SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C. 20549
                                
                           FORM 10-KSB
                                
             Annual Report Under Section 13 or 15(d)
             Of The Securities Exchange Act Of 1934
                                
          For the Fiscal Year Ended:  December 31, 1997
                                
                Commission file number:  0-18289
                                
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
         (Name of Small Business Issuer in its Charter)

      State of Minnesota                41-1622463
(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)

                          (612) 227-7333
                   (Issuer's telephone number)

Securities registered pursuant to Section 12(b) of the Act:
                                 Name of each exchange on
     Title of each class             which registered
             None                          None

Securities registered pursuant to Section 12(g) of the Act:

                    Limited Partnership Units
                        (Title of class)
                                
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 past 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

Check if disclosure of delinquent filers in response to Rule  405
of  Regulation  S-B  is  not  contained  in  this  Form,  and  no
disclosure  will  be contained, to the best of  the  registrant's
knowledge,   in   definitive  proxy  or  information   statements
incorporated by reference in Part III of this Form 10-KSB or  any
amendment to this Form 10-KSB.   [X]

The Issuer's revenues for year ended December 31, 1997 were
$1,609,233.

As  of  February 28, 1998, there were 21,413.28 Units of  limited
partnership interest in the registrant outstanding and  owned  by
nonaffiliates  of  the registrant, which Units had  an  aggregate
market  value (based solely on the price at which they were  sold
since there is no ready market for such Units) of $21,413,280.

               DOCUMENTS INCORPORATED BY REFERENCE

 The registrant has not incorporated any documents by reference
                        into this report.
                                
         Transitional Small Business Disclosure Format:
                                
                       Yes               No   [X]


                             PART I


ITEM 1.   DESCRIPTION OF BUSINESS.

        AEI  Real  Estate  Fund  XVIII Limited  Partnership  (the
"Partnership" or the "Registrant") is a limited partnership which
was  organized pursuant to the laws of the State of Minnesota  on
September  20,  1988.  The registrant is comprised  of  AEI  Fund
Management XVIII, Inc. (AFM) as Managing General Partner,  Robert
P.  Johnson as the Individual General Partner, and purchasers  of
partnership  units as Limited Partners.  The Partnership  offered
for  sale up to $30,000,000 of limited partnership interests (the
"Units")  (30,000  Units  at  $1,000  per  Unit)  pursuant  to  a
registration   statement  effective  December   5,   1988.    The
Partnership  commenced  operations  on  February  15,  1989  when
minimum   subscriptions  of  1,500  Limited   Partnership   Units
($1,500,000)   were   accepted.    The   Partnership's   offering
terminated  December  4, 1990 when the extended  offering  period
expired.   The  Partnership received subscriptions for  22,783.05
Limited Partnership Units ($22,783,050).

        The Partnership was organized to acquire, initially on  a
debt-free   basis,  existing  and  newly  constructed  commercial
properties located in the United States and Canada, to lease such
properties  to  tenants under triple net  leases,  to  hold  such
properties   and  to  eventually  sell  such  properties.    From
subscription  proceeds,  the  Partnership  purchased   twenty-one
properties,  including  partial  interests  in  five  properties,
totaling  $18,868,379.  The balance of the subscription  proceeds
was  applied  to  organization  and  syndication  costs,  working
capital reserves and distributions, which represented a return of
capital.   The  properties  are  all  commercial,  single  tenant
buildings leased under triple net leases.

       The Partnership will hold its properties until the General
Partners  determine  that the sale or other  disposition  of  the
properties   is   advantageous  in  view  of  the   Partnership's
investment  objectives.  In deciding whether to sell  properties,
the  General  Partners will consider factors  such  as  potential
appreciation,  net  cash flow and income tax considerations.   In
addition,  certain lessees have been granted options to  purchase
properties  after  a  specified portion of  the  lease  term  has
elapsed.   It is anticipated that the Partnership will  sell  its
properties  within  twelve  years after  acquisition.   Prior  to
commencing  the  liquidation  of  the  Partnership,  the  General
Partners may reinvest the proceeds from the sale of properties in
additional  properties,  provided that  sufficient  proceeds  are
distributed  to  the Limited Partners to pay  federal  and  state
income  taxes related to any taxable gain recognized as a  result
of  the  sale.  At any time prior to selling the properties,  the
Partnership may mortgage one or more of its properties in amounts
not  exceeding  50%  of  the  aggregate  purchase  price  of  all
Partnership properties.

Leases

       Although there are variations in the specific terms of the
leases,  the following is a summary of the general terms  of  the
Partnership's  leases.   The properties  are  leased  to  various
tenants  under  triple  net  leases,  which  are  classified   as
operating  leases.   Under  a triple net  lease,  the  lessee  is
responsible  for  all real estate taxes, insurance,  maintenance,
repairs  and  operating expenses for the property.   The  initial
lease terms are for 14 to 20 years.  The leases provide for  base
annual  rental  payments,  payable in monthly  installments,  and
contain  rent  clauses which entitle the Partnership  to  receive
additional rent in future years based on stated rent increases or
if  gross  receipts  for  the property exceed  certain  specified
amounts, among other conditions.

        The leases provide the lessee with two to three five-year
renewal options subject to the same terms and conditions  as  the
initial  lease.   Certain lessees have been  granted  options  to
purchase  the  property.  Depending on the  lease,  the  purchase
price is either determined by a formula, or is the greater of the
fair  market value of the property or the amount determined by  a
formula.  In all cases, if the option were to be exercised by the
lessee,  the  purchase price would be greater than  the  original
cost of the property.

ITEM 1.   DESCRIPTION OF BUSINESS. (Continued)

        The  Partnership  owns a 4.1022% interest  in  a  Sizzler
restaurant in Cincinnati, Ohio, a 93.2478% interest in a  Sizzler
restaurant in Springboro, Ohio, and a 100% interest in a  Sizzler
restaurant   in  Fairfield,  Ohio.   In  November,  1993,   after
reviewing   the  lessee's  operating  results,  the   Partnership
determined  that  the  lessee would  be  unable  to  operate  the
restaurants  in  a manner capable of maximizing the  restaurants'
sales.   Consequently,  at the direction of  the  Partnership,  a
multi-unit   restaurant  operator  assumed   operation   of   the
restaurants while the Partnership reviewed the available options.
In  January,  1994  and  June, 1994, the Partnership  closed  the
restaurants  in  Cincinnati  and  Springboro,  respectively,  and
listed  them for sale or lease.  While the properties are vacant,
the  Partnership  is responsible for the real  estate  taxes  and
other costs required to maintain the properties.

       On July 15, 1994, the Partnership re-leased the Sizzler in
Fairfield  to  Fairfield Foods, Inc. (Fairfield)  under  a  Lease
Agreement  with  a  primary term of 20 years  and  annual  rental
payments based on a percentage of sales.  Fairfield was not  able
to profitably operate the restaurant and closed the restaurant.

        On January 23, 1997, the Partnership sold its interest in
the  Cincinnati  restaurant  to an unrelated  third  party.   The
Partnership  received  net  sales  proceeds  of  $19,867,   which
resulted in a net loss of $31,700, which was recognized as a real
estate impairment in 1996.

        In  December,  1996, the Partnership, in order  to  avoid
additional  property  management expenses, decided  to  sell  the
Sizzler  properties in Springboro and Fairfield  rather  than  to
continue to attempt to re-lease the properties.  As a result, the
properties were reclassified on the balance sheet to Real  Estate
Held  for  Sale.   In  addition, based on an analysis  of  market
conditions  in  the area, it was determined that a  sale  of  the
properties   would  result  in  net  proceeds  of   approximately
$800,000.   The  Partnership's share of  the  proceeds  would  be
approximately $773,000.  A charge to operations for  real  estate
impairment  of  $1,654,600 ($693,500 for the Springboro  Sizzler,
and  $961,100  for the Fairfield Sizzler) was recognized  in  the
fourth  quarter  of  1996, which is the difference  between  book
value  at  December 31, 1996 of $2,427,600  ($1,066,500  for  the
Springboro Sizzler and $1,361,100 for the Fairfield Sizzler)  and
the   estimated  market  value  of  $773,000  ($373,000  for  the
Springboro Sizzler and $400,000 for the Fairfield Sizzler).   The
charge  was  recorded against the cost of the land, building  and
equipment.

        On  September 22, 1997, the Partnership sold the  Sizzler
restaurant  in Fairfield, Ohio to an unrelated third party.   The
Partnership received net sale proceeds of $528,476, which  is  in
excess of the book value of the property after the recognition of
the  real  estate  impairment.   As  a  result,  the  Partnership
recognized a net gain of $128,498.

        In August, 1995, the lessee of the two Rally's properties
filed  for reorganization.  After reviewing the operating results
of  the lessee, the Partnership agreed to amend the Leases of the
two  properties.   Effective December 1,  1995,  the  Partnership
amended  the  Leases to reduce the annual base rent from  $47,498
and  $48,392 to $15,000 for each property.  The Partnership could
receive  additional  rent in the future equal  to  6.75%  of  the
amount  by  which gross receipts exceed $275,000.  In  1997,  the
Leases,  as amended, were confirmed as part of the reorganization
plan.   The  lessee has agreed to pay all pre-petition and  post-
petition  rents  due  of  $75,775 and the  Partnership's  related
administrative  and  legal  expenses.   However,   due   to   the
uncertainty of collection, the Partnership has not accrued any of
these amounts for financial reporting purposes.

ITEM 1.   DESCRIPTION OF BUSINESS. (Continued)

        As  of  December 31, 1997, based on an analysis of market
conditions in the area, it was determined the fair value  of  the
Rally's  properties was approximately $270,000.   In  the  fourth
quarter  of  1997,  a  charge  to  operations  for  real   estate
impairment  of  $220,500 was recognized, which is the  difference
between  the book value at December 31, 1997 of $490,500 and  the
estimated  fair  value  of  $270,000.  The  charge  was  recorded
against the cost of the building and equipment.

        In  February, 1996, the Partnership called  a  letter  of
credit  for  $109,393  related to the Taco Cabana  restaurant  in
Brownsville, Texas.  The Partnership applied the funds to satisfy
1996  rent income and real estate taxes due and a portion of  the
real  estate  taxes due in 1997.  In 1997, the  Partnership  took
possession  of the property and listed it for sale  or  re-lease.
The  Partnership was scheduled to receive, but did  not  collect,
$115,285  in  rent  in  1997.  This amount was  not  accrued  for
financial  reporting purposes.  While the property is being  sold
or  re-leased,  the Partnership is responsible  for  real  estate
taxes and other costs required to maintain the property.

        As  of  December 31, 1997, based on an analysis of market
conditions in the area, it was determined the fair value  of  the
Brownsville property was approximately $466,600.  In  the  fourth
quarter  of  1997,  a  charge  to  operations  for  real   estate
impairment  of  $239,600 was recognized, which is the  difference
between  the book value at December 31, 1997 of $706,200 and  the
estimated  fair  value  of  $466,600.  The  charge  was  recorded
against the cost of the land and building.

        On  July  6,  1995,  the Partnership sold  the  Cheddar's
restaurant  in  Columbus, Ohio, to the lessee.   The  Partnership
received net sale proceeds of $1,259,320, which resulted in a net
gain  of  $105,291.  At the time of sale, the  cost  and  related
accumulated    depreciation   was   $1,306,191   and    $152,162,
respectively.

        On September 1, 1995, the Partnership sold the Applebee's
restaurant in Memphis, Tennessee, to the lessee.  The Partnership
received net sale proceeds of $1,444,822, which resulted in a net
gain  of  $465,562.  At the time of sale, the  cost  and  related
accumulated    depreciation   was   $1,126,919   and    $147,659,
respectively.

       The Partnership used the majority of the proceeds from the
two property sales in 1995 to purchase two properties in 1996, as
discussed below.  The remainder of the proceeds from these  sales
were distributed to the Partners in 1995 and 1996.

        On  April  10, 1996, the Partnership purchased  an  85.0%
interest  in  a Tractor Supply Company in Bristol,  Virginia  for
$1,094,367.   The  property is leased to Tractor  Supply  Company
under  a  Lease  Agreement with a primary term of  14  years  and
annual  rental payments of $116,686.  The remaining  interest  in
the  property was purchased by the Individual General Partner  of
the Partnership.

        On  August  29, 1996, the Partnership purchased  a  32.2%
interest in a Champps Americana restaurant in Columbus, Ohio  for
$826,070.  The property is leased to Americana Dining Corporation
under  a  Lease  Agreement with a primary term of  20  years  and
annual rental payments of $90,834.  The remaining interest in the
property  was purchased by AEI Income & Growth Fund  XXI  Limited
Partnership, an affiliate of the Partnership.

        On  May  10,  1996, the Partnership sold the Taco  Cabana
restaurant  in New Braunfels, Texas to an unrelated third  party.
The  Partnership  received net sale proceeds of  $962,298,  which
resulted  in  a net gain of $254,305.  At the time of  sale,  the
cost  and  related accumulated depreciation of the  property  was
$784,045 and $76,052, respectively.

ITEM 1.   DESCRIPTION OF BUSINESS. (Continued)

        Through  December 31, 1997, the Partnership sold 94.1709%
of the Applebee's restaurant in Destin, Florida in seven separate
transactions   to  unrelated  third  parties.   The   Partnership
received total net sale proceeds of $1,413,627 which resulted  in
a  total  net  gain  of  $481,379.  The total  cost  and  related
accumulated depreciation of the interests sold was $1,053,565 and
$121,317,  respectively.  For the years ended December  31,  1997
and 1996, the net gain was $320,171 and $124,583, respectively.

        Through  December 31, 1997, the Partnership sold 90.6301%
of  a  Taco  Cabana  restaurant in San Antonio,  Texas  in  seven
separate   transactions   to  unrelated   third   parties.    The
Partnership received total net sale proceeds of $1,520,182  which
resulted  in  a total net gain of $562,654.  The total  cost  and
related  accumulated  depreciation  of  the  interests  sold  was
$1,043,983  and  $86,455,  respectively.   For  the  years  ended
December  31,  1997  and  1996, the net  gain  was  $355,897  and
$206,757, respectively.

        Through  December 31, 1997, the Partnership sold 77.4842%
of  its  interest  in  the  Tractor Supply  Company  in  Bristol,
Virginia  in  seven  separate  transactions  to  unrelated  third
parties.   The  Partnership received total net sale  proceeds  of
$1,189,572  which resulted in a total net gain of $217,301.   The
total  cost and related accumulated depreciation of the interests
sold was $997,602 and $25,331, respectively.  For the years ended
December  31,  1997  and  1996, the net  gain  was  $179,517  and
$37,784, respectively.

       During 1997, the Partnership sold 26.0312% of its interest
in  the  Champps Americana restaurant in Columbus, Ohio in  three
separate   transactions   to  unrelated   third   parties.    The
Partnership  received total net sale proceeds of  $807,777  which
resulted  in  a total net gain of $151,139.  The total  cost  and
related  accumulated  depreciation  of  the  interests  sold  was
$667,813 and $11,175, respectively.

        Pursuant to the Partnership Agreement, net sale  proceeds
may  be  reinvested in additional properties until  a  date  five
years  after  the date on which the offer and sale  of  Units  is
terminated.   This  period  expired  on  December  4,  1995.   In
December,   1996,  the  Managing  General  Partner  proposed   an
Amendment  to the Limited Partnership Agreement that would  allow
the  Partnership  to reinvest the majority of the  sale  proceeds
from  the  Taco  Cabana restaurants, Tractor Supply  Company  and
subsequent   property  sales  in  additional   properties.    The
Amendment passed with a majority of Units voting in favor of  the
Amendment.

       On July 30, 1997, the Partnership purchased a Fuddrucker's
restaurant in Thornton, Colorado for $1,405,771.  The property is
leased  to  Fuddrucker's, Inc. under a  Lease  Agreement  with  a
primary term of 20 years and annual rental payments of $148,387.

        On  December 23, 1997, the Partnership purchased a 23.95%
interest in a parcel of land in Troy, Michigan for $361,889.  The
land  is leased to Champps Entertainment, Inc. (Champps) under  a
Lease Agreement with a primary term of 20 years and annual rental
payments  of  $25,332.  Simultaneously with the purchase  of  the
land,  the  Partnership  entered  into  a  Development  Financing
Agreement  under  which  the Partnership will  advance  funds  to
Champps for the construction of a Champps Americana restaurant on
the  site.   Through  December  31,  1997,  the  Partnership  had
advanced  $43,208  for the construction of the property  and  was
charging  interest  on  the  advances  at  a  rate  of  7%.   The
Partnership's  share of the total purchase price,  including  the
cost  of  the land, will be approximately $1,077,750.  After  the
construction is complete, the Lease Agreement will be amended  to
require  annual rental payments of approximately  $113,000.   The
remaining interests in the property are owned by AEI Real  Estate
Fund  XV  Limited Partnership, AEI Real Estate Fund XVII  Limited
Partnership  and AEI Net Lease Income & Growth Fund  XIX  Limited
Partnership, affiliates of the Partnership.

ITEM 1.   DESCRIPTION OF BUSINESS. (Continued)

         In  January,  1998,  the  Partnership  entered  into  an
agreement  to purchase a 45% interest in a Tumbleweed  restaurant
in  Chillicothe, Ohio.  The purchase price will be  approximately
$610,650.  The property will be leased to Tumbleweed, LLC under a
Lease Agreement with a primary term of 15 years and annual rental
payments of approximately $62,600.

Major Tenants

        During  1997,  three  of the Partnership's  lessees  each
contributed  more  than  ten percent of the  Partnership's  total
rental  revenue.  The major tenants in aggregate contributed  72%
of  the  Partnership's  total rental  revenue  in  1997.   It  is
anticipated  that, based on the minimum rental payments  required
under  the  leases, each major tenant will continue to contribute
more  than ten percent of the Partnership's total rental  revenue
in  1998  and  future years.  Any failure of these major  tenants
could  materially affect the Partnership's net  income  and  cash
distributions.

Competition

        The  Partnership is a minor factor in the commercial real
estate  business.   There are numerous entities  engaged  in  the
commercial  real  estate  business which have  greater  financial
resources  than  the  Partnership.  At the time  the  Partnership
elects to dispose of its properties, the Partnership will  be  in
competition  with other persons and entities to find  buyers  for
its properties.

Employees

        The  Partnership  has  no direct  employees.   Management
services   are  performed  for  the  Partnership  by   AEI   Fund
Management, Inc., an affiliate of AFM.

Year 2000

        AEI  Fund  Management, Inc. (AEI) performs all management
services  for  the Partnership.  AEI is currently  analyzing  its
computer hardware and software systems to determine what, if any,
resources  need to be dedicated regarding Year 2000 issues.   The
Partnership  does  not  anticipate  any  significant  operational
impact  or  incurring material costs as a result of AEI  becoming
Year 2000 compliant.

ITEM 2.   DESCRIPTION OF PROPERTIES.

Investment Objectives

        The  Partnership's investment objectives were to  acquire
existing or newly-developed commercial properties throughout  the
United  States  and  Canada  that offer  the  potential  for  (i)
preservation  and protection of the Partnership's  capital;  (ii)
partially  tax-deferred cash distributions from operations  which
may  increase through rent participation clauses or mandated rent
increases; and (iii) long-term capital gains through appreciation
in value of the Partnership's properties realized upon sale.  The
Partnership  does not have a policy, and there is no  limitation,
as to the amount or percentage of assets that may be invested  in
any  one  property.  However, to the extent possible, the General
Partners  attempt  to  diversify the type  and  location  of  the
Partnership's properties.

ITEM 2.   DESCRIPTION OF PROPERTIES. (Continued)

Description of Properties

        The  Partnership's properties are all commercial,  single
tenant  buildings.  All the properties were acquired on  a  debt-
free  basis  and are leased to various tenants under  triple  net
leases,   which   are  classified  as  operating   leases.    The
Partnership  holds  an  undivided  fee  simple  interest  in  the
properties.   At  any time prior to selling the  properties,  the
Partnership may mortgage one or more of its properties in amounts
not  exceeding  50%  of  the  aggregate  purchase  price  of  all
Partnership properties.

        The  Partnership's properties are subject to the  general
competitive conditions incident to the ownership of single tenant
investment  real estate.  Since each property is leased  under  a
long-term   lease,   there  is  little  competition   until   the
Partnership  decides to sell the property.   At  this  time,  the
Partnership will be competing with other real estate  owners,  on
both a national and local level, in attempting to find buyers for
the   properties.   In  the  event  of  a  tenant  default,   the
Partnership would be competing with other real estate owners, who
have  property vacancies, to attract a new tenant  to  lease  the
property.   The Partnership's tenants operate in industries  that
are  very  competitive and can be affected  by  factors  such  as
changes  in regional or local economies, seasonality and  changes
in consumer preference.

        The  following table is a summary of the properties  that
the Partnership acquired and owned as of December 31, 1997.


                              Total Property                Annual     Annual
                    Purchase    Acquisition                 Lease      Rent Per
Property              Date         Costs       Lessee       Payment    Sq. Ft.

Children's World                           Children's World
Daycare Center                                 Learning
 Phoenix, AZ        9/29/89   $  883,486    Centers, Inc.   $112,946   $ 14.94

Pasta Fair Restaurant                       Pasta Fair of
 Belleview, FL      4/11/90   $  932,862    Belleview, Inc. $ 60,000   $  9.84

Children's World                          Children's World
Daycare Center                               Learning
 Blue Springs, MO   6/27/90   $  791,271   Centers, Inc.    $ 96,081   $ 12.01

Sizzler Restaurant
 Springboro, OH
 (93.2478%)         8/24/90   $1,310,561        (1)

Children's World                           Children's World
Daycare Center                                Learning 
 Lenexa, KS         9/13/90   $  983,527   Centers, Inc.    $119,955   $ 14.97

Taco Cabana Restaurant                       Texas Taco
 San Antonio, TX   12/29/90   $1,406,426     Cabana L.P.    $197,764   $ 72.23

Cheddar's Restaurant                          Heartland
 Clive, IA          1/22/91   $1,392,248   Restaurant Corp. $202,777   $ 28.16


ITEM 2.   DESCRIPTION OF PROPERTIES. (Continued)

                              Total Property                Annual     Annual
                    Purchase    Acquisition                 Lease      Rent Per
Property              Date         Costs       Lessee       Payment    Sq. Ft.

Children's World                           Children's World
Daycare Center                                Learning 
 Westerville, OH     6/21/91  $  990,261   Centers,  Inc.    $118,863  $ 14.89

Taco Cabana Restaurant
 San Antonio, TX                             Texas Taco
 (9.3699%)           7/19/91  $  107,933     Cabana L.P.     $ 15,499  $ 36.96

Taco Cabana Restaurant
 Brownsville, TX      8/9/91  $  799,938         (2)

Applebee's Restaurant
 Destin, FL
 (5.8291%)           11/1/91  $   65,215    T.S.S.O., Inc.   $  8,615  $ 30.72

Children's World                           Children's World
Daycare Center                                Learning
 Columbus, OH        8/10/92  $1,019,202   Centers, Inc.     $124,260  $ 14.06

Rally's Restaurant                          Red Line San
 San Antonio, TX     12/7/92  $  303,640   Antonio One, LTD  $ 15,000  $ 25.51

Rally's Restaurant                          Red Line San
 San Antonio, TX     12/7/92  $  308,997   Antonio One, LTD  $ 15,000  $ 25.51

Applebee's Restaurant                     Southland Restaurant
 Slidell, LA                                   Development
 (27%)                5/5/93  $  280,018     Company, L.L.C. $ 41,161  $ 33.28

HomeTown Buffet Restaurant
 Tucson, AZ                                      JB's
 (24%)               6/16/93  $  303,733   Restaurants, Inc. $ 40,957  $ 17.75

Tractor Supply Company Store
 Bristol, VA                               Tractor Supply
 (7.5158%)           4/10/96  $   96,765      Company        $ 10,317  $  7.32

Champps Restaurant                           Americana
 Columbus, OH                                 Dining
 (6.1688%)           8/29/96  $  158,257    Corporation      $ 17,402  $ 34.53

ITEM 2.   DESCRIPTION OF PROPERTIES. (Continued)

                                Total Property              Annual     Annual
                    Purchase     Acquisition                Lease      Rent Per
Property              Date         Costs       Lessee       Payment    Sq. Ft.

Fuddrucker's Restaurant
 Thornton, CO       7/30/97   $1,405,771  Fuddrucker's, Inc.  $148,387 $ 29.81

Champps Americana
 Restaurant
 Troy, MI                                     Champps
 (land only) (3)                           Entertainment,
 (23.95%)          12/23/97   $  361,889        Inc.          $ 25,332 $   .96


(1)The property is vacant and listed for sale.
(2)The property is vacant and listed for sale or lease.
(3)Restaurant is under construction as of December 31, 1997.

        The  properties  listed above with  a  partial  ownership
percentage  are  owned with affiliates of the Partnership  and/or
unrelated  third parties.  The remaining interest in the  Sizzler
restaurant  is  owned  by  AEI  Real  Estate  Fund  86-A  Limited
Partnership.  The remaining interest in the Applebee's restaurant
in  Slidell,  Louisiana  is owned by AEI  Real  Estate  fund  XVI
Limited  Partnership.  The remaining interests  in  the  HomeTown
Buffet restaurant are owned by AEI Net Lease Income & Growth Fund
XIX  Limited  Partnership, AEI Institutional Net Lease  Fund  '93
Limited  Partnership and an unrelated third party.  The remaining
interests  in the Champps restaurant in Columbus, Ohio are  owned
by AEI Income & Growth Fund XXI Limited Partnership and unrelated
third  parties.   The  remaining interests  in  the  Taco  Cabana
restaurant  in  San Antonio, Texas, the Applebee's restaurant  in
Destin,  Florida, and the Tractor Supply Company store are  owned
by  unrelated  third  parties.  The remaining  interests  in  the
Champps restaurant in Troy, Michigan are owned by AEI Real Estate
Fund  XV  Limited Partnership, AEI Real Estate Fund XVII  Limited
Partnership  and AEI Net Lease Income & Growth Fund  XIX  Limited
Partnership.

        The Partnership accounts for properties owned as tenants-
in-common  with  affiliated Partnerships and/or  unrelated  third
parties  using  the  proportionate  consolidation  method.   Each
tenant-in-common  owns  a  separate, undivided  interest  in  the
properties.   Any  tenant-in-common that holds more  than  a  50%
interest  does  not control decisions over the  other  tenant-in-
common  interests.   The financial statements reflect  only  this
Partnership's percentage share of the properties' land,  building
and equipment, liabilities, revenues and expenses.

        The  initial Lease terms are for 20 years except for  the
Taco  Cabana  restaurants  in  San Antonio,  Texas,  the  Rally's
restaurants, and the Children's World daycare centers, which have
Lease  terms  of  15 years and the Tractor Supply Company  store,
which  has  a  Lease term of 14 years.  The Leases  have  renewal
options  which may extend the Lease term an additional 10  years,
except   for  the  Champps  Americana,  Applebee's  in   Slidell,
Louisiana,  Fuddrucker's  and  Rally's  restaurants  which   have
renewal  options that may extend the Lease term an additional  15
years.

       Pursuant to the Lease Agreements, the tenants are required
to provide proof of adequate insurance coverage on the properties
they  occupy.   The General Partners believe the  properties  are
adequately covered by insurance and consider the properties to be
well-maintained and sufficient for the Partnership's operations.

ITEM 2.   DESCRIPTION OF PROPERTIES. (Continued)

         For  tax  purposes,  the  Partnership's  properties  are
depreciated  under the Modified Accelerated Cost Recovery  System
(MACRS).  The largest depreciable component of a property is  the
building  which  is depreciated, using the straight-line  method,
over  31.5  years or 39 years depending on the date when  it  was
placed  in  service.  The remaining depreciable components  of  a
property  are personal property and land improvements  which  are
depreciated,  using an accelerated method, over 5 and  15  years,
respectively.  Since the Partnership has tax-exempt Partners, the
Partnership is subject to the rules of Section 168(h)(6)  of  the
Internal  Revenue  Code  which  requires  a  percentage  of   the
properties' depreciable components to be depreciated over  longer
lives using the straight-line method.  In general the federal tax
basis of the properties for tax depreciation purposes is the same
as the basis for book depreciation purposes except for properties
whose  book  value was reduced by a real estate  impairment  loss
pursuant  to  Financial Accounting Standards Board Statement  No.
121, "Accounting for the Impairment of Long-Lived Assets and  for
Long-Lived Assets to be Disposed of."  The real estate impairment
loss,  which was recorded against the book cost of the  land  and
depreciable property, was not recognized for tax purposes.

        During the last five years, or since the date of purchase
if  purchased  after December 31, 1992, all properties  were  100
percent occupied by the lessees noted, with the exception of  the
Sizzler property, which was 100 percent occupied until June, 1994
and  the  Taco Cabana restaurant in Brownsville, Texas which  was
100%  occupied  until January, 1997 and have  been  vacant  since
those dates.

ITEM 3.  LEGAL PROCEEDINGS.

       None.

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

       None.
                                
                                
                             PART II

ITEM 5.  MARKET FOR THE REGISTRANT'S PARTNERSHIP UNITS AND
         RELATED SECURITY HOLDER MATTERS.

        As  of  December  31, 1997, there were 1,601  holders  of
record  of the registrant's Limited Partnership Units.  There  is
no  other  class  of  security outstanding  or  authorized.   The
registrant's  Units  are  not a traded security  in  any  market.
However, the Partnership may purchase 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 total 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.

        During 1997, seventeen Limited Partners redeemed a  total
of  277.1  Partnership Units for $192,912 in accordance with  the
Partnership  Agreement.  In prior years,  a  total  of  sixty-one
Limited Partners redeemed 1,018.42 Partnership Units for $835,859
in  accordance  with the Partnership Agreement.  The  redemptions
increase  the remaining Limited Partners' ownership  interest  in
the Partnership.

ITEM 5.  MARKET FOR THE REGISTRANT'S PARTNERSHIP UNITS AND
         RELATED SECURITY HOLDER MATTERS.  (Continued)

       Cash distributions of $13,307 and $15,703 were made to the
General Partners and $1,124,461 and $1,321,421 were made  to  the
Limited   Partners   in   1997  and  1996,   respectively.    The
distributions  were made on a quarterly basis and  represent  Net
Cash   Flow,  as  defined,  except  as  discussed  below.   These
distributions  should  not be compared  with  dividends  paid  on
capital stock by corporations.

        As  part  of the Limited Partner distributions  discussed
above,  the  Partnership  distributed $103,771  and  $368,643  of
proceeds from property sales in 1997 and 1996, respectively.  The
distributions  reduced  the  Limited Partners'  Adjusted  Capital
Contributions.

ITEM 6.   MANAGEMENT'S DISCUSSION AND ANALYSIS.

Results of Operations

        For  the  years  ended December 31, 1997  and  1996,  the
Partnership   recognized   rental  income   of   $1,418,118   and
$1,621,285,   respectively.   During  the   same   periods,   the
Partnership  earned investment income of $191,115  and  $103,442,
respectively.   In  1997, rental income  decreased  mainly  as  a
result   of  the  property  sales  and  Brownsville  Taco  Cabana
situation  discussed below.  The decrease in  rental  income  was
partially  offset  by rental income received from  four  property
acquisitions  in  1997  and  1996,  rent  increases   on   eleven
properties  and additional investment income earned  on  the  net
proceeds from the property sales.

        The  Partnership  owns a 4.1022% interest  in  a  Sizzler
restaurant in Cincinnati, Ohio, a 93.2478% interest in a  Sizzler
restaurant in Springboro, Ohio, and a 100% interest in a  Sizzler
restaurant   in  Fairfield,  Ohio.   In  November,  1993,   after
reviewing   the  lessee's  operating  results,  the   Partnership
determined  that  the  lessee would  be  unable  to  operate  the
restaurants  in  a manner capable of maximizing the  restaurants'
sales.   Consequently,  at the direction of  the  Partnership,  a
multi-unit   restaurant  operator  assumed   operation   of   the
restaurants while the Partnership reviewed the available options.
In  January,  1994  and  June, 1994, the Partnership  closed  the
restaurants  in  Cincinnati  and  Springboro,  respectively,  and
listed  them for sale or lease.  While the properties are vacant,
the  Partnership  is responsible for the real  estate  taxes  and
other costs required to maintain the properties.

       On July 15, 1994, the Partnership re-leased the Sizzler in
Fairfield  to  Fairfield Foods, Inc. (Fairfield)  under  a  Lease
Agreement  with  a  primary term of 20 years  and  annual  rental
payments based on a percentage of sales.  Fairfield was not  able
to profitably operate the restaurant and closed the restaurant.

        No  rents were collected from the Sizzler restaurants  in
1997  and 1996.  The total amount of rent not collected  in  1997
and  1996 was $339,093 and $396,541, respectively, for the  three
properties.   These  amounts  were  not  accrued  for   financial
reporting purposes.

        On January 23, 1997, the Partnership sold its interest in
the  Cincinnati  restaurant  to an unrelated  third  party.   The
Partnership  received  net  sales  proceeds  of  $19,867,   which
resulted in a net loss of $31,700, which was recognized as a real
estate impairment in 1996.

ITEM 6.   MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

        In  December,  1996, the Partnership, in order  to  avoid
additional  property  management expenses, decided  to  sell  the
Sizzler  properties in Springboro and Fairfield  rather  than  to
continue to attempt to re-lease the properties.  As a result, the
properties were reclassified on the balance sheet to Real  Estate
Held  for  Sale.   In  addition, based on an analysis  of  market
conditions  in  the area, it was determined that a  sale  of  the
properties   would  result  in  net  proceeds  of   approximately
$800,000.   The  Partnership's share of  the  proceeds  would  be
approximately $773,000.  A charge to operations for  real  estate
impairment  of  $1,654,600 ($693,500 for the Springboro  Sizzler,
and  $961,100  for the Fairfield Sizzler) was recognized  in  the
fourth  quarter  of  1996, which is the difference  between  book
value  at  December31,  1996 of $2,427,600  ($1,066,500  for  the
Springboro Sizzler and $1,361,100 for the Fairfield Sizzler)  and
the   estimated  market  value  of  $773,000  ($373,000  for  the
Springboro Sizzler and $400,000 for the Fairfield Sizzler).   The
charge  was  recorded against the cost of the land, building  and
equipment.

        On  September 22, 1997, the Partnership sold the  Sizzler
restaurant  in Fairfield, Ohio to an unrelated third party.   The
Partnership received net sale proceeds of $528,476, which  is  in
excess of the book value of the property after the recognition of
the  real  estate  impairment.   As  a  result,  the  Partnership
recognized a net gain of $128,498.

        In August, 1995, the lessee of the two Rally's properties
filed  for reorganization.  After reviewing the operating results
of  the lessee, the Partnership agreed to amend the Leases of the
two  properties.   Effective December 1,  1995,  the  Partnership
amended  the  Leases to reduce the annual base rent from  $47,498
and  $48,392 to $15,000 for each property.  The Partnership could
receive  additional  rent in the future equal  to  6.75%  of  the
amount  by  which gross receipts exceed $275,000.  In  1997,  the
Leases,  as amended, were confirmed as part of the reorganization
plan.   The  lessee has agreed to pay all pre-petition and  post-
petition  rents  due  of  $75,775 and the  Partnership's  related
administrative  and  legal  expenses.   However,   due   to   the
uncertainty of collection, the Partnership has not accrued any of
these amounts for financial reporting purposes.

        As  of  December 31, 1997, based on an analysis of market
conditions in the area, it was determined the fair value  of  the
Rally's  properties was approximately $270,000.   In  the  fourth
quarter  of  1997,  a  charge  to  operations  for  real   estate
impairment  of  $220,500 was recognized, which is the  difference
between  the book value at December 31, 1997 of $490,500 and  the
estimated  fair  value  of  $270,000.  The  charge  was  recorded
against the cost of the building and equipment.

        In  February, 1996, the Partnership called  a  letter  of
credit  for  $109,393  related to the Taco Cabana  restaurant  in
Brownsville, Texas.  The Partnership applied the funds to satisfy
1996  rent income and real estate taxes due and a portion of  the
real  estate  taxes due in 1997.  In 1997, the  Partnership  took
possession  of the property and listed it for sale  or  re-lease.
The  Partnership was scheduled to receive, but did  not  collect,
$115,285  in  rent  in  1997.  This amount was  not  accrued  for
financial  reporting purposes.  While the property is being  sold
or  re-leased,  the Partnership is responsible  for  real  estate
taxes and other costs required to maintain the property.

        As  of  December 31, 1997, based on an analysis of market
conditions in the area, it was determined the fair value  of  the
Brownsville property was approximately $466,600.  In  the  fourth
quarter  of  1997,  a  charge  to  operations  for  real   estate
impairment  of  $239,600 was recognized, which is the  difference
between  the book value at December 31, 1997 of $706,200 and  the
estimated  fair  value  of  $466,600.  The  charge  was  recorded
against the cost of the land and building.

ITEM 6.   MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

        During  the years ended December 31, 1997 and  1996,  the
Partnership   paid   Partnership   administration   expenses   to
affiliated parties of $249,520 and $247,414, 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  $98,128 and $190,019, 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.  The  decrease
in  these expenses in 1997, when compared to 1996, is the  result
of  expenses  incurred in 1996 related to the  Sizzler  situation
discussed above.

       As of December 31, 1997, the Partnership's annualized cash
distribution  rate  was  6.1%,  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
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.

        AEI  Fund  Management, Inc. (AEI) performs all management
services  for  the Partnership.  AEI is currently  analyzing  its
computer hardware and software systems to determine what, if any,
resources  need to be dedicated regarding Year 2000 issues.   The
Partnership  does  not  anticipate  any  significant  operational
impact  or  incurring material costs as a result of AEI  becoming
Year 2000 compliant.

Liquidity and Capital Resources

        During  1997,  the Partnership's cash balances  increased
$1,853,357  as  a  result  of cash generated  from  the  sale  of
property  which  was partially offset by cash  used  to  purchase
additional  properties and distributions made in excess  of  cash
generated  from  operating  activities.   Net  cash  provided  by
operating  activities  decreased  from  $1,390,207  in  1996   to
$1,155,326 in 1997 mainly as a result of a decrease in income  in
1997  and  net timing differences in the collection  of  payments
from  the  lessees  and  the  payment  of  expenses,  which  were
partially offset by a decrease in expenses in 1997.

        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.  In 1997 and 1996, the Partnership
generated  cash flow from the sale of real estate  of  $4,129,390
and  $2,201,332,  respectively.  During  the  same  periods,  the
Partnership expended $1,908,049 and $1,911,639, respectively,  to
invest in real properties (inclusive of acquisition expenses)  as
the  Partnership reinvested the cash generated from the  property
sales.

       The Partnership used the majority of the proceeds from two
property  sales in 1995 to purchase two properties  in  1996,  as
discussed below.  The remainder of the proceeds from these  sales
were distributed to the Partners in 1995 and 1996.

ITEM 6.   MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

        On  April  10, 1996, the Partnership purchased  an  85.0%
interest  in  a Tractor Supply Company in Bristol,  Virginia  for
$1,094,367.   The  property is leased to Tractor  Supply  Company
under  a  Lease  Agreement with a primary term of  14  years  and
annual  rental payments of $116,686.  The remaining  interest  in
the  property was purchased by the Individual General Partner  of
the Partnership.

        On  August  29, 1996, the Partnership purchased  a  32.2%
interest in a Champps Americana restaurant in Columbus, Ohio  for
$826,070.  The property is leased to Americana Dining Corporation
under  a  Lease  Agreement with a primary term of  20  years  and
annual rental payments of $90,834.  The remaining interest in the
property  was purchased by AEI Income & Growth Fund  XXI  Limited
Partnership, an affiliate of the Partnership.

        On  May  10,  1996, the Partnership sold the Taco  Cabana
restaurant  in New Braunfels, Texas to an unrelated third  party.
The  Partnership  received net sale proceeds of  $962,298,  which
resulted  in  a net gain of $254,305.  At the time of  sale,  the
cost  and  related accumulated depreciation of the  property  was
$784,045 and $76,052, respectively.

        Through  December 31, 1997, the Partnership sold 94.1709%
of the Applebee's restaurant in Destin, Florida in seven separate
transactions   to  unrelated  third  parties.   The   Partnership
received total net sale proceeds of $1,413,627 which resulted  in
a  total  net  gain  of  $481,379.  The total  cost  and  related
accumulated depreciation of the interests sold was $1,053,565 and
$121,317,  respectively.  For the years ended December  31,  1997
and 1996, the net gain was $320,171 and $124,583, respectively.

        Through  December 31, 1997, the Partnership sold 90.6301%
of  a  Taco  Cabana  restaurant in San Antonio,  Texas  in  seven
separate   transactions   to  unrelated   third   parties.    The
Partnership received total net sale proceeds of $1,520,182  which
resulted  in  a total net gain of $562,654.  The total  cost  and
related  accumulated  depreciation  of  the  interests  sold  was
$1,043,983  and  $86,455,  respectively.   For  the  years  ended
December  31,  1997  and  1996, the net  gain  was  $355,897  and
$206,757, respectively.

        Through  December 31, 1997, the Partnership sold 77.4842%
of  its  interest  in  the  Tractor Supply  Company  in  Bristol,
Virginia  in  seven  separate  transactions  to  unrelated  third
parties.   The  Partnership received total net sale  proceeds  of
$1,189,572  which resulted in a total net gain of $217,301.   The
total  cost and related accumulated depreciation of the interests
sold was $997,602 and $25,331, respectively.  For the years ended
December  31,  1997  and  1996, the net  gain  was  $179,517  and
$37,784, respectively.

       During 1997, the Partnership sold 26.0312% of its interest
in  the  Champps Americana restaurant in Columbus, Ohio in  three
separate   transactions   to  unrelated   third   parties.    The
Partnership  received total net sale proceeds of  $807,777  which
resulted  in  a total net gain of $151,139.  The total  cost  and
related  accumulated  depreciation  of  the  interests  sold  was
$667,813 and $11,175, respectively.

       During 1997 and 1996, the Partnership distributed $104,820
and  $372,366 of the net sale proceeds to the Limited and General
Partners as part of their regular quarterly distributions,  which
represented  a return of capital of $4.77 and $16.85 per  Limited
Partnership Unit, respectively.  The remaining net sale  proceeds
will either be reinvested in additional properties or distributed
to the Partners in the future.

ITEM 6.   MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

        Pursuant to the Partnership Agreement, net sale  proceeds
may  be  reinvested in additional properties until  a  date  five
years  after  the date on which the offer and sale  of  Units  is
terminated.   This  period  expired  on  December  4,  1995.   In
December,   1996,  the  Managing  General  Partner  proposed   an
Amendment  to the Limited Partnership Agreement that would  allow
the  Partnership  to reinvest the majority of the  sale  proceeds
from  the  Taco  Cabana restaurants, Tractor Supply  Company  and
subsequent   property  sales  in  additional   properties.    The
Amendment passed with a majority of Units voting in favor of  the
Amendment.

       On July 30, 1997, the Partnership purchased a Fuddrucker's
restaurant in Thornton, Colorado for $1,405,771.  The property is
leased  to  Fuddrucker's, Inc. under a  Lease  Agreement  with  a
primary term of 20 years and annual rental payments of $148,387.

        On  December 23, 1997, the Partnership purchased a 23.95%
interest in a parcel of land in Troy, Michigan for $361,889.  The
land  is leased to Champps Entertainment, Inc. (Champps) under  a
Lease Agreement with a primary term of 20 years and annual rental
payments  of  $25,332.  Simultaneously with the purchase  of  the
land,  the  Partnership  entered  into  a  Development  Financing
Agreement  under  which  the Partnership will  advance  funds  to
Champps for the construction of a Champps Americana restaurant on
the  site.   Through  December  31,  1997,  the  Partnership  had
advanced  $43,208  for the construction of the property  and  was
charging  interest  on  the  advances  at  a  rate  of  7%.   The
Partnership's  share of the total purchase price,  including  the
cost  of  the land, will be approximately $1,077,750.  After  the
construction is complete, the Lease Agreement will be amended  to
require  annual rental payments of approximately  $113,000.   The
remaining interests in the property are owned by AEI Real  Estate
Fund  XV  Limited Partnership, AEI Real Estate Fund XVII  Limited
Partnership  and AEI Net Lease Income & Growth Fund  XIX  Limited
Partnership, affiliates of the Partnership.

         In  January,  1998,  the  Partnership  entered  into  an
agreement  to purchase a 45% interest in a Tumbleweed  restaurant
in  Chillicothe, Ohio.  The purchase price will be  approximately
$610,650.  The property will be leased to Tumbleweed, LLC under a
Lease Agreement with a primary term of 15 years and annual rental
payments of approximately $62,600.

       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 in the fourth quarter  of  each
year.   The  redemption payments generally are funded  with  cash
that  would  normally  be paid as part of the  regular  quarterly
distributions.    As   a   result,   total   distributions    and
distributions payable have fluctuated from year to  year  due  to
cash used to fund redemption payments.

        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.

ITEM 6.   MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

        During 1997, seventeen Limited Partners redeemed a  total
of  277.1  Partnership Units for $192,912 in accordance with  the
Partnership  Agreement.   The Partnership  acquired  these  Units
using Net Cash Flow from operations.  In prior years, a total  of
sixty-one  Limited  Partners redeemed 1,018.42 Partnership  Units
for  $835,859.   The  redemptions increase the remaining  Limited
Partners' ownership interest in the Partnership.

       The continuing rent payments from the properties, together
with  cash generated from the property sales, should be  adequate
to  fund  continuing  distributions and  meet  other  Partnership
obligations on both a short-term and long-term basis.

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:

<bullet>  Market  and economic conditions which affect the  value
          of  the  properties the Partnership owns and  the  cash
          from rental income such properties generate;
       
<bullet>  the  federal income tax consequences of rental  income,
          deductions,  gain  on  sales and other  items  and  the
          affects of these consequences for investors;
       
<bullet>  resolution  by  the General Partners of conflicts  with
          which they may be confronted;
       
<bullet>  the   success  of  the  General  Partners  of  locating
          properties with favorable risk return characteristics;
       
<bullet>  the effect of tenant defaults; and
       
<bullet>  the condition of the industries in which the tenants of
          properties owned by the Partnership operate.

ITEM 7.   FINANCIAL STATEMENTS.

       See accompanying index to financial statements.
                                
                                
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  INDEX TO FINANCIAL STATEMENTS


                                                       

Report of Independent Auditors

Balance Sheet as of December 31, 1997 and 1996

Statements for the Years Ended December 31, 1997 and 1996:

     Operations

     Cash Flows

     Changes in Partners' Capital

Notes to Financial Statements

                                
                                
                 REPORT OF INDEPENDENT AUDITORS



To the Partners:
AEI Real Estate Fund XVIII Limited Partnership
St. Paul, Minnesota




      We  have audited the accompanying balance sheet of AEI REAL
ESTATE  FUND  XVIII  LIMITED  PARTNERSHIP  (a  Minnesota  limited
partnership)  as  of December 31, 1997 and 1996 and  the  related
statements  of  operations, cash flows and changes  in  partners'
capital for the years then ended.  These financial statements are
the   responsibility  of  the  Partnership's   management.    Our
responsibility  is  to  express an  opinion  on  these  financial
statements based on our audits.

      We  conducted  our  audits  in  accordance  with  generally
accepted  auditing standards.  Those standards  require  that  we
plan  and perform the audit to obtain reasonable assurance  about
whether   the   financial  statements  are   free   of   material
misstatement.   An  audit includes examining, on  a  test  basis,
evidence  supporting the amounts and disclosures in the financial
statements.   An  audit  also includes assessing  the  accounting
principles used and significant estimates made by management,  as
well  as evaluating the overall financial statement presentation.
We  believe  that our audits provide a reasonable basis  for  our
opinion.

      In  our opinion, the financial statements referred to above
present  fairly, in all material respects, the financial position
of   AEI  Real  Estate  Fund  XVIII  Limited  Partnership  as  of
December 31, 1997 and 1996 and the results of its operations  and
its  cash  flows  for  the years then ended, in  conformity  with
generally accepted accounting principles.





Minneapolis,  Minnesota             Boulay, Heutmaker, Zibell & Co. P.L.L.P.
February 4, 1998                    Certified Public Accountants

                                
<PAGE>
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                          BALANCE SHEET
                                
                           DECEMBER 31
                                
                             ASSETS
                                
                                                        1997           1996

CURRENT ASSETS:
  Cash and Cash Equivalents                         $ 4,213,283    $ 2,359,926
  Receivables                                            20,547         12,870
                                                     -----------    -----------
      Total Current Assets                            4,233,830      2,372,796
                                                     -----------    -----------
INVESTMENTS IN REAL ESTATE:
  Land                                                3,970,611      4,374,569
  Buildings and Equipment                             8,160,729      9,198,045
  Construction in Progress                               43,208              0
  Property Acquisition Costs                             97,181              0
  Accumulated Depreciation                           (1,853,954)    (1,706,567)
                                                     -----------    -----------
                                                     10,417,775     11,866,047
  Real Estate Held for Sale                             372,980        792,877
                                                     -----------    -----------
      Net Investments in Real Estate                 10,790,755     12,658,924
                                                     -----------    -----------
           Total Assets                             $15,024,585    $15,031,720
                                                     ===========    ===========

                         LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.              $    23,780    $   121,697
  Distributions Payable                                 131,154        323,784
  Security Deposit                                            0            665
  Unearned Rent                                           5,000          5,000
                                                     -----------    -----------
      Total Current Liabilities                         159,934        451,146
                                                     -----------    -----------
PARTNERS' CAPITAL (DEFICIT):
  General Partners                                      (46,818)       (49,658)
  Limited Partners, $1,000 Unit Value;
   30,000 Units authorized; 22,783 Issued;
   21,487 and 21,764 outstanding in 1997
   and 1996, respectively                            14,911,469     14,630,232
                                                     -----------    -----------
     Total Partners' Capital                         14,864,651     14,580,574
                                                     -----------    -----------
       Total Liabilities and Partners' Capital      $15,024,585    $15,031,720
                                                     ===========    ===========
                                
 The accompanying notes to financial statements are an integral
                     part of this statement.
</PAGE>
<PAGE>
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                     STATEMENT OF OPERATIONS
                                
                 FOR THE YEARS ENDED DECEMBER 3l


                                                       1997            1996

INCOME:
  Rent                                             $ 1,418,118     $ 1,621,285
  Investment Income                                    191,115         103,442
                                                    -----------     -----------
      Total Income                                   1,609,233       1,724,727
                                                    -----------     -----------

EXPENSES:
  Partnership Administration - Affiliates              249,520         247,414
  Partnership Administration and Property
     Management - Unrelated Parties                     98,128         190,019
  Depreciation                                         321,950         423,605
  Real Estate Impairment                               460,100       1,686,300
                                                    -----------     -----------
      Total Expenses                                 1,129,698       2,547,338
                                                    -----------     -----------

OPERATING INCOME (LOSS)                                479,535        (822,611)

GAIN ON SALE OF REAL ESTATE                          1,135,222         623,429
                                                    -----------     -----------
NET INCOME (LOSS)                                  $ 1,614,757     $  (199,182)
                                                    ===========     ===========

NET INCOME (LOSS) ALLOCATED:
  General Partners                                 $    16,147     $    (3,984)
  Limited Partners                                   1,598,610        (195,198)
                                                    -----------     -----------
                                                   $ 1,614,757     $  (199,182)
                                                    ===========     ===========

NET INCOME (LOSS) PER LIMITED PARTNERSHIP UNIT
(21,695 and 21,999 weighted average Units outstanding
  in 1997 and 1996, respectively)                  $     73.69     $     (8.87)
                                                    ===========     ===========




 The accompanying notes to financial statements are an integral
                     part of this statement.
</PAGE>
<PAGE>
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                     STATEMENT OF CASH FLOWS
                                
                 FOR THE YEARS ENDED DECEMBER 3l

                                                        1997           1996

CASH FLOWS FROM OPERATING ACTIVITIES:
  Net Income (Loss)                                $ 1,614,757   $  (199,182)

  Adjustments To Reconcile Net Income (Loss)
  To Net Cash Provided By Operating Activities:
     Depreciation                                      321,950       423,605
     Real Estate Impairment                            460,100     1,686,300
     Gain on Sale of Real Estate                    (1,135,222)     (623,429)
     (Increase) Decrease in Receivables                 (7,677)       30,519
     Increase (Decrease) in Payable to
        AEI Fund Management, Inc.                      (97,917)       71,729
     Increase (Decrease) in Security Deposit              (665)          665
                                                    -----------   -----------
       Total Adjustments                              (459,431)    1,589,389
                                                    -----------   -----------
       Net Cash Provided By
           Operating Activities                      1,155,326     1,390,207
                                                    -----------   -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Investments in Real Estate                        (1,908,049)   (1,911,639)
  Proceeds from Sale of Real Estate                  4,129,390     2,201,332
                                                    -----------   -----------
       Net Cash Provided By
           Investing Activities                      2,221,341       289,693
                                                    -----------   -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Decrease in Distributions Payable                   (192,630)      (82,597)
  Distributions to Partners                         (1,135,819)   (1,334,769)
  Redemption Payments                                 (194,861)     (235,582)
                                                    -----------   -----------
       Net Cash Used For
           Financing Activities                     (1,523,310)   (1,652,948)
                                                    -----------   -----------
NET INCREASE IN CASH AND CASH EQUIVALENTS            1,853,357        26,952

CASH AND CASH EQUIVALENTS, beginning of period       2,359,926     2,332,974
                                                    -----------   -----------
CASH AND CASH EQUIVALENTS, end of period           $ 4,213,283   $ 2,359,926
                                                    ===========   ===========
SUPPLEMENTAL DISCLOSURE OF NONCASH
 INVESTING AND FINANCING ACTIVITIES:
  Reclassification of minority interest and 
  investments in real estate due to use of the 
  proportionate consolidation method               $         0   $    76,319
                                                    ===========   ===========
                                
                                
 The accompanying notes to financial statements are an integral
                     part of this statement.
</PAGE>
<PAGE>                                
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
            STATEMENT OF CHANGES IN PARTNERS' CAPITAL
                                
                 FOR THE YEARS ENDED DECEMBER 3l


                                                                     Limited
                                                                   Partnership
                             General       Limited                    Units
                             Partners      Partners      Total     Outstanding


BALANCE, December 31, 1995  $ (29,971)   $16,380,078  $16,350,107    22,077.80

  Distributions               (13,348)    (1,321,421)  (1,334,769)

  Redemption Payments          (2,355)      (233,227)    (235,582)     (313.42)

  Net Loss                     (3,984)      (195,198)    (199,182)
                             ---------    -----------  -----------  -----------
BALANCE, December 31, 1996    (49,658)    14,630,232   14,580,574    21,764.38

  Distributions               (11,358)    (1,124,461)  (1,135,819)

  Redemption Payments          (1,949)      (192,912)    (194,861)     (277.10)

  Net Income                   16,147      1,598,610    1,614,757
                             ---------    -----------  -----------  -----------
BALANCE, December 31, 1997  $ (46,818)   $14,911,469  $14,864,651    21,487.28
                             =========    ===========  ===========  ===========


 The accompanying notes to financial statements are an integral
                     part of this statement.
</PAGE>

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                   DECEMBER 31, 1997 AND 1996


(1)  Organization -

     AEI Real Estate Fund XVIII Limited Partnership (Partnership)
     was  formed  to  acquire and lease commercial properties  to
     operating tenants.  The Partnership's operations are managed
     by  AEI  Fund  Management XVIII, Inc.  (AFM),  the  Managing
     General Partner of the Partnership.  Robert P. Johnson,  the
     President  and  sole  shareholder  of  AFM,  serves  as  the
     Individual General Partner of the Partnership.  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  15,  1989  when  minimum
     subscriptions    of   1,500   Limited   Partnership    Units
     ($1,500,000)  were  accepted.   The  Partnership's  offering
     terminated  December  4,  1990 when  the  extended  offering
     period expired.  The Partnership received subscriptions  for
     22,783.05 Limited Partnership Units ($22,783,050).
     
     Under  the  terms of the Limited Partnership Agreement,  the
     Limited  Partners and General Partners contributed funds  of
     $22,783,050, and $1,000, respectively.  During the operation
     of the Partnership, 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.
     
     Any  Net  Proceeds  of Sale as defined,  from  the  sale  or
     financing of the Partnership's 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 l% 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.
     
     

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                   DECEMBER 31, 1997 AND 1996

(1)  Organization - (Continued)

     For  tax  purposes,  profits  from  operations,  other  than
     profits  attributable  to  the  sale,  exchange,  financing,
     refinancing   or  other  disposition  of  the  Partnership's
     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  Partnership
     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 the Partnership's 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.
     
(2)  Summary of Significant Accounting Policies -

     Newly Issued Accounting Standards
     
       In   June,   1997,   Statement  of  Financial   Accounting
       Standards  No.  130 "Reporting Comprehensive  Income"  was
       approved  for  issuance for fiscal years  beginning  after
       December   15,   1997.   The  Partnership   adopted   this
       Statement  in the fourth quarter of 1997.  The  effect  of
       this  Statement  has been determined that net  income/loss
       for financial statements and comprehensive income/loss  is
       primarily the same in all material respects.

     Financial Statement Presentation

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

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                   DECEMBER 31, 1997 AND 1996

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

     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.
       
       The  Partnership regularly assesses whether market  events
       and conditions indicate that it is reasonably possible  to
       recover  the carrying amounts of its investments  in  real
       estate  from  future operations and sales.   A  change  in
       those  market events and conditions could have a  material
       effect on the carrying amount of its real estate
       
     Cash Concentrations of Credit Risk

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

     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 Partnership for federal  income
       tax  reporting  purposes is includable in the  income  tax
       returns of the partners.  Accordingly, no recognition  has
       been  given to income taxes in the accompanying  financial
       statements.
       
       The  tax  return, the qualification of the Partnership  as
       such  for  tax  purposes, and the amount of  distributable
       Partnership  income or loss are subject to examination  by
       federal   and  state  taxing  authorities.   If  such   an
       examination  results  in  changes  with  respect  to   the
       Partnership  qualification or in changes to  distributable
       Partnership  income  or loss, the taxable  income  of  the
       partners would be adjusted accordingly.

     Real Estate

       The  Partnership's real estate is leased under triple  net
       leases  classified as operating leases.   The  Partnership
       recognizes  rental revenue on the accrual basis  according
       to  the terms of the individual leases.  For leases  which
       contain  cost  of  living  increases,  the  increases  are
       recognized in the year in which they are effective.

       
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                   DECEMBER 31, 1997 AND 1996

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

       Real  estate is recorded at the lower of cost or estimated
       net  realizable value.  The Financial Accounting Standards
       Board  issued  Statement  No.  121,  "Accounting  for  the
       Impairment of Long-Lived Assets and for Long-Lived  Assets
       to   be   Disposed  Of"  which  was  effective   for   the
       Partnership's fiscal year ended December 31,  1996.   This
       standard  requires the Partnership to compare the carrying
       amount  of  its  properties to the estimated  future  cash
       flows  expected  to  result  from  the  property  and  its
       eventual  disposition.  If the sum of the expected  future
       cash  flows  is  less  than the  carrying  amount  of  the
       property,  the  Statement  requires  the  Partnership   to
       recognize  an impairment loss by the amount by  which  the
       carrying amount of the property exceeds the fair value  of
       the property.
       
       The  Partnership  has capitalized as Investments  in  Real
       Estate   certain   costs  incurred  in  the   review   and
       acquisition  of the properties.  The costs were  allocated
       to the land, buildings and equipment.
       
       The   buildings  and  equipment  of  the  Partnership  are
       depreciated  using the straight-line method for  financial
       reporting purposes based on estimated useful lives  of  30
       years and 10 years, respectively.
       
       The  Partnership accounts for properties owned as tenants-
       in-common  with  affiliated Partnerships and/or  unrelated
       third   parties   using  the  proportionate  consolidation
       method.   Each tenant-in-common owns a separate, undivided
       interest  in  the  properties.  Any tenant-in-common  that
       holds  more than a 50% interest does not control decisions
       over  the other tenant-in-common interests.  The financial
       statements  reflect  only  this  Partnership's  percentage
       share  of  the  properties' land, building and  equipment,
       liabilities, revenues and expenses.


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                   DECEMBER 31, 1997 AND 1996

(3)  Related Party Transactions -
     
     The  Partnership  owns a 93.2478% interest  in  the  Sizzler
     restaurant  in Springboro, Ohio.  The remaining interest  in
     the  property is owned by AEI Real Estate Fund 86-A  Limited
     Partnership,   an   affiliate  of  the   Partnership.    The
     Partnership owns a 27% interest in an Applebee's  restaurant
     in  Slidell,  Louisiana.   The remaining  interest  in  this
     property  is  owned  by  AEI Real Estate  Fund  XVI  Limited
     Partnership,   an   affiliate  of  the   Partnership.    The
     Partnership  owns  a  24% interest in  the  HomeTown  Buffet
     restaurant.   The remaining interests in this  property  are
     owned  by  AEI  Net Lease Income & Growth Fund  XIX  Limited
     Partnership and AEI Institutional Net Lease Fund '93 Limited
     Partnership, affiliates of the Partnership, and an unrelated
     third party.  The Partnership owns a 6.1688% interest in the
     Champps   Americana  restaurant  in  Columbus,  Ohio.    The
     remaining interests in this property are owned by AEI Income
     &  Growth Fund XXI Limited Partnership, an affiliate of  the
     Partnership,  and unrelated third parties.  The  Partnership
     owns  a  23.95% interest in the Champps Americana restaurant
     in Troy, Michigan.  The remaining interests in this property
     are  owned  by  AEI Real Estate Fund XV Limited Partnership,
     AEI  Real Estate Fund XVII Limited Partnership and  AEI  Net
     Lease   Income   &  Growth  Fund  XIX  Limited  Partnership,
     affiliates  of  the  Partnership.  The  Partnership  owns  a
     7.5158%  interest in the Tractor Supply Company store.   The
     remaining  interests in this property are owned by unrelated
     third  parties.  The Individual General Partner owned a  15%
     interest  in  this property until March 10, 1997,  when  the
     last  portion of his interest was sold to an unrelated third
     party.   The  Partnership owned a 4.1022%  interest  in  the
     Sizzler  restaurant  in  Cincinnati,  Ohio.   The  remaining
     interests  in  this property were owned by AEI  Real  Estate
     Fund  XVI Limited Partnership and AEI Real Estate Fund  XVII
     Limited Partnership, affiliates of the Partnership.
     
     AEI   and  AFM  received  the  following  compensation   and
     reimbursements for costs and expenses from the Partnership:

     
                                        Total Incurred by the Partnership
                                         for the Years Ended December 31

                                                     1997          1996

a.AEI and AFM are reimbursed for all costs
  incurred in connection with managing the
  Partnership's operations, maintaining the
  Partnership's books and communicating
  the results of operations to the Limited
  Partners.                                       $  249,520    $  247,414
                                                   ==========    ==========

b.AEI and AFM are reimbursed for all direct
  expenses they have paid on the Partnership's
  behalf to third parties.  These expenses included
  printing costs, legal and filing fees, direct
  administrative costs, outside audit and
  accounting costs, taxes, insurance and
  other property costs.                          $   98,128    $  190,019
                                                  ==========    ==========


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                   DECEMBER 31, 1997 AND 1996

(3)  Related Party Transactions - (Continued)

                                         Total Incurred by the Partnership
                                          for the Years Ended December 31

                                                        1997         1996

c.AEI is reimbursed for all property acquisition
  costs incurred by it in acquiring properties on
  behalf of the Partnership.  The amounts are net
  of financing and commitment fees and expense
  reimbursements received by the Partnership from
  the lessees in the amount of $14,267 and $55,529
  for 1997 and 1996, respectively.                 $  122,610    $  (33,667)
                                                    ==========    ==========


     The  payable  to  AEI Fund Management, Inc.  represents  the
     balance due for the services described in 3a, b and c.  This
     balance is non-interest bearing and unsecured and is  to  be
     paid in the normal course of business.
     
(4)  Investments in Real Estate -

     The  Partnership  leases its properties to  various  tenants
     through triple net leases, which are classified as operating
     leases.  Under a triple net lease, the lessee is responsible
     for  all  real estate taxes, insurance, maintenance, repairs
     and  operating expenses of the property.  The initial  Lease
     terms   are  for  20  years  except  for  the  Taco   Cabana
     restaurants  in San Antonio, Texas, the Rally's restaurants,
     and  the Children's World daycare centers, which have  Lease
     terms of 15 years and the Tractor Supply Company store which
     has  a  Lease  term  of 14 years.  The Leases  have  renewal
     options  which  may extend the Lease term an  additional  10
     years,  except  for  the  Champps Americana,  Applebee's  in
     Slidell,  Louisiana,  Fuddrucker's and  Rally's  restaurants
     which have renewal options that may extend the Lease term an
     additional 15 years.  The Leases contain rent clauses  which
     entitle the Partnership to receive additional rent in future
     years  based  on stated rent increases or if gross  receipts
     for  the  property exceed certain specified  amounts,  among
     other conditions.  Certain lessees have been granted options
     to  purchase  the  property.  Depending on  the  lease,  the
     purchase price is either determined by a formula, or is  the
     greater  of  the  fair market value of the property  or  the
     amount determined by a formula.  In all cases, if the option
     were to be exercised by the lessee, the purchase price would
     be greater than the original cost of the property.
     
     The  Partnership's  properties are all  commercial,  single-
     tenant  buildings.  The ChildrenOs World in Phoenix, Arizona
     was  constructed in 1988 and acquired in 1989.  One  of  the
     Taco   Cabana   restaurants  in  San  Antonio,   Texas   was
     constructed in 1984, renovated in 1991 and acquired  by  the
     Partnership  after the renovation.  The Rally's  restaurants
     and  the Children's World in Columbus, Ohio were constructed
     and  acquired in 1992.  The Applebee's in Slidell, Louisiana
     was  constructed in 1991 and acquired in 1993.  The HomeTown
     Buffet restaurant was constructed and acquired in 1993.  The
     Tractor   Supply   Company  store  and   Champps   Americana
     restaurant  in Ohio were constructed and acquired  in  1996.
     The FuddruckerOs restaurant was constructed and acquired  in
     1997.   The  Champps  Americana  restaurant  land  in  Troy,
     Michigan  was  acquired in 1997.  The  remaining  properties
     were constructed and acquired in either 1990 or 1991.  There
     have been no costs capitalized as improvements subsequent to
     the acquisitions.
                                
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                   DECEMBER 31, 1997 AND 1996

(4)  Investments in Real Estate - (Continued)
     
     For  those properties in the table below which do  not  have
     land  costs,  the  lessee has entered  into  long-term  land
     leases  with  unrelated  third parties.   The  cost  of  the
     properties   not  held  for  sale  and  related  accumulated
     depreciation at December 31, 1997 are as follows:

     
                                          Buildings and            Accumulated
Property                       Land         Equipment      Total   Depreciation

Children's World,
  Phoenix, AZ             $   259,467   $   624,019   $   883,486   $  199,263
Pasta Fair Restaurant,
  Belleview, FL               251,593       681,269       932,862      175,048
Children's World,
  Blue Springs, MO            162,290       628,981       791,271      176,671
Children's World,
  Lenexa, KS                  185,788       797,739       983,527      215,314
Taco Cabana, 
  San Antonio, TX             871,844       534,582     1,406,426      139,079
Cheddar's, Clive, IA          379,249     1,012,999     1,392,248      272,778
Children's World,
  Westerville, OH             157,848       832,413       990,261      199,967
Taco Cabana, 
  San Antonio, TX              61,004        46,929       107,933        9,791
Taco Cabana, 
  Brownsville, TX             294,450       265,888       560,338       93,744
Applebee's, Destin, FL         30,239        34,976        65,215        9,018
Children's World,
  Columbus, OH                157,569       861,633     1,019,202      169,788
Rally's, San Antonio, TX            0       195,741       195,741       60,744
Rally's, San Antonio, TX            0       196,397       196,397       61,390
Applebee's, Slidell, LA       104,613       175,405       280,018       27,285
HomeTown Buffet,
  Tucson, AZ                  163,688       140,045       303,733       21,201
Tractor Supply Company,
  Bristol, VA                  31,092        65,673        96,765        4,048
Champps Americana,
  Columbus, OH                 53,296       104,961       158,257        4,957
Fuddrucker's, Thornton, CO    444,692       961,079     1,405,771       13,868
Champps Americana, Troy, MI   361,889             0       361,889            0
                           -----------   -----------   -----------   ----------
                          $ 3,970,611   $ 8,160,729   $12,131,340   $1,853,954
                           ===========   ===========   ===========   ==========


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                   DECEMBER 31, 1997 AND 1996

(4)  Investments in Real Estate - (Continued)
     
     The  Partnership  owns  a  4.1022%  interest  in  a  Sizzler
     restaurant  in  Cincinnati, Ohio, a 93.2478% interest  in  a
     Sizzler  restaurant in Springboro, Ohio, and a 100% interest
     in  a  Sizzler restaurant in Fairfield, Ohio.  In  November,
     1993,  after  reviewing the lessee's operating results,  the
     Partnership  determined that the lessee would be  unable  to
     operate  the  restaurants in a manner capable of  maximizing
     the  restaurants' sales.  Consequently, at the direction  of
     the  Partnership,  a multi-unit restaurant operator  assumed
     operation of the restaurants while the Partnership  reviewed
     the available options.  In January, 1994 and June, 1994, the
     Partnership   closed  the  restaurants  in  Cincinnati   and
     Springboro, respectively, and listed them for sale or lease.
     While   the  properties  are  vacant,  the  Partnership   is
     responsible  for  the  real estate  taxes  and  other  costs
     required to maintain the properties.
     
     On  July 15, 1994, the Partnership re-leased the Sizzler  in
     Fairfield to Fairfield Foods, Inc. (Fairfield) under a Lease
     Agreement with a primary term of 20 years and annual  rental
     payments based on a percentage of sales.  Fairfield was  not
     able  to  profitably operate the restaurant and  closed  the
     restaurant.
     
     No rents were collected from the Sizzler restaurants in 1997
     and  1996.  The total amount of rent not collected  in  1997
     and  1996 was $339,093 and $396,541, respectively,  for  the
     three  properties.   These  amounts  were  not  accrued  for
     financial reporting purposes.
     
     On  January  23, 1997, the Partnership sold its interest  in
     the  Cincinnati restaurant to an unrelated third party.  The
     Partnership  received net sales proceeds of  $19,867,  which
     resulted in a net loss of $31,700, which was recognized as a
     real estate impairment in 1996.
     
     In  December,  1996,  the Partnership,  in  order  to  avoid
     additional property management expenses, decided to sell the
     Sizzler  properties in Springboro and Fairfield rather  than
     to  continue  to attempt to re-lease the properties.   As  a
     result,  the  properties were reclassified  on  the  balance
     sheet  to Real Estate Held for Sale.  In addition, based  on
     an  analysis  of  market conditions  in  the  area,  it  was
     determined that a sale of the properties would result in net
     proceeds of approximately $800,000.  The Partnership's share
     of  the  proceeds would be approximately $773,000.  A charge
     to  operations  for  real  estate impairment  of  $1,654,600
     ($693,500 for the Springboro Sizzler, and $961,100  for  the
     Fairfield  Sizzler) was recognized in the fourth quarter  of
     1996,  which  is  the  difference  between  book  value   at
     December31,   1996   of  $2,427,600  ($1,066,500   for   the
     Springboro Sizzler and $1,361,100 for the Fairfield Sizzler)
     and the estimated market value of $773,000 ($373,000 for the
     Springboro Sizzler and $400,000 for the Fairfield  Sizzler).
     The  charge  was  recorded against the  cost  of  the  land,
     building and equipment.
     
     On  September  22,  1997, the Partnership sold  the  Sizzler
     restaurant  in Fairfield, Ohio to an unrelated third  party.
     The  Partnership  received net sale  proceeds  of  $528,476,
     which  is in excess of the book value of the property  after
     the recognition of the real estate impairment.  As a result,
     the Partnership recognized a net gain of $128,498.

     
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                   DECEMBER 31, 1997 AND 1996

(4)  Investments in Real Estate - (Continued)
     
     In  August,  1995, the lessee of the two Rally's  properties
     filed  for  reorganization.  After reviewing  the  operating
     results  of the lessee, the Partnership agreed to amend  the
     Leases  of the two properties.  Effective December 1,  1995,
     the Partnership amended the Leases to reduce the annual base
     rent  from $47,498 and $48,392 to $15,000 for each property.
     The  Partnership could receive additional rent in the future
     equal  to 6.75% of the amount by which gross receipts exceed
     $275,000.   In 1997, the Leases, as amended, were  confirmed
     as  part of the reorganization plan.  The lessee has  agreed
     to  pay  all  pre-petition and post-petition  rents  due  of
     $75,775  and  the  Partnership's related administrative  and
     legal   expenses.   However,  due  to  the  uncertainty   of
     collection,  the Partnership has not accrued  any  of  these
     amounts for financial reporting purposes.
     
     As  of  December  31, 1997, based on an analysis  of  market
     conditions in the area, it was determined the fair value  of
     the  Rally's properties was approximately $270,000.  In  the
     fourth  quarter  of  1997, a charge to operations  for  real
     estate  impairment of $220,500 was recognized, which is  the
     difference  between the book value at December 31,  1997  of
     $490,500  and  the  estimated fair value of  $270,000.   The
     charge  was  recorded against the cost of the  building  and
     equipment.
     
     In February, 1996, the Partnership called a letter of credit
     for  $109,393  related  to  the Taco  Cabana  restaurant  in
     Brownsville,  Texas.  The Partnership applied the  funds  to
     satisfy  1996 rent income and real estate taxes  due  and  a
     portion of the real estate taxes due in 1997.  In 1997,  the
     Partnership  took possession of the property and  listed  it
     for  sale  or  re-lease.  The Partnership was  scheduled  to
     receive,  but  did not collect, $115,285 in  rent  in  1997.
     This   amount  was  not  accrued  for  financial   reporting
     purposes.   While the property is being sold  or  re-leased,
     the  Partnership  is responsible for real estate  taxes  and
     other costs required to maintain the property.
     
     As  of  December  31, 1997, based on an analysis  of  market
     conditions in the area, it was determined the fair value  of
     the Brownsville property was approximately $466,600.  In the
     fourth  quarter  of  1997, a charge to operations  for  real
     estate  impairment of $239,600 was recognized, which is  the
     difference  between the book value at December 31,  1997  of
     $706,200  and  the  estimated fair value of  $466,600.   The
     charge  was  recorded  against the  cost  of  the  land  and
     building.
     
     The  Partnership used the majority of the proceeds from  two
     property  sales in 1995 to purchase two properties in  1996,
     as  discussed  below.  The remainder of  the  proceeds  from
     these  sales  were distributed to the Partners in  1995  and
     1996.
     
     On  April  10,  1996,  the Partnership  purchased  an  85.0%
     interest  in  a Tractor Supply Company in Bristol,  Virginia
     for  $1,094,367.  The property is leased to  Tractor  Supply
     Company  under a Lease Agreement with a primary term  of  14
     years and annual rental payments of $116,686.
     
     On  August  29,  1996,  the Partnership  purchased  a  32.2%
     interest in a Champps Americana restaurant in Columbus, Ohio
     for  $826,070.   The property is leased to Americana  Dining
     Corporation under a Lease Agreement with a primary  term  of
     20 years and annual rental payments of $90,834.

     
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                   DECEMBER 31, 1997 AND 1996

(4)  Investments in Real Estate - (Continued)
     
     On  May  10,  1996,  the Partnership sold  the  Taco  Cabana
     restaurant  in  New Braunfels, Texas to an  unrelated  third
     party.   The  Partnership  received  net  sale  proceeds  of
     $962,298, which resulted in a net gain of $254,305.  At  the
     time  of sale, the cost and related accumulated depreciation
     of the property was $784,045 and $76,052, respectively.
     
     Through December 31, 1997, the Partnership sold 94.1709%  of
     the  Applebee's  restaurant  in  Destin,  Florida  in  seven
     separate  transactions  to  unrelated  third  parties.   The
     Partnership  received total net sale proceeds of  $1,413,627
     which  resulted in a total net gain of $481,379.  The  total
     cost  and  related accumulated depreciation of the interests
     sold  was  $1,053,565 and $121,317, respectively.   For  the
     years  ended  December 31, 1997 and 1996, the net  gain  was
     $320,171 and $124,583, respectively.
     
     Through December 31, 1997, the Partnership sold 90.6301%  of
     a  Taco  Cabana  restaurant in San Antonio, Texas  in  seven
     separate  transactions  to  unrelated  third  parties.   The
     Partnership  received total net sale proceeds of  $1,520,182
     which  resulted in a total net gain of $562,654.  The  total
     cost  and  related accumulated depreciation of the interests
     sold  was  $1,043,983  and $86,455, respectively.   For  the
     years  ended  December 31, 1997 and 1996, the net  gain  was
     $355,897 and $206,757, respectively.
     
     Through December 31, 1997, the Partnership sold 77.4842%  of
     its  interest  in  the  Tractor Supply Company  in  Bristol,
     Virginia  in seven separate transactions to unrelated  third
     parties.   The Partnership received total net sale  proceeds
     of  $1,189,572  which  resulted  in  a  total  net  gain  of
     $217,301.    The   total   cost  and   related   accumulated
     depreciation of the interests sold was $997,602 and $25,331,
     respectively.   For the years ended December  31,  1997  and
     1996, the net gain was $179,517 and $37,784, respectively.
     
     During  1997, the Partnership sold 26.0312% of its  interest
     in  the  Champps Americana restaurant in Columbus,  Ohio  in
     three separate transactions to unrelated third parties.  The
     Partnership  received  total net sale proceeds  of  $807,777
     which  resulted in a total net gain of $151,139.  The  total
     cost  and  related accumulated depreciation of the interests
     sold was $667,813 and $11,175, respectively.
     
     During  1997 and 1996, the Partnership distributed  $104,820
     and  $372,366  of the net sale proceeds to the  Limited  and
     General   Partners  as  part  of  their  regular   quarterly
     distributions,  which  represented a return  of  capital  of
     $4.77 and $16.85 per Limited Partnership Unit, respectively.
     The remaining net sale proceeds will either be reinvested in
     additional properties or distributed to the Partners in  the
     future.
     
     Pursuant to the Partnership Agreement, net sale proceeds may
     be  reinvested in additional properties until  a  date  five
     years after the date on which the offer and sale of Units is
     terminated.   This period expired on December 4,  1995.   In
     December,  1996,  the Managing General Partner  proposed  an
     Amendment  to the Limited Partnership Agreement  that  would
     allow  the Partnership to reinvest the majority of the  sale
     proceeds  from  the Taco Cabana restaurants, Tractor  Supply
     Company   and   subsequent  property  sales  in   additional
     properties.  The Amendment passed with a majority  of  Units
     voting in favor of the Amendment.
     
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                   DECEMBER 31, 1997 AND 1996

(4)  Investments in Real Estate - (Continued)
     
     On  July  30, 1997, the Partnership purchased a Fuddrucker's
     restaurant  in  Thornton,  Colorado  for  $1,405,771.    The
     property  is  leased  to Fuddrucker's, Inc.  under  a  Lease
     Agreement with a primary term of 20 years and annual  rental
     payments of $148,387.
     
     On  December  23, 1997, the Partnership purchased  a  23.95%
     interest in a parcel of land in Troy, Michigan for $361,889.
     The  land is leased to Champps Entertainment, Inc. (Champps)
     under a Lease Agreement with a primary term of 20 years  and
     annual rental payments of $25,332.  Simultaneously with  the
     purchase  of  the  land,  the  Partnership  entered  into  a
     Development  Financing Agreement under which the Partnership
     will  advance  funds to Champps for the  construction  of  a
     Champps  Americana restaurant on the site.  Through December
     31,  1997,  the  Partnership had advanced  $43,208  for  the
     construction  of the property and was charging  interest  on
     the  advances at a rate of 7%.  The Partnership's  share  of
     the  total  purchase price, including the cost of the  land,
     will be approximately $1,077,750.  After the construction is
     complete,  the  Lease Agreement will be amended  to  require
     annual rental payments of approximately $113,000.
     
     In  January, 1998, the Partnership entered into an agreement
     to  purchase  a  45% interest in a Tumbleweed restaurant  in
     Chillicothe, Ohio.  The purchase price will be approximately
     $610,650.   The  property will be leased to Tumbleweed,  LLC
     under a Lease Agreement with a primary term of 15 years  and
     annual rental payments of approximately $62,600.
     
     During  1997, the Partnership incurred net costs of $122,610
     related  to  the review of potential property  acquisitions.
     Of  these costs, $25,429 have been capitalized and allocated
     to  land,  building and equipment.  The remaining  costs  of
     $97,181  have  been  capitalized and will  be  allocated  to
     properties acquired subsequent to December 31, 1997.
     
     The   minimum  future  rentals  on  the  Leases  for   years
     subsequent to December 31, 1997 are as follows:

                       1998          $ 1,378,767
                       1999            1,390,951
                       2000            1,403,532
                       2001            1,414,685
                       2002            1,428,281
                       Thereafter      9,652,533
                                      -----------
                                     $16,668,749
                                      ===========

     In  1997  and  1996,  the Partnership recognized  contingent
     rents of $17,135 and $12,429, respectively.

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                   DECEMBER 31, 1997 AND 1996

(5)  Security Deposit -

     In February, 1996, the Partnership called a letter of credit
     for  $109,393  related  to  the Taco  Cabana  restaurant  in
     Brownsville,  Texas.  The Partnership applied the  funds  to
     satisfy rents and real estate taxes due.
     
(6)  Major Tenants -

     The following schedule presents rent revenue from individual
     tenants,   or  affiliated  groups  of  tenants,   who   each
     contributed more than ten percent of the Partnership's total
     rent revenue for the years ended December 31:
      
                                                   1997         1996
      Tenants                     Industry

     Children's World
      Learning Centers, Inc.      Child Care    $  556,803    $  540,763
     Texas Taco Cabana L.P.       Restaurant       267,322       372,481
     Heartland Restaurant Corp.   Restaurant       202,127       194,353
                                                 ----------    ----------

     Aggregate rent revenue of major tenants    $1,026,252    $1,107,597
                                                 ==========    ==========

     Aggregate rent revenue of major tenants as
     a percentage of total rent revenue                72%           68%
                                                 ==========    ==========


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                   DECEMBER 31, 1997 AND 1996

(7)  Partners' Capital -

     Cash  distributions of $13,307 and $15,703 were made to  the
     General Partners and $1,124,461 and $1,321,421 were made  to
     the  Limited Partners for the years ended December 31,  1997
     and 1996, respectively.  The Limited Partners' distributions
     represent  $51.83  and $60.07 per Limited  Partnership  Unit
     outstanding  using 21,695 and 21,999 weighted average  Units
     in 1997 and 1996, respectively.  The distributions represent
     $51.83  and $-0- per Unit of Net Income, and $-0- and $60.07
     per  Unit of return of contributed capital in 1997 and 1996,
     respectively.
     
     As  part  of  the  Limited  Partner distributions  discussed
     above, the Partnership distributed $103,771 and $368,643  of
     proceeds from property sales in 1997 and 1996, respectively.
     The  distributions  reduced the Limited  Partners'  Adjusted
     Capital Contributions.
     
     Distributions  of  Net  Cash Flow to  the  General  Partners
     during  1997  and  1996  were subordinated  to  the  Limited
     Partners  as  required in the Partnership Agreement.   As  a
     result,  99% of distributions were allocated to the  Limited
     Partners and 1% to the General Partners.
     
     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.

     During 1997, seventeen Limited Partners redeemed a total  of
     277.1 Partnership Units for $192,912 in accordance with  the
     Partnership Agreement.  The Partnership acquired these Units
     using  Net  Cash  Flow from operations.   In  1996,  fifteen
     Limited  Partners  redeemed a total  of  313.42  Partnership
     Units  for $233,227.  The redemptions increase the remaining
     Limited Partners' ownership interest in the Partnership.

     After  the  effect of redemptions and the return of  capital
     from   the   sale   of   property,  the   Adjusted   Capital
     Contribution,  as defined in the Partnership  Agreement,  is
     $1,001.36 per original $1,000 invested.

     
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                   DECEMBER 31, 1997 AND 1996
                                
(8)  Income Taxes -

     The  following is a reconciliation of net income (loss)  for
     financial reporting purposes to income reported for  federal
     income tax purposes for the years ended December 31:
     
                                                       1997           1996
     
     Net Income (Loss) for Financial
      Reporting Purposes                           $1,614,757     $ (199,182)
     
     Depreciation for Tax Purposes
      (Over) Under Depreciation for Financial
      Reporting Purposes                               (3,136)        60,603
     
     Amortization of Start-Up and
      Organization Costs                               (9,742)       (31,354)
     
     Income Accrued for Tax Purposes
      Over (Under) Income for Financial
      Reporting Purposes                              (17,207)        17,207
     
     Property Expenses for Tax Purposes
      (Over) Under Expenses for Financial
      Reporting Purposes                               (6,668)         5,209
     
     Real Estate Impairment Loss
      Not Recognized for Tax Purposes                 460,100      1,686,300
     
     Gain on Sale of Real Estate for
        Tax Purposes Over (Under) Gain for
        Financial Reporting Purposes                 (978,326)           629
                                                    ----------     ----------
           Taxable Income to Partners              $1,059,778     $1,539,412
                                                    ==========     ==========

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                   DECEMBER 31, 1997 AND 1996
                                
(8)  Income Taxes - (Continued)
     
     The  following is a reconciliation of Partners' capital  for
     financial  reporting purposes to Partners' capital  reported
     for   federal  income  tax  purposes  for  the  years  ended
     December 31:
     
                                                         1997          1996
     
     Partners' Capital for
       Financial  Reporting Purposes                 $14,864,651   $14,580,574
     
     Adjusted Tax Basis of Investments
      in Real Estate Over (Under) Net
      Investments in Real Estate
      for Financial Reporting Purposes                 1,186,837     1,708,198
     
     Capitalized Start-Up Costs
      Under Section 195                                  397,387       397,387
     
     Amortization of Start-Up and
      Organization Costs                                (402,148)     (392,406)
     
     Income Accrued for Tax Purposes Over
      Income for Financial
      Reporting Purposes                                   5,000        22,207
     
     Property Expenses for Tax Purposes
      Under Expenses for Financial
      Reporting Purposes                                       0         6,668
     
     Organization and Syndication Costs
      Treated as Reduction of Capital
      for Financial Reporting Purposes                 3,342,442     3,342,442
                                                      ----------    ----------
           Partners' Capital for
               Tax  Reporting Purposes               $19,394,169   $19,665,070
                                                      ==========    ==========


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                   DECEMBER 31, 1997 AND 1996
                                
(9)  Fair Value of Financial Instruments -

     The estimated fair values of the financial instruments, none
     of  which  are held for trading purposes, are as follows  at
     December 31:
     
                                       1997                       1996
                              Carrying      Fair        Carrying        Fair
                               Amount       Value        Amount         Value
     
     Cash                   $      234   $      234    $      127   $      127
     Money Market Funds      3,217,857    3,217,857     1,364,257    1,364,257
     Commercial Paper
      (held to maturity)       995,192      995,192       995,542      995,542
                             ----------   ----------    ----------   ----------
        Total Cash and
          Cash Equivalents  $4,213,283   $4,213,283    $2,359,926   $2,359,926
                             ==========   ==========    ==========   ==========
     
     The  amortized  cost basis of the commercial  paper  is  not
     materially different from its carrying amount or fair value.
     
ITEM 8.   CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
          ACCOUNTING AND FINANCIAL DISCLOSURE.

       None.

                            PART III
                                
ITEM 9.   DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL
          PERSONS; COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT.

        The  registrant  is  a  limited partnership  and  has  no
officers,  directors, or direct employees.  The General  Partners
of  the  registrant are Robert P. Johnson and AFM.   The  General
Partners  manage and control the Partnership's affairs  and  have
general  responsibility and the ultimate authority in all matters
affecting the Partnership's business.  The director and  officers
of AFM are as follows:

        Robert  P.  Johnson, age 53, is Chief Executive  Officer,
President  and  Director and has held these positions  since  the
formation  of  AFM in September, 1988, and has  been  elected  to
continue in these positions until September, 1998.  From 1970  to
the  present, he has been employed exclusively in the  investment
industry,  specializing  in  tax-advantaged  limited  partnership
investments.   In  that  capacity, he has been  involved  in  the
development,  analysis, marketing and management  of  public  and
private investment programs investing in net lease properties  as
well  as  public  and  private investment programs  investing  in
energy  development.   Since  1971,  Mr.  Johnson  has  been  the
president,  a  director  and  a  registered  principal   of   AEI
Securities, Inc. (formerly AEI Incorporated), which is registered
with  the  Securities  and Exchange Commission  as  a  securities
broker-dealer,  is  a  member  of  the  National  Association  of
Securities  Dealers, Inc. (NASD) and is a member of the  Security
Investors  Protection Corporation (SIPC).  Mr. Johnson  has  been
president, a director and the principal shareholder of  AEI  Fund
Management,  Inc.,  a real estate management company  founded  by
him,  since 1978.  Mr. Johnson is currently a general partner  or
principal  of  the  general  partner  in  sixteen  other  limited
partnerships.

        Mark  E.  Larson,  age 45, is Executive  Vice  President,
Treasurer  and  Chief Financial Officer and has been  elected  to
continue in these position until September, 1998.  Mr. Larson has
been  executive Vice President and Treasurer since the  formation
of  AFM  in  September,  1988 and Chief Financial  Officer  since
January, 1990.  In January, 1993 Mr. Larson was elected to  serve
as  Secretary of AFM and will continue to serve until  September,
1998.  Mr. Larson has been employed by AEI Fund Management,  Inc.
and  affiliated  entities since 1985.  From  1979  to  1985,  Mr.
Larson   was  with  Apache  Corporation  as  manager  of  Program
Accounting  responsible  for  the  accounting  and  reports   for
approximately 46 public partnerships.  Mr. Larson is  responsible
for   supervising  the  accounting  functions  of  AFM  and   the
registrant.

ITEM 10.  EXECUTIVE COMPENSATION.

        The General Partner and affiliates are reimbursed at cost
for  all  services performed on behalf of the registrant and  for
all  third party expenses paid on behalf of the registrant.   The
cost for services performed on behalf of the registrant is actual
time  spent  performing such services plus  an  overhead  burden.
These  services include organizing the registrant  and  arranging
for  the  offer  and  sale  of Units,  reviewing  properties  for
acquisition and rendering administrative and management services.

ITEM 11.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
          MANAGEMENT.

        The following table sets forth information pertaining  to
the   ownership  of  the  Units  by  each  person  known  by  the
Partnership to beneficially own 5% or more of the Units, by  each
General  Partner, and by each officer or director of the Managing
General Partner as of February 28, 1998:

     Name and Address                            Number of     Percent
   of Beneficial Owner                           Units Held    of Class

   AEI Fund Management XVIII, Inc.                     20           *
   1300 Minnesota World Trade Center
   30 East 7th Street, St. Paul, Minnesota 55101

   Robert P. Johnson                                   54           *
   1300 Minnesota World Trade Center
   30 East 7th Street, St. Paul, Minnesota 55101

   Mark E. Larson                                       0            0%
   1300 Minnesota World Trade Center
   30 East 7th Street, St. Paul, Minnesota 55101

   * Less than 1%
   
The  persons  set forth in the preceding table hold  sole  voting
power  and power of disposition with respect to all of the  Units
set forth opposite their names.  The General Partners know of  no
holders of more than 5% of the outstanding Units.

ITEM 12.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

        The  registrant,  AFM  and  its  affiliates  have  common
management and utilize the same facilities.  As a result, certain
administrative  expenses  are  allocated  among   these   related
entities.   All  of  such activities and any  other  transactions
involving the affiliates of the General Partner of the registrant
are  governed  by,  and  are conducted in  conformity  with,  the
limitations set forth in the Limited Partnership Agreement of the
registrant.

ITEM 12.  CERTAIN  RELATIONSHIPS  AND  RELATED  TRANSACTIONS.
          (Continued)

        The following table sets forth the forms of compensation,
distributions  and cost reimbursements paid by the registrant  to
the  General Partners or their Affiliates in connection with  the
operation  of  the Fund and its properties for  the  period  from
inception through December 31, 1997.

Person or Entity                                 Amount Incurred From Inception
 Receiving                  Form and Method           (September 20, 1988) to
Compensation                of Compensation              December 31, 1997

AEI Securities, Inc.  Selling Commissions equal to 7%          $2,278,305
(formerly AEI         of proceeds plus a 3% nonaccountable
Incorporated)         expense allowance, most of which was 
                      reallowed to Participating Dealers.

General Partners and  Reimbursement at Cost for other          $1,064,137
Affiliates            Organization and Offering Costs.

General Partners and  Reimbursement at Cost for all            $  594,952
Affiliates            Acquisition Expenses

General Partners      1% of Net Cash Flow in any fiscal year   $  128,216
                      until the  Limited Partners have 
                      received annual, non-cumulative 
                      distributions of Net Cash Flow  equal
                      to 10% of their Adjusted Capital 
                      Contributions and 10% of any remaining 
                      Net Cash Flow in such fiscal year.

General Partners and  Reimbursement at Cost for all            $2,243,911
Affiliates            Administrative Expenses attributable 
                      to the Fund, including all expenses 
                      related to management and disposition
                      of the Fund's properties and all other 
                      transfer agency, reporting, partner   
                      relations and other administrative
                      functions.

General Partners      15% of distributions of Net Proceeds of  $   12,793
                      Sale other than distributions necessary 
                      to restore Adjusted Capital Contributions 
                      and provide a 6% cumulative return to
                      Limited Partners.  The General Partners  
                      will receive only 1% of distributions 
                      of Net Proceeds of Sale until Limited
                      Partners have received an amount equal to
                      (a)their Adjusted Capital Contributions,  
                      plus (b) an amount equal to 14% of their 
                      Adjusted Capital Contributions per annum, 
                      cumulative but not compounded, less (c)  
                      all previous cash distributions to the
                      Limited Partners.

ITEM 12.  CERTAIN  RELATIONSHIPS  AND  RELATED  TRANSACTIONS.
          (Continued)

        The  limitations  included in the  Partnership  Agreement
require   that  the  cumulative  reimbursements  to  the  General
Partners  and  their affiliates for administrative  expenses  not
allowed under the NASAA Guidelines ("Guidelines") will not exceed
the  sum of (i) the front-end fees allowed by the Guidelines less
the  front-end fees paid, (ii) the cumulative property management
fees  allowed  but  not  paid, (iii) any real  estate  commission
allowed under the Guidelines, and (iv) 10% of Net Cash Flow  less
the  Net Cash Flow actually distributed.  The reimbursements  not
allowed  under  the  Guidelines include  a  controlling  person's
salary  and  fringe  benefits,  rent  and  depreciation.   As  of
December  31, 1997, the cumulative reimbursements to the  General
Partners and their affiliates did not exceed those amounts.

                                
                             PART IV

ITEM 13.    EXHIBITS AND REPORTS ON FORM 8-K AND FORM 8-K/A.

            A. Exhibits -
                                    Description

                 3.1   Certificate  of  Limited
                       Partnership (incorporated by reference  to
                       Exhibit    3.1    of   the    registrant's
                       Registration Statement on Form S-11  filed
                       with  the Commission on September 26, 1988
                       [File No. 33-24419]).

                 3.2   Limited   Partnership
                       Agreement  (incorporated by  reference  to
                       Exhibit    3.2    of   the    registrant's
                       Registration Statement on Form S-11  filed
                       with  the Commission on September 26, 1988
                       [File No. 33-24419]).

                10.1   Net Lease Agreement dated
                       September    28,    1989    between    the
                       Partnership and Children's World  Learning
                       Centers, Inc. relating to the property  at
                       4120   E.  Ranch  Circle  Drive,  Phoenix,
                       Arizona  (incorporated  by  reference   to
                       Exhibit  10.2 of Post-Effective  Amendment
                       No.  1  to  the  registrant's Registration
                       Statement  on  Form S-11  filed  with  the
                       Commission on April 14, 1990 [File No.  33-
                       24419]).

                10.2   Net Lease Agreement dated
                       June 26, 1990 between the Partnership  and
                       Children's  World Learning  Centers,  Inc.
                       relating  to  the property at  2100  North
                       Highway    7,   Blue   Springs,   Missouri
                       (incorporated  by  reference  to   Exhibit
                       10.6   of   Form  10-K  filed   with   the
                       Commission on July 27, 1992).

                10.3   Net Lease Agreement dated
                       September    13,    1990    between    the
                       Partnership and Children's World  Learning
                       Centers, Inc. relating to the property  at
                       8555   Monrovia  Street,  Lenexa,   Kansas
                       (incorporated  by  reference  to   Exhibit
                       10.8   of   Form  10-K  filed   with   the
                       Commission on July 27, 1992).

                10.4   Net Lease Agreement dated
                       December  29, 1990 between the Partnership
                       and  Taco  Cabana, Inc.  relating  to  the
                       property  at  7339 San Pedro  Avenue,  San
                       Antonio,  Texas (incorporated by reference
                       to  Exhibit  10.9 of Form 10-K filed  with
                       the Commission on July 27, 1992).

ITEM 13.  EXHIBITS  AND  REPORTS ON FORM 8-K AND  FORM  8-K/A.
          (Continued)

          A.  Exhibits -
                                     Description

                10.5   Net Lease Agreement dated
                       January  22,  1991 between the Partnership
                       and   Heartland   Restaurant   Corporation
                       relating  to  the property  at  1301  N.W.
                       114th  Street,  Clive, Iowa  (incorporated
                       by  reference to Exhibit 10.10 of Form 10-
                       K  filed  with the Commission on July  27,
                       1992).

                10.6   Net Lease Agreement dated
                       June 20, 1991 between the Partnership  and
                       Children's  World Learning  Centers,  Inc.
                       relating  to the property at 1231  Sunbury
                       Road,  Westerville, Ohio (incorporated  by
                       reference  to Exhibit 10.12 of  Form  10-K
                       filed  with  the Commission  on  July  27,
                       1992).

                10.7   Net Lease Agreement dated
                       July 19, 1991 between the Partnership  and
                       Taco   Cabana,   Inc.  relating   to   the
                       property  at  6867 Highway  90  West,  San
                       Antonio,  Texas (incorporated by reference
                       to  Exhibit 10.13 of Form 10-K filed  with
                       the Commission on July 27, 1992).

                10.8   Net Lease Agreement dated
                       August  9,  1991  between the  Partnership
                       and  Red  Line Taco One, Ltd. relating  to
                       the   property  at  54  South  Expressway,
                       Brownsville,   Texas   (incorporated    by
                       reference  to Exhibit 10.14 of  Form  10-K
                       filed  with  the Commission  on  July  27,
                       1992).

                10.9   Net Lease Agreement dated
                       October  31,  1991 between the Partnership
                       and   T.S.S.O.,  Inc.  relating   to   the
                       property  at  5701 Emerald Coast  Parkway,
                       Destin,    Florida    (incorporated     by
                       reference  to Exhibit 10.15 of  Form  10-K
                       filed  with  the Commission  on  July  27,
                       1992).

               10.10   Net Lease  Agreement
                       dated   December  10,  1991  between   the
                       Partnership  and Pasta Fair of  Belleview,
                       Inc.  relating  to the property  at  10401
                       Highway     441,    Belleview,     Florida
                       (incorporated  by  reference  to   Exhibit
                       10.16   of   Form  10-K  filed  with   the
                       Commission on July 27, 1992).

               10.11   Net Lease  Agreement
                       dated   July   28,   1992   between    the
                       Partnership and Children's World  Learning
                       Centers, Inc. relating to the property  at
                       4885  Cherry  Bottom Road, Columbus,  Ohio
                       (incorporated  by  reference  to   Exhibit
                       10.17   of   Form  10-K  filed  with   the
                       Commission on March 29, 1993).

               10.12   Net Lease  Agreement
                       dated   December  7,  1992   between   the
                       Partnership and Red Line San Antonio  One,
                       Ltd.  relating to the property at 529 Fair
                       Avenue,  San  Antonio, Texas (incorporated
                       by  reference to Exhibit 10.19 of Form 10-
                       K  filed with the Commission on March  29,
                       1993).

ITEM 13.  EXHIBITS  AND  REPORTS ON FORM 8-K AND  FORM  8-K/A.
          (Continued)

          A.  Exhibits -
                                       Description

               10.13   Net Lease  Agreement
                       dated   December  7,  1992   between   the
                       Partnership and Red Line San Antonio  One,
                       Ltd.  relating  to  the property  at  4606
                       Rittiman   Road,   San   Antonio,    Texas
                       (incorporated  by  reference  to   Exhibit
                       10.20   of   Form  10-K  filed  with   the
                       Commission on March 29, 1993).

               10.14   Net Lease  Agreement
                       dated  May 5, 1993 between the Partnership
                       and  GC  Slidell,  Inc.  relating  to  the
                       property   at   850  I-10  Service   Road,
                       Slidell,   Louisiana   (incorporated    by
                       reference  to Exhibit 10.22 of  Form  10-K
                       filed  with  the Commission on  March  29,
                       1994).

               10.15   Net Lease  Agreement
                       dated   June   16,   1993   between    the
                       Partnership  and  JB's  Restaurants,  Inc.
                       relating  to  the property  at  330  South
                       Wilmot      Road,     Tucson,      Arizona
                       (incorporated  by  reference  to   Exhibit
                       10.23   of   Form  10-K  filed  with   the
                       Commission on March 29, 1994).

               10.16   Co-Tenancy Agreement
                       dated   June   17,   1994   between    the
                       Partnership  and Nicoletta Trust  relating
                       to  the  property  at 5701  Emerald  Coast
                       Parkway, Destin, Florida (incorporated  by
                       reference to Exhibit 10.24 of Form  10-KSB
                       filed  with  the Commission on  March  30,
                       1995).

               10.17   Amendment  of  Lease
                       dated   January  25,  1996   between   the
                       Partnership,  AEI  Net  Lease   Income   &
                       Growth  Fund XIX Limited Partnership,  Red
                       Line  San  Antonio One, Ltd. and Red  Line
                       Burgers,  Inc. relating to the  properties
                       at  529  Fair  Avenue, and  4606  Rittiman
                       Road, San Antonio, Texas (incorporated  by
                       reference to Exhibit 10.26 of Form  10-KSB
                       filed  with  the Commission on  March  21,
                       1996).
          
               10.18   Net Lease  Agreement
                       dated   April   10,   1996   between   the
                       Partnership,   Robert   P.   Johnson   and
                       Tractor  Supply  Company relating  to  the
                       property  at  Old Airport Road  and  I-81,
                       Bristol,    Virginia   (incorporated    by
                       reference  to  Exhibit 10.2  of  Form  8-K
                       filed  with  the Commission on  April  17,
                       1996).

               10.19   Purchase  Agreement
                       dated  May 3, 1996 between the Partnership
                       and  the  Givens Family Trust relating  to
                       the   property  at  811  I-H  North,   New
                       Braunfels,    Texas    (incorporated    by
                       reference  to  Exhibit 10.1  of  Form  8-K
                       filed   with  the  Commission  on   May21,
                       1996).

               10.20   Net Lease  Agreement
                       dated   August   29,  1996   between   the
                       Partnership, AEI Income & Growth Fund  XXI
                       Limited  Partnership and Americana  Dining
                       Corporation  relating to the  property  at
                       161  E.  Campus View Boulevard,  Columbus,
                       Ohio   (incorporated   by   reference   to
                       Exhibit  10.3 of Form 8-K filed  with  the
                       Commission on September 12, 1996).

ITEM 13.  EXHIBITS  AND  REPORTS ON FORM 8-K AND  FORM  8-K/A.
          (Continued)

          A.  Exhibits -
                                 Description

               10.21   Purchase  Agreement
                       dated   July   23,   1996   between    the
                       Partnership   and  Carolyn   W.   Davidson
                       relating  to the property at 6867  Highway
                       90  West, San Antonio, Texas (incorporated
                       by  reference to Exhibit 10.1 of Form  10-
                       QSB  filed with the Commission on November
                       14, 1996).

               10.22   Property  Co-Tenancy
                       Ownership Agreement dated August  5,  1996
                       between  the  Partnership and  Carolyn  W.
                       Davidson relating to the property at  6867
                       Highway   90  West,  San  Antonio,   Texas
                       (incorporated  by  reference  to   Exhibit
                       10.2   of  Form  10-QSB  filed  with   the
                       Commission on November 14, 1996).

               10.23   Purchase  Agreement
                       dated   August   23,  1996   between   the
                       Partnership, Robert P. Johnson, and  Joyce
                       R.  Scott relating to the property at  Old
                       Airport  Road and I-81, Bristol,  Virginia
                       (incorporated  by  reference  to   Exhibit
                       10.3   of  Form  10-QSB  filed  with   the
                       Commission on November 14, 1996).

               10.24   Property  Co-Tenancy
                       Ownership   Agreement  dated September 12,
                       1996  between the Partnership,  Robert  P.
                       Johnson,  and Joyce R. Scott  relating  to
                       the  property at Old Airport Road  and  I-
                       81,  Bristol,  Virginia  (incorporated  by
                       reference  to Exhibit 10.4 of Form  10-QSB
                       filed with the Commission on November  14,
                       1996).

               10.25   Purchase  Agreement
                       dated   October   9,  1996   between   the
                       Partnership, Robert P. Johnson,  and  Arel
                       D.  and  Louise B. Middleton  relating  to
                       the  property at Old Airport Road  and  I-
                       81,  Bristol,  Virginia  (incorporated  by
                       reference  to Exhibit 10.5 of Form  10-QSB
                       filed with the Commission on November  14,
                       1996).

               10.26   Purchase  Agreement
                       dated   October   9,  1996   between   the
                       Partnership  and  Arel D.  and  Louise  B.
                       Middleton  relating  to  the  property  at
                       6867  Highway 90 West, San Antonio,  Texas
                       (incorporated  by  reference  to   Exhibit
                       10.6   of  Form  10-QSB  filed  with   the
                       Commission on November 14, 1996).

               10.27   Property  Co-Tenancy
                       Ownership  Agreement  dated  October   15,
                       1996  between the Partnership,  Robert  P.
                       Johnson,   and  Arel  D.  and  Louise   B.
                       Middleton relating to the property at  Old
                       Airport  Road and I-81, Bristol,  Virginia
                       (incorporated  by  reference  to   Exhibit
                       10.7   of  Form  10-QSB  filed  with   the
                       Commission on November 14, 1996).

ITEM 13. EXHIBITS  AND  REPORTS ON FORM 8-K AND  FORM  8-K/A.
         (Continued)

          A.  Exhibits -
                                     Description

               10.28   Property  Co-Tenancy
                       Ownership  Agreement  dated  October   15,
                       1996  between the Partnership and Arel  D.
                       and  Louise B. Middleton relating  to  the
                       property  at  6867 Highway  90  West,  San
                       Antonio,  Texas (incorporated by reference
                       to  Exhibit 10.8 of Form 10-QSB filed with
                       the Commission on November 14, 1996).

               10.29   Purchase  Agreement
                       dated   December  6,  1996   between   the
                       Partnership  and the Hesson Family  Living
                       Trust  relating  to the property  at  6867
                       Highway   90  West,  San  Antonio,   Texas
                       (incorporated  by  reference  to   Exhibit
                       10.33  of  Form  10-KSB  filed  with   the
                       Commission on March 17, 1997).

               10.30   Property  Co-Tenancy
                       Ownership  Agreement  dated   December 16,
                       1996  between  the  Partnership  and   the
                       Hesson  Family  Living Trust  relating  to
                       the  property at 6867 Highway 90 West, San
                       Antonio,  Texas (incorporated by reference
                       to  Exhibit  10.34  of Form  10-KSB  filed
                       with the Commission on March 17, 1997).

               10.31   Purchase  Agreement
                       dated   December  23,  1996  between   the
                       Partnership  and  John  Pasini  and  Elvia
                       Pasini  relating to the property  at  5701
                       Emerald  Coast  Parkway,  Destin,  Florida
                       (incorporated  by  reference  to   Exhibit
                       10.35  of  Form  10-KSB  filed  with   the
                       Commission on March 17, 1997).

               10.32   Purchase  Agreement
                       dated   December  23,  1996  between   the
                       Partnership and Kent T. Wood and  Kimberly
                       Pasini  Wood  relating to the property  at
                       5701   Emerald   Coast  Parkway,   Destin,
                       Florida  (incorporated  by  reference   to
                       Exhibit  10.36 of Form 10-KSB  filed  with
                       the Commission on March 17, 1997).

               10.33   Purchase  Agreement
                       dated   December  26,  1996  between   the
                       Partnership  and  William  E.  Mason   and
                       Hazel  Mason  relating to the property  at
                       Old   Airport  Road  and  I-81,   Bristol,
                       Virginia  (incorporated  by  reference  to
                       Exhibit  10.37 of Form 10-KSB  filed  with
                       the Commission on March 17, 1997).

               10.34   Property  Co-Tenancy
                       Agreement dated December 30, 1996  between
                       the  Partnership and John Pasini and Elvia
                       Pasini  relating to the property  at  5701
                       Emerald  Coast  Parkway,  Destin,  Florida
                       (incorporated  by  reference  to   Exhibit
                       10.38  of  Form  10-KSB  filed  with   the
                       Commission on March 17, 1997).

               10.35   Property  Co-Tenancy
                       Agreement dated December 30, 1996  between
                       the  Partnership  and  Kent  T.  Wood  and
                       Kimberly  Pasini  Wood  relating  to   the
                       property  at  5701 Emerald Coast  Parkway,
                       Destin,    Florida    (incorporated     by
                       reference to Exhibit 10.39 of Form  10-KSB
                       filed  with  the Commission on  March  17,
                       1997).

ITEM 13.  EXHIBITS  AND  REPORTS ON FORM 8-K AND  FORM  8-K/A.
          (Continued)

          A.  Exhibits -
                                 Description

               10.36   Property  Co-Tenancy
                       Agreement  dated January 2,  1997  between
                       the  Partnership and William E. Mason  and
                       Hazel  Mason  relating to the property  at
                       Old   Airport  Road  and  I-81,   Bristol,
                       Virginia  (incorporated  by  reference  to
                       Exhibit  10.40 of Form 10-KSB  filed  with
                       the Commission on March 17, 1997).

               10.37   Purchase  Agreement
                       dated   February  14,  1997  between   the
                       Partnership   and   Anton   Kuster,    Jr.
                       relating  to the property at 6867  Highway
                       90  West, San Antonio, Texas (incorporated
                       by  reference to Exhibit 10.41 of Form 10-
                       KSB  filed  with the Commission  on  March
                       17, 1997).

               10.38   Property  Co-Tenancy
                       Ownership  Agreement  dated   February 28,
                       1997  between  the Partnership  and  Anton
                       Kuster,  Jr.  relating to the property  at
                       6867  Highway 90 West, San Antonio,  Texas
                       (incorporated  by  reference  to   Exhibit
                       10.42  of  Form  10-KSB  filed  with   the
                       Commission on March 17, 1997).

               10.39   Purchase Agreement dated  March
                       3,   1997  between  the  Partnership   and
                       Robert  P.  Johnson  and  the  Thomas   W.
                       Adamson    Family   Limited    Partnership
                       relating  to  the property at Old  Airport
                       Road    and    I-81,   Bristol,   Virginia
                       (incorporated  by  reference  to   Exhibit
                       10.1   of  Form  10-QSB  filed  with   the
                       Commission on May 13, 1997).

               10.40   Property  Co-Tenancy  Ownership
                       Agreement  dated  March 10,  1997  between
                       the  Partnership and the Thomas W. Adamson
                       Family  Limited  Partnership  relating  to
                       the  property at Old Airport Road  and  I-
                       81,  Bristol,  Virginia  (incorporated  by
                       reference  to Exhibit 10.2 of Form  10-QSB
                       filed  with  the  Commission  on  May  13,
                       1997).

               10.41   Purchase Agreement dated  March
                       3,  1997  between the Partnership and  the
                       Thomas    W.   Adamson   Family    Limited
                       Partnership  relating to the  property  at
                       5701   Emerald   Coast  Parkway,   Destin,
                       Florida  (incorporated  by  reference   to
                       Exhibit  10.3  of Form 10-QSB  filed  with
                       the Commission on May 13, 1997).

               10.42   Property  Co-Tenancy  Ownership
                       Agreement  dated  March 10,  1997  between
                       the  Partnership and the Thomas W. Adamson
                       Family  Limited  Partnership  relating  to
                       the   property   at  5701  Emerald   Coast
                       Parkway, Destin, Florida (incorporated  by
                       reference  to Exhibit 10.4 of Form  10-QSB
                       filed  with  the  Commission  on  May  13,
                       1997).

ITEM 13.  EXHIBITS  AND  REPORTS ON FORM 8-K AND  FORM  8-K/A.
          (Continued)

          A.  Exhibits -
                                     Description

                10.43  Purchase Agreement dated  March
                       3,  1997  between the Partnership and  the
                       Thomas    W.   Adamson   Family    Limited
                       Partnership  relating to the  property  at
                       161  E.  Campus View Boulevard,  Columbus,
                       Ohio   (incorporated   by   reference   to
                       Exhibit  10.5  of Form 10-QSB  filed  with
                       the Commission on May 13, 1997).

               10.44   Property  Co-Tenancy  Ownership
                       Agreement  dated  March 10,  1997  between
                       the  Partnership and the Thomas W. Adamson
                       Family  Limited  Partnership  relating  to
                       the   property  at  161  E.  Campus   View
                       Boulevard,  Columbus,  Ohio  (incorporated
                       by  reference to Exhibit 10.6 of Form  10-
                       QSB  filed with the Commission on May  13,
                       1997).

               10.45   Purchase Agreement dated  March
                       17,   1997  between  the  Partnership  and
                       Robert  P.  Johnson  and  the  Thomas   W.
                       Adamson    Family   Limited    Partnership
                       relating  to  the property at Old  Airport
                       Road    and    I-81,   Bristol,   Virginia
                       (incorporated  by  reference  to   Exhibit
                       10.7   of  Form  10-QSB  filed  with   the
                       Commission on May 13, 1997).

               10.46   Property  Co-Tenancy  Ownership
                       Agreement  dated  March 21,  1997  between
                       the  Partnership and the Thomas W. Adamson
                       Family  Limited  Partnership  relating  to
                       the  property at Old Airport Road  and  I-
                       81,  Bristol,  Virginia  (incorporated  by
                       reference  to Exhibit 10.8 of Form  10-QSB
                       filed  with  the  Commission  on  May  13,
                       1997).

               10.47   Limited  Option of  First  Sale
                       dated   March   21,   1997   between   the
                       Partnership  and  the  Thomas  W.  Adamson
                       Family  Limited  Partnership  relating  to
                       the  property  at  Old  Airport  Road  and
                       I-81,  Bristol, Virginia (incorporated  by
                       reference  to Exhibit 10.9 of Form  10-QSB
                       filed  with  the  Commission  on  May  13,
                       1997).

               10.48   Purchase Agreement dated  March
                       17,  1997 between the Partnership and  the
                       Thomas    W.   Adamson   Family    Limited
                       Partnership  relating to the  property  at
                       5701   Emerald   Coast  Parkway,   Destin,
                       Florida  (incorporated  by  reference   to
                       Exhibit  10.10 of Form 10-QSB  filed  with
                       the Commission on May 13, 1997).

               10.49   Property  Co-Tenancy  Ownership
                       Agreement  dated  March 21,  1997  between
                       the  Partnership and the Thomas W. Adamson
                       Family  Limited  Partnership  relating  to
                       the   property   at  5701  Emerald   Coast
                       Parkway, Destin, Florida (incorporated  by
                       reference to Exhibit 10.11 of Form  10-QSB
                       filed  with  the  Commission  on  May  13,
                       1997).

ITEM 13.  EXHIBITS  AND  REPORTS ON FORM 8-K AND  FORM  8-K/A.
          (Continued)

          A.  Exhibits -
                                    Description

               10.50   Limited  Option of  First  Sale
                       dated   March   21,   1997   between   the
                       Partnership  and  the  Thomas  W.  Adamson
                       Family  Limited  Partnership  relating  to
                       the   property   at  5701  Emerald   Coast
                       Parkway, Destin, Florida (incorporated  by
                       reference to Exhibit 10.12 of Form  10-QSB
                       filed  with  the  Commission  on  May  13,
                       1997).

               10.51   Purchase Agreement dated  March
                       17,  1997 between the Partnership and  the
                       Thomas    W.   Adamson   Family    Limited
                       Partnership  relating to the  property  at
                       161  E.  Campus View Boulevard,  Columbus,
                       Ohio   (incorporated   by   reference   to
                       Exhibit  10.13 of Form 10-QSB  filed  with
                       the Commission on May 13, 1997).

               10.52   Property  Co-Tenancy  Ownership
                       Agreement  dated  March 21,  1997  between
                       the  Partnership and the Thomas W. Adamson
                       Family  Limited  Partnership  relating  to
                       the   property  at  161  E.  Campus   View
                       Boulevard,  Columbus,  Ohio  (incorporated
                       by  reference to Exhibit 10.14 of Form 10-
                       QSB  filed with the Commission on May  13,
                       1997).

               10.53   Limited  Option of  First  Sale
                       dated   March   21,   1997   between   the
                       Partnership  and  the  Thomas  W.  Adamson
                       Family  Limited  Partnership  relating  to
                       the   property  at  161  E.  Campus   View
                       Boulevard,  Columbus,  Ohio  (incorporated
                       by  reference to Exhibit 10.15 of Form 10-
                       QSB  filed with the Commission on May  13,
                       1997).

               10.54   Purchase  Agreement  dated  May
                       31,  1997 between the Partnership and Shun
                       Cho  Young  and Chung Hsi Ho  relating  to
                       the   property  at  6435  Dixie   Highway,
                       Fairfield,    Ohio    (incorporated     by
                       reference  to Exhibit 10.1 of Form  10-QSB
                       filed  with  the Commission on  August  5,
                       1997).

               10.55   Sale  and  Leaseback  Financing
                       Commitment  dated  June 30,  1997  between
                       AEI     Fund    Management,    Inc.    and
                       Fuddrucker's,   Inc.   relating   to   the
                       property  at  12020  Pennsylvania  Street,
                       Thornton,   Colorado   (incorporated    by
                       reference  to Exhibit 10.2 of Form  10-QSB
                       filed  with  the Commission on  August  5,
                       1997).

               10.56   Letter of Assignment dated  July
                       15,  1997 between the Partnership and  AEI
                       Fund  Management,  Inc.  relating  to  the
                       property  at  12020  Pennsylvania  Street,
                       Thornton,   Colorado   (incorporated    by
                       reference  to Exhibit 10.3 of Form  10-QSB
                       filed  with  the Commission on  August  5,
                       1997).

ITEM 13.  EXHIBITS  AND  REPORTS ON FORM 8-K AND  FORM  8-K/A.
          (Continued)

          A.  Exhibits -
                                     Description

               10.57   Purchase Agreement  dated  July
                       25,   1997  between  the  Partnership  and
                       Calderwood       Investments       Limited
                       Partnership  relating to the  property  at
                       161  E.  Campus View Boulevard,  Columbus,
                       Ohio   (incorporated   by   reference   to
                       Exhibit  10.4  of Form 10-QSB  filed  with
                       the Commission on August 5, 1997).

               10.58   Property  Co-Tenancy  Ownership
                       Agreement dated July 28, 1997 between  the
                       Partnership   and  Calderwood  Investments
                       Limited   Partnership  relating   to   the
                       property  at 161 E. Campus View Boulevard,
                       Columbus,  Ohio (incorporated by reference
                       to  Exhibit 10.5 of Form 10-QSB filed with
                       the Commission on August 5, 1997).

               10.59   Net Lease Agreement dated  July
                       30,   1977  between  the  Partnership  and
                       Fuddrucker's,   Inc.   relating   to   the
                       property  at  12020  Pennsylvania  Street,
                       Thornton,   Colorado   (incorporated    by
                       reference  to Exhibit 10.6 of Form  10-QSB
                       filed  with  the Commission on  August  5,
                       1997).

               10.60   Purchase Agreement  dated  July
                       16,   1997  between  the  Partnership  and
                       Stanley   E.  LaCorte  relating   to   the
                       property  at  5701 Emerald Coast  Parkway,
                       Destin,    Florida    (incorporated     by
                       reference  to Exhibit 10.1 of Form  10-QSB
                       filed  with the Commission on November  4,
                       1997).

               10.61   Purchase Agreement dated August
                       19,   1997  between  the  Partnership  and
                       Truong   Hoang,  Trustee  and  Thanh   Do,
                       Trustee  of  the  Hoang-Do  Family  Living
                       Trust  relating  to the property  at  5701
                       Emerald  Coast  Parkway,  Destin,  Florida
                       (incorporated  by  reference  to   Exhibit
                       10.2   of  Form  10-QSB  filed  with   the
                       Commission on November 4, 1997).

               10.62   Property  Co-Tenancy  Ownership
                       Agreement  dated September 9, 1997  between
                       the  Partnership and Truong Hoang, Trustee
                       and  Thanh  Do,  Trustee of  the  Hoang-Do
                       Family   Living  Trust  relating  to   the
                       property  at  5701 Emerald Coast  Parkway,
                       Destin,    Florida    (incorporated     by
                       reference  to Exhibit 10.3 of Form  10-QSB
                       filed  with the Commission on November  4,
                       1997).

               10.63   Purchase   Agreement    dated
                       September  9, 1997 between the Partnership
                       and  Nick  DeVito, Inc.  relating  to  the
                       property  at  6867 Highway  90  West,  San
                       Antonio,  Texas (incorporated by reference
                       to  Exhibit 10.4 of Form 10-QSB filed with
                       the Commission on November 4, 1997).

               10.64   Purchase  Agreement
                       dated  September  12,  1997  between   the
                       Partnership  and  Ernest  E.  Ainslie  and
                       Marion   B.  Ainslie,  Trustees   of   the
                       Ainslie  Living  Trust  relating  to   the
                       property  at  Old Airport Road  and  I-81,
                       Bristol, Virginia.

ITEM 13.  EXHIBITS  AND  REPORTS ON FORM 8-K AND  FORM  8-K/A.
          (Continued)

          A.  Exhibits -
                                   Description

               10.65   Property  Co-Tenancy  Ownership
                       Agreement   dated   September   22,   1997
                       between  the  Partnership and  Stanley  E.
                       LaCorte  relating to the property at  5701
                       Emerald  Coast  Parkway,  Destin,  Florida
                       (incorporated  by  reference  to   Exhibit
                       10.5   of  Form  10-QSB  filed  with   the
                       Commission on November 4, 1997).

               10.66   Property  Co-Tenancy  Ownership
                       Agreement   dated   September   25,   1997
                       between  the Partnership and Nick  DeVito,
                       Inc.  relating  to  the property  at  6867
                       Highway   90  West,  San  Antonio,   Texas
                       (incorporated  by  reference  to   Exhibit
                       10.6   of  Form  10-QSB  filed  with   the
                       Commission on November 4, 1997).

               10.67   Purchase   Agreement    dated
                       September    30,    1997    between    the
                       Partnership and Reginald O. Hill,  Trustee
                       of   the  Reginald  O.  Hill  Trust  dated
                       5/25/95  and Donna Jean Hill,  Trustee  of
                       the  Donna  Jean Hill Trust dated  5/25/95
                       relating  to the property at 6867  Highway
                       90  West, San Antonio, Texas (incorporated
                       by  reference to Exhibit 10.7 of Form  10-
                       QSB  filed with the Commission on November
                       4, 1997).

               10.68   Purchase   Agreement    dated
                       October  5,  1997 between the  Partnership
                       and   Anthony  Drago,  Trustee,  U/A   DTD
                       8/19/80,  FBO  Anthony and  Sydelle  Drago
                       Family  Trust relating to the property  at
                       6867  Highway 90 West, San Antonio,  Texas
                       (incorporated  by  reference  to   Exhibit
                       10.8   of  Form  10-QSB  filed  with   the
                       Commission on November 4, 1997).

               10.69   Property  Co-Tenancy  Ownership
                       Agreement  dated October 9,  1997  between
                       the  Partnership  and  Reginald  O.  Hill,
                       Trustee  of  the Reginald  O.  Hill  Trust
                       dated   5/25/95  and  Donna   Jean   Hill,
                       Trustee  of  the  Donna  Jean  Hill  Trust
                       dated 5/25/95 relating to the property  at
                       6867  Highway 90 West, San Antonio,  Texas
                       (incorporated  by  reference  to   Exhibit
                       10.9   of  Form  10-QSB  filed  with   the
                       Commission on November 4, 1997).

               10.70   Property  Co-Tenancy  Ownership
                       Agreement  dated October 24, 1997  between
                       the   Partnership   and   Anthony   Drago,
                       Trustee, U/A DTD 8/19/80, FBO Anthony  and
                       Sydelle  Drago  Family Trust  relating  to
                       the  property at 6867 Highway 90 West, San
                       Antonio,  Texas (incorporated by reference
                       to  Exhibit  10.10  of Form  10-QSB  filed
                       with the Commission on November 4, 1997).

               10.71   Property  Co-Tenancy
                       Ownership Agreement dated November 5, 1997
                       between  the  Partnership  and  Ernest  E.
                       Ainslie  and  Marion B. Ainslie,  Trustees
                       of  the  Ainslie Living Trust relating  to
                       the  property at Old Airport Road  and  I-
                       81, Bristol, Virginia.

ITEM 13.  EXHIBITS  AND  REPORTS ON FORM 8-K AND  FORM  8-K/A.
          (Continued)

          A.  Exhibits -
                                    Description

               10.72   Purchase  Agreement
                       dated   November  6,  1997   between   the
                       Partnership  and  the Helen  W.  Rehwaldt,
                       Trustee,    Deerwood    Revocable    Trust
                       Partnership  relating to the  property  at
                       Old   Airport  Road  and  I-81,   Bristol,
                       Virginia.

               10.73   Property  Co-Tenancy
                       Ownership  Agreement  dated  November  21,
                       1997  between  the  Partnership  and   the
                       Helen   W.   Rehwaldt,  Trustee,  Deerwood
                       Revocable  Trust relating to the  property
                       at  Old  Airport  Road and I-81,  Bristol,
                       Virginia.

               10.74   Development Financing
                       Agreement dated December 23, 1997  between
                       the  Partnership, AEI Real Estate Fund  XV
                       Limited Partnership, AEI Net Lease  Income
                       &  Growth  Fund  XIX Limited  Partnership,
                       AEI   Real   Estate  Fund   XVII   Limited
                       Partnership   and  Champps  Entertainment,
                       Inc.  relating to the property at 301 West
                       Big Beaver Road, Troy, Michigan.

               10.75   Net Lease  Agreement
                       dated   December  23,  1997  between   the
                       Partnership,  AEI  Real  Estate  Fund   XV
                       Limited Partnership, AEI Net Lease  Income
                       &  Growth  Fund  XIX Limited  Partnership,
                       AEI   Real   Estate  Fund   XVII   Limited
                       Partnership   and  Champps  Entertainment,
                       Inc.  relating to the property at 301 West
                       Big Beaver Road, Troy, Michigan.

               10.76   Assignment    of
                       Development    Financing    and    Leasing
                       Commitment dated January 26, 1998  between
                       the  Partnership and AEI Fund  Management,
                       Inc.  relating  to  the property  at  1150
                       North Bridge Street, Chillicothe, Ohio.

                  27   Financial Data Schedule
                       for year ended December 31, 1997.

           B.   Reports on Form 8-K and Form 8-K/A - None.


                           SIGNATURES

       Pursuant to the requirements of Section 13 or 15(d) of the
Securities  Exchange Act of 1934, the registrant has duly  caused
this  report  to  be  signed on its behalf  by  the  undersigned,
thereunto duly authorized.

                            AEI REAL ESTATE FUND XVIII
                            Limited Partnership
                             By:  AEI  Fund Management  XVIII, Inc.
                                Its Managing General Partner


March 23, 1998               By: /s/ Robert P. Johnson
                                     Robert  P. Johnson, President and Director
                                     (Principal Executive Officer)


        Pursuant  to the requirements of the Securities  Exchange
Act  of  1934, this report has been signed below by the following
persons on behalf of the registrant and in the capacities and  on
the dates indicated.

        Name                            Title                        Date


/s/ Robert P. Johnson   President (Principal Executive Officer)  March 23, 1998
Robert P. Johnson       and Sole Director of Managing General
                        Partner

/s/ Mark E. Larson      Executive Vice President,  Treasurer     March 23, 1998
Mark E. Larson          and Chief Financial Officer
                        (Principal Accounting Officer)