UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C.  20549

                           FORM 10-QSB

           Quarterly Report Under Section 13 or 15(d)
             of The Securities Exchange Act of 1934

           For the Quarter Ended:  September 30, 2003

               Commission file number:  000-30449


                   AEI INCOME & GROWTH FUND 23 LLC
(Exact Name of Small Business Issuer as Specified in its Charter)


      State of Delaware                    41-1922579
(State or other Jurisdiction of         (I.R.S. Employer
Incorporation or Organization)        Identification No.)


    30 East 7th Street, Suite 1300, St. Paul, Minnesota 55101
            (Address of Principal Executive Offices)

                          (651) 227-7333
                   (Issuer's telephone number)


                         Not Applicable
 (Former name, former address and former fiscal year, if changed
                       since last report)

Check  whether  the issuer (1) 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 for 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 [X]   No

         Transitional Small Business Disclosure Format:

                        Yes       No [X]




                 AEI INCOME & GROWTH FUND 23 LLC


                              INDEX




PART I. Financial Information

 Item 1. Balance Sheet as of September 30, 2003 and December 31, 2002

         Statements for the Periods ended September 30, 2003 and 2002:

           Income

           Cash Flows

           Changes in Members' Equity

         Notes to Financial Statements

 Item 2. Management's Discussion and Analysis

 Item 3. Controls and Procedures

PART II. Other Information

 Item 1. Legal Proceedings

 Item 2. Changes in Securities

 Item 3. Defaults Upon Senior Securities

 Item 4. Submission of Matters to a Vote of Security Holders

 Item 5. Other Information

 Item 6. Exhibits and Reports on Form 8-K

         Signatures
<PAGE>
                 AEI INCOME & GROWTH FUND 23 LLC

                          BALANCE SHEET

            SEPTEMBER 30, 2003 AND DECEMBER 31, 2002

                           (Unaudited)


                             ASSETS

                                                    2003           2002

CURRENT ASSETS:
  Cash and Cash Equivalents                     $ 3,654,990    $ 2,454,033
  Receivables                                        58,058              0
                                                 -----------    -----------
                                                  3,713,048      2,454,033
                                                 -----------    -----------
INVESTMENTS IN REAL ESTATE:
  Land                                            3,506,635      3,522,708
  Buildings and Equipment                         3,588,796      5,552,032
  Construction in Progress                        1,325,531              0
  Accumulated Depreciation                         (404,616)      (431,223)
                                                 -----------    -----------
      Net Investments in Real Estate              8,016,346      8,643,517
                                                 -----------    -----------
           Total  Assets                        $11,729,394    $11,097,550
                                                 ===========    ===========


                         LIABILITIES AND MEMBERS' EQUITY

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.          $    25,457    $    60,569
  Distributions Payable                             237,484        305,536
                                                 -----------    -----------
      Total Current Liabilities                     262,941        366,105
                                                 -----------    -----------
MEMBERS' EQUITY:
  Managing Members' Equity                           10,768          3,369
  Limited Members' Equity, $1,000 Unit Value;
   24,000 Units authorized; 13,349 Units issued;
   13,317 and 13,338 Units outstanding
   in 2003 and 2002, respectively                11,455,685     10,728,076
                                                 -----------    -----------
      Total Members' Equity                      11,466,453     10,731,445
                                                 -----------    -----------
        Total Liabilities and Members' Equity   $11,729,394    $11,097,550
                                                 ===========    ===========

 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>            AEI INCOME & GROWTH FUND 23 LLC

                       STATEMENT OF INCOME

               FOR THE PERIODS ENDED SEPTEMBER 30

                           (Unaudited)

                                 Three Months Ended       Nine Months Ended
                               9/30/03       9/30/02    9/30/03      9/30/02

RENTAL INCOME                 $ 178,339    $ 219,683  $  528,777   $ 660,842

EXPENSES:
   LLC Administration -
    Affiliates                   35,020       28,296      98,055     103,646
   LLC Administration and
    Property Management -
    Unrelated Parties             4,439        2,959      27,270      30,250
   Depreciation                  37,342       55,543     116,728     167,199
                               ---------    ---------  ----------   ---------
        Total Expenses           76,801       86,798     242,053     301,095
                               ---------    ---------  ----------   ---------

OPERATING INCOME                101,538      132,885     286,724     359,747

OTHER INCOME:
   Interest Income               33,371        2,950      57,515       5,232
   Gain on Sale of Real Estate        0       16,431     614,507      16,431
                               ---------    ---------  ----------   ---------
        Total Other Income       33,371       19,381     672,022      21,663
                               ---------    ---------  ----------   ---------
INCOME FROM CONTINUING
   OPERATIONS                   134,909      152,266     958,746     381,410

Income from Discontinued
 Operations                     475,421       28,964     508,939     173,289
                               ---------    ---------  ----------   ---------
NET INCOME                    $ 610,330    $ 181,230  $1,467,685   $ 554,699
                               =========    =========  ==========   =========

NET INCOME ALLOCATED:
   Managing Members           $  10,606    $   7,367  $   24,733   $  37,769
   Limited Members              599,724      173,863   1,442,952     516,930
                               ---------    ---------  ----------   ---------
                              $ 610,330    $ 181,230  $1,467,685   $ 554,699
                               =========    =========  ==========   =========
INCOME PER LLC UNIT:
   Continuing Operations      $    9.82    $   10.92  $    70.75   $   26.62
   Discontinued Operations        35.21         2.10       37.55       12.10
                               ---------    ---------  ----------   ---------
        Total                 $   45.03    $   13.02  $   108.30   $   38.72
                               =========    =========  ==========   =========
Weighted Average Units
  Outstanding                    13,317       13,349      13,324      13,349
                               =========    =========  ==========   =========
 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>
                 AEI INCOME & GROWTH FUND 23 LLC

                     STATEMENT OF CASH FLOWS

               FOR THE PERIODS ENDED SEPTEMBER 30

                           (Unaudited)

                                                    2003            2002

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net  Income                                  $ 1,467,685     $   554,699

   Adjustments to Reconcile Net Income to Net Cash
   Provided by Operating Activities:
     Depreciation                                   134,569         203,376
     Gain on Sale of Real Estate                 (1,079,117)        (88,073)
     Increase in Receivables                        (58,058)              0
     Increase (Decrease) in Payable to
        AEI Fund Management, Inc.                   (35,112)            762
     Increase in Unearned Rent                            0          24,345
                                                 -----------     -----------
            Total Adjustments                    (1,037,718)        140,410
                                                 -----------     -----------
        Net Cash Provided By
           Operating Activities                     429,967         695,109
                                                 -----------     -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
      Investments in Real Estate                 (2,107,926)              0
      Proceeds from Sale of Real Estate           3,679,645         714,946
                                                 -----------     -----------
        Net Cash Provided By
           Investing Activities                   1,571,719         714,946
                                                 -----------     -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Decrease in Distributions Payable                (68,052)              0
   Distributions to Members                        (717,726)       (722,514)
   Redemption Payments                              (14,951)              0
                                                 -----------     -----------
        Net Cash Used For
           Financing Activities                    (800,729)       (722,514)
                                                 -----------     -----------
NET INCREASE IN CASH
   AND CASH EQUIVALENTS                           1,200,957         687,541

CASH AND CASH EQUIVALENTS, beginning of period    2,454,033         307,150
                                                 -----------     -----------
CASH AND CASH EQUIVALENTS, end of period        $ 3,654,990     $   994,691
                                                 ===========     ===========

 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>
                 AEI INCOME & GROWTH FUND 23 LLC

             STATEMENT OF CHANGES IN MEMBERS' EQUITY

               FOR THE PERIODS ENDED SEPTEMBER 30

                           (Unaudited)

                                                                    Limited
                                                                     Member
                              Managing     Limited                    Units
                              Members      Members      Total      Outstanding


BALANCE, December 31, 2001   $ (15,444)  $10,794,984  $10,779,540   13,349.32

  Distributions                (21,675)     (700,839)    (722,514)

  Net Income                    37,769       516,930      554,699
                              ---------   -----------  ----------- -----------
BALANCE, September 30, 2002  $     650   $10,611,075  $10,611,725   13,349.32
                              =========   ===========  =========== ===========


BALANCE, December 31, 2002   $   3,369   $10,728,076  $10,731,445   13,337.59

  Distributions                (16,886)     (700,840)    (717,726)

  Redemption Payments             (448)      (14,503)     (14,951)     (20.71)

  Net Income                    24,733     1,442,952    1,467,685
                              ---------   -----------  ----------- -----------
BALANCE, September 30, 2003  $  10,768   $11,455,685  $11,466,453   13,316.88
                              =========   ===========  =========== ===========

 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>
                 AEI INCOME & GROWTH FUND 23 LLC

                  NOTES TO FINANCIAL STATEMENTS

                       SEPTEMBER 30, 2003

                           (Unaudited)

(1)  The  condensed  statements included herein have been  prepared
     by  the  Company,  without audit, pursuant to  the  rules  and
     regulations  of  the Securities and Exchange  Commission,  and
     reflect   all  adjustments  which  are,  in  the  opinion   of
     management,  necessary to a fair statement of the  results  of
     operations for the interim period, on a basis consistent  with
     the  annual audited statements.  The adjustments made to these
     condensed   statements  consist  only  of   normal   recurring
     adjustments.   Certain information, accounting  policies,  and
     footnote    disclosures   normally   included   in   financial
     statements  prepared  in  accordance with  generally  accepted
     accounting principles have been condensed or omitted  pursuant
     to  such  rules and regulations, although the Company believes
     that  the  disclosures  are adequate to make  the  information
     presented   not  misleading.   It  is  suggested  that   these
     condensed  financial  statements be read in  conjunction  with
     the  financial  statements  and  the  summary  of  significant
     accounting  policies  and  notes  thereto  included   in   the
     Company's latest annual report on Form 10-KSB.

(2)  Organization -

     AEI  Income  & Growth Fund 23 LLC (the Company),  a  Limited
     Liability Company, was formed on October 14, 1998 to acquire
     and  lease commercial properties to operating tenants.   The
     Company's operations are managed by AEI Fund Management XXI,
     Inc.  (AFM),  the Managing Member.  Robert P.  Johnson,  the
     President of AFM, serves as the Special Managing Member  and
     an affiliate of AFM, AEI Fund Management, Inc., performs the
     administrative and operating functions for the Company.

     The  terms of the offering call for a subscription price  of
     $1,000 per LLC Unit, payable on acceptance of the offer. The
     Company  commenced  operations on September  30,  1999  when
     minimum  subscriptions of 1,500 LLC Units ($1,500,000)  were
     accepted.  The offering terminated March 22, 2001  when  the
     extended  offering  period expired.   The  Company  received
     subscriptions for 13,349.321 LLC Units.  Under the terms  of
     the  Operating Agreement, the Limited Members  and  Managing
     Members   contributed  funds  of  $13,349,321  and   $1,000,
     respectively.  The Company shall continue until December 31,
     2048,  unless dissolved, terminated and liquidated prior  to
     that date.

     During operations, any Net Cash Flow, as defined, which  the
     Managing Members determine to distribute will be distributed
     97%  to  the Limited Members and 3% to the Managing Members.
     Distributions to Limited Members will be made  pro  rata  by
     Units.

     Any  Net  Proceeds  of Sale, as defined, from  the  sale  or
     financing of properties which the Managing Members determine
     to distribute will, after provisions for debts and reserves,
     be  paid  in  the following manner: (i) first,  99%  to  the
     Limited  Members  and 1% to the Managing Members  until  the
     Limited  Members  receive  an amount  equal  to:  (a)  their
     Adjusted Capital Contribution plus (b) an amount equal to 7%
     of their Adjusted Capital Contribution per annum, cumulative
     but not compounded, to the extent not previously distributed
     from  Net  Cash  Flow; (ii) any remaining  balance  will  be
     distributed  90%  to  the Limited Members  and  10%  to  the
     Managing Members.  Distributions to the Limited Members will
     be made pro rata by Units.

                 AEI INCOME & GROWTH FUND 23 LLC

                  NOTES TO FINANCIAL STATEMENTS

                       SEPTEMBER 30, 2003
                           (Continued)

(2)  Organization - (Continued)

     For  tax  purposes,  profits  from  operations,  other  than
     profits  attributable  to  the  sale,  exchange,  financing,
     refinancing  or  other  disposition  of  property,  will  be
     allocated  first  in the same ratio in  which,  and  to  the
     extent, Net Cash Flow is distributed to the Members for such
     year.  Any additional profits will be allocated in the  same
     ratio  as  the  last dollar of Net Cash Flow is distributed.
     Net  losses  from operations will be allocated  99%  to  the
     Limited Members and 1% to the Managing Members.

     For  tax purposes, profits arising from the sale, financing,
     or  other  disposition  of property  will  be  allocated  in
     accordance  with  the Operating Agreement  as  follows:  (i)
     first,  to  those  Members with deficit  balances  in  their
     capital  accounts  in an amount equal to  the  sum  of  such
     deficit  balances; (ii) second, 99% to the  Limited  Members
     and  1%  to the Managing Members until the aggregate balance
     in  the Limited Members' capital accounts equals the sum  of
     the Limited Members' Adjusted Capital Contributions plus  an
     amount  equal  to 7% of their Adjusted Capital Contributions
     per  annum, cumulative but not compounded, to the extent not
     previously  allocated;  (iii)  third,  the  balance  of  any
     remaining  gain  will then be allocated 90% to  the  Limited
     Members  and  10% to the Managing Members.  Losses  will  be
     allocated 98% to the Limited Members and 2% to the  Managing
     Members.

     The  Managing Members are not required to currently  fund  a
     deficit capital balance.  Upon liquidation of the Company or
     withdrawal  by a Managing Member, the Managing Members  will
     contribute to the Company an amount equal to the  lesser  of
     the  deficit balances in their capital accounts or 1.01%  of
     the  total capital contributions of the Limited Members over
     the amount previously contributed by the Managing Members.

(3)  Summary of Real Estate Accounting Policies -

     The  Company's real estate is leased under triple net leases
     classified as operating leases.  The leases provide for base
     annual rental payments payable in monthly installments.  The
     Company recognizes rental revenue according to the terms  of
     the  individual  leases.  For leases  which  contain  stated
     rental  increases, the increases are recognized in the  year
     in which they are effective.  Contingent rental payments are
     recognized when the contingencies on which the payments  are
     based are satisfied and the rental payments become due under
     the terms of the leases.

     Real  estate  is recorded at the lower of cost or  estimated
     net  realizable  value.  The Company compares  the  carrying
     amount  of  its  properties  to the  estimated  probability-
     weighted  future  cash flows expected  to  result  from  the
     property  and its eventual disposition.  If the sum  of  the
     expected future cash flows is less than the carrying  amount
     of  the property, the Company recognizes an impairment  loss
     by  the  amount by which the carrying amount of the property
     exceeds the fair value of the property.

     The  Company  has capitalized as Investments in Real  Estate
     certain costs incurred in the review and acquisition of  the
     properties.  The costs were allocated to the land, buildings
     and equipment.


                 AEI INCOME & GROWTH FUND 23 LLC

                  NOTES TO FINANCIAL STATEMENTS

                       SEPTEMBER 30, 2003
                           (Continued)

(3)  Summary of Real Estate Accounting Policies - (Continued)

     The  buildings and equipment of the Company are  depreciated
     using  the  straight-line  method  for  financial  reporting
     purposes based on estimated useful lives of 25 years  and  5
     years, respectively.

     In   accordance  with  Statement  of  Financial   Accounting
     Standards No. 144, Accounting for the Impairment or Disposal
     of  Long-Lived Assets, upon complete disposal of a  property
     or  classification  of a property as Real  Estate  Held  for
     Sale, the Company includes the operating results and sale of
     the  property in discontinued operations.  In addition,  the
     Company reclassifies the prior periods operating results and
     any   partial   sales  of  the  property   to   discontinued
     operations.

     The  Company  accounts for properties owned  as  tenants-in-
     common  with  affiliated  Companies and/or  unrelated  third
     parties using the proportionate consolidation method.   Each
     tenant-in-common owns a separate, undivided interest in  the
     properties.  Any tenant-in-common that holds more than a 50%
     interest does not control decisions over the other tenant-in-
     common  interests.   The financial statements  reflect  only
     this  Company's  percentage share of the  properties'  land,
     building and equipment, liabilities, revenues and expenses.

(4)  Reclassification -

     Certain items in the prior year's financial statements  have
     been  reclassified  to conform to 2003 presentation.   These
     reclassifications  had  no effect on Members'  capital,  net
     income or cash flows.

(5)  Investments in Real Estate -

     During  2002,  the  Company  sold  59.4729%  of  the  Arby's
     restaurant,  in  four  separate transactions,  to  unrelated
     third parties.  The Company received total net sale proceeds
     of  $1,023,670,  which resulted in a net gain  of  $144,883.
     The  total cost and related accumulated depreciation of  the
     interests sold was $907,056 and $28,269, respectively.   The
     net  gain  for the nine months ended September 30, 2002  was
     $16,431.

     During  the first quarter of 2003, the Company sold 99.6316%
     of  the  Johnny Carino's restaurant in Victoria,  Texas,  in
     eight  separate  transactions, to unrelated  third  parties.
     The  Company received total net sale proceeds of $2,161,939,
     which  resulted in a net gain of $614,507.   The total  cost
     and  related accumulated depreciation of the interests  sold
     was $1,656,473 and $109,041, respectively.

     In  the  fourth  quarter  of 2002, the  Company  distributed
     $97,727  of  net sale proceeds to the Limited  and  Managing
     Members  as  part  of  their quarterly distributions,  which
     represented  a  return of capital of  $7.25  per  LLC  Unit.
     During   the   first  nine  months  of  2003,  the   Company
     distributed $232,323 of net sale proceeds to the Limited and
     Managing  Members as part of their quarterly  distributions,
     which  represented  a return of capital of  $17.28  per  LLC
     Unit.   The  remaining  net  sale proceeds  will  either  be
     reinvested  in  additional property or  distributed  to  the
     Members in the future.


                 AEI INCOME & GROWTH FUND 23 LLC

                  NOTES TO FINANCIAL STATEMENTS

                       SEPTEMBER 30, 2003
                           (Continued)

(5)  Investments in Real Estate - (Continued)

     On April 4, 2003, the Partnership purchased a parcel of land
     in  Parker,  Colorado  for $782,395,  including  acquisition
     expenses. The Partnership obtained title to the land in  the
     form of an undivided fee simple interest. The land is leased
     to  Kona Restaurant Group (KRG) under a Lease Agreement with
     a  primary  term of 17 years and annual rental  payments  of
     $79,425.  Simultaneously with the purchase of the land,  the
     Partnership  entered into a Development Financing  Agreement
     under  which the Partnership will advance funds to  KRG  for
     the  construction  of a Johnny Carino's  restaurant  on  the
     site.  Pursuant to the Lease, any improvements to  the  land
     during  the  term  of the Lease become the property  of  the
     lessor.    Through  September  30,  2003,  the  Company  had
     advanced $1,325,531 for the construction of the property and
     was  charging interest on the advances at a rate of 10%. The
     total  purchase price, including the cost of the land,  will
     be  approximately  $2,460,000.  After  the  construction  is
     complete,  the  Lease Agreement will be amended  to  require
     annual rental payments of approximately $246,000.

     In  July 2003, the lessee of the Razzoo's restaurants in San
     Antonio,   Texas  and  Alpharetta,  Georgia   notified   the
     Partnership that they are experiencing financial  difficulty
     and may not be able to pay future rents.  However, rents are
     current through November 30, 2003 and the Partnership  holds
     a  personal guarantee from the majority shareholder  of  the
     lessee  for  payment  of all rents.  The personal  guarantee
     expires on December 19, 2003 for the property in San Antonio
     and  July 11, 2004 for the property in Alpharetta.   Due  to
     this  notification, the Partnership is evaluating the  lease
     and property values and has decided that it is premature  to
     recognize an impairment loss at this time.  It is reasonably
     possible  that this decision may change in the  future.   At
     September   30,  2003,  the  book  value  of  the   Razzoo's
     properties owned by the Partnership is $4,779,592.

(6)  Payable to AEI Fund Management, Inc. -

     AEI  Fund  Management, Inc. performs the administrative  and
     operating  functions for the Company.  The  payable  to  AEI
     Fund   Management  represents  the  balance  due  for  those
     services.    This  balance  is  non-interest   bearing   and
     unsecured  and  is  to  be  paid in  the  normal  course  of
     business.

(7)  Discontinued Operations -

     In May 2002, the Company sold its 22% interest in the Johnny
     Carino's  restaurant  in  Austin,  Texas,  in  two  separate
     transactions,  to  unrelated  third  parties.   The  Company
     received total net sale proceeds of $567,176, which resulted
     in  a  net  gain  of  $71,642.  The total cost  and  related
     accumulated depreciation of the interests sold was  $501,879
     and $6,345, respectively.

     On  December 18, 2002, the Company sold its 30% interest  in
     the  Children's  World daycare center to an unrelated  third
     party.   The Company received net sale proceeds of $587,854,
     which  resulted in a net gain of $146,205.  At the  time  of
     sale,  the  cost  and related accumulated  depreciation  was
     $465,164 and $23,515, respectively.


                 AEI INCOME & GROWTH FUND 23 LLC

                  NOTES TO FINANCIAL STATEMENTS

                       SEPTEMBER 30, 2003
                                 (Continued)

(7)  Discontinued Operations - (Continued)

     During  the third quarter of 2003, the Company sold its  48%
     interest  in the Johnny Carino's restaurant in San  Antonio,
     Texas,  in  five  separate transactions, to unrelated  third
     parties.   The Company received total net sale  proceeds  of
     $1,517,706,  which resulted in a net gain of $464,610.   The
     total  cost  and  related accumulated  depreciation  of  the
     interests sold was $1,105,231 and $52,135, respectively.

     The financial results for these properties are reflected  as
     Discontinued   Operations  in  the  accompanying   financial
     statements.  The results of discontinued operations  are  as
     follows:

                                 Three Months Ended       Nine Months Ended
                                9/30/03      9/30/02     9/30/03     9/30/02

Rental Income                   $  14,099   $  40,217   $  72,361   $ 141,806
Property Management Expenses         (145)       (462)    (10,191)     (3,982)
Depreciation                       (3,143)    (10,791)    (17,841)    (36,177)
Gain on Disposal of Real Estate   464,610           0     464,610      71,642
                                 ---------   ---------   ---------   ---------
 Income from Discontinued
   Operations                   $ 475,421   $  28,964   $ 508,939   $ 173,289
                                 ==========  =========   =========   =========

ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS

        The Management's Discussion and Analysis contains various
"forward  looking  statements"  within  the  meaning  of  federal
securities  laws  which  represent management's  expectations  or
beliefs  concerning future events, including statements regarding
anticipated  application of cash, expected  returns  from  rental
income,  growth  in revenue, taxation levels, the sufficiency  of
cash to meet operating expenses, rates of distribution, and other
matters.  These, and other forward looking statements made by our
managers, must be evaluated in the context of a number of factors
that   may   affect  our  financial  condition  and  results   of
operations, including the following:

      Market and economic conditions which affect the value
      of the properties we own and the cash from rental
      income such properties generate;

      the federal income tax consequences of rental income,
      deductions, gain on sales and other items and the
      affects of these consequences for members;

      resolution by our managers of conflicts with which they
      may be confronted;

      the success of our managers of locating properties with
      favorable risk return characteristics;

      the effect of tenant defaults; and

      the condition of the industries in which the tenants of
      properties owned by the Company operate.


ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

The Application of Critical Accounting Policies

        The  preparation  of  the Company's financial  statements
requires  management to make estimates and assumptions  that  may
affect the reported amounts of assets, liabilities, revenues  and
expenses,  and  related  disclosure  of  contingent  assets   and
liabilities. Management evaluates these estimates on  an  ongoing
basis,  including  those related to the carrying  value  of  real
estate  and  the  allocation  by AEI  Fund  Management,  Inc.  of
expenses to the Company as opposed to other funds they manage.

        The Company purchases properties and records them in  the
financial statements at the lower of cost or estimated realizable
value.   The  Company  initially records the properties  at  cost
(including  capitalized acquisition expenses).   The  Company  is
required   to  periodically  evaluate  the  carrying   value   of
properties  to  determine  whether  their  realizable  value  has
declined.   For  properties the Company will  hold  and  operate,
management   determines  whether  impairment  has   occurred   by
comparing the property's probability-weighted cash flows  to  its
current carrying value.  For properties held for sale, management
determines  whether  impairment has  occurred  by  comparing  the
property's estimated fair value less cost to sell to its  current
carrying  value.   If  the carrying value  is  greater  than  the
realizable  value, an impairment loss is recorded to  reduce  the
carrying value of the property to its realizable value.  A change
in  these assumptions or analysis could cause material changes in
the carrying value of the properties.

       AEI Fund Management Inc. allocates expenses to each of the
funds  they manage primarily on the basis of the number of  hours
devoted  by  their employees to each fund's affairs.   They  also
allocate  expenses at the end of each month that are not directly
related to a fund's operations based upon the number of investors
in the fund and the fund's capitalization relative to other funds
they  manage.  The Company reimburses these expenses  subject  to
detailed limitations contained in the Operating Agreement.

        Management  of the Company has discussed the  development
and   selection  of  the  above  accounting  estimates  and   the
management  discussion  and analysis disclosures  regarding  them
with the managing member of the Company.

Results of Operations

       For the nine months ended September 30, 2003 and 2002, the
Company  recognized rental income from continuing  operations  of
$528,777  and  $660,842, respectively.  In  2003,  rental  income
decreased  due to sales of the Arby's restaurant and  the  Johnny
Carino's restaurant in Victoria, Texas.  This decrease in  rental
income was partially offset by additional rent received from  one
property  acquisition  in  2003  and  rent  increases  on   three
properties.

       For the nine months ended September 30, 2003 and 2002, the
Company  incurred  LLC  administration expenses  from  affiliated
parties   of   $98,055   and   $103,646,   respectively.    These
administration  expenses  include  costs  associated   with   the
management of the properties, processing distributions, reporting
requirements  and correspondence to the Limited Members.   During
the  same  periods,  the Company incurred LLC administration  and
property  management expenses from unrelated parties  of  $27,270
and  $30,250,  respectively.   These  expenses  represent  direct
payments  to  third  parties for legal and  filing  fees,  direct
administrative costs, outside audit and accounting costs,  taxes,
insurance and other property costs.

       For the nine months ended September 30, 2003 and 2002, the
Company   recognized  interest  income  of  $57,515  and  $5,232,
respectively.   In  2003, interest income increased  due  to  the
Company receiving interest from construction advances and  having
more  money  invested in a money market account due  to  property
sales.

ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

       For the nine months ended September 30, 2003 and 2002, the
Company  recognized gain on sale of real estate  from  continuing
operations of $614,507 and $16,431, respectively, from  the  sale
of  two  properties.   Since  the Company  retains  an  ownership
interest in these properties, the operating results and  gain  on
sale  of  the  properties  were not  classified  as  discontinued
operations.

        During  2002,  the Company sold 59.4729%  of  the  Arby's
restaurant,  in  four separate transactions, to  unrelated  third
parties.   The  Company  received  total  net  sale  proceeds  of
$1,023,670, which resulted in a net gain of $144,883.  The  total
cost  and related accumulated depreciation of the interests  sold
was  $907,056  and $28,269, respectively.  The net gain  for  the
nine months ended September 30, 2002 was $16,431.

        During  the  first  quarter of  2003,  the  Company  sold
99.6316% of the Johnny Carino's restaurant in Victoria, Texas, in
eight  separate  transactions, to unrelated third  parties.   The
Company  received  total net sale proceeds of  $2,161,939,  which
resulted in a net gain of $614,507.   The total cost and  related
accumulated depreciation of the interests sold was $1,656,473 and
$109,041, respectively.

        In  July 2003, the lessee of the Razzoo's restaurants  in
San   Antonio,   Texas  and  Alpharetta,  Georgia  notified   the
Partnership  that they are experiencing financial difficulty  and
may  not be able to pay future rents.  However, rents are current
through  November 30, 2003 and the Partnership holds  a  personal
guarantee from the majority shareholder of the lessee for payment
of  all  rents.  The personal guarantee expires on  December  19,
2003  for the property in San Antonio and July 11, 2004  for  the
property   in   Alpharetta.   Due  to  this   notification,   the
Partnership is evaluating the lease and property values  and  has
decided  that it is premature to recognize an impairment loss  at
this  time.   It  is reasonably possible that this  decision  may
change  in the future.  At September 30, 2003, the book value  of
the Razzoo's properties owned by the Partnership is $4,779,592.

        In  accordance  with  Statement of  Financial  Accounting
Standards  No. 144, Accounting for the Impairment or Disposal  of
Long-Lived  Assets,  upon  complete disposal  of  a  property  or
classification of a property as Real Estate Held  for  Sale,  the
Company  includes the operating results and sale of the  property
in   discontinued   operations.    In   addition,   the   Company
reclassifies the prior periods operating results and any  partial
sales  of the property to discontinued operations.  For the  nine
months  ended  September 30, 2003, the Company recognized  income
from  discontinued  operations of $508,939,  representing  rental
income  less  property management expenses  and  depreciation  of
$44,329 and gain on disposal of real estate of $464,610.  For the
nine  months  ended  September 30, 2002, the  Company  recognized
income  from  discontinued operations of  $173,289,  representing
rental  income less property management expenses and depreciation
of $101,647 and gain on disposal of real estate of $71,642.

        In  May  2002, the Company sold its 22% interest  in  the
Johnny  Carino's  restaurant in Austin, Texas,  in  two  separate
transactions,  to unrelated third parties.  The Company  received
total net sale proceeds of $567,176, which resulted in a net gain
of  $71,642.  The total cost and related accumulated depreciation
of the interests sold was $501,879 and $6,345, respectively.

       On December 18, 2002, the Company sold its 30% interest in
the  Children's World daycare center to an unrelated third party.
The  Company  received  net  sale  proceeds  of  $587,854,  which
resulted  in  a net gain of $146,205.  At the time of  sale,  the
cost  and  related  accumulated  depreciation  was  $465,164  and
$23,515, respectively.


ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

       During the third quarter of 2003, the Company sold its 48%
interest in the Johnny Carino's restaurant in San Antonio, Texas,
in  five separate transactions, to unrelated third parties.   The
Company  received  total net sale proceeds of  $1,517,706,  which
resulted  in a net gain of $464,610.  The total cost and  related
accumulated depreciation of the interests sold was $1,105,231 and
$52,135, respectively.

        Inflation  has  had  a  minimal  effect  on  income  from
operations.   Leases  may contain rent increases,  based  on  the
increase  in  the  Consumer Price Index over a specified  period,
which  will result in an increase in rental income over the  term
of  the  leases.   In addition, leases may contain  rent  clauses
which  entitle the Company to receive additional rent  in  future
years if gross receipts for the property exceed certain specified
amounts.   Increases  in sales volumes of  the  tenants,  due  to
inflation  and  real sales growth, may result in an  increase  in
rental  income over the term of the leases.  Inflation  also  may
cause the real estate to appreciate in value.  However, inflation
and  changing prices may have an adverse impact on the  operating
margins  of  the  properties' tenants, which could  impair  their
ability  to  pay rent and subsequently reduce the Net  Cash  Flow
available for distributions.

Liquidity and Capital Resources

        During  the  nine months ended September  30,  2003,  the
Company's cash balances increased $1,200,957 as a result of  cash
generated  from the sale of property, which was partially  offset
by  cash used to purchase property and distributions paid to  the
Partners  in  excess of cash generated from operating activities.
During  the  nine months ended September 30, 2002, the  Company's
cash  balances  increased $687,541 as a result of cash  generated
from  the  sale  of  property,  which  was  partially  offset  by
distributions  paid to the Partners in excess of  cash  generated
from operating activities.

        Net  cash provided by operating activities decreased from
$695,109 in 2002 to $429,967 in 2003 as a result of a decrease in
total   rental  and  interest  income  in  2003  and  net  timing
differences  in the collection of payments from the  lessees  and
the payment of expenses.

        The  major  components of the Company's  cash  flow  from
investing activities are investments in real estate and  proceeds
from  the  sale of real estate.    During the nine  months  ended
September 30, 2003 and 2002, the Company generated cash flow from
the sale of real estate of $3,679,645 and $714,946, respectively.
During  the  nine  months ended September 30, 2003,  the  Company
expended  $2,107,926 to invest in real properties  (inclusive  of
acquisition  expenses), as the Company reinvested cash  generated
from property sales.

        On  April 4, 2003, the Partnership purchased a parcel  of
land  in  Parker,  Colorado for $782,395,  including  acquisition
expenses. The Partnership obtained title to the land in the  form
of  an undivided fee simple interest. The land is leased to  Kona
Restaurant  Group (KRG) under a Lease Agreement  with  a  primary
term   of  17  years  and  annual  rental  payments  of  $79,425.
Simultaneously  with  the purchase of the land,  the  Partnership
entered  into a Development Financing Agreement under  which  the
Partnership will advance funds to KRG for the construction  of  a
Johnny  Carino's restaurant on the site. Pursuant to  the  Lease,
any  improvements to the land during the term of the Lease become
the  property  of the lessor.   Through September 30,  2003,  the
Company  had  advanced  $1,325,531 for the  construction  of  the
property and was charging interest on the advances at a  rate  of
10%.  The  total purchase price, including the cost of the  land,
will  be  approximately $2,460,000.  After  the  construction  is
complete,  the Lease Agreement will be amended to require  annual
rental payments of approximately $246,000.


ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

        The  Company's  primary  use of  cash  flow,  other  than
investment   in  real  estate,  is  distribution  and  redemption
payments  to Members.  The Company declares its regular quarterly
distributions  before  the  end of  each  quarter  and  pays  the
distribution in the first ten days after the end of each quarter.
The  Company attempts to maintain a stable distribution rate from
quarter  to  quarter.  Redemption payments are paid to  redeeming
Members on a semi-annual basis.

       For the nine months ended September 30, 2003 and 2002, the
Company   declared  distributions  of  $717,726   and   $722,514,
respectively.  Pursuant to the Operating Agreement, distributions
of Net Cash Flow were allocated 97% to the Limited Members and 3%
to  the Managing Members.  Distributions of Net Proceeds of  Sale
were  allocated 99% to the Limited Members and 1% to the Managing
Members.   The Limited Members received distributions of $700,840
and  $700,839 and the Managing Members received distributions  of
$16,886 and $21,675 for the periods, respectively.

        In  the  fourth quarter of 2002, the Company  distributed
$97,727  of net sale proceeds to the Limited and Managing Members
as  part  of  their quarterly distributions, which represented  a
return  of capital of $7.25 per LLC Unit.  During the first  nine
months  of  2003, the Company distributed $232,323  of  net  sale
proceeds  to  the Limited and Managing Members as part  of  their
quarterly distributions, which represented a return of capital of
$17.28 per LLC Unit.  The remaining net sale proceeds will either
be  reinvested  in  additional property  or  distributed  to  the
Members in the future.

        The  Company may acquire Units from Limited  Members  who
have  tendered  their Units to the Company.  Such  Units  may  be
acquired  at  a discount.  The Company will not be  obligated  to
purchase  in  any year any number of Units that, when  aggregated
with  all  other transfers of Units that have occurred since  the
beginning   of  the  same  calendar  year  (excluding   Permitted
Transfers as defined in the Operating Agreement), would exceed 2%
of  the  total number of Units outstanding on January 1  of  such
year.   In  no  event shall the Company be obligated to  purchase
Units  if,  in  the sole discretion of the Managing Member,  such
purchase would impair the capital or operation of the Company.

        On  October 1, 2003, two Limited Members redeemed a total
of  18.81  Units  for  $13,035 in accordance with  the  Operating
Agreement.   On  April 1, 2003, two Limited  Members  redeemed  a
total  of  20.71  Units for $14,503.  The Company acquired  these
Units using Net Cash Flow from operations.   In 2002, two Limited
Members  redeemed  a  total  of  11.73  Units  for  $8,085.   The
redemptions  increase  the remaining Limited  Member's  ownership
interest in the Company.

       The continuing rent payments from the properties, together
with  cash  generated from property sales, should be adequate  to
fund  continuing distributions and meet other Company obligations
on both a short-term and long-term basis.


ITEM 3.   CONTROLS AND PROCEDURES

       (a) Evaluation of disclosure controls and procedures

        Under  the  supervision  and with  the  participation  of
management, including its President and Chief Financial  Officer,
the Managing Member of the Company evaluated the effectiveness of
the   design  and  operation  of  its  disclosure  controls   and
procedures (as defined in Rule 13a-14(c) under the Exchange Act).
Based  upon  that  evaluation, the President and Chief  Financial
Officer of the Managing Member concluded that, as of the  end  of
the  period  covered by this report, the disclosure controls  and
procedures of the Company are adequately designed to ensure  that
information required to be disclosed by us in the reports we file
or   submit  under  the  Exchange  Act  is  recorded,  processed,
summarized  and  reported, within the time periods  specified  in
applicable rules and forms.

       (b)  Changes in internal controls

        There  were no significant changes made in the  Company's
internal controls during the most recent period covered  by  this
report that have materially affected, or are reasonably likely to
materially affect, the Company's internal control over  financial
reporting.


                   PART II - OTHER INFORMATION

ITEM 1.LEGAL PROCEEDINGS

       There  are no material pending legal proceedings to  which
  the  Company  is a party or of which the Company's property  is
  subject.

ITEM 2.CHANGES IN SECURITIES

      None.

ITEM 3.DEFAULTS UPON SENIOR SECURITIES

      None.

ITEM 4.SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

      None

ITEM 5.OTHER INFORMATION

      None.


                   PART II - OTHER INFORMATION
                           (Continued)

ITEM 6.EXHIBITS AND REPORTS ON FORM 8-K

       a. Exhibits -
                             Description

    31.1  Certification of  Chief Executive  Officer  of  Managing
          Member  pursuant to Rule 15d-14(a)(17 CFR 240.15d-14(a))
          and Section 302 of the Sarbanes-Oxley Act of 2002.

    31.2  Certification  of  Chief Financial  Officer  of Managing
          Member  pursuant to Rule 15d-14(a)(17 CFR 240.15d-14(a))
          and Section 302 of the Sarbanes-Oxley Act of 2002.

    32    Certification  of Chief  Executive  Officer   and  Chief
          Financial Officer of Managing Member pursuant to Section
          906 of the Sarbanes-Oxley Act of 2002.

       b. Reports filed on Form 8-K - None.



                           SIGNATURES

        In  accordance with the requirements of the Exchange Act,
the  Registrant has caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.


Dated:  November 11, 2003     AEI Income & Growth Fund 23 LLC
                              By:  AEI Fund Management XXI, Inc.
                              Its: Managing Member



                              By: /s/ Robert P Johnson
                                      Robert P. Johnson
                                      President
                                      (Principal Executive Officer)



                              By: /s/ Patrick W Keene
                                      Patrick W. Keene
                                      Chief Financial Officer
                                      (Principal Accounting Officer)