PROPERTY CO-TENANCY
                       OWNERSHIP AGREEMENT
          (Tractor Supply Company Store - Bristol, VA)
                                
                                
THIS CO-TENANCY AGREEMENT,

Made  and  entered into as of the 2nd day of Jan,  1997,  by  and
between  William E. Mason and Hazel Mason as tenants  in  common,
(hereinafter  called  "Mason"), and AEI Real  Estate  Fund  XVIII
Limited  Partnership  (hereinafter called "Fund  XVIII")  (Mason,
Fund  XVIII  (and  any other Owner in Fee where  the  context  so
indicates)  being hereinafter sometimes collectively called  "Co-
Tenants" and referred to in the neuter gender).

WITNESSETH:

WHEREAS, Fund XVIII presently owns an undivided 55.0170% interest
in  and  to,  and Robert P. Johnson presently owns  an  undivided
11.7657%  interest  in  and  to,  and  Mason  presently  owns  an
undivided  11.6552%  interest in and  to,  and  Arel  and  Louise
Middleton presently own an undivided 11.6552% interest in and to,
and  Joyce R. Scott presently owns an undivided 9.9069%  interest
(also  referred  to  herein as Co-Tenant) in and  to,  the  land,
situated in the City of Bristol, County of Washington, and  State
of  Virginia,  (legally described upon Exhibit A attached  hereto
and  hereby  made  a part hereof) and in and to the  improvements
located thereon (hereinafter called "Premises");

WHEREAS,  The  parties  hereto wish to provide  for  the  orderly
operation and management of the Premises and Mason's interest  by
Fund  XVIII; the continued leasing of space within the  Premises;
for  the distribution of income from and the pro-rata sharing  in
expenses of the Premises.

NOW  THEREFORE, in consideration of the purchase by Mason  of  an
undivided  interest  in and to the Premises,  for  at  least  One
Dollar  ($1.00) and other good and valuable consideration by  the
parties  hereto  to  one another in hand paid,  the  receipt  and
sufficiency of which are hereby acknowledged, and of  the  mutual
covenants and agreements herein contained, it is hereby agreed by
and between the parties hereto, as follows:

1.    The  operation  and  management of the  Premises  shall  be
delegated  to Fund XVIII, or its designated agent, successors  or
assigns. Provided, however, if Fund XVIII shall sell all  of  its
interest  in  the  Premises, the duties and obligations  of  Fund
XVIII  respecting management of the Premises as set forth herein,
including but not limited to paragraphs 2, 3, and 4 hereof, shall
be exercised by the holder or holders of a majority undivided co-
tenancy interest in the Premises. Except as hereinafter expressly
provided to the contrary, each of the parties hereto agrees to be
bound  by  the  decisions  of  Fund XVIII  with  respect  to  all
administrative,  operational  and  management  matters   of   the
property  comprising the Premises, including but not  limited  to
the  management of the net lease agreement  for the Premises. The
parties  hereto  hereby designate Fund XVIII as  their  sole  and
exclusive  agent to deal with any property agent and  to  execute
leases of space within the Premises, including but not limited to
any  amendments,  consents  to assignment,  sublet,  releases  or
modifications  to  leases or guarantees  of  lease  or  easements
affecting  the Premises, on behalf of all present or  future  Co-
Tenants. Only Fund XVIII may obligate any Co-Tenant with  respect
to any expense for the Premises.

As  further set forth in paragraph 2 hereof, Fund XVIII agrees to
require any Tenant of the Premises to name Mason as an insured or
additional  insured in all insurance policies  provided  for,  or
contemplated by, any lease on the Premises. Fund XVIII shall  use
its best efforts to obtain endorsements adding Co-Tenants to said
policies  from  Tenant  within 30 days of  commencement  of  this
agreement.  In  any  event,  Fund  XVIII  shall  distribute   any
insurance proceeds it





Co-Tenant Initial:
Co-Tenancy Ageement for Tractor Supply - Bristol, VA





may  receive,  to  the extent consistent with any  lease  on  the
Premises,  to  the  Co-Tenants in proportion to their  respective
ownership of the Premises.

2.    Income,  expenses and any net proceeds from a sale  of  the
Premises shall be allocated among the Co-Tenants in proportion to
their  respective  share(s) of ownership. Shares  of  net  income
shall be pro-rated for any partial calendar years included within
the term of this Agreement. Fund XVIII may offset against, pay to
itself  and  deduct  from any payment due  to  Mason  under  this
Agreement, and may pay to itself the amount of Mason's  share  of
any  legitimate expenses of the Premises which are  not  paid  by
Mason  to  Fund XVIII or its assigns, within ten (10) days  after
demand  by  Fund  XVIII.  In  the  event  there  is  insufficient
operating  income from which to deduct Mason's  unpaid  share  of
operating  expenses,  Fund XVIII may pursue  any  and  all  legal
remedies for collection.

Operating  Expenses  shall include all normal operating  expense,
including  but not limited to: maintenance, utilities,  supplies,
labor, management, advertising and promotional expenses, salaries
and wages of rental and management personnel, leasing commissions
to  third  parties, a monthly accrual to pay insurance  premiums,
real  estate taxes, installments of special assessments  and  for
structural repairs and replacements, management fees, legal  fees
and accounting fees, but excluding all operating expenses paid by
Tenant under terms of any lease agreement of the Premises.

Mason  has  elected to retain, and agrees to annually  reimburse,
Fund  XVIII  in the amount of $560 for the expenses,  direct  and
indirect,   incurred   by  Fund  XVIII  in  providing   quarterly
accounting  and distributions of Mason's share of net income  and
for  tracking, reporting and assessing the calculation of Mason's
share  of  operating  expenses incurred from the  Premises.  This
invoice  amount  shall be pro-rated for partial years  and  Mason
authorizes Fund XVIII to deduct such amount from Mason's share of
revenue  from  the Premises.  Mason may terminate this  agreement
respecting  quarterly  accounting  and  distributions   in   this
paragraph  at  any time and seek to collect its share  of  rental
stream directly from the tenant.

3.    Full, accurate and complete books of account shall be  kept
in  accordance  with generally accepted accounting principles  at
Fund  XVIII's  principal office, and each  Co-Tenant  shall  have
access  to  such books and may inspect and copy any part  thereof
during  normal business hours. Within ninety (90) days after  the
end  of  each  calendar year during the term hereof,  Fund  XVIII
shall  prepare an accurate income statement for the ownership  of
the  Premises for said calendar year and shall furnish copies  of
the  same to all Co-Tenants. Quarterly, as its share, Mason shall
be  entitled  to  receive 11.6552% of all  items  of  income  and
expense   generated  by  the  Premises.  Upon  receipt  of   said
accounting,  if the payments received by each Co-Tenant  pursuant
to  this  Paragraph 3 do not equal, in the aggregate, the amounts
which  each are entitled to receive with respect to said calendar
year  pursuant  to Paragraph 2 hereof, an appropriate  adjustment
shall be made so that each Co-Tenant receives the amount to which
it is entitled.

4.    If  Net Income from the Premises is less than $0.00  (i.e.,
the  Premises  operates  at a loss), or if capital  improvements,
repairs, and/or replacements, for which adequate reserves do  not
exist,  need  to  be made to the Premises, the  Co-Tenants,  upon
receipt  of  a  written request therefor from Fund XVIII,  shall,
within  fifteen (15) business days after receipt of notice,  make
payment to Fund XVIII sufficient to pay said net operating losses
and  to provide necessary operating capital for the premises  and
to   pay   for   said   capital  improvements,   repairs   and/or
replacements, all in proportion to their undivided  interests  in
and to the Premises.

5.    Co-Tenants  may, at any time, sell, finance,  or  otherwise
create  a lien upon their interest in the Premises but only  upon
their  interest  and not upon any part of the interest  held,  or
owned, by any other Co-Tenant.  All Co-






Co-Tenant Initial: /s/ HM /s/ WEM
Co-Tenancy Ageement for Tractor Supply - Bristol, VA






Tenants reserve the right to escrow proceeds from a sale of their
interests in the Premises to obtain tax deferral by the  purchase
of replacement property.

6.   If any Co-Tenant, shall be in default with respect to any of
its  obligations hereunder, and if said default is not  corrected
within  thirty  (30)  days after receipt by said  defaulting  Co-
Tenant  of written notice of said default, or within a reasonable
period  if  said default does not consist solely of a failure  to
pay money, the remaining Co-Tenant(s) may resort to any available
remedy to cure said default at law, in equity, or by statute,  or
set forth herein.

7.    This  property management agreement shall continue in  full
force  and effect and shall bind and inure to the benefit of  the
Co-Tenant  and their respective heirs, executors, administrators,
personal representatives, successors and permitted assigns  until
the  expiration  date plus extensions of the net lease  agreement
or  upon  the sale of the entire Premises in accordance with  the
terms  hereof  and  proper disbursement of the proceeds  thereof,
whichever shall first occur.  Unless specifically identified as a
personal  contract  right or obligation  herein,  this  agreement
shall  run  with any interest in the Premises and with the  title
thereto. Once any person, party or entity has ceased to  have  an
interest  in  fee  in the Premises, it shall  not  be  bound  by,
subject  to  or  benefit from the terms hereof;  but  its  heirs,
executors,  administrators, personal representatives,  successors
or  assigns,  as  the  case may be, shall be substituted  for  it
hereunder.

8.    Any notice or election required or permitted to be given or
served by any party hereto to, or upon any other, shall be deemed
given  or  served  in  accordance with  the  provisions  of  this
Agreement, if said notice or elections addressed as follows;

If to Fund XVIII:

AEI Real Estate Fund XVIII Limited Partnership
1300 Minnesota World Trade Center
30 E. Seventh Street
St. Paul, Minnesota  55101

If to Mason:

William Mason




If to Middleton:

Arel D. and Louise B. Middleton
P.O. Box 283
Wasco, OR  97065-0283








Co-Tenant Initial: /s/ HM /s/ WEM
Co-Tenancy Ageement for Tractor Supply - Bristol, VA


If to Scott:

Joyce R. Scott
1562 Rainbow Drive
Santa Ana, CA 92705

Each mailed notice or election shall be deemed to have been given
to,  or served upon, the party to which addressed on the date the
same  is  deposited in the United States certified  mail,  return
receipt  requested,  postage prepaid, or given  to  a  nationally
recognized  courier  service guaranteeing overnight  delivery  as
properly addressed in the manner above provided. Any party hereto
may  change  its address for the service of notice  hereunder  by
delivering  written notice of said change to  the  other  parties
hereunder, in the manner above specified, at least ten (10)  days
prior to the effective date of said change.

9.    This  Agreement shall not create any partnership  or  joint
venture  among or between the Co-Tenants or any of them, and  the
only  relationship  among  and between the  Co-Tenants  hereunder
shall  be  that  of owners of the premises as tenants  in  common
subject to the terms hereof.

10.    The  unenforceability or invalidity of  any  provision  or
provisions  of  this Agreement as to any person or  circumstances
shall  not render that provision, nor any other provision hereof,
unenforceable or invalid as to any other person or circumstances,
and  all  provisions hereof, in all other respects, shall  remain
valid and enforceable.

11.   In  the  event  any litigation arises between  the  parties
hereto  relating  to  this Agreement, or any  of  the  provisions
hereof, the party prevailing in such action shall be entitled  to
receive  from the losing party, in addition to all other  relief,
remedies  and  damages  to  which it is otherwise  entitled,  all
reasonable  costs  and expenses, including reasonable  attorneys'
fees,  incurred by the prevailing party in connection  with  said
litigation.

12.   This  Agreement is governed by the Laws of the Commonwealth
of Virginia.








Co-Tenant Initial: /s/ HM /s/ WEM
Co-Tenancy Ageement for Tractor Supply - Bristol, VA




IN WITNESS WHEREOF, The parties hereto have caused this Agreement
to  be executed and delivered, as of the day and year first above
written.

Mason         William E. Mason and Hazel Mason as tenants in common

              By: /s/ William E Mason
                      William E. Mason

              By: /s/ Hazel Mason
                      Hazel Mason

     WITNESS:
     
          /s/ Patti D. Morris
     
              Patti D Morris
              (Print Name)
     
          WITNESS:
     
          /s/ Tammy Ward
     
              Tammy Ward
              (Print Name)



STATE OF Tennessee)
                              ) ss
COUNTY OF Williamson)

The  foregoing instrument was acknowledged  before  me,  a
Notary  Public in and for the County and State  aforesaid,
this  26th  day of December,1996, by Gail Sanford,  Notary
Public.






/s/ Gail Sanford, Notary
Com Exp 4-1-97






Co-Tenant Initial: /s/ HM /s/ WEM
Co-Tenancy Ageement for Tractor Supply - Bristol, VA

Fund XVIII   AEI Real Estate Fund XVIII Limited Partnership

            By: AEI Fund Management XVIII, Inc., its corporate general partner

             By: /s/ Robert P Johnson
                     Robert P. Johnson, President

     WITNESS:
     
          /s/ Laura M. Steidl
     
              Laura M. Steidl
              (Print Name)
     
          WITNESS:
     
          /s/ JoAnn Rath
     
              JoAnn Rath
              (Print Name)


State of Minnesota )
                                   ) ss.
County of Ramsey  )

I,  a Notary Public in and for the state and county of aforesaid,
hereby  certify there appeared before me this 2nd day of January,
1997,  Robert P. Johnson, President of AEI Fund Management XVIII,
Inc.,  corporate  general partner of AEI Real Estate  Fund  XVIII
Limited  Partnership,  who executed the foregoing  instrument  in
said capacity and on behalf of the corporation in its capacity as
corporate general partner, on behalf of said limited partnership.

                              /s/ Linda A. Bisdorf
                                  Notary Public





                                   [notary seal]






Co-Tenant Initial: /s/ HM
Co-Tenancy Ageement for Tractor Supply - Bristol, VA








                    EXHIBIT A LEGAL DESCRIPTION


A  certain  tract of land, containing 2.74 acres, more  or  less,
situated,  lying,  and being in the City of Bristol  and  in  the
County  of Washington, State of Virginia, as described  by  metes
and bounds as follows:

      Located  in  Washington County and  the  City  of  Bristol,
Virginia  within      the  Wal-mart Shopping Center  Development;
being  a  portion of Tract No. 8     (Wal-Mart Stores,  Inc.)  as
shown  on  Plat of Record in Plat Book 4, Page       63,  in  the
recorders  office  for  Washington County, Virginia;  being  more
particularly described as follows;

      BEGINNING at an iron pin corner to Walnut Grove Church  and
Tract  5 of     the Wal-Mart Development, thence proceeding  with
the  line of Walnut  Grove Church North 86 degrees 02 minutes  35
seconds  West for a distance   of 337.57 feet to an iron pin  set
this  survey;  thence leaving the line    of Walnut Grove  Church
and  proceeding with a new line North 46 degrees   10 minutes  34
seconds  East for a distance of 591.56 feet to an iron pin    set
this  survey in the line of Tract 7; said iron pin being  on  the
south      side  of  said  road South 43 degrees  49  minutes  26
seconds  East for a  distance of 250.00 feet to an iron  pin  set
this  survey and corner to     Tract 5; thence with the  line  of
Tract  5  South  46  degrees 10 minutes 34  seconds  West  for  a
distance of 364.723 feet to the BEGINNING, containing  2.74 acres
more or less as surveyed by Frizzell Engineering July, 1995.

A  part or, but NOT all of Tract No. 8 of the subdivision of  the
Wal-Mart Shopping Center as shown on a plat dated April 20,  1993
which plat is of record in the Office of the Clerk of the Circuit
Court  of  Washington County, Virginia in Plat Book 28, pages  42
through 45, and in records of the City of Bristol in Plat Book 4,
pages 60 through 63, to which plat reference is hereto made for a
more particular description.

TOGETHER  WITH a non-exclusive easement for the use of the  drive
lanes, as set forth in Easements With Convenants And Restrictions
Affecting  Land ("ECR") by and between Wal-Mart Stores,  Inc.,  a
Delaware  corporation  and  Lowe's Home  Center,  Inc.,  a  North
Carolina  corporation, dated November 16, 1993, recorded  in  the
Clerk's Office Circuit Court, County of Washington, Virginia,  in
Deed Book 888, page 345.

BEING  a  portion  of  the same real estate conveyed  to  Tractor
Supply  Company,  a Tennessee corporation by deed  from  Wal-Mart
Stores,  Inc.,  a  Delaware corporation, dated October  2,  1995,
recorded  November  29,  1995, recorded in  the  Clerk's  Office,
Circuit Court, County of Washington, Virginia, in Deed Book  931,
page  231,  and  in the Clerk's Office, Circuit  Court,  City  of
Bristol, Virginia, in Deed Book 329, page 19.