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, 2002

               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.)


  1300 Minnesota World Trade Center, 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, 2002 and December 31, 2001

         Statements for the Periods ended March 31, 2002 and 2001:

           Income

           Cash Flows

           Changes in Members' Equity

         Notes to Financial Statements

 Item 2. Management's Discussion and Analysis

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

<PAGE>
                 AEI INCOME & GROWTH FUND 23 LLC

                          BALANCE SHEET

              MARCH 31, 2002 AND DECEMBER 31, 2001

                           (Unaudited)

                             ASSETS

                                                     2002           2001

CURRENT ASSETS:
  Cash and Cash Equivalents                     $   283,102     $   307,150

INVESTMENTS IN REAL ESTATE:
  Land                                            4,234,559       4,234,559
  Buildings and Equipment                         6,714,280       6,714,280
  Accumulated Depreciation                         (291,012)       (221,857)
                                                 -----------     -----------
      Net Investments in Real Estate             10,657,827      10,726,982
                                                 -----------     -----------
           Total  Assets                        $10,940,929     $11,034,132
                                                 ===========     ===========


                      LIABILITIES AND MEMBERS' EQUITY

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.          $     7,276     $    15,854
  Distributions Payable                             238,738         238,738
                                                 -----------     -----------
      Total Current Liabilities                     246,014         254,592
                                                 -----------     -----------
MEMBERS' EQUITY (DEFICIT):
  Managing Members' Equity                          (17,983)        (15,444)
  Limited Members' Equity, $1,000 Unit Value;
   24,000 Units authorized; 13,349 Units
   issued and outstanding                        10,712,898      10,794,984
                                                 -----------     -----------
      Total Members' Equity                      10,694,915      10,779,540
                                                 -----------     -----------
        Total Liabilities and Members' Equity   $10,940,929     $11,034,132
                                                 ===========     ===========


 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)

                                                      2002           2001

INCOME:
   Rent                                          $   274,039     $   190,649
   Investment Income                                     753          38,075
                                                  -----------     -----------
        Total Income                                 274,792         228,724
                                                  -----------     -----------

EXPENSES:
   LLC Administration - Affiliates                    41,981          50,501
   LLC Administration and Property
    Management - Unrelated Parties                     7,443          10,389
   Depreciation                                       69,155          40,247
                                                  -----------     -----------
        Total Expenses                               118,579         101,137
                                                  -----------     -----------

NET INCOME                                       $   156,213     $   127,587
                                                  ===========     ===========

NET INCOME ALLOCATED:
   Managing Members                              $     4,686     $     3,828
   Limited Members                                   151,527         123,759
                                                  -----------     -----------
                                                 $   156,213     $   127,587
                                                  ===========     ===========

NET INCOME PER LLC UNIT
 (13,349 and 11,229 weighted average Units
 outstanding in 2002 and 2001, respectively)     $     11.35     $     11.02
                                                  ===========     ===========


 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)

                                                        2002         2001

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net  Income                                     $   156,213   $   127,587

   Adjustments to Reconcile Net Income to Net Cash
   Provided by Operating Activities:
     Depreciation                                       69,155        40,247
     Increase in Receivables                                 0       (11,709)
     Decrease in Payable to
        AEI Fund Management, Inc.                       (8,578)       (6,966)
                                                    -----------   -----------
        Total Adjustments                               60,577        21,572
                                                    -----------   -----------
        Net Cash Provided By
        Operating Activities                           216,790       149,159
                                                    -----------   -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Investments in Real Estate                                0    (1,258,079)
                                                    -----------   -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Capital Contributions from Limited Members                0     2,018,803
   Organization and Syndication Costs                        0      (302,820)
   Increase in Distributions Payable                         0        40,429
   Distributions to Members                           (240,838)     (202,580)
                                                    -----------   -----------
        Net Cash Provided By (Used For)
        Financing Activities                          (240,838)    1,553,832
                                                    -----------   -----------
NET INCREASE (DECREASE) IN CASH
   AND CASH EQUIVALENTS                                (24,048)      444,912

CASH AND CASH EQUIVALENTS, beginning of period         307,150     1,889,397
                                                    -----------   -----------
CASH AND CASH EQUIVALENTS, end of period           $   283,102   $ 2,334,309
                                                    ===========   ===========


 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, 2000   $ (6,450)  $ 8,904,863  $ 8,898,413   10,783.52

  Capital Contributions             0     2,018,803    2,018,803    2,018.80

  Organization &
   Syndication Costs                0      (302,820)    (302,820)

  Distributions                (6,077)     (196,503)    (202,580)

  Net Income                    3,828       123,759      127,587
                              --------   -----------  -----------  ----------
BALANCE, March 31, 2001      $ (8,699)  $10,548,102  $10,539,403   12,802.32
                              ========   ===========  ===========  ==========


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

  Distributions                (7,225)     (233,613)    (240,838)

  Net Income                    4,686       151,527      156,213
                              --------   -----------  -----------  ----------
BALANCE, March 31, 2002      $(17,983)  $10,712,898  $10,694,915   13,349.32
                              ========   ===========  ===========  ==========


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

                 AEI INCOME & GROWTH FUND 23 LLC

                  NOTES TO FINANCIAL STATEMENTS

                         MARCH 31, 2002

                           (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 Company's 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

                           (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)  Investments in Real Estate -

     On March 30, 2001, the Company purchased a 30% interest in a
     Children's  World  daycare center in New  Albany,  Ohio  for
     $465,163.   The  property is leased to  ARAMARK  Educational
     Resources, Inc. under a Lease Agreement with a primary  term
     of  15  years  and annual rental payments of  $44,345.   The
     remaining  interests in the property were purchased  by  AEI
     Net  Lease  Income & Growth Fund XX Limited Partnership  and
     AEI Fund Management, XVII, Inc., affiliates of the Company.

     On June 30, 2000, the Company purchased a 44% interest in  a
     parcel  of  land in Alpharetta, Georgia for  $707,520.   The
     land  is  leased  to  Razzoo's,  Inc.  (RI)  under  a  Lease
     Agreement with a primary term of 15 years and annual  rental
     payments  of  $60,139.   Effective November  26,  2000,  the
     annual  rent was increased to $68,983.  Simultaneously  with
     the  purchase  of  the  land, the  Company  entered  into  a
     Development  Financing  Agreement under  which  the  Company
     advanced  funds  to RI for the construction  of  a  Razzoo's
     restaurant  on  the  site.  Initially, the  Company  charged
     interest  on  the  advances at a rate  of  8.5%.   Effective
     November  26,  2000 and January 31, 2001, the interest  rate
     was increased to 9.75% and 15.0%, respectively.  On July 11,
     2001,   after  the  development  was  completed,  the  Lease
     Agreement  was amended to require annual rental payments  of
     $162,681.   The  Company's share of  the  total  acquisition
     costs, including the cost of the land, was $1,648,036.   The
     remaining  interests in the property are owned  by  AEI  Net
     Lease Income & Growth Fund XIX Limited Partnership, AEI Real
     Estate  Fund  XVIII Limited Partnership and AEI Private  Net
     Lease Millennium Fund Limited Partnership, affiliates of the
     Company.


                 AEI INCOME & GROWTH FUND 23 LLC

                  NOTES TO FINANCIAL STATEMENTS
                           (Continued)

(3)  Investments in Real Estate - (Continued)

     On  August 28, 2001, the Company purchased a 60% interest in
     an Arby's restaurant in Coon Rapids, Minnesota for $915,095.
     The property is leased to Franchise Associates, Inc. under a
     Lease  Agreement with a primary term of 20 years and  annual
     rental  payments of $81,951.  The remaining interest in  the
     property  was purchased by AEI Private Net Lease  Millennium
     Fund Limited Partnership, an affiliate of the Company.

     On March 8, 2001, the Company purchased a 22% interest in  a
     parcel  of land in Austin, Texas for $249,040.  The land  is
     leased  to Kona Restaurant Group, Inc. (KRG) under  a  Lease
     Agreement with a primary term of 17 years and annual  rental
     payments  of  $26,149.  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.   The  Company charged interest on the advances  at  a
     rate of 10.5%.  On September 26, 2001, after the development
     was  completed, the Lease Agreement was amended  to  require
     annual  rental payments of $52,968.  The Company's share  of
     the total acquisition costs, including the cost of the land,
     was  $501,880.  The remaining interests in the property  are
     owned by AEI Real Estate Fund 85-A Limited Partnership,  AEI
     Net  Lease Income & Growth Fund XX Limited Partnership,  and
     AEI Income & Growth Fund XXI Limited Partnership, affiliates
     of the Company.

     On February 2, 2001, the Company purchased a 48% interest in
     a  parcel  of land in San Antonio, Texas for $370,560.   The
     land is leased to Kona Restaurant Group, Inc. (KRG) under  a
     Lease  Agreement with a primary term of 17 years and  annual
     rental   payments  of  $38,909.   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.  The Company charged interest on the advances
     at  a  rate  of  10.5%.   On November  2,  2001,  after  the
     development  was completed, the Lease Agreement was  amended
     to   require  annual  rental  payments  of  $116,525.    The
     Company's  share  of the total acquisition costs,  including
     the  cost  of  the  land,  was  $1,105,231.   The  remaining
     interest in the property is owned by AEI Net Lease Income  &
     Growth  Fund  XIX Limited Partnership, an affiliate  of  the
     Company.

(4)  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.


ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS

Results of Operations

        For  the three months ended March 31, 2002 and 2001,  the
Company  recognized  rental  income  of  $274,039  and  $190,649,
respectively.  During the same periods, the Company  earned  $753
and $38,075, respectively, in investment income from subscription
proceeds which were invested in a short-term money market account
and   from   development   advances.   This   investment   income
constituted  .3%  and 17%, respectively, of  total  income.   The
percentage  of  total  income represented  by  investment  income
declines as subscription proceeds are invested in properties.

       During the three months ended March 31, 2002 and 2001, the
Company paid LLC administration expenses to affiliated parties of
$41,981 and $50,501, 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  $7,443   and   $10,389,
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 March 31, 2002, the Company's cash distribution rate
was  7.0%  on  an  annualized basis.  Pursuant to  the  Operating
Agreement, distributions of Net Cash Flow were allocated  97%  to
the Limited Members and 3% to the Managing Members.

        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,  2002,  the
Company's   cash  balances  decreased  $24,048  as  the   Company
distributed  more  cash  to the Members than  it  generated  from
operating  activities.  Net cash provided by operating activities
increased from $149,159 in 2001 to $216,790 in 2002 mainly  as  a
result  of an increase in income in 2002 as the Company continued
to invest subscription proceeds in properties.

        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, 2001, the Company expended $1,258,079 to invest in real
properties (inclusive of acquisition expenses).


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

       On March 30, 2001, the Company purchased a 30% interest in
a  Children's  World  daycare center  in  New  Albany,  Ohio  for
$465,163.    The  property  is  leased  to  ARAMARK   Educational
Resources, Inc. under a Lease Agreement with a primary term of 15
years  and  annual  rental payments of  $44,345.   The  remaining
interests in the property were purchased by AEI Net Lease  Income
&  Growth  Fund  XX Limited Partnership and AEI Fund  Management,
XVII, Inc., affiliates of the Company.

        On June 30, 2000, the Company purchased a 44% interest in
a  parcel of land in Alpharetta, Georgia for $707,520.  The  land
is  leased to Razzoo's, Inc. (RI) under a Lease Agreement with  a
primary  term of 15 years and annual rental payments of  $60,139.
Effective  November 26, 2000, the annual rent  was  increased  to
$68,983.   Simultaneously  with the purchase  of  the  land,  the
Company  entered  into  a Development Financing  Agreement  under
which the Company advanced funds to RI for the construction of  a
Razzoo's restaurant on the site.  Initially, the Company  charged
interest  on the advances at a rate of 8.5%.  Effective  November
26, 2000 and January 31, 2001, the interest rate was increased to
9.75%  and  15.0%,  respectively.  On July 11,  2001,  after  the
development  was completed, the Lease Agreement  was  amended  to
require annual rental payments of $162,681.  The Company's  share
of  the total acquisition costs, including the cost of the  land,
was  $1,648,036.   The remaining interests in  the  property  are
owned  by  AEI  Net  Lease  Income  &  Growth  Fund  XIX  Limited
Partnership,  AEI Real Estate Fund XVIII Limited Partnership  and
AEI  Private  Net  Lease  Millennium  Fund  Limited  Partnership,
affiliates of the Company.

        On  August 28, 2001, the Company purchased a 60% interest
in  an  Arby's restaurant in Coon Rapids, Minnesota for $915,095.
The  property  is leased to Franchise Associates,  Inc.  under  a
Lease Agreement with a primary term of 20 years and annual rental
payments of $81,951.  The remaining interest in the property  was
purchased  by  AEI  Private  Net Lease  Millennium  Fund  Limited
Partnership, an affiliate of the Company.

        On March 8, 2001, the Company purchased a 22% interest in
a  parcel  of  land in Austin, Texas for $249,040.  The  land  is
leased  to  Kona  Restaurant Group,  Inc.  (KRG)  under  a  Lease
Agreement  with  a  primary term of 17 years  and  annual  rental
payments  of  $26,149.  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.   The
Company charged interest on the advances at a rate of 10.5%.   On
September  26,  2001, after the development  was  completed,  the
Lease Agreement was amended to require annual rental payments  of
$52,968.   The  Company's share of the total  acquisition  costs,
including  the  cost  of the land, was $501,880.   The  remaining
interests in the property are owned by AEI Real Estate Fund  85-A
Limited  Partnership,  AEI Net Lease  Income  &  Growth  Fund  XX
Limited  Partnership, and AEI Income & Growth  Fund  XXI  Limited
Partnership, affiliates of the Company.

        On February 2, 2001, the Company purchased a 48% interest
in a parcel of land in San Antonio, Texas for $370,560.  The land
is  leased  to  Kona Restaurant Group, Inc. (KRG) under  a  Lease
Agreement  with  a  primary term of 17 years  and  annual  rental
payments  of  $38,909.  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.   The
Company charged interest on the advances at a rate of 10.5%.   On
November 2, 2001, after the development was completed, the  Lease
Agreement  was  amended  to  require annual  rental  payments  of
$116,525.   The  Company's share of the total acquisition  costs,
including  the  cost of the land, was $1,105,231.  The  remaining
interest  in  the  property is owned by AEI Net  Lease  Income  &
Growth Fund XIX Limited Partnership, an affiliate of the Company.


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

       During the offering of Units, the Company's primary source
of  cash  flow  is  from  the sale of  LLC  Units.   The  Company
commenced  its  offering of LLC Units to  the  public  through  a
registration  statement which became effective  March  23,  1999.
From March 23, 1999 to September 30, 1999, the minimum number  of
LLC  Units  (1,500)  needed to form the Company  were  sold.   On
September 30, 1999, a total of 1,868.616 Units ($1,868,616)  were
transferred into the Company.  The offering terminated March  22,
2001  when  the  extended offering period expired.   The  Company
received  subscriptions for 13,349.321 LLC  Units  ($13,349,321).
From  subscription  proceeds, the Company paid  organization  and
syndication  costs (which constitute a reduction of  capital)  of
$2,002,125.

        After  completion of the acquisition phase, 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.

        Beginning  in  2002, 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.

       The continuing rent payments from the properties should be
adequate to fund continuing distributions and meet other  Company
obligations on both a short-term and long-term basis.


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


Cautionary Statement for Purposes of the "Safe Harbor" Provisions
of the Private Securities Litigation Reform Act of 1995

         The   foregoing  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 the Company, must be evaluated in  the
context  of  a  number of factors that may affect  the  Company's
financial  condition  and  results of operations,  including  the
following:

    Market  and  economic conditions which affect the  value
    of  the  properties the Company owns 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 investors;

    resolution  by  the Managing Members of  conflicts  with
    which they may be confronted;

    the   success   of  the  Managing  Member  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.


                   PART II - OTHER INFORMATION

ITEM 1.LEGAL PROCEEDINGS

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

ITEM 2.CHANGES IN SECURITIES

      None.

ITEM 3.DEFAULTS UPON SENIOR SECURITIES

      None.

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

      None

ITEM 5.OTHER INFORMATION

      None.

                   PART II - OTHER INFORMATION
                           (Continued)

ITEM 6.EXHIBITS AND REPORTS ON FORM 8-K

      a. Exhibits - None.

      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:  April 30, 2002        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/ Mark E. Larson
                                      Mark E. Larson
                                      Chief Financial Officer
                                      (Principal Accounting Officer)