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:  June 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


                                                     Page

PART I.  Financial Information

    Item 1. Balance Sheet as of June 30, 2003 and
            December 31, 2002                         3

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

           Income                                     4

           Cash Flows                                 5

           Changes in Members' Equity                 6

        Notes to Financial Statements               7 - 11

    Item 2. Management's Discussion and Analysis   11 - 15

    Item 3. Controls and Procedures                   15

PART II. Other Information

    Item 1. Legal Proceedings                         16

    Item 2. Changes in Securities                     16

    Item 3. Defaults Upon Senior Securities           16

    Item 4. Submission of Matters to a Vote of
            Security Holders                          16

    Item 5. Other Information                         16

    Item 6. Exhibits and Reports on Form 8-K          16

        Signatures                                    17

<PAGE>
                 AEI INCOME & GROWTH FUND 23 LLC

                          BALANCE SHEET

               JUNE 30, 2003 AND DECEMBER 31, 2002

                           (Unaudited)


                             ASSETS

                                             2003        2002

CURRENT ASSETS:
  Cash and Cash Equivalents              $3,006,916   $ 2,454,033
  Receivables                                26,137             0
                                          ---------     ---------
                                          3,033,053     2,454,033
                                          ---------     ---------
INVESTMENTS IN REAL ESTATE:
  Land                                    3,891,111     3,522,708
  Buildings and Equipment                 4,307,890     5,552,032
  Construction in Progress                  527,437             0
  Accumulated Depreciation                 (416,266)     (431,223)
                                          ---------     ---------
      Net Investments in Real Estate      8,310,172     8,643,517
                                          ---------     ---------
           Total Assets                 $11,343,225   $11,097,550
                                          =========     =========


                 LIABILITIES AND MEMBERS' EQUITY

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.    $  12,319   $    60,569
  Distributions Payable                     235,193       305,536
                                          ---------     ---------
      Total Current Liabilities             247,512       366,105
                                          ---------     ---------
MEMBERS' EQUITY:
  Managing Members' Equity                    6,138         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                       11,089,575    10,728,076
                                          ---------     ---------
      Total Members' Equity              11,095,713    10,731,445
                                          ---------     ---------
           Total Liabilities and
           Members' Equity              $11,343,225   $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 JUNE 30

                           (Unaudited)

                           Three Months Ended Six Months Ended
                           6/30/03   6/30/02  6/30/03 6/30/02

RENTAL INCOME              $206,328 $249,712 $408,700 $499,422

EXPENSES:
   LLC Administration -
     Affiliates              23,266   33,369   63,035   75,350
   LLC Administration and
     Property Management -
     Unrelated Parties       21,665   22,294   32,877   29,597
   Depreciation              44,689   63,177   94,084  126,353
                            -------  -------  -------  -------
        Total Expenses       89,620  118,840  189,996  231,300
                            -------  -------  -------  -------

OPERATING INCOME            116,708  130,872  218,704  268,122

OTHER INCOME:
   Interest Income           15,002    1,529   24,144    2,282
   Gain on Sale of Real
    Estate                        0        0  614,507        0
                            -------  -------  -------  -------
        Total Other Income   15,002    1,529  638,651    2,282
                            -------  -------  -------  -------
INCOME FROM CONTINUING
   OPERATIONS               131,710  132,401  857,355  270,404

Income from Discontinued
   Operations                     0   84,855        0  103,065
                            -------  -------  -------  -------
NET INCOME                 $131,710 $217,256 $857,355 $373,469
                            =======  =======  =======  =======

NET INCOME ALLOCATED:
   Managing Members         $ 4,131 $ 25,716 $ 14,127 $ 30,402
   Limited Members          127,579  191,540  843,228  343,067
                            -------  -------  -------  -------
                           $131,710 $217,256 $857,355 $373,469
                             ======   ======   ======   ======
INCOME PER LLC UNIT:
   Continuing Operations    $  9.58 $   9.62 $  63.27 $  19.65
   Discontinued Operations        0     4.73        0     6.05
                            -------  -------  -------  -------
        Total                $ 9.58  $ 14.35 $  63.27 $  25.70
                             ======   ======   ======   ======
Weighted Average Units
 Outstanding                 13,317   13,349   13,327   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 JUNE 30

                           (Unaudited)

                                             2003       2002

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net Income                           $  857,355  $  373,469

   Adjustments to Reconcile Net Income to Net Cash
   Provided by Operating Activities:
     Depreciation                            94,084    137,042
     Gain on Sale of Real Estate           (614,507)   (71,642)
     Increase in Receivables                (26,137)         0
     Decrease in Payable to
        AEI Fund Management, Inc.           (48,250)    (5,633)
                                           --------   --------
        Total Adjustments                  (594,810)    59,767
                                           --------   --------
        Net Cash Provided By
           Operating Activities             262,545    433,236
                                           --------   --------
CASH FLOWS FROM INVESTING ACTIVITIES:
      Investments in Real Estate         (1,308,171)         0
   Proceeds from Sale of Real Estate      2,161,939    567,176
                                           --------   --------
        Net Cash Provided By
           Investing Activities             853,768    567,176
                                           --------   --------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Decrease in Distributions Payable        (70,343)         0
   Distributions to Members                (478,136)  (481,676)
   Redemption Payments                      (14,951)         0
                                           --------   --------
        Net Cash Used For
           Financing Activities            (563,430)  (481,676)
                                           --------   --------

NET INCREASE IN CASH AND CASH EQUIVALENTS   552,883    518,736

CASH AND CASH EQUIVALENTS,
  beginning of period                     2,454,033    307,150
                                           --------   --------
CASH AND CASH EQUIVALENTS,
  end of period                          $3,006,916  $ 825,886
                                           ========   ========



  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 JUNE 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              (14,450)     (467,226)    (481,676)

  Net Income                  30,402       343,067      373,469
                            --------      --------     --------     --------
BALANCE, June 30, 2002      $    508   $10,670,825  $10,671,333    13,349.32
                             =======    ==========   ==========    =========


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

  Distributions              (10,910)     (467,226)    (478,136)

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

  Net Income                  14,127       843,228      857,355
                            --------      --------     --------     --------
BALANCE, June 30, 2003      $  6,138   $11,089,575  $11,095,713    13,316.88
                             =======    ==========   ==========    =========


 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>

                 AEI INCOME & GROWTH FUND 23 LLC

                  NOTES TO FINANCIAL STATEMENTS

                          JUNE 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 and sole shareholder 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

                          JUNE 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

                          JUNE 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 six months ended June 30, 2002 was $-0-.

     During  the  three months ended March 31, 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.

     Subsequent to June 30, 2003 the Company sold 20.7054% of the
     Johnny  Carino's restaurant in San Antonio,  Texas,  in  two
     separate  transactions,  to unrelated  third  parties.   The
     Company  received  total net sale proceeds of  approximately
     $666,000,  which  resulted in a net  gain  of  approximately
     $211,000.

                 AEI INCOME & GROWTH FUND 23 LLC

                  NOTES TO FINANCIAL STATEMENTS

                          JUNE 30, 2003
                           (Continued)

(5)  INVESTMENTS IN REAL ESTATE - (Continued)

     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 six months of 2003, 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 $12.77 per LLC Unit.  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 Partnership purchased a parcel of land
     in  Parker,  Colorado  for $780,734,  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 June 30, 2003, the Company  had  advanced
     $527,437  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.

     Subsequent  to  June 30, 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 August 31,  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 June 30, 2003, the book value  of
     the   Razzoo's  properties  owned  by  the  Partnership   is
     $4,808,794.

(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.


                 AEI INCOME & GROWTH FUND 23 LLC

                  NOTES TO FINANCIAL STATEMENTS

                          JUNE 30, 2003
                           (Continued)

(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.

     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      Six Months Ended
                           6/30/03   6/30/02        6/30/03 6/30/02

Rental Income                 $ 0  $ 18,997          $ 0    $43,326
Property Management Expenses    0    (1,074)           0     (1,214)
Depreciation                    0    (4,710)           0    (10,689)
Gain on Disposal of Real Estate 0    71,642            0     71,642
                          -------   -------      -------    -------
   Income from Discontinued
     Operations               $ 0  $ 84,855          $ 0   $103,065
                           ======    ======       ======     ======

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;

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

       - 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

        Management's  discussion of the  results  of  operations,
liquidity and capital resources for the six months ended June 30,
2003  and  2002  includes  comparisons of  total  rental  income,
expenses  and  gains (losses) on sales of real  estate  resulting
from  both  Continuing  and Discontinued  Operations.   Reference
should  be  made  to  Note 7 of the Financial  Statements  for  a
summary of the components of Discontinued Operations.

        For  the  six  months ended June 30, 2003 and  2002,  the
Company  recognized  rental  income  of  $408,700  and  $542,748,
respectively.   During  the  same  periods,  the  Company  earned
interest  income of $24,144 and $2,282, respectively.   In  2003,
rental income decreased due to property sales.  This decrease  in
rental  income  was partially offset by additional rent  received
from  one property acquisition in 2003 and rent increases on  two
properties.   In  2003,  interest income  increased  due  to  the
Partnership  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)

        During  the six months ended June 30, 2003 and 2002,  the
Company paid LLC administration expenses to affiliated parties of
$63,035 and $75,350, 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  $32,877   and   $30,811,
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.

       As of June 30, 2003, the Company's annualized regular cash
distribution  rate  was  7.0%,  based  on  the  Adjusted  Capital
Contribution.  Pursuant to the Operating Agreement, distributions
of Net Cash Flow were allocated 97% to the Limited Members and 3%
to the Managing Members.

        Subsequent  to June 30, 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 August 31, 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 June 30, 2003, the book value  of  the
Razzoo's properties owned by the Partnership is $4,808,794.

        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 six months ended June 30, 2003, the Company's
cash  balances  increased $552,883 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.  Net cash
provided by operating activities decreased from $433,236 in  2002
to $262,545 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 six months ended June
30,  2003 and 2002, the Company generated cash flow from the sale
of  real estate of $2,161,939 and $567,176, respectively.  During
the  six  months  ended  June  30,  2003,  the  Company  expended
$1,308,171 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)

        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.

        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
three months ended June 30, 2002 was $-0-.

       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.

        During the three months ended March 31, 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.

        Subsequent to June 30, 2003 the Company sold 20.7054%  of
the  Johnny  Carino's restaurant in San Antonio,  Texas,  in  two
separate  transactions, to unrelated third parties.  The  Company
received total net sale proceeds of approximately $666,000, which
resulted in a net gain of approximately $211,000.

        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  six
months  of  2003, 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
$12.77 per LLC Unit.  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 Partnership purchased a parcel  of
land  in  Parker,  Colorado for $780,734,  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 June 30, 2003, the Company
had  advanced  $527,437 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 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 Partners on a semi-annual basis.

        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 April 1, 2003, two Limited Members redeemed a total of
20.71   Units  for  $14,503  in  accordance  with  the  Operating
Agreement.  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.

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:  August 8, 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)