DIVALL INSURED INCOME PROPERTIES 2 LIMITED PARTNERSHIP

SCHEDULE III – INVESTMENT PROPERTIES AND ACCUMULATED DEPRECIATION

DECEMBER 31, 2011


			Initial Cost to Partnership						Gross Amount at which Carried at End of Year												Life on which Depreciation in
Property	Encumbrances		Land		Building and Improvements		Costs Capitalized Subsequent to Acquisitions		Land		Building and Improvements		Total		Accumulated Depreciation		Date of Construction		Date Acquired		latest statement of operations is computed (years)
Santa Fe, NM		—		—		451,230		—		—		451,230		451,230		332,682		—		10/10/88		31.5
Augusta, GA (2)		—		215,416		434,178		—		213,226		434,177		647,403		324,110		—		12/22/88		31.5
Charleston, SC		—		273,619		323,162		—		273,619		323,162		596,781		241,238		—		12/22/88		31.5
Aiken, SC		—		402,549		373,795		—		402,549		373,795		776,344		277,917		—		2/21/89		31.5
Augusta, GA		—		332,154		396,659		—		332,154		396,659		728,813		294,916		—		2/21/89		31.5
Mt. Pleasant, SC (3)		—		286,060		294,878		—		252,069		294,878		546,947		219,242		—		2/21/89		31.5
Charleston, SC		—		273,625		254,500		—		273,625		254,500		528,125		189,221		—		2/21/89		31.5
Aiken, SC		—		178,521		455,229		—		178,521		455,229		633,750		338,463		—		3/14/89		31.5
Des Moines, IA (1) (4)		—		164,096		448,529	$	296,991		161,996		560,057		722,053		423,284		1989		8/1/89		31.5
North Augusta, SC		—		250,859		409,297		—		250,859		409,297		660,156		290,670		—		12/29/89		31.5
Martinez, GA		—		266,175		367,575		—		266,175		367,575		633,750		261,041		—		12/29/89		31.5
Columbus, OH		—		351,325		708,141		—		351,325		708,140		1,059,465		491,991		—		6/1/90		31.5

	$	0	$	2,994,399	$	4,917,173	$	296,991	$	2,956,118	$	5,028,699	$	7,984,817	$	3,684,775

(1)	This property was written down to its estimated net realizable value at December 31, 1998.

(2)	In the Fourth Quarter of 2001, a portion of the land was purchased from the Partnership by the County Commission for utility and maintenance easement.

(3)	In the Fourth Quarter of 2010, a portion of the land was reclassified to property held for as the City of Charleston is to purchase the land for right of way purposes.

(4)	Building improvements were incurred at the property during the fourth quarter of 2009.

DIVALL INSURED INCOME PROPERTIES 2 LIMITED PARTNERSHIP

SCHEDULE III – INVESTMENT PROPERTIES AND ACCUMULATED DEPRECIATION

DECEMBER 31, 2011

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


Investment Properties	Year Ended December 31, 2011			Year Ended December 31, 2010			Accumulated Depreciation	Year Ended December 31, 2011			Year Ended December 31, 2010
Balance at beginning of year	$	9,732,826		$	10,022,119		Balance at beginning of year	$	4,178,495		$	4,260,745
Additions:							Additions charged to costs and expenses		164,467			173,052
Deletions:
Vacant- Park Forest, IL reclassified and sold (1)					(255,302	)	Vacant- Park Forest, IL reclassified and sold (1)					(255,302	)
Wendy's- North Augusta, SC reclassified (2)					(33,991	)
Vacant- Phoenix, AZ property impairment write-down (3)		(390,117	)
Vacant- Phoenix, AZ property reclassified (4)		(475,782	)
Denny's- Phoenix, AZ property impairment write-down (5)		(104,705	)						(325,782	)
Denny's- Phoenix, AZ reclassified and sold (6)		(777,405	)						(332,405	)

Balance at end of year	$	7,984,817		$	9,732,826		Balance at end of year	$	3,684,775		$	4,178,495

(1)	The property was reclassified to property held for sale in the third quarter of 2010 and sold in the fourth quarter of 2010.

(2)	A portion of the land was reclassified to property held for sale in the fourth quarter of 2010 as the City of Charleston is to purchase the land for right of way purposes.

(3)	The property was written-down to its estimated fair value of $150,000 during the fiscal year 2011.

(4)	The property was reclassified to property held for sale in the third quarter of 2011.

(5)	The property was written-down to its estimated fair value, less costs to sale, of $475,000 during the third quarter of 2011.

(6)	The property was reclassified to property held for sale in the third quarter of 2011 and sold in the fourth quarter of 2011.