SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C.  20549

                           FORM 10-QSB

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

           For the Quarter Ended:  September 30, 1999

               Commission file number:  333-67287


                   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 September 30, 1999 and December 31, 1998

          Statements for the Period ended September 30, 1999:

           Operations

           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

            SEPTEMBER 30, 1999 AND DECEMBER 31, 1998

                           (Unaudited)


                             ASSETS

                                                    1999            1998

CURRENT ASSETS:
   Cash                                         $ 1,590,267     $     1,000
                                                 ===========     ===========






                        LIABILITIES AND MEMBERS' EQUITY

CURRENT LIABILITIES:
   Payable to AEI Fund Management, Inc.         $    31,080     $         0

MEMBERS' EQUITY:
  Managing Members' Equity                              636           1,000
  Limited Members' Equity, $1,000 Unit value;
   24,000 Units authorized; 1,869 Units issued
   and  outstanding at September 30, 1999         1,558,551               0
                                                 -----------     -----------
        Total Members' Equity                     1,559,187           1,000
                                                 -----------     -----------
          Total Liabilities and Members' Equity $ 1,590,267     $     1,000
                                                 ===========     ===========



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


                 AEI INCOME & GROWTH FUND 23 LLC

                     STATEMENT OF OPERATIONS

                FOR THE PERIOD ENDED SEPTEMBER 30

                           (Unaudited)

                                                            1999

INCOME                                                  $       262

ADMINISTRATION EXPENSES                                      30,649
                                                         -----------

NET  LOSS                                               $   (30,387)
                                                         ===========

NET LOSS ALLOCATED:
   Managing Members                                     $      (304)
   Limited Members                                          (30,083)
                                                         -----------
                                                        $   (30,387)
                                                         ===========
NET LOSS PER LIMITED MEMBERSHIP UNIT
   (1,869 weighted average Units outstanding)           $    (16.10)
                                                         ===========

 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 PERIOD ENDED SEPTEMBER 30

                           (Unaudited)

                                                              1999

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net Loss                                              $   (30,387)

   Adjustments to Reconcile Net Income to Net Cash
   Provided by Operating Activities:
     Increase in Payable to
        AEI Fund Management, Inc.                             31,080
                                                          -----------
        Total Adjustments                                     31,080
                                                          -----------
        Net Cash Provided By
        Operating Activities                                     693
                                                          -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Capital Contributions from Limited Members              1,868,616
   Organization and Syndication Costs                       (280,042)
                                                          -----------
        Net Cash Provided By
        Financing Activities                               1,588,574
                                                          -----------

NET INCREASE IN CASH AND CASH EQUIVALENTS                  1,589,267

CASH AND CASH EQUIVALENTS, beginning of period                 1,000
                                                          -----------
CASH AND CASH EQUIVALENTS, end of period                 $ 1,590,267
                                                          ===========

 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 PERIOD ENDED SEPTEMBER 30

                           (Unaudited)



                                        Managing        Limited
                                        Members         Members       Total


BALANCE, December 31, 1998             $   1,000    $        0    $    1,000

  Capital Contributions                        0     1,868,616     1,868,616

  Organization and Syndication Costs         (60)     (279,982)     (280,042)

  Net Loss                                  (304)      (30,083)      (30,387)
                                        ----------   ----------    ----------
BALANCE, September 30, 1999            $     636    $1,558,551    $1,559,187
                                        ==========   ==========    ==========



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

                  NOTES TO FINANCIAL STATEMENTS

                       SEPTEMBER 30, 1999

                           (Unaudited)

(1)  The  condensed  statements included herein have been  prepared
     by   the  LLC,  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 LLC believes that
     the   disclosures   are  adequate  to  make  the   information
     presented not misleading.

(2)  Organization -

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

     The  terms of the offering call for a subscription price  of
     $1,000  per  LLC Unit, payable on acceptance of  the  offer.
     Under the terms of the Operating Agreement, 24,000 LLC Units
     are  available for subscription which, if fully  subscribed,
     will  result  in  contributed Limited  Members'  capital  of
     $24,000,000.  The LLC commenced operations on September  30,
     1999  when minimum subscriptions of 1,500 Limited Membership
     Units  ($1,500,000) were accepted.  At September  30,  1999,
     1,868.616 Units ($1,868,616) were subscribed and accepted by
     the  LLC.  The Managing Members have contributed capital  of
     $1,000.

     During  the  operation of the LLC, 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 the LLC's 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 the LLC's 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 the LLC's 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  LLC  or
     withdrawal  by a Managing Member, the Managing Members  will
     contribute to the LLC 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 Significant Accounting Policies -

     Financial Statement Presentation

      The  accounts  of  the LLC are maintained  on  the  accrual
      basis  of  accounting for both federal income tax  purposes
      and financial reporting purposes.

     Accounting Estimates

      Management  uses  estimates and  assumptions  in  preparing
      these  financial  statements in accordance  with  generally
      accepted   accounting  principles.   Those  estimates   and
      assumptions may affect the reported amounts of  assets  and
      liabilities,  the  disclosure  of  contingent  assets   and
      liabilities,  and  the  reported  revenues  and   expenses.
      Actual results could differ from those estimates.

     Cash Concentrations of Credit Risk

      At  times  throughout  the  year,  the  Partnership's  cash
      deposited   in  financial  institutions  may  exceed   FDIC
      insurance limits.


                 AEI INCOME & GROWTH FUND 23 LLC

                  NOTES TO FINANCIAL STATEMENTS
                           (Continued)

(3)  Summary of Significant Accounting Policies - (Continued)

     Statement of Cash Flows

      For  purposes  of  reporting  cash  flows,  cash  and  cash
      equivalents may include cash in checking, cash invested  in
      money  market  accounts, certificates of  deposit,  federal
      agency  notes  and commercial paper with a  term  of  three
      months or less.

     Income Taxes

      The  income  or  loss  of the LLC for  federal  income  tax
      reporting purposes is includable in the income tax  returns
      of  the  Members.   Accordingly, no  recognition  has  been
      given   to  income  taxes  in  the  accompanying  financial
      statements.

      The  tax  return, the qualification of the LLC as such  for
      tax  purposes, and the amount of distributable  LLC  income
      or  loss  are subject to examination by federal  and  state
      taxing  authorities.   If  such an examination  results  in
      changes  with  respect  to  the  LLC  qualification  or  in
      changes  to  distributable LLC income or loss, the  taxable
      income of the members would be adjusted accordingly.

     Real Estate

      All  of  the properties to be purchased by the LLC will  be
      leased under long-term triple net leases.

      The  building and equipment of the LLC will be  depreciated
      using  the  straight-line  method for  financial  reporting
      purposes based on estimated useful lives of 25 years and  5
      years, respectively.

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

     AEI  Fund  Management, Inc. performs the administrative  and
     operating  functions for the LLC.  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.

(5)  Fair Value of Financial Instruments -

     The   carrying  value  of  certain  assets  and  liabilities
     approximates fair value.


ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS

Results of Operations

        For  the period ended September 30, 1999, the LLC  earned
$262  in investment income from subscription proceeds which  were
invested  in a short-term money market account.  This  investment
income  constituted  100% of total income for  the  period.   The
percentage  of  total  income represented  by  investment  income
declines as subscription proceeds are invested in properties.


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

        During the period ended September 30, 1999, the LLC  paid
administration expenses to affiliated parties of $29,749.   These
administration  expenses  include  initial  start-up  costs   and
administrative expenses associated with processing distributions,
reporting requirements and correspondence to the Limited Members.
During  the same period, the LLC incurred administration expenses
from  unrelated parties of $900.  These expenses represent direct
payments  to  third  parties for legal and  filing  fees,  direct
administrative  costs,  outside audit and accounting  costs,  and
other   costs.    The  administrative  expenses  decrease   after
completion  of the offering and acquisition phases of  the  LLC's
operations.

       The Year 2000 issue is the result of computer systems that
use  two  digits rather than four to define the applicable  year,
which  may prevent such systems from accurately processing  dates
ending  in  the  Year  2000 and beyond.   This  could  result  in
computer  system failures or disruption of operations, including,
but not limited to, an inability to process transactions, to send
or  receive  electronic data, or to engage  in  routine  business
activities.

        AEI  Fund  Management, Inc. (AEI) performs all management
services  for  the LLC.  In 1998, AEI completed an assessment  of
its  computer hardware and software systems and has  replaced  or
upgraded  certain  computer  hardware  and  software  using   the
assistance   of  outside  vendors.   AEI  has  received   written
assurance  from  the equipment and software manufacturers  as  to
Year  2000  compliance.   The  costs associated  with  Year  2000
compliance have not been, and are not expected to be, material.

        The  LLC intends to monitor and communicate with  tenants
regarding  Year  2000  compliance,  although  there  can  be   no
assurance  that the systems of the various tenants will  be  Year
2000 compliant.

Liquidity and Capital Resources

        The  LLC's primary sources of cash will be proceeds  from
the  sale of Units, investment income, rental income and proceeds
from  the  sale of property.  Its primary uses of  cash  will  be
investment  in real properties, payment of expenses  involved  in
the sale of Units, the organization of the LLC, the management of
properties,  the administration of the LLC, and  the  payment  of
distributions.

        The Operating Agreement requires that no more than 15% of
the  proceeds  from  the  sale of Units be  applied  to  expenses
involved  in the sale of Units (including Commissions)  and  that
such expenses, together with acquisition expenses, not exceed 20%
of  the proceeds from the sale of Units.  As set forth under  the
caption  "Estimated  Use  of Proceeds"  of  the  Prospectus,  the
Managing  Members  anticipate that 15% of such proceeds  will  be
applied  to cover organization and offering expenses if only  the
minimum proceeds are obtained and that 14% of such proceeds  will
be applied to such expenses if the maximum proceeds are obtained.
To   the  extent  organization  and  offering  expenses  actually
incurred  exceed 15% of proceeds, they are borne by the  Managing
Members.

        The  Operating Agreement requires that all proceeds  from
the  sale  of  Units be invested or committed  to  investment  in
properties  by  the  later of two years after  the  date  of  the
Prospectus or six months after termination of the offer and  sale
of Units.  While the LLC is purchasing properties, cash flow from
investing  activities (investment in real property)  will  remain
negative  and  will constitute the principal  use  of  the  LLC's
available  cash  flow.  Until capital is invested in  properties,
the LLC will remain extremely liquid.


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

        Before the acquisition of all such properties, cash  flow
from  operating activities is not significant.  Net income, after
adjustment for depreciation, is lower during the first few  years
of  operations as administrative expenses remain high and a large
amount of the LLC's assets remain invested on a short-term  basis
in  lower-yielding cash equivalents.  Net income will become  the
largest component of cash flow from operating activities and  the
largest  component  of  cash flow after  the  completion  of  the
acquisition phase.

        During the offering of Units, the LLC's primary source of
cash  flow will be from the sale of LLC Units.  The LLC commenced
its  offering  of LLC Units to the public through a  registration
statement which became effective March 23, 1999 and will continue
until  March 22, 2000, subject to extension to March 22, 2001  if
all  24,000 LLC Units are not sold before then.  From  March  23,
1999  to  September  30, 1999, the minimum number  of  LLC  Units
(1,500) needed to form the LLC were sold.  On September 30, 1999,
a total of 1,868.616 Units ($1,868,616) were transferred into the
LLC.   From subscription proceeds, the LLC paid organization  and
syndication  costs (which constitute a reduction of  capital)  of
$280,042.


                   PART II - OTHER INFORMATION

ITEM 1.LEGAL PROCEEDINGS

       There  are no material pending legal proceedings to  which
  the LLC is a party or of which the LLC'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

         27    Financial Data Schedule  for  period
               ended September 30, 1999.

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



                           SIGNATURES

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


Dated:  November 8, 1999      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)