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, 2000

                Commission file number:  0-17467


            AEI REAL ESTATE FUND XVII LIMITED PARTNERSHIP
(Exact Name of Small Business Issuer as Specified in its Charter)


      State of Minnesota                   41-1603719
(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 REAL ESTATE FUND XVII LIMITED PARTNERSHIP


                              INDEX




PART I. Financial Information

 Item 1. Balance Sheet as of September 30, 2000 and December 31, 1999

         Statements for the Periods ended September 30, 2000 and 1999:

           Income

           Cash Flows

           Changes in Partners' Capital

         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 REAL ESTATE FUND XVII LIMITED PARTNERSHIP

                          BALANCE SHEET

            SEPTEMBER 30, 2000 AND DECEMBER 31, 1999

                           (Unaudited)

                             ASSETS

                                                       2000           1999
CURRENT ASSETS:
  Cash and Cash Equivalents                        $ 1,376,431   $   785,486
  Receivables                                           21,417             0
                                                    -----------   -----------
      Total Current Assets                           1,397,848       785,486
                                                    -----------   -----------
INVESTMENTS IN REAL ESTATE:
  Land                                               4,606,124     4,482,806
  Buildings and Equipment                           10,044,373    10,389,784
  Construction in Progress                              40,253             0
  Accumulated Depreciation                          (3,236,567)   (3,004,630)
                                                    -----------   -----------
                                                    11,454,183    11,867,960
  Real Estate Held for Sale                            174,644       753,296
                                                    -----------   -----------
      Net Investments in Real Estate                11,628,827    12,621,256
                                                    -----------   -----------
           Total  Assets                           $13,026,675   $13,406,742
                                                    ===========   ===========

                     LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.             $    51,958   $    40,494
  Distributions Payable                                290,405       268,512
  Unearned Rent                                         50,518             0
                                                    -----------   -----------
      Total Current Liabilities                        392,881       309,006
                                                    -----------   -----------
PARTNERS' CAPITAL (DEFICIT):
  General Partners                                     (75,074)      (70,434)
  Limited Partners, $1,000 Unit value;
   30,000 Units authorized; 23,389 Units issued;
   21,060 and 21,658 Units outstanding
   in 2000 and 1999, respectively                   12,708,868    13,168,170
                                                    -----------   -----------
      Total Partners' Capital                       12,633,794    13,097,736
                                                    -----------   -----------
        Total Liabilities and Partners' Capital    $13,026,675   $13,406,742
                                                    ===========   ===========


 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>
          AEI REAL ESTATE FUND XVII LIMITED PARTNERSHIP

                       STATEMENT OF INCOME

               FOR THE PERIODS ENDED SEPTEMBER 30

                           (Unaudited)


                                Three Months Ended        Nine Months Ended
                              9/30/00        9/30/99    9/30/00       9/30/99

INCOME:
 Rent                       $ 441,010     $ 449,071   $1,345,943   $1,344,422
 Investment Income             13,028         2,084       29,750        9,171
                             ---------     ---------   ----------   ----------
        Total Income          454,038       451,155    1,375,693    1,353,593
                             ---------     ---------   ----------   ----------

EXPENSES:
 Partnership Administration -
  Affiliates                   77,560        61,525      213,856      194,788
 Partnership Administration
  and Property Management -
  Unrelated Parties             6,286         7,742       47,190       29,635
 Depreciation                  83,538       101,425      256,986      304,691
                             ---------     ---------   ----------   ----------
        Total Expenses        167,384       170,692      518,032      529,114
                             ---------     ---------   ----------   ----------

OPERATING INCOME              286,654       280,463      857,661      824,479

GAIN ON SALE OF REAL ESTATE    91,119             0       91,119            0
                             ---------     ---------   ----------   ----------
NET INCOME                  $ 377,773     $ 280,463   $  948,780   $  824,479
                             =========     =========   ==========   ==========

NET INCOME ALLOCATED:
 General Partners           $   3,778     $   2,805   $    9,487   $    8,245
 Limited Partners             373,995       277,658      939,293      816,234
                             ---------     ---------   ----------   ----------
                            $ 377,773     $ 280,463   $  948,780   $  824,479
                             =========     =========   ==========   ==========
NET INCOME PER
 LIMITED PARTNERSHIP UNIT
 (21,060, 21,658, 21,342 and
 21,850, weighted average
 Units outstanding for the
 periods, respectively)     $   17.76     $   12.82   $    44.01   $    37.36
                             =========     =========   ==========   ==========


 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>
          AEI REAL ESTATE FUND XVII LIMITED PARTNERSHIP

                     STATEMENT OF CASH FLOWS

               FOR THE PERIODS ENDED SEPTEMBER 30

                           (Unaudited)

                                                        2000          1999

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net   Income                                     $   948,780   $   824,479

   Adjustments to Reconcile Net Income to Net Cash
   Provided by Operating Activities:
     Depreciation                                       256,986       304,691
     Gain on Sale of Real Estate                        (91,119)            0
     (Increase) Decrease in Receivables                 (21,417)        8,989
     Increase (Decrease) in Payable to
        AEI Fund Management, Inc.                        11,464        (8,990)
     Increase in Unearned Rent                           50,518        49,364
                                                     -----------   -----------
        Total Adjustments                               206,432       354,054
                                                     -----------   -----------
        Net Cash Provided By
        Operating Activities                          1,155,212     1,178,533
                                                     -----------   -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Investments in Real Estate                          (261,264)     (124,258)
   Proceeds from Sale of Real Estate                  1,087,826             0
                                                     -----------   -----------
        Net Cash Provided By (Used For)
        Investing Activities                            826,562      (124,258)
                                                     -----------   -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Increase (Decrease) in Distributions Payable          21,893       (40,586)
   Distributions to Partners                           (938,841)     (721,443)
   Redemption Payments                                 (473,881)     (226,610)
                                                     -----------   -----------
        Net Cash Used For
         Financing Activities                        (1,390,829)     (988,639)
                                                     -----------   -----------
NET INCREASE IN
 CASH AND CASH EQUIVALENTS                              590,945        65,636

CASH AND CASH EQUIVALENTS, beginning of period          785,486       280,625
                                                     -----------   -----------
CASH AND CASH EQUIVALENTS, end of period            $ 1,376,431   $   346,261
                                                     ===========   ===========


 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>
          AEI REAL ESTATE FUND XVII LIMITED PARTNERSHIP

            STATEMENT OF CHANGES IN PARTNERS' CAPITAL

               FOR THE PERIODS ENDED SEPTEMBER 30

                           (Unaudited)



                                                                    Limited
                                                                  Partnership
                             General       Limited                   Units
                             Partners      Partners      Total    Outstanding


BALANCE, December 31, 1998  $(68,591)   $13,350,706   $13,282,115   21,947.89

  Distributions               (7,214)      (714,229)     (721,443)

  Redemption Payments         (2,266)      (224,344)     (226,610)    (290.00)

  Net Income                   8,245        816,234       824,479
                             --------    -----------   -----------  ----------
BALANCE, September 30, 1999 $(69,826)   $13,228,367   $13,158,541   21,657.89
                             ========    ===========   ===========  ==========


BALANCE, December 31, 1999  $(70,434)   $13,168,170   $13,097,736   21,657.89

  Distributions               (9,388)      (929,453)     (938,841)

  Redemption Payments         (4,739)      (469,142)     (473,881)     598.33

  Net Income                   9,487        939,293       948,780
                             --------    -----------   -----------  ----------
BALANCE, September 30, 2000 $(75,074)   $12,708,868   $12,633,794   21,059.56
                             ========    ===========   ===========  ==========

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

          AEI REAL ESTATE FUND XVII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                       SEPTEMBER 30, 2000

                           (Unaudited)


(1)  The  condensed  statements included herein have been  prepared
     by  the Partnership, 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  Partnership
     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
     Partnership's latest annual report on Form 10-KSB.

(2)  Organization -

     AEI  Real Estate Fund XVII Limited Partnership (Partnership)
     was  formed  to  acquire and lease commercial properties  to
     operating tenants.  The Partnership's operations are managed
     by  AEI  Fund  Management  XVII, Inc.  (AFM),  the  Managing
     General Partner.  Robert P. Johnson, the President and  sole
     shareholder of AFM, serves as the Individual General Partner
     and  an  affiliate of AFM, AEI Fund Management, Inc.  (AEI),
     performs the administrative and operating functions for  the
     Partnership.

     The   terms   of  the  Partnership  offering  call   for   a
     subscription  price of $1,000 per Limited Partnership  Unit,
     payable   on  acceptance  of  the  offer.   The  Partnership
     commenced  operations  on February  10,  1988  when  minimum
     subscriptions    of   2,000   Limited   Partnership    Units
     ($2,000,000)  were  accepted.  The  offering  terminated  on
     November  1, 1988 when the one-year offering period expired.
     The  Partnership received subscriptions for 23,388.7 Limited
     Partnership Units ($23,388,700).

     Under  the  terms of the Limited Partnership Agreement,  the
     Limited  Partners and General Partners contributed funds  of
     $23,388,700  and  $1,000, respectively.  During  operations,
     any  Net  Cash Flow, as defined, which the General  Partners
     determine  to  distribute will be  distributed  90%  to  the
     Limited  Partners and 10% to the General Partners; provided,
     however,  that  such distributions to the  General  Partners
     will be subordinated to the Limited Partners first receiving
     an annual, noncumulative distribution of Net Cash Flow equal
     to  10%  of their Adjusted Capital Contribution, as defined,
     and,  provided  further, that in no event will  the  General
     Partners  receive  less than 1% of such Net  Cash  Flow  per
     annum.   Distributions to Limited Partners will be made  pro
     rata by Units.


          AEI REAL ESTATE FUND XVII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                       SEPTEMBER 30, 2000
                           (Continued)

(2)  Organization - (Continued)

     Any  Net  Proceeds  of Sale, as defined, from  the  sale  or
     financing of properties which the General Partners determine
     to distribute will, after provisions for debts and reserves,
     be  paid  in  the following manner:  (i) first, 99%  to  the
     Limited  Partners and 1% to the General Partners  until  the
     Limited  Partners  receive an amount  equal  to:  (a)  their
     Adjusted Capital Contribution plus (b) an amount equal to 6%
     of their Adjusted Capital Contribution per annum, cumulative
     but not compounded, to the extent not previously distributed
     from  Net  Cash Flow; (ii) next, 99% to the Limited Partners
     and  1%  to the General Partners until the Limited  Partners
     receive  an  amount equal to 14% of their  Adjusted  Capital
     Contribution  per annum, cumulative but not  compounded,  to
     the  extent not previously distributed; (iii) next,  to  the
     General  Partners  until  cumulative  distributions  to  the
     General  Partners under Items (ii) and (iii)  equal  15%  of
     cumulative  distributions to all Partners under  Items  (ii)
     and (iii).  Any remaining balance will be distributed 85% to
     the  Limited  Partners  and  15% to  the  General  Partners.
     Distributions to the Limited Partners will be made pro  rata
     by Units.

     For  tax  purposes,  profits  from  operations,  other  than
     profits  attributable  to  the  sale,  exchange,  financing,
     refinancing  or  other  disposition  of  property,  will  be
     allocated  first  in the same ratio in  which,  and  to  the
     extent,  Net  Cash Flow is distributed to the  Partners  for
     such year.  Any additional profits will be allocated 90%  to
     the  Limited  Partners and 10% to the General Partners.   In
     the  event  no Net Cash Flow is distributed to  the  Limited
     Partners,  90%  of each item of income, gain or  credit  for
     each  respective  year  shall be allocated  to  the  Limited
     Partners,  and 10% of each such item shall be  allocated  to
     the  General Partners.  Net losses from operations  will  be
     allocated 98% to the Limited Partners and 2% to the  General
     Partners.

     For  tax purposes, profits arising from the sale, financing,
     or  other  disposition  of property  will  be  allocated  in
     accordance  with the Partnership Agreement as  follows:  (i)
     first,  to  those  Partners with deficit balances  in  their
     capital  accounts  in an amount equal to  the  sum  of  such
     deficit  balances; (ii) second, 99% to the Limited  Partners
     and  1%  to the General Partners until the aggregate balance
     in  the Limited Partners' capital accounts equals the sum of
     the Limited Partners' Adjusted Capital Contributions plus an
     amount  equal to 14% of their Adjusted Capital Contributions
     per  annum, cumulative but not compounded, to the extent not
     previously  allocated; (iii) third, to the General  Partners
     until  cumulative allocations to the General Partners  equal
     15%  of cumulative allocations.  Any remaining balance  will
     be  allocated  85% to the Limited Partners and  15%  to  the
     General  Partners.   Losses will be  allocated  98%  to  the
     Limited Partners and 2% to the General Partners.

     The  General Partners are not required to currently  fund  a
     deficit capital balance. Upon liquidation of the Partnership
     or  withdrawal  by  a General Partner, the General  Partners
     will  contribute to the Partnership an amount equal  to  the
     lesser of the deficit balances in their capital accounts  or
     1%  of total Limited Partners' and General Partners' capital
     contributions.


          AEI REAL ESTATE FUND XVII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                       SEPTEMBER 30, 2000
                           (Continued)

(3)  Investments in Real Estate -

     In  January, 2000, Texas Sports City Cafe, Ltd. (Texas), the
     lessee  of  the  Sports City Cafe, notified the  Partnership
     that they were discontinuing the restaurant operations.  The
     Partnership  began  negotiating to  sell  the  property  for
     $900,000  to  an  unrelated third  party,  who  assumed  the
     restaurant  operations from Texas.  The Partnership's  share
     of  the  gross  sale proceeds was $585,000.  In  the  fourth
     quarter  of  1999, a charge to operations  of  $125,000  was
     recognized  for  real  estate  impairment,  which  was   the
     difference  between the book value at December 31,  1999  of
     $703,652 and the estimated net proceeds from the sale.   The
     charge  was recorded against the cost of the building.   The
     land  and  building were classified as Real Estate Held  for
     Sale.

     On  July  28,  2000,  the sale closed with  the  Partnership
     receiving net sale proceeds of $579,215, which resulted in a
     net gain of $563.  At the time of sale, the cost and related
     accumulated   depreciation  was   $831,343   and   $252,691,
     respectively.

     On August 28, 1998, the Partnership purchased a 14% interest
     in  a parcel of land in Centerville, Ohio for $259,139.  The
     land is leased to Americana Dining Corporation (ADC) under a
     Lease  Agreement with a primary term of 20 years and  annual
     rental  payments of $18,140.  Effective December  25,  1998,
     the  annual  rent was increased to $27,209.   Simultaneously
     with  the purchase of the land, the Partnership entered into
     a   Development   Financing  Agreement   under   which   the
     Partnership advanced funds to ADC for the construction of  a
     Champps  Americana restaurant on the site.   Initially,  the
     Partnership charged interest on the advances at  a  rate  of
     7.0%.   Effective December 25, 1998, the interest  rate  was
     increased  to  10.5%.   On  January  27,  1999,  after   the
     development  was completed, the Lease Agreement was  amended
     to   require   annual  rental  payments  of  $56,764.    The
     Partnership's  share of the total purchase price,  including
     the cost of the land, was $551,677.  The remaining interests
     in  the  property  are owned by AEI Real Estate  Fund  XVIII
     Limited  Partnership, AEI Income & Growth Fund  XXI  Limited
     Partnership  and  AEI  Income &  Growth  Fund  XXII  Limited
     Partnership, affiliates of the Partnership.

     On  May 8, 2000, the Partnership purchased a 17% interest in
     a parcel of land in Austin, Texas for $231,200.  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
     $19,652.  Simultaneously with the purchase of the land,  the
     Partnership  entered into a Development Financing  Agreement
     under which the Partnership will advance funds to RI for the
     construction of a Razzoo's restaurant on the site.   Through
     September 30, 2000, the Partnership had advanced $40,253 for
     the  construction of the property and was charging  interest
     on  the advances at a rate of 8.5%.  The Partnership's share
     of the total purchase price, including the cost of the land,
     will  be approximately $583,100.  After the construction  is
     complete,  the  Lease Agreement will be amended  to  require
     annual  rental  payments  of  approximately  $57,000.    The
     remaining  interests in the property are owned by  AEI  Real
     Estate  Fund XV Limited Partnership, AEI Net Lease Income  &
     Growth Fund XIX Limited Partnership, and AEI Income & Growth
     Fund   XXII   Limited   Partnership,   affiliates   of   the
     Partnership.

          AEI REAL ESTATE FUND XVII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                       SEPTEMBER 30, 2000
                           (Continued)

(3)  Investments in Real Estate - (Continued)

     In the fourth quarter of 1999, the Partnership sold 13.5573%
     of its interest in the Timber Lodge Steakhouse in St. Cloud,
     Minnesota,  in two separate transactions to unrelated  third
     parties.   The Partnership received total net sale  proceeds
     of  $258,624, which resulted in a total net gain of $53,582.
     The  total cost and related accumulated depreciation of  the
     interests sold was $217,264 and $12,222, respectively.

     In  the third quarter of 2000, the Partnership sold 23.1898%
     of  the  Timber Lodge Steakhouse in Rochester, Minnesota  in
     two  separate transactions to unrelated third parties.   The
     Partnership  received  total net sale proceeds  of  $508,611
     which  resulted in a total net gain of $90,556.   The  total
     cost  and  related accumulated depreciation of the  interest
     sold was $443,103 and $25,048, respectively.

     On  October  6,  2000, the Partnership  sold  an  additional
     15.2418%  of its interest in the Timber Lodge Steakhouse  in
     St.  Cloud,  Minnesota  to an unrelated  third  party.   The
     Partnership  received  net  sale proceeds  of  approximately
     $289,000,  which  resulted in a net  gain  of  approximately
     $64,000.   The  majority of the net sales proceeds  will  be
     reinvested in additional property in the future.

(4)  Payable to AEI Fund Management -

     AEI  Fund  Management, Inc. performs the administrative  and
     operating functions for the Partnership.  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 nine months ended September 30, 2000 and 1999, the
Partnership   recognized   rental  income   of   $1,345,943   and
$1,344,422,   respectively.   During  the   same   periods,   the
Partnership  earned  investment income  of  $29,750  and  $9,171,
respectively.  In 2000, rental income increased as  a  result  of
additional rent received from two property acquisitions  in  1999
and  2000  and rent increases on ten properties.  These increases
in  rental  income were partially offset by a decrease in  rental
income  due  to  the property sales discussed  below.   In  2000,
additional investment income was earned on the net proceeds  from
property sales.


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

        In  January, 2000, Texas Sports City Cafe, Ltd.  (Texas),
the lessee of the Sports City Cafe, notified the Partnership that
they   were   discontinuing  the  restaurant   operations.    The
Partnership  began negotiating to sell the property for  $900,000
to   an   unrelated  third  party,  who  assumed  the  restaurant
operations from Texas.  The Partnership's share of the gross sale
proceeds  was $585,000.  In the fourth quarter of 1999, a  charge
to   operations  of  $125,000  was  recognized  for  real  estate
impairment,  which was the difference between the book  value  at
December 31, 1999 of $703,652 and the estimated net proceeds from
the  sale.   The  charge was recorded against  the  cost  of  the
building.   The land and building were classified as Real  Estate
Held for Sale.

        On  July  28, 2000, the sale closed with the  Partnership
receiving net sale proceeds of $579,215, which resulted in a  net
gain  of  $563.   At  the  time of sale,  the  cost  and  related
accumulated depreciation was $831,343 and $252,691, respectively.

        During the nine months ended September 30, 2000 and 1999,
the  Partnership  paid  Partnership  administration  expenses  to
affiliated parties of $213,856 and $194,788, respectively.  These
administration  expenses  include  costs  associated   with   the
management of the properties, processing distributions, reporting
requirements and correspondence to the Limited Partners.   During
the   same   periods,   the  Partnership   incurred   Partnership
administration  and property management expenses  from  unrelated
parties  of  $47,190 and $29,635, 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  September 30, 2000, the Partnership's  annualized
cash  distribution  rate was 7%, based on  the  Adjusted  Capital
Contribution.   Distributions of Net Cash  Flow  to  the  General
Partners were subordinated to the Limited Partners as required in
the Partnership Agreement.  As a result, 99% of distributions and
income  were allocated to Limited Partners and 1% to the  General
Partners.

        Inflation  has  had  a  minimal  effect  on  income  from
operations.   It is expected that increases in sales  volumes  of
the  tenants, due to inflation and real sales growth, will result
in  an  increase  in rental income over the term of  the  leases.
Inflation  also  may  cause  the  Partnership's  real  estate  to
appreciate in value.  However, inflation and changing prices  may
also  have  an  adverse impact on the operating  margins  of  the
properties' tenants which could impair their ability to pay  rent
and subsequently reduce the Partnership's Net Cash Flow available
for distributions.

Liquidity and Capital Resources

        During  the  nine months ended September  30,  2000,  the
Partnership's cash balances increased $590,945 mainly as a result
of  cash generated from the sale of property, which was partially
offset   by  cash  used  to  purchase  additional  property   and
distributions  made  in excess of cash generated  from  operating
activities.  Net cash provided by operating activities  decreased
from  $1,178,533 in 1999 to $1,155,212 in 2000 due to an increase
in  expenses in 2000 and net timing differences in the collection
of  payments from the lessees and the payment of expenses,  which
were partially offset by an increase in income in 2000.


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

        The  major components of the Partnership's cash flow from
investing activities are investments in real estate and  proceeds
from  the  sale  of  real estate.  During the nine  months  ended
September 30, 2000 and 1999, the Partnership generated cash  flow
from   the   sale  of  real  estate  of  $1,087,826   and   $-0-,
respectively.  During the same periods, the Partnership  expended
$261,264 and $124,258, respectively, to invest in real properties
(inclusive of acquisition expenses) as the Partnership reinvested
the cash generated from property sales.

        On  August  28,  1998, the Partnership  purchased  a  14%
interest  in a parcel of land in Centerville, Ohio for  $259,139.
The land is leased to Americana Dining Corporation (ADC) under  a
Lease Agreement with a primary term of 20 years and annual rental
payments  of  $18,140.  Effective December 25, 1998,  the  annual
rent  was increased to $27,209.  Simultaneously with the purchase
of the land, the Partnership entered into a Development Financing
Agreement under which the Partnership advanced funds to  ADC  for
the  construction of a Champps Americana restaurant on the  site.
Initially, the Partnership charged interest on the advances at  a
rate of 7.0%.  Effective December 25, 1998, the interest rate was
increased  to 10.5%.  On January 27, 1999, after the  development
was  completed, the Lease Agreement was amended to require annual
rental payments of $56,764.  The Partnership's share of the total
purchase  price,  including the cost of the land,  was  $551,677.
The  remaining interests in the property are owned  by  AEI  Real
Estate  Fund XVIII Limited Partnership, AEI Income & Growth  Fund
XXI Limited Partnership and AEI Income & Growth Fund XXII Limited
Partnership, affiliates of the Partnership.

        On  May 8, 2000, the Partnership purchased a 17% interest
in  a parcel of land in Austin, Texas for $231,200.  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  $19,652.
Simultaneously  with  the purchase of the land,  the  Partnership
entered  into a Development Financing Agreement under  which  the
Partnership  will advance funds to RI for the construction  of  a
Razzoo's restaurant on the site.  Through September 30, 2000, the
Partnership  had  advanced $40,253 for the  construction  of  the
property and was charging interest on the advances at a  rate  of
8.5%.   The  Partnership's  share of the  total  purchase  price,
including  the cost of the land, will be approximately  $583,100.
After  the construction is complete, the Lease Agreement will  be
amended  to  require  annual  rental  payments  of  approximately
$57,000.   The remaining interests in the property are  owned  by
AEI Real Estate Fund XV Limited Partnership, AEI Net Lease Income
&  Growth  Fund XIX Limited Partnership, and AEI Income &  Growth
Fund XXII Limited Partnership, affiliates of the Partnership.

        In  the  fourth  quarter of 1999,  the  Partnership  sold
13.5573%  of its interest in the Timber Lodge Steakhouse  in  St.
Cloud, Minnesota, in two separate transactions to unrelated third
parties.   The  Partnership received total net sale  proceeds  of
$258,624,  which  resulted in a total net gain of  $53,582.   The
total  cost and related accumulated depreciation of the interests
sold was $217,264 and $12,222, respectively.

        In  the  third  quarter  of 2000,  the  Partnership  sold
23.1898%  of the Timber Lodge Steakhouse in Rochester,  Minnesota
in  two  separate transactions to unrelated third  parties.   The
Partnership  received total net sale proceeds of  $508,611  which
resulted  in  a  total net gain of $90,556.  The total  cost  and
related  accumulated  depreciation  of  the  interest  sold   was
$443,103 and $25,048, respectively.


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

        On  October  6, 2000, the Partnership sold an  additional
15.2418%  of its interest in the Timber Lodge Steakhouse  in  St.
Cloud,  Minnesota to an unrelated third party.   The  Partnership
received  net  sale  proceeds  of approximately  $289,000,  which
resulted in a net gain of approximately $64,000.  The majority of
the  net sales proceeds will be reinvested in additional property
in the future.

       The Partnership's primary use of cash flow is distribution
and  redemption  payments to Partners.  The Partnership  declares
its  regular  quarterly  distributions before  the  end  of  each
quarter and pays the distribution in the first week after the end
of  each quarter.  The Partnership attempts to maintain a  stable
distribution  rate from quarter to quarter.  Redemption  payments
are  paid  to redeeming Partners on a quarterly basis.  Effective
January   1,  2000,  the  Partnership's  distribution  rate   was
increased  from  6.5% to 7.0%.  As a result,  distributions  were
higher during the first nine months of 2000, when compared to the
same period in 1999.

        The  Partnership may acquire Units from Limited  Partners
who have tendered their Units to the Partnership.  Such Units may
be  acquired at a discount.  The Partnership is not obligated  to
purchase  in  any  year  more than 5%  of  the  number  of  Units
outstanding at the beginning of the year.  In no event shall  the
Partnership  be  obligated to purchase  Units  if,  in  the  sole
discretion  of the Managing General Partner, such purchase  would
impair the capital or operation of the Partnership.

        On April 1, 2000, thirty-one Limited Partners redeemed  a
total  of  349 Partnership Units for $272,807 in accordance  with
the  Partnership  Agreement.  On July  1,  2000,  twenty  Limited
Partners  redeemed  a  total  of  249.33  Partnership  Units  for
$196,335.  On October 1, 2000, eleven Limited Partners redeemed a
total  of  115.2 Partnership Units for $91,622.  The  Partnership
acquired  these  Units using Net Cash Flow from  operations.   In
prior  years,  a  total of 117 Limited Partners redeemed  1,730.9
Partnership  Units for $1,160,868.  The redemptions increase  the
remaining   Limited   Partners'   ownership   interest   in   the
Partnership.

       The continuing rent payments from the properties, together
with  cash  generated from property sales, should be adequate  to
fund   continuing   distributions  and  meet  other   Partnership
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 Partnership, must be evaluated  in
the   context  of  a  number  of  factors  that  may  affect  the
Partnership's  financial  condition and  results  of  operations,
including the following:

         Market  and  economic conditions which affect the  value
         of  the  properties the Partnership 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 General Partners of  conflicts  with
         which they may be confronted;

         the   success  of  the  General  Partners  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 Partnership operate.


                   PART II - OTHER INFORMATION

ITEM 1.LEGAL PROCEEDINGS

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


                   PART II - OTHER INFORMATION
                           (Continued)

ITEM 5.OTHER INFORMATION

      None.

ITEM 6.EXHIBITS AND REPORTS ON FORM 8-K

      a. Exhibits -
                                    Description

               10.1 Purchase Agreement dated September 26,
                    2000,  between  the  Partnership  and  Garden
                    Ridge   Development  LLC  relating   to   the
                    property at 4140 West Frontage Road,  Highway
                    52N, Rochester, Minnesota.

               10.2 Property Co-Tenancy Ownership Agreement
                    dated   September   27,  2000   between   the
                    Partnership and Garden Ridge Development  LLC
                    relating   to  the  property  at  4140   West
                    Frontage   Road,   Highway  52N,   Rochester,
                    Minnesota.

               10.3 Purchase Agreement dated October  4,
                    2000,  between the Partnership and The  Rynda
                    Family  Limited Partnership relating  to  the
                    property  at  3950 Second Street  South,  St.
                    Cloud, Minnesota.

               10.4 Property Co-Tenancy Ownership Agreement
                    dated October 6, 2000 between the Partnership
                    and  The  Rynda  Family  Limited  Partnership
                    relating  to  the  property  at  3950  Second
                    Street South, St. Cloud, Minnesota.

               27   Financial Data Schedule for period ended
                    September 30, 2000.

      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:  October 29, 2000      AEI Real Estate Fund XVII
                              Limited Partnership
                              By:  AEI Fund Management XVII, Inc.
                              Its: Managing General Partner



                              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)