant)

 By:

 THE
 PROVO GROUP, INC., General Partner

 By:

 /s/
 Bruce A. Provo

 President,
 Chief Executive Officer and

 Director
 of The Provo Group, Inc., the General Partner of the Partnership

 (principal
 executive officer of the registrant)

 Dated:
April 1, 2024

 Pursuant
to the requirements of the Securities Exchange Act of 1934, the report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the dates indicated.

 By:

 /s/
 Bruce A. Provo

 President,
 Chief Executive Officer and Director of The Provo Group, Inc., the General Partner of the Partnership

 By:

 /s/
 Caroline E. Provo

 Director
 of The Provo Group, Inc., the General

 Partner
 of the Partnership

 Date:
April 1, 2024