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:  March 31, 2004

               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 March 31, 2004 and December 31, 2003

         Statements for the Periods ended March 31, 2004 and 2003:

           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
              MARCH 31, 2004 AND DECEMBER 31, 2003

                           (Unaudited)

                             ASSETS

                                                  2004           2003
CURRENT ASSETS:
  Cash and Cash Equivalents                   $ 1,172,382    $ 3,431,557

INVESTMENTS IN REAL ESTATE:
  Land                                          2,090,820      1,274,907
  Buildings and Equipment                       3,637,531      2,301,475
  Accumulated Depreciation                       (146,849)      (112,790)
                                               -----------    -----------
                                                5,581,502      3,463,592
  Real Estate Held for Sale                     3,150,000      3,150,000
                                               -----------    -----------
      Net Investments in Real Estate            8,731,502      6,613,592
                                               -----------    -----------
          Total Assets                        $ 9,903,884    $10,045,149
                                               ===========    ===========

                         LIABILITIES AND MEMBERS' EQUITY

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.        $   115,294    $    32,625
  Distributions Payable                           228,272        237,482
  Unearned Rent                                    33,579         19,666
                                               -----------    -----------
      Total Current Liabilities                   377,145        289,773
                                               -----------    -----------
MEMBERS' EQUITY (DEFICIT):
  Managing Members' Equity                        (23,479)       (20,054)
  Limited Members' Equity, $1,000 per Unit;
   24,000 Units authorized; 13,349 Units issued;
   13,298 Units outstanding                     9,550,218      9,775,430
                                               -----------    -----------
      Total Members' Equity                     9,526,739      9,755,376
                                               -----------    -----------
        Total Liabilities and Members' Equity $ 9,903,884    $10,045,149
                                               ===========    ===========

 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 MARCH 31

                           (Unaudited)

                                                      2004           2003

RENTAL INCOME                                     $   117,278    $    47,015

EXPENSES:
   LLC Administration - Affiliates                     31,550         39,769
   LLC Administration and Property
      Management - Unrelated Parties                    6,844          6,908
      Depreciation                                     34,059         12,845
                                                   -----------    -----------
        Total Expenses                                 72,453         59,522
                                                   -----------    -----------

OPERATING INCOME (LOSS)                                44,825        (12,507)

OTHER INCOME:
   Interest Income                                      4,874          9,142
   Gain on Sale of Real Estate                              0        614,507
                                                   -----------    -----------
        Total Other Income                              4,874        623,649
                                                   -----------    -----------

INCOME FROM CONTINUING OPERATIONS                      49,699        611,142

Income (Loss) from Discontinued Operations            (48,017)       114,503
                                                   -----------    -----------
NET INCOME                                        $     1,682    $   725,645
                                                   ===========    ===========
NET INCOME ALLOCATED:
   Managing Members                               $        50    $     9,996
   Limited Members                                      1,632        715,649
                                                   -----------    -----------
                                                  $     1,682    $   725,645
                                                   ===========    ===========
INCOME (LOSS) PER LLC UNIT:
   Continuing Operations                          $      3.63    $     45.32
   Discontinued Operations                              (3.51)          8.33
                                                   -----------    -----------
         Total                                    $       .12    $     53.65
                                                   ===========    ===========
Weighted Average Units Outstanding                     13,298         13,338
                                                   ===========    ===========

 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 MARCH 31

                           (Unaudited)

                                                       2004           2003
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net  Income                                     $     1,682    $   725,645

   Adjustments to Reconcile Net Income to Net Cash
   Provided by Operating Activities:
     Depreciation                                       34,059         49,395
     Gain on Sale of Real Estate                             0       (614,507)
     Increase (Decrease) in Payable to
        AEI Fund Management, Inc.                       82,669        (20,241)
     Increase in Unearned Rent                          13,913          9,767
                                                    -----------    -----------
        Total Adjustments                              130,641       (575,586)
                                                    -----------    -----------
        Net Cash Provided By
            Operating Activities                       132,323        150,059
                                                    -----------    -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
      Investments in Real Estate                    (2,151,969)             0
   Proceeds from Sale of Real Estate                         0      2,161,939
                                                    -----------    -----------
        Net Cash Provided By (Used For)
          Investing Activities                      (2,151,969)     2,161,939
                                                    -----------    -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Decrease in Distributions Payable                    (9,210)       (66,800)
   Distributions to Members                           (230,319)      (240,837)
                                                    -----------    -----------
        Net Cash Used For
            Financing Activities                      (239,529)      (307,637)
                                                    -----------    -----------
NET INCREASE (DECREASE) IN CASH
      AND CASH EQUIVALENTS                          (2,259,175)     2,004,361

CASH AND CASH EQUIVALENTS, beginning of period       3,431,557      2,454,033
                                                    -----------    -----------
CASH AND CASH EQUIVALENTS, end of period           $ 1,172,382    $ 4,458,394
                                                    ===========    ===========

 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 MARCH 31

                           (Unaudited)


                                                                   Limited
                                                                   Member
                             Managing     Limited                   Units
                             Members      Members       Total     Outstanding


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

  Distributions                (7,225)    (233,612)     (240,837)

  Net Income                    9,996      715,649       725,645
                             ---------  -----------   -----------  -----------
BALANCE, March 31, 2003     $   6,140  $11,210,113   $11,216,253    13,337.59
                             =========  ===========   ===========  ===========


BALANCE, December 31, 2003  $ (20,054) $ 9,775,430   $ 9,755,376    13,298.07

  Distributions                (3,475)    (226,844)     (230,319)

  Net Income                       50        1,632         1,682
                             ---------  -----------   -----------  -----------
BALANCE, March 31, 2004     $ (23,479) $ 9,550,218   $ 9,526,739    13,298.07
                             =========  ===========   ===========  ===========

 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
                         MARCH 31, 2004

                           (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  and sole director of AFM, serves as  the  Special
     Managing  Member.  AFM is a wholly owned subsidiary  of  AEI
     Capital  Corporation of which Mr. Johnson  is  the  majority
     shareholder.  AEI Fund Management, Inc. (AEI), an  affiliate
     of  AFM, 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.

                 AEI INCOME & GROWTH FUND 23 LLC
                  NOTES TO FINANCIAL STATEMENTS
                           (Continued)

(2)  Organization - (Continued)

     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.

     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)  Reclassification -

     Certain items in the prior year's financial statements  have
     been  reclassified  to conform to 2004 presentation.   These
     reclassifications  had  no effect on Members'  capital,  net
     income or cash flows.



                 AEI INCOME & GROWTH FUND 23 LLC
                  NOTES TO FINANCIAL STATEMENTS
                           (Continued)

(4)  Investments in Real Estate -

     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.

     During  the  three months ended March 31, 2004, the  Company
     distributed $171,717 of net sale proceeds to the Limited and
     Managing  Members as part of their quarterly  distributions,
     which  represented  a return of capital of  $12.78  per  LLC
     Unit.   The  Company  anticipates  the  remaining  net  sale
     proceeds will either be reinvested in additional property or
     distributed to the Members in the future.

     On  April 4, 2003, the Company purchased a parcel of land in
     Parker,  Colorado for $794,250.  The Company 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 Company entered into a Development
     Financing  Agreement under which the Company advanced  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.   The Company charged interest on the advances at  a
     rate  of  10%.  On December 18, 2003, after the  development
     was  completed, the Lease Agreement was amended  to  require
     annual  rental  payments  of  $236,000.   Total  acquisition
     costs, including the cost of the land, were $2,346,107.

     On February 6, 2004, the Company purchased a 48% interest in
     a  Jared  Jewelry  store  in Madison Heights,  Michigan  for
     $2,151,969.  The property is leased to Sterling Jewelers LLC
     under a Lease Agreement with a primary term of 20 years  and
     annual rental payments of $166,265.  The remaining interests
     in  the property were purchased by AEI Income & Growth  Fund
     25  LLC  and  AEI  Accredited  Investor  Fund  2002  Limited
     Partnership, affiliates of the Company.

(5)  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.


                 AEI INCOME & GROWTH FUND 23 LLC
                  NOTES TO FINANCIAL STATEMENTS
                           (Continued)

(6)  Discontinued Operations -

     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.

     In  July 2003, the lessee of the Razzoo's restaurants in San
     Antonio, Texas and Alpharetta, Georgia notified the  Company
     that they are experiencing financial difficulty and may  not
     be able to pay future rents.  During the summer of 2003, the
     lessee closed the restaurant in San Antonio.  On December 5,
     2003,  the Company terminated the lease, effective  December
     31,  2003,  and  was  prepared to commence  a  legal  action
     against  the  lessee  and the majority  shareholder  of  the
     lessee,  who guaranteed the lease until December  19,  2003.
     Before the Company filed its legal action, the lessee  filed
     suit against the Company with respect to the Company's lease
     termination.   The two parties have exchanged legal  filings
     without  resolving their issues.  The lessee paid  the  rent
     due  for  the  property in San Antonio through December  31,
     2003.  Due to the lease termination, they have not paid  any
     rent  for  2004.   The  Company is reviewing  its  available
     options  and has listed the property for sale with  a  local
     real estate broker.

     As  of  December  31, 2003, based on an analysis  of  market
     conditions in the area, the Company determined the  property
     is impaired in accordance with the requirements of Statement
     of  Financial  Accounting Standards No. 144, Accounting  for
     the  Impairment  or  Disposal of Long-Lived  Assets.   As  a
     result,  in  the  fourth  quarter  of  2003,  a  charge   to
     discontinued  operations  for  real  estate  impairment   of
     $1,148,880 was recognized, which was the difference  between
     the  book value at December 31, 2003 of $3,198,880  and  the
     estimated fair value of $2,050,000.  The charge was recorded
     against  the  cost of the land, building and equipment.   At
     March  31,  2004  and December 31, 2003,  the  property  was
     classified as Real Estate Held for Sale.

     In late 2003, the lessee closed the restaurant in Alpharetta
     and has indicated they are no longer interested in operating
     a restaurant at the site.  Rents are current and the Company
     holds a personal guarantee from the majority shareholder  of
     the lessee for payment of all rents.  The personal guarantee
     expires  on  July  11, 2004.  The Company is  reviewing  its
     available options and has listed the property with  a  local
     real  estate  broker for sale or lease.  At  this  time,  it
     appears  selling the property is a more likely outcome  than
     re-leasing the property.



                 AEI INCOME & GROWTH FUND 23 LLC
                  NOTES TO FINANCIAL STATEMENTS
                           (Continued)

(6)  Discontinued Operations - (Continued)

     Although the lessee is continuing to pay rent, based  on  an
     analysis  of  market  conditions in the  area,  the  Company
     determined  the property is impaired.  As a result,  in  the
     fourth  quarter of 2003, a charge to discontinued operations
     for real estate impairment of $451,513 was recognized, which
     was  the  difference between the book value at December  31,
     2003   of  $1,551,513  and  the  estimated  fair  value   of
     $1,100,000.  The charge was recorded against the cost of the
     land,  building  and  equipment.   At  March  31,  2004  and
     December  31,  2003,  the property was  classified  as  Real
     Estate Held for Sale.

     The financial results for these properties are reflected  as
     Discontinued   Operations  in  the  accompanying   financial
     statements.   The following are the results of  discontinued
     operations for the three months ended March 31:

                                                           2004        2003

     Rental Income                                    $  41,077    $ 155,357
     Property Management Expenses                       (89,094)      (4,304)
     Depreciation                                             0      (36,550)
     Gain on Disposal of Real Estate                          0            0
                                                       ---------    ---------
          Income (Loss) from Discontinued Operations  $ (48,017)   $ 114,503
                                                       =========    =========

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;



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

      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.


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 three months ended March 31, 2004 and 2003,  the
Company  recognized rental income from continuing  operations  of
$117,278  and  $47,015,  respectively.  In  2004,  rental  income
increased  due  to  additional rent received  from  two  property
acquisitions  in  2003  and  2004 and  a  rent  increase  on  one
property.  These increases were partially offset by a decrease in
rental  income due to the sale of the Johnny Carino's  restaurant
in Victoria, Texas.


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

        For  the three months ended March 31, 2004 and 2003,  the
Company  incurred  LLC  administration expenses  from  affiliated
parties   of   $31,550   and   $39,769,   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 $6,844 and
$6,908,  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 three months ended March 31, 2004 and 2003,  the
Company   recognized  interest  income  of  $4,874  and   $9,142,
respectively.   In  2004, interest income decreased  due  to  the
Company having less money invested in a money market account  due
to property acquisitions.

        For  the  three months ended March 31, 2003, the  Company
recognized gain on sale of real estate from continuing operations
of  $614,507  from the sale of the Johnny Carino's restaurant  in
Victoria, Texas.  Since the Company retains an ownership interest
in  the  property, the operating results and gain on sale of  the
property were not classified as discontinued operations.

        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  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 three
months  ended March 31, 2004, the Company recognized a loss  from
discontinued  operations of $48,017, representing  rental  income
less  property management expenses.  For the three  months  ended
March  31,  2003, the Company recognized income from discontinued
operations of $114,503, representing rental income less  property
management expenses and depreciation.

       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.



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

        In  July 2003, the lessee of the Razzoo's restaurants  in
San  Antonio, Texas and Alpharetta, Georgia notified the  Company
that  they are experiencing financial difficulty and may  not  be
able  to pay future rents.  During the summer of 2003, the lessee
closed  the restaurant in San Antonio.  On December 5, 2003,  the
Company  terminated the lease, effective December 31,  2003,  and
was  prepared to commence a legal action against the  lessee  and
the  majority shareholder of the lessee, who guaranteed the lease
until  December  19, 2003.  Before the Company  filed  its  legal
action, the lessee filed suit against the Company with respect to
the  Company's lease termination.  The two parties have exchanged
legal  filings without resolving their issues.  The  lessee  paid
the rent due for the property in San Antonio through December 31,
2003.  Due to the lease termination, they have not paid any  rent
for 2004.  The Company is reviewing its available options and has
listed the property for sale with a local real estate broker.

        In  2003, the Company received $342,225 of rental  income
from  the  Razzoo's  restaurant  in  San  Antonio,  Texas,  which
represented  a  significant percentage  of  the  Company's  total
rental  income.  The Company's goal is to sell the  property  and
invest the proceeds from the sale in replacement income-producing
property.   Until these transactions are completed, the  loss  of
rent from the property will result in a significant reduction  in
the  Company's  Net  Cash Flow available  for  distribution.   In
addition,   while  the  property  is  vacant,  the   Company   is
responsible  for  real estate taxes and other costs  required  to
maintain  the  property.  These property  expenses  will  further
reduce  Net Cash Flow available for distribution.  As  a  result,
effective  April  1, 2004, the Company reduced  the  distribution
rate  from  7%  to  6% of the Limited Members'  Adjusted  Capital
Contributions.   The  Company may decide to  further  reduce  the
level  of distributions paid to the Members in the future or  may
decide to maintain the current level of distributions by using  a
portion  of its cash reserve, which consists of profits generated
from the sale of property in 2003.

        As  of  December 31, 2003, based on an analysis of market
conditions  in the area, the Company determined the  property  is
impaired  in  accordance with the requirements  of  Statement  of
Financial  Accounting  Standards  No.  144,  Accounting  for  the
Impairment or Disposal of Long-Lived Assets.  As a result, in the
fourth  quarter of 2003, a charge to discontinued operations  for
real  estate impairment of $1,148,880 was recognized,  which  was
the  difference between the book value at December  31,  2003  of
$3,198,880  and  the  estimated fair value  of  $2,050,000.   The
charge  was  recorded against the cost of the land, building  and
equipment.  At March 31, 2004 and December 31, 2003, the property
was classified as Real Estate Held for Sale.

        In  late  2003,  the  lessee  closed  the  restaurant  in
Alpharetta  and  has indicated they are no longer  interested  in
operating  a  restaurant at the site.  Rents are current  through
May  31, 2004 and the Company holds a personal guarantee from the
majority shareholder of the lessee for payment of all rents.  The
personal  guarantee  expires on July 11, 2004.   The  Company  is
reviewing its available options and has listed the property  with
a  local real estate broker for sale or lease.  At this time,  it
appears  selling the property is a more likely outcome  than  re-
leasing the property.



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

       Although the lessee is continuing to pay rent, based on an
analysis of market conditions in the area, the Company determined
the property is impaired.  As a result, in the fourth quarter  of
2003,  a  charge  to  discontinued  operations  for  real  estate
impairment  of $451,513 was recognized, which was the  difference
between the book value at December 31, 2003 of $1,551,513 and the
estimated  fair  value of $1,100,000.  The  charge  was  recorded
against  the cost of the land, building and equipment.  At  March
31,  2004  and December 31, 2003, the property was classified  as
Real Estate Held for Sale.

        In  2003, the Company realized significant gains from the
sale  of  property.  While the real estate market is expected  to
remain  attractive  for  sellers of property,  there  can  be  no
assurance the Company will be able to achieve a similar level  of
sales  activity or sales profitability in 2004 due to  unforeseen
changes  in the real estate market.   In addition, it  is  likely
the  Company will curtail its selling activity as it is  becoming
more  difficult to find attractive property in which to  reinvest
the proceeds from property sales.

        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  three  months  ended  March  31,  2004,  the
Company's cash balances decreased $2,259,175 as a result of  cash
used  to  purchase property and distributions paid to the Members
in  excess  of cash generated from operating activities.   During
the  three  months  ended  March 31,  2003,  the  Company's  cash
balances increased $2,004,361 as a result of cash generated  from
the sale of property, which was partially offset by distributions
paid  to  the Members in excess of cash generated from  operating
activities.

        Net  cash provided by operating activities decreased from
$150,059 in 2003 to $132,323 in 2004 as a result of a decrease in
total  rental  and  interest  income  and  an  increase  in   LLC
administration  and property management expenses in  2004,  which
were partially offset by 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 three months  ended
March 31, 2003, the Company generated cash flow from the sale  of
real  estate of $2,161,939.  During the three months ended  March
31,  2004,  the  Company expended $2,151,969 to  invest  in  real
properties  (inclusive of acquisition expenses), as  the  Company
reinvested cash generated from property sales.


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

        On  April 4, 2003, the Company purchased a parcel of land
in  Parker, Colorado for $794,250. The Company 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 Company entered into a Development Financing Agreement
under   which  the  Company  advanced  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.    The
Company  charged interest on the advances at a rate of  10%.   On
December 18, 2003, after the development was completed, the Lease
Agreement  was  amended  to  require annual  rental  payments  of
$236,000.   Total acquisition costs, including the  cost  of  the
land, were $2,346,107.

        On February 6, 2004, the Company purchased a 48% interest
in  a  Jared  Jewelry  store  in Madison  Heights,  Michigan  for
$2,151,969.   The  property is leased to  Sterling  Jewelers  LLC
under  a  Lease  Agreement with a primary term of  20  years  and
annual  rental payments of $166,265.  The remaining interests  in
the  property were purchased by AEI Income & Growth Fund  25  LLC
and  AEI  Accredited  Investor  Fund  2002  Limited  Partnership,
affiliates of the Company.

        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 three months ended March 31, 2004 and 2003,  the
Company   declared  distributions  of  $230,319   and   $240,837,
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 $226,844
and  $233,612 and the Managing Members received distributions  of
$3,475 and $7,225 for the periods, respectively.

        During the three months ended March 31, 2004, the Company
distributed  $171,717 of net sale proceeds  to  the  Limited  and
Managing Members as part of their quarterly distributions,  which
represented  a  return of capital of $12.78 per  LLC  Unit.   The
Company  anticipates 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.


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

        During  2003, four Limited Members redeemed  a  total  of
39.52   Units  for  $27,538  in  accordance  with  the  Operating
Agreement.  The Company acquired these Units using Net Cash  Flow
from  operations.  In prior years, a total of two Limited Members
redeemed  11.73 Units for $8,085.  The redemptions  increase  the
remaining Limited Member's ownership interest in the Company.  As
a  result  of  these  redemption payments  and  pursuant  to  the
Operating  Agreement, the Managing Members received distributions
of $851 in 2003.

       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.

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 - During  the quarter  ended
                                       March 31, 2004,the Company
                                       filed  a  Form  8-K  dated
                                       February 17,2004,reporting
                                       the acquisition of a Jared
                                       Jewelry store in   Madison
                                       Heights, Michigan.



                           SIGNATURES

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


Dated:  May 11, 2004          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)