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, 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.)


  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


                                                        Page

PART I.  FINANCIAL INFORMATION

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

             Statements for the Periods ended
             March 31, 2003 and 2002:

              Income                                     4

              Cash Flows                                 5

              Changes in Members' Equity                 6

             Notes to Financial Statements             7 - 9

    Item 2.  Management's Discussion and Analysis      9 - 13

    Item 3.  Controls and Procedures                     13

PART II. OTHER INFORMATION

    Item 1.  Legal Proceedings                           13

    Item 2.  Changes in Securities                       13

    Item 3.  Defaults Upon Senior Securities             13

    Item 4.  Submission of Matters to a
             Vote of Security Holders                    13

    Item 5.  Other Information                           13

    Item 6.  Exhibits and Reports on Form 8-K            14

            Signatures                                   14

            Certifications                              15-16

<PAGE>
                 AEI INCOME & GROWTH FUND 23 LLC

                          BALANCE SHEET

              MARCH 31, 2003 AND DECEMBER 31, 2002

                           (Unaudited)

                             ASSETS

                                             2003       2002

CURRENT ASSETS:
  Cash and Cash Equivalents              $ 4,458,394 $ 2,454,033

INVESTMENTS IN REAL ESTATE:
  Land                                     3,110,377   3,522,708
  Buildings and Equipment                  4,307,890   5,552,032
  Accumulated Depreciation                  (371,577)   (431,223)
                                          ----------  ----------
      Net Investments in Real Estate       7,046,690   8,643,517
                                          ----------  ----------
           Total Assets                  $11,505,084 $11,097,550
                                           ========    =========


                 LIABILITIES AND MEMBERS' EQUITY

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.   $    40,328 $    60,569
  Distributions Payable                      238,736     305,536
  Unearned Rent                                9,767           0
                                          ----------  ----------
      Total Current Liabilities              288,831     366,105
                                          ----------  ----------
MEMBERS' EQUITY:
  Managing Members' Equity                     6,140       3,369
  Limited Members' Equity, $1,000 Unit Value;
      24,000 Units authorized;
      13,349 Units issued;
      13,338 Units outstanding            11,210,113  10,728,076
                                          ----------  ----------
      Total Members' Equity               11,216,253  10,731,445
                                          ----------  ----------
           Total Liabilities
           and Members' Equity           $11,505,084 $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 MARCH 31

                           (Unaudited)

                                             2003       2002

INCOME:
   Rent                                   $ 202,372  $ 274,039
   Investment Income                          9,142        753
                                          ---------  ---------
        Total Income                        211,514    274,792
                                          ---------  ---------

EXPENSES:
   LLC Administration - Affiliates           39,769     41,981
   LLC Administration and Property
      Management - Unrelated Parties         11,212      7,443
      Depreciation                           49,395     69,155
                                          ---------  ---------
        Total Expenses                      100,376    118,579
                                          ---------  ---------

OPERATING INCOME                            111,138    156,213

GAIN ON SALE OF REAL ESTATE                 614,507          0
                                          ---------  ---------
NET INCOME                                $ 725,645  $ 156,213
                                           ========   ========

NET INCOME ALLOCATED:
   Managing Members                       $   9,996  $   4,686
   Limited Members                          715,649    151,527
                                          ---------  ---------
                                          $ 725,645  $ 156,213
                                           ========   ========

NET INCOME PER LLC UNIT
    (13,338 and 13,349 weighted average
    Units outstanding in 2003 and 2002,
    respectively)                         $   53.65  $   11.35
                                           ========   ========



 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)

                                             2003       2002

CASH FLOWS FROM OPERATING ACTIVITIES:
    Net  Income                          $  725,645  $  156,213

   Adjustments to Reconcile Net Income
   to Net Cash Provided by Operating Activities:

     Depreciation                            49,395     69,155
     Gain on Sale of Real Estate           (614,507)         0
     Decrease in Payable to
        AEI Fund Management, Inc.           (20,241)    (8,578)
     Increase in Unearned Rent                9,767          0
                                          ---------  ---------
        Total Adjustments                  (575,586)    60,577
                                          ---------  ---------
        Net Cash Provided By
            Operating Activities            150,059    216,790
                                          ---------  ---------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Proceeds from Sale of Real Estate      2,161,939          0
                                          ---------  ---------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Decrease in Distributions Payable        (66,800)         0
   Distributions to Members                (240,837)  (240,838)
                                          ---------  ---------
        Net Cash Used For
            Financing Activities           (307,637)  (240,838)
                                          ---------  ---------
NET INCREASE (DECREASE) IN CASH
   AND CASH EQUIVALENTS                   2,004,361    (24,048)

CASH AND CASH EQUIVALENTS,
beginning of period                       2,454,033    307,150
                                          ---------  ---------
CASH AND CASH EQUIVALENTS, end of period $4,458,394  $ 283,102
                                           ========   ========

 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, 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
                           ========    =========    =========   ========


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
                           ========    =========    =========   ========








 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, 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 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 -

     In  May  2002, the Company sold its 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 March 31, 2002 was $-0-.

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


                 AEI INCOME & GROWTH FUND 23 LLC

                  NOTES TO FINANCIAL STATEMENTS
                           (Continued)

(3)  INVESTMENTS IN REAL ESTATE - (Continued)

     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.

     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.   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 $794,250.  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.   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.

(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

        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  some  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, 2003 and 2002,  the
Company  recognized  rental  income  of  $202,372  and  $274,039,
respectively.   During  the  same  periods,  the  Company  earned
investment  income  of $9,142 and $753, respectively.   In  2003,
rental  income decreased due to property sales.  The decrease  in
rental  income was partially offset by an increase in  investment
income  due to the Company having more money invested in a  money
market account due to property sales.

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

       During the three months ended March 31, 2003 and 2002, the
Company paid LLC administration expenses to affiliated parties of
$39,769 and $41,981, 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  $11,212   and   $7,443,
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, 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.

        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,  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 Partners in excess of cash generated
from  operating  activities.   Net  cash  provided  by  operating
activities  decreased from $216,790 in 2002 to $150,059  in  2003
mainly as a result of a decrease in income in 2003.

        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.

        In  May 2002, the Company sold its 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 March 31, 2002 was $-0-.

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

       On December 18, 2002, the Company sold its 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 was  $1,656,473  and
$109,041, respectively.

        In  the  fourth quarter of 2002, the Company  distributed
$97,727  of net sale proceeds to the Limited and Managing Members
as  part  of  their quarterly distributions which  represented  a
return of capital of $7.25 per LLC Unit.  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 $794,250.  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.   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.

       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.

       During 2002, two Limited Members redeemed a total of 11.73
Units for $8,085 in accordance with the Operating Agreement.  The
Company acquired these Units using Net Cash Flow from operations.
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)/15d-14(c)]  under  the
Exchange  Act)  related  to  the  Company  as  of  a  date   (the
"Evaluation  Date") within 90 days prior to the  filing  date  of
this report.  Based upon that evaluation, the President and Chief
Financial  Officer of the Managing Member concluded that,  as  of
the  Evaluation Date, the disclosure controls and procedures  are
effective  in  timely  alerting them to the material  information
relating  to the Company required to be included in periodic  SEC
filings.

       (b)  Changes in internal controls

        There  were no significant changes made in the  Company's
internal controls during the period covered by this report or, to
the  Managing  Member's knowledge, in other  factors  that  could
significantly  affect these controls subsequent to  the  date  of
their evaluation.


                   PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

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

ITEM 2. CHANGES IN SECURITIES

      None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

      None.

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

      None

ITEM 5. OTHER INFORMATION

      None.


                   PART II - OTHER INFORMATION
                           (Continued)

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

                                 a.  Exhibits -
                                            Description

     10.1  Development Financing Agreement dated  April  4,  2003
     between  the  Partnership and Kona  Restaurant  Group,  Inc.
     relating  to  the  property at 9355 Crown  Crest  Boulevard,
     Parker, Colorado.

     10.2  Net  Lease  Agreement dated April 4, 2003 between  the
     Partnership and Kona Restaurant Group, Inc.  relating to the
     property at 9355 Crown Crest Boulevard, Parker, Colorado.

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

     99.2  Certification of 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:  May 12, 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)

                         CERTIFICATIONS

I, Robert P. Johnson, certify that:

1.  I  have reviewed this quarterly report on Form 10-QSB of  AEI
Income & Growth Fund 23 LLC;

2.  Based on my knowledge, this quarterly report does not contain
any  untrue  statement of a material fact  or  omit  to  state  a
material fact necessary to make the statements made, in light  of
the  circumstances  under which such statements  were  made,  not
misleading  with respect to the period covered by this  quarterly
report;

3.  Based  on my knowledge; the financial statements,  and  other
financial  information included in this quarterly report,  fairly
present in all material respects the financial condition, results
of  operations and cash flows of the registrant as of,  and  for,
the periods presented in this quarterly report;

4.   The  registrant's  other  certifying  officers  and  I   are
responsible for establishing and maintaining disclosure  controls
and  procedures (as defined in Exchange Act Rules 13a-14 and 15d-
14) for the registrant and have;

       a)   designed  such disclosure controls and procedures  to
ensure  that  material information relating  to  the  registrant,
including its consolidated subsidiaries, is made known to  us  by
others  within those entities, particularly during the period  in
which this quarterly report is being prepared;

       b)   evaluated  the  effectiveness  of  the  registrant's
disclosure  controls and procedures as of a date within  90  days
prior   to  the  filing  date  of  this  quarterly  report   (the
"Evaluation Date"); and

       c)   presented  in this quarterly report  our  conclusions
about the effectiveness of the disclosure controls and procedures
based on our evaluation as of the Evaluation Date;

5.   The  registrant's  other  certifying  officers  and  I  have
disclosed,   based  on  our  most  recent  evaluation,   to   the
registrant's  auditors  and the audit committee  of  registrant's
board   of   directors  (or  persons  performing  the  equivalent
functions):

       a) all significant deficiencies in the design or operation
of   internal   controls   which  could  adversely   affect   the
registrant's  ability  to record, process, summarize  and  report
financial data and have identified for the registrant's  auditors
any material weaknesses in internal controls; and

       b)   any  fraud,  whether or not material,  that  involves
management or other employees who have a significant role in  the
registrant's internal controls; and

6.   The  registrant's  other  certifying  officers  and  I  have
indicated  in  this quarterly report whether or  not  there  were
significant changes in internal controls or in other factors that
could  significantly affect internal controls subsequent  to  the
date  of  our  most recent evaluation, including  any  corrective
actions  with  regard  to significant deficiencies  and  material
weaknesses.



Dated:  May 12, 2003             /s/ Robert P. Johnson
                                 Robert P. Johnson, President
                                 AEI Fund Management XXI, Inc.
                                 Managing Member


                         CERTIFICATIONS

I, Patrick W. Keene, certify that:

1.  I  have reviewed this quarterly report on Form 10-QSB of  AEI
Income & Growth Fund 23 LLC;

2.  Based on my knowledge, this quarterly report does not contain
any  untrue  statement of a material fact  or  omit  to  state  a
material fact necessary to make the statements made, in light  of
the  circumstances  under which such statements  were  made,  not
misleading  with respect to the period covered by this  quarterly
report;

3.  Based  on my knowledge; the financial statements,  and  other
financial  information included in this quarterly report,  fairly
present in all material respects the financial condition, results
of  operations and cash flows of the registrant as of,  and  for,
the periods presented in this quarterly report;

4.   The  registrant's  other  certifying  officers  and  I   are
responsible for establishing and maintaining disclosure  controls
and  procedures (as defined in Exchange Act Rules 13a-14 and 15d-
14) for the registrant and have;

       a)   designed  such disclosure controls and procedures  to
ensure  that  material information relating  to  the  registrant,
including its consolidated subsidiaries, is made known to  us  by
others  within those entities, particularly during the period  in
which this quarterly report is being prepared;

       b)   evaluated  the  effectiveness  of  the  registrant's
disclosure  controls and procedures as of a date within  90  days
prior   to  the  filing  date  of  this  quarterly  report   (the
"Evaluation Date"); and

       c)   presented  in this quarterly report  our  conclusions
about the effectiveness of the disclosure controls and procedures
based on our evaluation as of the Evaluation Date;

5.   The  registrant's  other  certifying  officers  and  I  have
disclosed,   based  on  our  most  recent  evaluation,   to   the
registrant's  auditors  and the audit committee  of  registrant's
board   of   directors  (or  persons  performing  the  equivalent
functions):

      a)  all significant deficiencies in the design or operation
of   internal   controls   which  could  adversely   affect   the
registrant's  ability  to record, process, summarize  and  report
financial data and have identified for the registrant's  auditors
any material weaknesses in internal controls; and

      b)   any  fraud,  whether or not material,  that  involves
management or other employees who have a significant role in  the
registrant's internal controls; and

6.   The  registrant's  other  certifying  officers  and  I  have
indicated  in  this quarterly report whether or  not  there  were
significant changes in internal controls or in other factors that
could  significantly affect internal controls subsequent  to  the
date  of  our  most recent evaluation, including  any  corrective
actions  with  regard  to significant deficiencies  and  material
weaknesses.



Dated:  May 12, 2003             /s/ Patrick W. Keene
                                 Patrick W. Keene, Chief Financial Officer
                                 AEI Fund Management XXI, Inc.
                                 Managing Member