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, 1998
                                
                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)

                         (651) 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, 1998 were
$1,747,913.

As  of  February 28, 1999, there were 20,910.48 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 $20,910,480.

               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 four 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 owned 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 were vacant,
the  Partnership  was responsible for the real estate  taxes  and
other costs required to maintain the properties.

        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.

       On July 21, 1998, the Partnership sold its interest in the
Sizzler  restaurant  in Springboro, Ohio to  an  unrelated  third
party.   The Partnership received net sale proceeds of  $350,635,
which resulted in a net loss on the sale of $22,345.

        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  $77,025 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.

ITEM 1.   DESCRIPTION OF BUSINESS. (Continued)

        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,
$99,388  and  $115,285  in rent in 1998 and  1997,  respectively.
This  amount  was  not accrued for financial reporting  purposes.
While  the  property was vacant, the Partnership was  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  November  18,  1998,  the Partnership  re-leased  the
Brownsville  property to Sergio Gonzalez under a Lease  Agreement
with  a  primary term of two years and annual rental payments  of
$37,200.   The  property  is  now  operated  as  a  Taco   Fiesta
restaurant.

        The  Partnership used the majority of proceeds  from  two
property  sales in 1995 to purchase two properties  in  1996,  as
discussed below.  The remainder of the proceeds from those  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.

        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.

ITEM 1.   DESCRIPTION OF BUSINESS. (Continued)

        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.

        Subsequent to December 31, 1998, the Partnership sold its
24%  interest in the HomeTown Buffet restaurant in three separate
transactions   to  unrelated  third  parties.   The   Partnership
received total net sale proceeds of approximately $437,000  which
resulted in a net gain of approximately $160,000.

       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.  Effective June 20, 1998, the annual  rent
was  increased to $37,998.  Simultaneously with the  purchase  of
the  land,  the Partnership entered into a Development  Financing
Agreement  under which the Partnership advanced funds to  Champps
for  the  construction of a Champps Americana restaurant  on  the
site.   Initially,  the  Partnership  charged  interest  on   the
advances  at  a  rate  of 7.0%.  Effective  June  20,  1998,  the
interest  rate  was increased to 10.50%.  On September  3,  1998,
after  the  development was completed, the  Lease  Agreement  was
amended  to  require  annual rental payments  of  $122,605.   The
Partnership's share of the total acquisition costs, including the
cost of the land, was $1,192,496.  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.   On  April  13,  1998,  the  Partnership
purchased its share of the land for $216,915.  The land is leased
to  Tumbleweed, Inc. (TWI) under a Lease Agreement with a primary
term   of  15  years  and  annual  rental  payments  of  $18,438.
Effective  August  10,  1998, the annual rent  was  increased  to
$22,234.   Simultaneously  with the purchase  of  the  land,  the
Partnership entered into a Development Financing Agreement  under
which  the Partnership advanced funds to TWI for the construction
of   a  Tumbleweed  restaurant  on  the  site.   Initially,   the
Partnership charged interest on the advances at a rate  of  8.5%.
Effective  August  10, 1998, the interest rate was  increased  to
10.25%.   On  November  20,  1998,  after  the  development   was
completed,  the  Lease Agreement was amended  to  require  annual
rental payments of $57,314.  The Partnership's share of the total
acquisition costs, including the cost of the land, was  $573,831.
The  remaining  interests  in  the  property  are  owned  by  the
Individual General Partner and AEI Net Lease Income & Growth Fund
XIX Limited Partnership.

        In April, 1998, the Partnership entered into an agreement
to purchase a Tumbleweed restaurant in Columbus, Ohio.  On May 1,
1998, the Partnership purchased the land for $503,832.  The  land
is  leased to TWI under a Lease Agreement with a primary term  of
15 years and annual rental payments of $42,826.  Effective August
28,   1998,   the   annual   rent  was  increased   to   $51,643.
Simultaneously  with  the purchase of the land,  the  Partnership
entered  into a Development Financing Agreement under  which  the
Partnership  advanced  funds to TWI for  the  construction  of  a
Tumbleweed  restaurant on the site.  Initially,  the  Partnership
charged  interest on the advances at a rate of  8.5%.   Effective
August  28, 1998, the interest rate was increased to 10.25%.   On
December  28,  1998,  after the development  was  completed,  the
Partnership assigned, for diversification purposes,  60%  of  its
interest  in  the property to an affiliated Partnership  and  the
Lease Agreement was amended to require annual rental payments  of
$55,401.  The Partnership's share of the total acquisition costs,
including  the  cost  of the land, was $554,269.   The  remaining
interest  in  the  property is owned by AEI Net  Lease  Income  &
Growth Fund XIX Limited Partnership.

        In April, 1998, the Partnership entered into an Agreement
to purchase an Old Country Buffet restaurant to be constructed in
Northlake, Illinois.  On May 18, 1998, the Partnership  purchased
the  land for $330,000.  The Partnership charged interest on  the
land at a rate of 10% until September 27, 1998.  On September 28,
1998,  the  tenant  began paying annual  rent  of  $130,000.   On
September  30,  1998, the Partnership advanced $370,000  for  the
construction  of the property.  On December 29, 1998,  after  the
construction  was  completed, the Partnership  paid  $639,000  of
additional  construction costs.  The total acquisition  cost  was
$1,350,804.   The property is leased to OCB Realty  Co.  under  a
Lease Agreement with a primary term of 20 years.

        On  August  28,  1998, the Partnership  purchased  a  38%
interest  in a parcel of land in Centerville, Ohio for  $703,376.
The land is leased to Americana Dining Corporation (ADC) under  a
Lease Agreement with a primary term of 20 years and annual rental
payments  of  $49,236.  Simultaneously with the purchase  of  the
land,  the  Partnership  entered  into  a  Development  Financing
Agreement under which the Partnership will advance funds  to  ADC
for  the  construction of a Champps Americana restaurant  on  the
site.   Through December 31, 1998, the Partnership  had  advanced
$439,301  for  the construction of the property and was  charging
interest on the advances at a rate of 7%.  Effective December 25,
1998,  the interest rate was increased to 10.5%.  On January  27,
1999,  after  the development was completed, the Lease  Agreement
was  amended to require annual rental payments of $154,075.   The
Partnership's share of the total acquisition costs, including the
cost  of  the land, was approximately $1,467,000.  The  remaining
interests in the property are owned by AEI Real Estate Fund  XVII
Limited  Partnership,  AEI  Income  &  Growth  Fund  XXI  Limited
Partnership   and   AEI  Income  &  Growth  Fund   XXII   Limited
Partnership, affiliates of the Partnership.

ITEM 1.   DESCRIPTION OF BUSINESS. (Continued)

Major Tenants

        During  1998,  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  65%
of  the  Partnership's  total rental  revenue  in  1998.   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  1999  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 Compliance

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

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

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

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, 1998.

<TABLE>
<CAPTION>

                                Total Property
                       Purchase  Acquisition                 Annual Lease   Annual Rent
Property                 Date      Costs         Lessee          Payment    Per Sq. Ft.
<S>                   <C>      <C>         <C>                <C>          <C>        

Children's World                                 ARAMARK
Daycare Center                                 Educational
 Phoenix, AZ            9/29/89  $  883,486   Resources, Inc.    $  114,627  $ 15.16

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

Children's World                                 ARAMARK
Daycare Center                                 Educational
 Blue Springs, MO      6/27/90  $  791,271   Resources, Inc.    $   97,699   $ 12.21

Children's World                                 ARAMARK
Daycare Center                                 Educational
 Lenexa, KS            9/13/90  $  983,527   Resources, Inc.    $  121,741   $ 15.19

Taco Cabana Restaurant                         Texas Taco
 San Antonio, TX      12/29/90  $1,406,426     Cabana L.P.      $  203,994   $ 74.50

Cheddar's Restaurant                           Heartland
 Clive, IA             1/22/91  $1,392,248   Restaurant Corp.   $  210,888   $ 29.29

Children's World                                ARAMARK
Daycare Center                                Educational
 Westerville, OH       6/21/91  $  990,261   Resources, Inc.    $  120,865   $ 15.15

Taco Cabana Restaurant
 San Antonio, TX                                Texas Taco
 (9.3699%)             7/19/91  $  107,933      Cabana L.P.     $   15,895   $ 37.91
 </TABLE>

ITEM 2.   DESCRIPTION OF PROPERTIES. (Continued)
<TABLE>
<CAPTION>
                                Total Property
                       Purchase  Acquisition                 Annual Lease   Annual Rent
Property                 Date      Costs         Lessee          Payment    Per Sq. Ft.
<S>                   <C>      <C>         <C>                <C>          <C>        

Taco Fiesta Restaurant
 Brownsville, TX        8/9/91  $  799,938    Sergio Gonzalez   $   37,200   $ 13.78

Applebee's Restaurant
 Destin, FL
 (5.8291%)             11/1/91  $   65,215     T.S.S.O., Inc.   $    8,875   $ 31.65

Children's World                                  ARAMARK
Daycare Center                                  Educational
 Columbus, OH          8/10/92  $1,019,202     Resources, Inc.  $  124,260   $ 14.07

Rally's Restaurant                                New Red
 San Antonio, TX       12/7/92  $  303,640       Line, Inc.     $   15,000   $ 25.86

Rally's Restaurant                              Red Line San
 San Antonio, TX       12/7/92  $  308,997     Antonio One, LTD $   15,000   $ 25.86

Applebee's Restaurant
 Slidell, LA                                     Gulf Coast
 (27%)                  5/5/93  $  280,018     Restaurants, Inc.$   42,602   $ 34.44

HomeTown Buffet Restaurant
 Tucson, AZ                                     Summit Family
 (24%)                 6/16/93  $  303,733    Restaurants, Inc. $   40,957   $ 17.73

Tractor Supply Company Store
 Bristol, VA                                    Tractor Supply
 (7.5158%)             4/10/96  $   96,765      Company, Inc.   $   10,516   $  7.46

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

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

Champps Americana
 Restaurant                                        Champps
 Troy, MI                                       Entertainment,
 (23.95%)               9/3/98  $1,192,496          Inc.        $  122,605   $ 46.16

Tumbleweed Restaurant
 Chillicothe, OH                                  Tumbleweed,
 (45.0%)               11/20/98 $  573,831            Inc.      $   57,314   $ 23.23

Tumbleweed Restaurant
 Columbus, OH                                     Tumbleweed,
 (40.0%)               12/28/98 $  554,269           Inc.       $   55,401   $ 25.26
 </TABLE>

ITEM 2.   DESCRIPTION OF PROPERTIES. (Continued)
<TABLE>
<CAPTION>
                                Total Property
                       Purchase  Acquisition                 Annual Lease   Annual Rent
Property                 Date      Costs         Lessee          Payment    Per Sq. Ft.
<S>                   <C>      <C>         <C>                <C>          <C>        

Old Country Buffet
 Restaurant                                         OCB
 North Lake, IL        12/29/98 $1,350,804     Restaurant Co.   $  130,000   $ 14.46

Champps Americana
 Restaurant
 Centerville, OH
 (38.0%)                                         Americana
 (land only) (1)        8/28/98 $  703,376      Dining Corp.    $   49,236   $ 13.83
</TABLE>

(1) The  restaurant  was  under construction as  of  December  31,
    1998.

        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
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  and  unrelated  third
parties.   The  remaining  interests  in  the  Champps  Americana
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  Americana
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   remaining  interests  in   the   Tumbleweed
restaurant  in  Chillicothe, Ohio are  owned  by  the  Individual
General  Partner  and  AEI Net Lease Income  &  Growth  Fund  XIX
Limited  Partnership.  The remaining interest in  the  Tumbleweed
restaurant in Columbus, Ohio is owned by AEI Net Lease  Income  &
Growth Fund XIX Limited Partnership.  The remaining interests  in
the  Champps Americana restaurant in Centerville, Ohio are  owned
by  AEI  Real Estate Fund XVII Limited Partnership, AEI Income  &
Growth Fund XXI Limited Partnership and AEI Income & Growth  Fund
XXII 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, the Tumbleweed 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 and the Old Country Buffet restaurant
which  has  a  renewal option that may extend the Lease  term  an
additional 20 years.

ITEM 2.   DESCRIPTION OF PROPERTIES. (Continued)

       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.

         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, 1993, all properties  were  100
percent occupied by the lessees noted, with the exception of  the
Taco  Cabana  restaurant in Brownsville,  Texas  which  was  100%
occupied until January, 1997 and was vacant until November, 1998.

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, 1998, there were 1,562  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 1998, forty-two Limited Partners redeemed a  total
of  576.8  Partnership Units for $461,904 in accordance with  the
Partnership  Agreement.  In prior years, a total of seventy-eight
Limited   Partners  redeemed  1,295.52  Partnership   Units   for
$1,028,771  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 $14,039 and $13,307 were made to the
General  Partners and $927,959 and $1,124,461 were  made  to  the
Limited   Partners   in   1998  and  1997,   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  of  proceeds  from
property  sales in 1997.  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, 1998  and  1997,  the
Partnership   recognized   rental  income   of   $1,542,916   and
$1,418,118,   respectively.   During  the   same   periods,   the
Partnership  earned investment income of $204,997  and  $191,115,
respectively.  In 1998, rental income increased as  a  result  of
the  additional  rent received from six property acquisitions  in
1997  and  1998  and  rent increases on  eight  properties.   The
increase  in  rental income was partially offset by the  property
sales   discussed   below.   In  1998,  the  Partnership   earned
additional  investment  income  on  the  net  proceeds  from  the
property sales.

        The  Partnership owned 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 were vacant,
the  Partnership  was responsible for the real estate  taxes  and
other costs required to maintain the properties.

        No  rents were collected from the Sizzler restaurants  in
1998  and 1997.  The total amount of rent not collected  in  1998
and  1997 was $101,715 and $339,093, 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  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.

       On July 21, 1998, the Partnership sold its interest in the
Sizzler  restaurant  in Springboro, Ohio to  an  unrelated  third
party.   The Partnership received net sale proceeds of  $350,635,
which resulted in a net loss on the sale of $22,345.

        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  $77,025 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,
$99,388  and  $115,285  in rent in 1998 and  1997,  respectively.
This  amount  was  not accrued for financial reporting  purposes.
While  the  property was vacant, the Partnership was  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)

        On  November  18,  1998,  the Partnership  re-leased  the
Brownsville  property to Sergio Gonzalez under a Lease  Agreement
with  a  primary term of two years and annual rental payments  of
$37,200.   The  property  is  now  operated  as  a  Taco   Fiesta
restaurant.

        During  the years ended December 31, 1998 and  1997,  the
Partnership   paid   Partnership   administration   expenses   to
affiliated parties of $240,525 and $249,520, 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  $59,440 and $98,128, 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 1998, when compared to 1997, is the  result
of  expenses incurred in 1997 related to the Sizzler and  Rally's
situations discussed above.

       As of December 31, 1998, 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.

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

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

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

Liquidity and Capital Resources

        During  1998,  the Partnership's cash balances  decreased
$3,902,196 mainly as a result of cash used to purchase additional
properties.  Net cash provided by operating activities  increased
from $1,155,326 in 1997 to $1,421,055 in 1998.  The increase  was
due  to an increase in income and a decrease in expenses in 1998,
and net timing differences in the collection of payments from the
lessees and the payment of expenses.

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

        The  major components of the Partnership's cash flow from
investing activities are investments in real estate and  proceeds
from  the sale of real estate.  In 1998 and 1997, the Partnership
generated cash flow from the sale of real estate of $350,635  and
$4,129,390,   respectively.   During  the   same   periods,   the
Partnership expended $4,334,115 and $1,908,049, respectively,  to
invest in real properties (inclusive of acquisition expenses)  as
the  Partnership reinvested the cash generated from the  property
sales.

        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 year ended December  31,  1997,
the net gain was $320,171.

        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  year   ended
December 31, 1997, the net gain was $355,897.

        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 year ended
December 31, 1997, the net gain was $179,517.

       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.

        Subsequent to December 31, 1998, the Partnership sold its
24%  interest in the HomeTown Buffet restaurant in three separate
transactions   to  unrelated  third  parties.   The   Partnership
received total net sale proceeds of approximately $437,000  which
resulted in a net gain of approximately $160,000.

        During 1997, the Partnership distributed $104,820 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 per Limited Partnership Unit.  The remaining
net sale proceeds were reinvested in additional properties.

       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.

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

        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.  Effective June 20, 1998, the annual  rent
was  increased to $37,998.  Simultaneously with the  purchase  of
the  land,  the Partnership entered into a Development  Financing
Agreement  under which the Partnership advanced funds to  Champps
for  the  construction of a Champps Americana restaurant  on  the
site.   Initially,  the  Partnership  charged  interest  on   the
advances  at  a  rate  of 7.0%.  Effective  June  20,  1998,  the
interest  rate  was increased to 10.50%.  On September  3,  1998,
after  the  development was completed, the  Lease  Agreement  was
amended  to  require  annual rental payments  of  $122,605.   The
Partnership's share of the total acquisition costs, including the
cost of the land, was $1,192,496.  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.   On  April  13,  1998,  the  Partnership
purchased its share of the land for $216,915.  The land is leased
to  Tumbleweed, Inc. (TWI) under a Lease Agreement with a primary
term   of  15  years  and  annual  rental  payments  of  $18,438.
Effective  August  10,  1998, the annual rent  was  increased  to
$22,234.   Simultaneously  with the purchase  of  the  land,  the
Partnership entered into a Development Financing Agreement  under
which  the Partnership advanced funds to TWI for the construction
of   a  Tumbleweed  restaurant  on  the  site.   Initially,   the
Partnership charged interest on the advances at a rate  of  8.5%.
Effective  August  10, 1998, the interest rate was  increased  to
10.25%.   On  November  20,  1998,  after  the  development   was
completed,  the  Lease Agreement was amended  to  require  annual
rental payments of $57,314.  The Partnership's share of the total
acquisition costs, including the cost of the land, was  $573,831.
The  remaining  interests  in  the  property  are  owned  by  the
Individual General Partner and AEI Net Lease Income & Growth Fund
XIX Limited Partnership.

        In April, 1998, the Partnership entered into an agreement
to purchase a Tumbleweed restaurant in Columbus, Ohio.  On May 1,
1998, the Partnership purchased the land for $503,832.  The  land
is  leased to TWI under a Lease Agreement with a primary term  of
15 years and annual rental payments of $42,826.  Effective August
28,   1998,   the   annual   rent  was  increased   to   $51,643.
Simultaneously  with  the purchase of the land,  the  Partnership
entered  into a Development Financing Agreement under  which  the
Partnership  advanced  funds to TWI for  the  construction  of  a
Tumbleweed  restaurant on the site.  Initially,  the  Partnership
charged  interest on the advances at a rate of  8.5%.   Effective
August  28, 1998, the interest rate was increased to 10.25%.   On
December  28,  1998,  after the development  was  completed,  the
Partnership assigned, for diversification purposes,  60%  of  its
interest  in  the property to an affiliated Partnership  and  the
Lease Agreement was amended to require annual rental payments  of
$55,401.  The Partnership's share of the total acquisition costs,
including  the  cost  of the land, was $554,269.   The  remaining
interest  in  the  property is owned by AEI Net  Lease  Income  &
Growth Fund XIX Limited Partnership.

        In April, 1998, the Partnership entered into an Agreement
to purchase an Old Country Buffet restaurant to be constructed in
Northlake, Illinois.  On May 18, 1998, the Partnership  purchased
the  land for $330,000.  The Partnership charged interest on  the
land at a rate of 10% until September 27, 1998.  On September 28,
1998,  the  tenant  began paying annual  rent  of  $130,000.   On
September  30,  1998, the Partnership advanced $370,000  for  the
construction  of the property.  On December 29, 1998,  after  the
construction  was  completed, the Partnership  paid  $639,000  of
additional  construction costs.  The total acquisition  cost  was
$1,350,804.   The property is leased to OCB Realty  Co.  under  a
Lease Agreement with a primary term of 20 years.

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

        On  August  28,  1998, the Partnership  purchased  a  38%
interest  in a parcel of land in Centerville, Ohio for  $703,376.
The land is leased to Americana Dining Corporation (ADC) under  a
Lease Agreement with a primary term of 20 years and annual rental
payments  of  $49,236.  Simultaneously with the purchase  of  the
land,  the  Partnership  entered  into  a  Development  Financing
Agreement under which the Partnership will advance funds  to  ADC
for  the  construction of a Champps Americana restaurant  on  the
site.   Through December 31, 1998, the Partnership  had  advanced
$439,301  for  the construction of the property and was  charging
interest on the advances at a rate of 7%.  Effective December 25,
1998,  the interest rate was increased to 10.5%.  On January  27,
1999,  after  the development was completed, the Lease  Agreement
was  amended to require annual rental payments of $154,075.   The
Partnership's share of the total acquisition costs, including the
cost  of  the land, was approximately $1,467,000.  The  remaining
interests in the property are owned by AEI Real Estate Fund  XVII
Limited  Partnership,  AEI  Income  &  Growth  Fund  XXI  Limited
Partnership   and   AEI  Income  &  Growth  Fund   XXII   Limited
Partnership, affiliates of the Partnership.

       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.    Prior  to  1998,
redemption payments were paid to redeeming Partners in the fourth
quarter  of  each  year.  Beginning in 1998, redemption  payments
will  be  paid to redeeming Partners on a quarterly  basis.   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.

        During 1998, forty-two Limited Partners redeemed a  total
of  576.8  Partnership Units for $461,904 in accordance with  the
Partnership  Agreement.   The Partnership  acquired  these  Units
using Net Cash Flow from operations.  In prior years, a total  of
seventy-eight  Limited  Partners  redeemed  1,295.52  Partnership
Units  for  $1,028,771.  The redemptions increase  the  remaining
Limited Partners' ownership interest in the Partnership.

       The continuing rent payments from the properties should be
adequate   to  fund  continuing  distributions  and  meet   other
Partnership obligations on both a short-term and long-term basis.

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

Cautionary Statement for Purposes of the "Safe Harbor" Provisions
of the Private Securities Litigation Reform Act of 1995

         The   foregoing  Management's  Discussion  and  Analysis
contains various "forward looking  statements" within the meaning
of   federal   securities   laws  which  represent   management's
expectations  or  beliefs  concerning  future  events,  including
statements  regarding anticipated application of  cash,  expected
returns  from rental income, growth in revenue, taxation  levels,
the  sufficiency  of  cash to meet operating expenses,  rates  of
distribution,  and  other  matters.   These,  and  other  forward
looking statements made by the Partnership, must be evaluated  in
the   context  of  a  number  of  factors  that  may  affect  the
Partnership's  financial  condition and  results  of  operations,
including the following:

    <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, 1998 and 1997          

Statements for the Years Ended December 31, 1998 and 1997:

     Income                                             

     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, 1998 and 1997 and  the  related
statements of income, 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,  1998 and 1997 and the results of its operations and its cash
flows  for  the  years then ended, in conformity  with  generally
accepted accounting principles.


                               /s/ Boulay, Heutmaker, Zibell & Co. P.L.L.P.
Minneapolis,  Minnesota            Boulay, Heutmaker, Zibell & Co. P.L.L.P.
January 27, 1999                   Certified Public Accountants

<PAGE>                                
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                          BALANCE SHEET
                                
                           DECEMBER 31
                                
                             ASSETS
                                
                                                        1998          1997

CURRENT ASSETS:
  Cash and Cash Equivalents                         $   311,087   $ 4,213,283
  Receivables                                            52,928        20,547
                                                     -----------   -----------
      Total Current Assets                              364,015     4,233,830
                                                     -----------   -----------
INVESTMENTS IN REAL ESTATE:
  Land                                                5,491,552     3,970,611
  Buildings and Equipment                            10,652,675     8,160,729
  Construction in Progress                              439,301        43,208
  Property Acquisition Costs                             22,316        97,181
  Accumulated Depreciation                           (2,159,173)   (1,853,954)
                                                     -----------   -----------
                                                     14,446,671    10,417,775
  Real Estate Held for Sale                                   0       372,980
                                                     -----------   -----------
      Net Investments in Real Estate                 14,446,671    10,790,755
                                                     -----------   -----------
           Total  Assets                            $14,810,686   $15,024,585
                                                     ===========   ===========

                      LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.              $    16,768   $    23,780
  Distributions Payable                                 195,285       131,154
  Security Deposit                                       12,500             0
  Unearned Rent                                           5,000         5,000
                                                     -----------   -----------
      Total Current Liabilities                         229,553       159,934
                                                     -----------   -----------
PARTNERS' CAPITAL (DEFICIT):
  General Partners                                      (49,653)      (46,818)
  Limited Partners, $1,000 Unit Value;
    30,000 Units authorized; 22,783 Issued;
    20,910 and 21,487 outstanding in 1998
    and 1997, respectively                           14,630,786    14,911,469
                                                     -----------   -----------
      Total Partners' Capital                        14,581,133    14,864,651
                                                     -----------   -----------
        Total Liabilities and Partners' Capital     $14,810,686   $15,024,585
                                                     ===========   ===========
                                
 The accompanying notes to financial statements are an integral
                     part of this statement.
</PAGE>
<PAGE>
                                

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                       STATEMENT OF INCOME
                                
                 FOR THE YEARS ENDED DECEMBER 3l


                                                   1998            1997

INCOME:
  Rent                                         $ 1,542,916      $ 1,418,118
  Investment Income                                204,997          191,115
                                                -----------      -----------
      Total Income                               1,747,913        1,609,233
                                                -----------      -----------

EXPENSES:
  Partnership Administration - Affiliates          240,525          249,520
  Partnership Administration and Property
     Management - Unrelated Parties                 59,440           98,128
  Depreciation                                     305,219          321,950
  Real Estate Impairment                                 0          460,100
                                                -----------      -----------
      Total Expenses                               605,184        1,129,698
                                                -----------      -----------

OPERATING INCOME                                 1,142,729          479,535

GAIN (LOSS) ON SALE OF REAL ESTATE                 (22,345)       1,135,222
                                                -----------      -----------
NET INCOME                                     $ 1,120,384      $ 1,614,757
                                                ===========      ===========

NET INCOME ALLOCATED:
  General Partners                             $    11,204      $    16,147
  Limited Partners                               1,109,180        1,598,610
                                                -----------      -----------
                                               $ 1,120,384      $ 1,614,757
                                                ===========      ===========

NET INCOME PER LIMITED PARTNERSHIP UNIT
(21,211 and 21,695 weighted average Units outstanding
in 1998 and 1997, respectively)                $     52.29      $     73.69
                                                ===========      ===========


 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

                                                    1998            1997

CASH FLOWS FROM OPERATING ACTIVITIES:
 Net Income                                     $ 1,120,384     $ 1,614,757

 Adjustments To Reconcile Net Income
 To Net Cash Provided By Operating Activities:
     Depreciation                                   305,219         321,950
     Real Estate Impairment                               0         460,100
     (Gain) Loss on Sale of Real Estate              22,345      (1,135,222)
     Increase in Receivables                        (32,381)         (7,677)
     Decrease in Payable to
        AEI Fund Management, Inc.                    (7,012)        (97,917)
     Increase (Decrease) in Security Deposit         12,500            (665)
                                                 -----------     -----------
       Total Adjustments                            300,671        (459,431)
                                                 -----------     -----------
       Net Cash Provided By
           Operating Activities                   1,421,055       1,155,326
                                                 -----------     -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Investments in Real Estate                     (4,334,115)     (1,908,049)
  Proceeds from Sale of Real Estate                 350,635       4,129,390
                                                 -----------     -----------
       Net Cash Provided By (Used For)
           Investing Activities                  (3,983,480)      2,221,341
                                                 -----------     -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Increase (Decrease) in Distributions Payable       64,131        (192,630)
  Distributions to Partners                        (937,332)     (1,135,819)
  Redemption Payments                              (466,570)       (194,861)
                                                 -----------     -----------
       Net Cash Used For
           Financing Activities                  (1,339,771)     (1,523,310)
                                                 -----------     -----------
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS                             (3,902,196)      1,853,357

CASH AND CASH EQUIVALENTS, beginning of period    4,213,283       2,359,926
                                                 -----------     -----------
CASH AND CASH EQUIVALENTS, end of period        $   311,087     $ 4,213,283
                                                 ===========     ===========
                                
                                
 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, 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

  Distributions                (9,373)     (927,959)     (937,332)

  Redemption Payments          (4,666)     (461,904)     (466,570)     (576.80)

  Net Income                   11,204     1,109,180     1,120,384
                             ---------   -----------   -----------  -----------
BALANCE, December 31, 1998  $ (49,653)  $14,630,786   $14,581,133    20,910.48
                             =========   ===========   ===========  ===========


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

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                   DECEMBER 31, 1998 AND 1997


(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, 1998 AND 1997

(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 -

     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.

     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.
       
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                   DECEMBER 31, 1998 AND 1997

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

       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.
       
       Real  estate is recorded at the lower of cost or estimated
       net   realizable  value.   The  Partnership  compares  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  Partnership recognizes 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.
       
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                   DECEMBER 31, 1998 AND 1997

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

       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.

(3)  Related Party Transactions -
     
     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.   As   of
     December  31, 1998, 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,  an  affiliate   of   the
     Partnership, and unrelated third parties.  AEI Institutional
     Net  Lease  Fund  '93  Limited  Partnership  owned  a  15.8%
     interest  in this property until December 4, 1998  when  its
     interest  was  sold  to  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 45.0% interest  in
     the   Tumbleweed  restaurant  in  Chillicothe,  Ohio.    The
     remaining  interests  in  this property  are  owned  by  the
     Individual General Partner and AEI Net Lease Income & Growth
     Fund  XIX Limited Partnership.  The Partnership owns a 40.0%
     interest  in  the  Tumbleweed restaurant in Columbus,  Ohio.
     The  remaining interest in this property is owned by AEI Net
     Lease  Income  &  Growth Fund XIX Limited Partnership.   The
     Partnership  owns a 38.0% interest in the Champps  Americana
     restaurant in Centerville, Ohio.  The remaining interests in
     the  property are owned by AEI Real Estate Fund XVII Limited
     Partnership,   AEI   Income  &  Growth  Fund   XXI   Limited
     Partnership  and  AEI  Income &  Growth  Fund  XXII  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.
     The  Partnership owned a 93.2478% interest  in  the  Sizzler
     restaurant  in Springboro, Ohio.  The remaining interest  in
     the  property was owned by AEI Real Estate Fund 86-A Limited
     Partnership, an affiliate of the Partnership.

     
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                   DECEMBER 31, 1998 AND 1997

(3)  Related Party Transactions - (Continued)
     
     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

                                                     1998         1997
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.                                       $ 240,525    $ 249,520
                                                   ========     ========
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.                           $  59,440    $  98,128
                                                   ========     ========

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 $141,994 and $14,267
  for 1998 and 1997, respectively.                $ (43,809)   $ 122,610
                                                   ========     ========

     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.
     
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                   DECEMBER 31, 1998 AND 1997

(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,
     the Tumbleweed 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 and  the  Old
     Country  Buffet restaurant which has a renewal  option  that
     may  extend  the  Lease term an additional  20  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 Children's 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 Columbus, Ohio were constructed and  acquired
     in  1996.   The Fuddrucker's restaurant was constructed  and
     acquired  in 1997.  The Champps Americana in Troy, Michigan,
     the  Old Country Buffet, and the Tumbleweed restaurants were
     constructed and acquired in 1998.  The land for the  Champps
     Americana  restaurant in Centerville, Ohio was  acquired  in
     1998  and  construction of the restaurant was  completed  in
     1999.    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, 1998 AND 1997

(4)  Investments in Real Estate - (Continued)
     
     For  those properties in the table below which do  not  have
     land  costs,  the lessee has entered into land  leases  with
     unrelated  third  parties.  The cost of the  properties  and
     related accumulated depreciation at December 31, 1998 are as
     follows:
     
                               Buildings and         Accumulated
Property                  Land   Equipment    Total  Depreciation

Children's World, Phoenix, AZ  $  259,467   $  624,019   $  883,486   $ 223,418
Pasta Fair Restaurant,
 Belleview, FL                    251,593      681,269      932,862     197,757
Children's World,
 Blue Springs, MO                 162,290      628,981      791,271     200,227
Children's World, Lenexa, KS      185,788      797,739      983,527     244,843
Taco Cabana, San Antonio, TX      871,844      534,582    1,406,426     158,830
Cheddar's, Clive, IA              379,249    1,012,999    1,392,248     312,215
Children's World,
 Westerville, OH                  157,848      832,413      990,261     230,731
Taco Cabana, San Antonio, TX       61,004       46,929      107,933      11,355
Taco Fiesta, Brownsville, TX      294,450      265,888      560,338     101,044
Applebee's, Destin, FL             30,239       34,976       65,215      10,441
Children's World,               
 Columbus, OH                     157,569      861,633    1,019,202     201,376
Rally's, San Antonio, TX                0      195,741      195,741      66,153
Rally's, San Antonio, TX                0      196,397      196,397      66,800
Applebee's, Slidell, LA           104,613      175,405      280,018      33,132
HomeTown Buffet,
 Tucson, AZ                       163,688      140,045      303,733      25,869
Tractor Supply Company,
 Bristol, VA                       31,092       65,673       96,765       6,418
Champps Americana,
 Columbus, OH                      53,296      104,961      158,257       8,674
Fuddrucker's, Thornton, CO        444,692      961,079    1,405,771      47,149
Champps Americana, Troy, MI       385,295      807,201    1,192,496       9,341
Tumbleweed, Chillicothe, OH       234,796      339,035      573,831       1,511
Tumbleweed, Columbus, OH          216,467      337,802      554,269         489
Old Country Buffet, Northlake, IL 342,896    1,007,908    1,350,804       1,400
Champps Americana,
 Centerville, OH                  703,376            0      703,376           0
                               -----------  -----------  -----------  ----------
                              $ 5,491,552  $10,652,675  $16,144,227  $2,159,173
                               ===========  ===========  ===========  ==========


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                   DECEMBER 31, 1998 AND 1997

(4)  Investments in Real Estate - (Continued)
     
     The  Partnership  owned  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  were  vacant,  the  Partnership  was
     responsible  for  the  real estate  taxes  and  other  costs
     required to maintain the properties.
     
     No rents were collected from the Sizzler restaurants in 1998
     and  1997.  The total amount of rent not collected  in  1998
     and  1997 was $101,715 and $339,093, 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 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.
     
     On  July 21, 1998, the Partnership sold its interest in  the
     Sizzler restaurant in Springboro, Ohio to an unrelated third
     party.   The  Partnership  received  net  sale  proceeds  of
     $350,635,  which  resulted in a net  loss  on  the  sale  of
     $22,345.
     
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                   DECEMBER 31, 1998 AND 1997

(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
     $77,025  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, $99,388 and $115,285  in  rent
     in 1998 and 1997, respectively.  This amount was not accrued
     for  financial reporting purposes.  While the  property  was
     vacant,  the  Partnership was 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   November  18,  1998,  the  Partnership  re-leased   the
     Brownsville  property  to  Sergio  Gonzalez  under  a  Lease
     Agreement with a primary term of two years and annual rental
     payments of $37,200.  The property is now operated as a Taco
     Fiesta restaurant.
     
     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
     year ended December 31, 1997, the net gain was $320,171.

     
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                   DECEMBER 31, 1998 AND 1997

(4)  Investments in Real Estate - (Continued)
     
     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 year
     ended December 31, 1997, the net gain was $355,897.
     
     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 year ended December 31, 1997, the net
     gain was $179,517.
     
     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.
     
     Subsequent  to December 31, 1998, the Partnership  sold  its
     24%  interest  in  the HomeTown Buffet restaurant  in  three
     separate  transactions  to  unrelated  third  parties.   The
     Partnership   received   total   net   sale   proceeds    of
     approximately  $437,000 which resulted  in  a  net  gain  of
     approximately $160,000.
     
     During 1997, the Partnership distributed $104,820 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 per Limited Partnership  Unit.
     The   remaining   net  sale  proceeds  were  reinvested   in
     additional properties.
     
     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.  Effective June 20, 1998,
     the  annual  rent was increased to $37,998.   Simultaneously
     with  the purchase of the land, the Partnership entered into
     a   Development   Financing  Agreement   under   which   the
     Partnership  advanced funds to Champps for the  construction
     of  a  Champps Americana restaurant on the site.  Initially,
     the  Partnership charged interest on the advances at a  rate
     of  7.0%.   Effective June 20, 1998, the interest  rate  was
     increased  to  10.50%.   On September  3,  1998,  after  the
     development  was completed, the Lease Agreement was  amended
     to   require  annual  rental  payments  of  $122,605.    The
     Partnership's   share  of  the  total   acquisition   costs,
     including the cost of the land, was $1,192,496.
     
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                   DECEMBER 31, 1998 AND 1997

(4)  Investments in Real Estate - (Continued)
     
     In  January, 1998, the Partnership entered into an agreement
     to  purchase  a  45% interest in a Tumbleweed restaurant  in
     Chillicothe,  Ohio.   On  April 13,  1998,  the  Partnership
     purchased its share of the land for $216,915.  The  land  is
     leased  to  Tumbleweed, Inc. (TWI) under a  Lease  Agreement
     with  a  primary term of 15 years and annual rental payments
     of  $18,438.  Effective August 10, 1998, the annual rent was
     increased  to $22,234.  Simultaneously with the purchase  of
     the   land,  the  Partnership  entered  into  a  Development
     Financing  Agreement  under which the  Partnership  advanced
     funds to TWI for the construction of a Tumbleweed restaurant
     on the site.  Initially, the Partnership charged interest on
     the  advances at a rate of 8.5%.  Effective August 10, 1998,
     the  interest rate was increased to 10.25%.  On November 20,
     1998,   after  the  development  was  completed,  the  Lease
     Agreement  was amended to require annual rental payments  of
     $57,314.   The Partnership's share of the total  acquisition
     costs, including the cost of the land, was $573,831.
     
     In April, 1998, the Partnership entered into an agreement to
     purchase a Tumbleweed restaurant in Columbus, Ohio.  On  May
     1,  1998,  the Partnership purchased the land for  $503,832.
     The  land  is leased to TWI under a Lease Agreement  with  a
     primary  term  of  15  years and annual rental  payments  of
     $42,826.   Effective August 28, 1998, the  annual  rent  was
     increased  to $51,643.  Simultaneously with the purchase  of
     the   land,  the  Partnership  entered  into  a  Development
     Financing  Agreement  under which the  Partnership  advanced
     funds to TWI for the construction of a Tumbleweed restaurant
     on the site.  Initially, the Partnership charged interest on
     the  advances at a rate of 8.5%.  Effective August 28, 1998,
     the  interest rate was increased to 10.25%.  On December 28,
     1998,  after  the development was completed, the Partnership
     assigned, for diversification purposes, 60% of its  interest
     in  the property to an affiliated Partnership and the  Lease
     Agreement  was amended to require annual rental payments  of
     $55,401.   The Partnership's share of the total  acquisition
     costs, including the cost of the land, was $554,269.
     
     In April, 1998, the Partnership entered into an Agreement to
     purchase  an Old Country Buffet restaurant to be constructed
     in  Northlake,  Illinois.  On May 18, 1998, the  Partnership
     purchased  the  land for $330,000.  The Partnership  charged
     interest  on  the land at a rate of 10% until September  27,
     1998.  On September 28, 1998, the tenant began paying annual
     rent  of  $130,000.  On September 30, 1998, the  Partnership
     advanced $370,000 for the construction of the property.   On
     December 29, 1998, after the construction was completed, the
     Partnership paid $639,000 of additional construction  costs.
     The total acquisition cost was $1,350,804.  The property  is
     leased  to  OCB  Realty Co. under a Lease Agreement  with  a
     primary term of 20 years.
     
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                   DECEMBER 31, 1998 AND 1997

(4)  Investments in Real Estate - (Continued)
     
     On August 28, 1998, the Partnership purchased a 38% interest
     in  a parcel of land in Centerville, Ohio for $703,376.  The
     land is leased to Americana Dining Corporation (ADC) under a
     Lease  Agreement with a primary term of 20 years and  annual
     rental   payments  of  $49,236.   Simultaneously  with   the
     purchase  of  the  land,  the  Partnership  entered  into  a
     Development  Financing Agreement under which the Partnership
     will  advance funds to ADC for the construction of a Champps
     Americana  restaurant  on the site.   Through  December  31,
     1998,   the  Partnership  had  advanced  $439,301  for   the
     construction  of the property and was charging  interest  on
     the  advances at a rate of 7%.  Effective December 25, 1998,
     the  interest rate was increased to 10.5%.  On  January  27,
     1999,   after  the  development  was  completed,  the  Lease
     Agreement  was amended to require annual rental payments  of
     $154,075.   The Partnership's share of the total acquisition
     costs,  including  the cost of the land,  was  approximately
     $1,467,000.
     
     During 1998 and 1997, the Partnership incurred net costs  of
     $78,801   related  to  the  review  of  potential   property
     acquisitions.  Of these costs, $56,485 have been capitalized
     and   allocated  to  land,  building  and  equipment.    The
     remaining costs of $22,316 have been capitalized and will be
     allocated to properties acquired subsequent to December  31,
     1998.
     
     The   minimum  future  rentals  on  the  Leases  for   years
     subsequent to December 31, 1998 are as follows:

                       1999          $ 1,855,708
                       2000            1,865,190
                       2001            1,842,243
                       2002            1,855,839
                       2003            1,869,881
                       Thereafter     14,259,443
                                      -----------
                                     $23,548,304
                                      ===========

     In  1998  and  1997,  the Partnership recognized  contingent
     rents of $19,110 and $17,135, respectively.

(5)  Security Deposit -

     In  November, 1998, the Partnership received a deposit  from
     the  tenant  of the Taco Fiesta restaurant as  security  for
     future  rent payments.  The funds are invested in  a  short-
     term  money  market  account and will be  refunded,  without
     interest,  to  the tenant, upon termination  of  the  Lease,
     provided there is no default in the Lease Agreement.
     
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                   DECEMBER 31, 1998 AND 1997

(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:
     
                                                   1998         1997
      Tenants                    Industry

     ARAMARK Educational
        Resources, Inc.          Child Care      $  574,781   $  556,803
     Texas Taco Cabana L.P.      Restaurant         219,658      267,322
     Heartland Restaurant Corp.  Restaurant         210,212      202,127
                                                  ----------   ----------

     Aggregate rent revenue of major tenants     $1,004,651   $1,026,252
                                                  ==========   ==========

     Aggregate rent revenue of major tenants as
     a percentage of total rent revenue                 65%          72%
                                                  ==========   ==========

(7)  Partners' Capital -

     Cash  distributions of $14,039 and $13,307 were made to  the
     General  Partners and $927,959 and $1,124,461 were  made  to
     the  Limited Partners for the years ended December 31,  1998
     and 1997, respectively.  The Limited Partners' distributions
     represent  $43.75  and $51.83 per Limited  Partnership  Unit
     outstanding  using 21,211 and 21,695 weighted average  Units
     in 1998 and 1997, respectively.  The distributions represent
     $30.40 and $51.83 per Unit of Net Income, and $13.35 and $-0-
     per  Unit of return of contributed capital in 1998 and 1997,
     respectively.
     
     As  part  of  the  Limited  Partner distributions  discussed
     above, the Partnership distributed $103,771 of proceeds from
     property  sales  in  1997.   The distributions  reduced  the
     Limited Partners' Adjusted Capital Contributions.
     
     Distributions  of  Net  Cash Flow to  the  General  Partners
     during  1998  and  1997  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.

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                   DECEMBER 31, 1998 AND 1997

(7)  Partners' Capital - (Continued)

     During 1998, forty-two Limited Partners redeemed a total  of
     576.8 Partnership Units for $461,904 in accordance with  the
     Partnership Agreement.  The Partnership acquired these Units
     using  Net  Cash  Flow from operations.  In 1997,  seventeen
     Limited Partners redeemed a total of 277.1 Partnership Units
     for   $192,912.   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
     $1,028.98 per original $1,000 invested.
     
(8)  Income Taxes -

     The   following  is  a  reconciliation  of  net  income  for
     financial reporting purposes to income reported for  federal
     income tax purposes for the years ended December 31:
     
                                                 1998           1997
     
     Net Income for Financial
      Reporting Purposes                      $1,120,384     $1,614,757
     
     Depreciation for Tax Purposes
      (Over) Under Depreciation for Financial
      Reporting Purposes                          15,567         (3,136)
     
     Amortization of Start-Up and
      Organization Costs                          (1,239)        (9,742)
     
     Income Accrued for Tax Purposes
      Under Income for Financial
      Reporting Purposes                               0        (17,207)
     
     Property Expenses for Tax Purposes
      (Over) Under Expenses for Financial
      Reporting Purposes                           3,164         (6,668)
     
     Real Estate Impairment Loss
      Not Recognized for Tax Purposes                  0        460,100
     
     Gain on Sale of Real Estate for
        Tax Purposes Under Gain for
        Financial Reporting Purposes                   0       (978,326)
     
     Loss on Sale of Real Estate for
        Tax Purposes Over Loss for
        Financial Reporting Purposes            (660,526)             0
                                               ----------     ----------
           Taxable Income to Partners         $  477,350     $1,059,778
                                               ==========     ==========

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                   DECEMBER 31, 1998 AND 1997
                                
(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:
     
                                                     1998          1997
     
     Partners' Capital for
       Financial  Reporting Purposes             $14,581,133    $14,864,651
     
     Adjusted Tax Basis of Investments
      in Real Estate Over (Under) Net
      Investments in Real Estate
      for Financial Reporting Purposes               545,042      1,186,837
     
     Capitalized Start-Up Costs
      Under Section 195                              397,387        397,387
     
     Amortization of Start-Up and
      Organization Costs                            (403,387)      (402,148)
     
     Income Accrued for Tax Purposes Over
      Income for Financial
      Reporting Purposes                               5,000          5,000
     
     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           $18,467,617    $19,394,169
                                                  ===========    ===========



         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                   DECEMBER 31, 1998 AND 1997
                                
(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:
     
                                       1998                     1997
                              Carrying       Fair      Carrying       Fair
                               Amount        Value      Amount        Value
     
     Cash                     $      534   $      534   $      234  $      234
     Money Market Funds          310,553      310,553    3,217,857   3,217,857
     Commercial Paper
      (held to maturity)               0            0      995,192     995,192
                               ---------    ---------    ---------   ---------
        Total Cash and
           Cash Equivalents   $  311,087   $  311,087   $4,213,283  $4,213,283
                               =========    =========    =========   =========

     
     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 54, 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 December, 1999.  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  seventeen  other  limited
partnerships.

        Mark  E.  Larson,  age 46, is Executive  Vice  President,
Treasurer  and  Chief Financial Officer and has been  elected  to
continue in these position until December, 1999.  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  December,
1999.  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, 1999:

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

   AEI Fund Management XVIII, Inc.                 0             0%
   1300 Minnesota World Trade Center
   30 East 7th Street, St. Paul, Minnesota 55101

   Robert P. Johnson                               0             0%
   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

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, 1998.

Person or Entity                                Amount Incurred From Inception
 Receiving                   Form and Method         (September 20, 1988) to
Compensation                 of Compensation            December 31, 1998

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         $  551,143
Affiliates            Acquisition Expenses

General Partners      1% of Net Cash Flow in any fiscal     $  142,256
                      year 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         $2,484,436
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  $   12,793
                      of 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, 1998, 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
                    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).

              10.9  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).

              10.10 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).

              10.11 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).

              10.12 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).

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

          A.   Exhibits -
                                  Description

              10.13 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).

              10.14 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).

              10.15 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).

              10.16 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).

              10.17 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).

              10.18 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).

              10.19 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).

              10.20 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).

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

          A.   Exhibits -
                                   Description

              10.21 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).

              10.22 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).

              10.23 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).

              10.24 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).

              10.25 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).

              10.26 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).

              10.27 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).

              10.28 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).

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

          A.   Exhibits -
                                     Description

              10.29 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).

              10.30 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).

              10.31 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).

              10.32 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).

              10.33 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).

              10.34 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).

              10.35 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).

              10.36 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

              10.37 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).

              10.38 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).

              10.39 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).

              10.40 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).

              10.41 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).

              10.42 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).

              10.43 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).

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

          A.   Exhibits -
                                     Description

              10.44 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 (incorporated by reference
                    to  Exhibit  10.64 of Form 10-KSB filed  with
                    the Commission on March 23, 1998).

              10.45 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).

              10.46 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).

              10.47 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).

              10.48 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).

              10.49 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).

              10.50 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).

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

          A.   Exhibits -
                                    Description

              10.51 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   (incorporated  by   reference   to
                    Exhibit  10.71 of Form 10-KSB filed with  the
                    Commission on March 23, 1998).

              10.52 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 (incorporated by reference
                    to  Exhibit  10.72 of Form 10-KSB filed  with
                    the Commission on March 23, 1998).

              10.53 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 (incorporated  by
                    reference  to  Exhibit 10.73 of  Form  10-KSB
                    filed with the Commission on March 23, 1998).

              10.54 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
                    (incorporated  by reference to Exhibit  10.74
                    of  Form 10-KSB filed with the Commission  on
                    March 23, 1998).

              10.55 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
                    (incorporated  by reference to Exhibit  10.75
                    of  Form 10-KSB filed with the Commission  on
                    March 23, 1998).

              10.56 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 (incorporated by  reference
                    to  Exhibit  10.76 of Form 10-KSB filed  with
                    the Commission on March 23, 1998).

              10.57 Development  Financing  Agreement
                    dated  April 13, 1998 between the Partnerhip,
                    AEI  Net  Lease  Income  &  Growth  Fund  XIX
                    Limited  Partnership, Robert P. Johnson,  and
                    Tumbleweed,  LLC relating to the property  at
                    1150  North Bridge Street, Chillicothe,  Ohio
                    (incorporated by reference to Exhibit 10.1 of
                    Form 10-QSB filed with the Commission on  May
                    8, 1998).

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

          A.   Exhibits -
                                     Description

              10.58 Net Lease Agreement dated April 13,
                    1998  between the Partnerhip, AEI  Net  Lease
                    Income & Growth Fund XIX Limited Partnership,
                    Robert   P.  Johnson,  and  Tumbleweed,   LLC
                    relating to the property at 1150 North Bridge
                    Street,  Chillicothe, Ohio  (incorporated  by
                    reference  to  Exhibit 10.2  of  Form  10-QSB
                    filed with the Commission on May 8, 1998).

              10.59 Purchase Agreement dated April  17,
                    1998  between the Partnership and  the  Alpha
                    Group, LLC relating to the property at  North
                    Avenue   &  Wolf  Road,  Northlake,  Illinois
                    (incorporated by reference to Exhibit 10.3 of
                    Form 10-QSB filed with the Commission on  May
                    8, 1998).

              10.60 Development Financing and  Leasing
                    Commitment  dated April 24, 1998 between  the
                    Partnership  and Tumbleweed, LLC relating  to
                    the  property  at  6959  East  Broad  Street,
                    Columbus, Ohio (incorporated by reference  to
                    Exhibit  10.4 of Form 10-QSB filed  with  the
                    Commission on May 8, 1998).

              10.61 Development  Financing  Agreement
                    dated May 1, 1998 between the Partnership and
                    Tumbleweed,  LLC relating to the property  at
                    6959   East  Broad  Street,  Columbus,   Ohio
                    (incorporated by reference to Exhibit 10.5 of
                    Form 10-QSB filed with the Commission on  May
                    8, 1998).

              10.62 Net Lease Agreement dated  May  1,
                    1998  between the Partnership and Tumbleweed,
                    LLC  relating  to the property at  6959  East
                    Broad Street, Columbus, Ohio (incorporated by
                    reference  to  Exhibit 10.6  of  Form  10-QSB
                    filed with the Commission on May 8, 1998).

              10.63 Purchase Agreement dated  May  12,
                    1998 between the Partnership, AEI Real Estate
                    Fund  86-A  Limited Partnership and Unlimited
                    Development, P.L.L. relating to the  property
                    at  950  W. Central Avenue, Springboro,  Ohio
                    (incorporated by reference to Exhibit 10.1 of
                    Form 10-QSB filed with the Commission on July
                    31, 1998).

              10.64 Assignment of Lease dated May  18,
                    1998 between the Partnership and Alpha Group,
                    LLC  relating to the property at North Avenue
                    and    Wolf    Road,   Northlake,    Illinois
                    (incorporated by reference to Exhibit 10.2 of
                    Form 10-QSB filed with the Commission on July
                    31, 1998).

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

          A.   Exhibits -
                                      Description

              10.65 First Amendment to  Net
                    Lease  Agreement  dated  September  3,   1998
                    between the Partnership, AEI Net Lease Income
                    &  Growth  Fund XIX Limited Partnership,  AEI
                    Real  Estate  Fund XVII Limited  Partnership,
                    AEI  Real  Estate Fund XV Limited Partnership
                    and  Champps Entertainment, Inc. relating  to
                    the  property  at 301 West Big  Beaver  Road,
                    Troy, Michigan (incorporated by reference  to
                    Exhibit  10.1 of Form 10-QSB filed  with  the
                    Commission on November 9, 1998).

              10.66 Assignment   of   the
                    Development Financing Agreement and Net Lease
                    Agreement  dated August 27, 1998 between  the
                    Partnership,  AEI  Real  Estate   Fund   XVII
                    Limited Partnership, AEI Income & Growth Fund
                    XXI  Limited Partnership, AEI Income & Growth
                    Fund  XXII  Limited Partnership and Americana
                    Dining  Corporation relating to the  property
                    at    7880    Washington    Village    Drive,
                    Centerville, Ohio (incorporated by  reference
                    to Exhibit 10.2 of Form 10-QSB filed with the
                    Commission on November 9, 1998).

              10.67 Development  Financing
                    Agreement  dated  June 29, 1998  between  AEI
                    Income & Growth Fund XXII Limited Partnership
                    and Americana Dining Corporation relating  to
                    the   property  at  7880  Washington  Village
                    Drive,  Centerville,  Ohio  (incorporated  by
                    reference  to  Exhibit 10.3  of  Form  10-QSB
                    filed  with  the  Commission on  November  9,
                    1998).

              10.68 Net Lease Agreement dated
                    June  29,  1998 between AEI Income  &  Growth
                    Fund  XXII  Limited Partnership and Americana
                    Dining  Corporation relating to the  property
                    at    7880    Washington    Village    Drive,
                    Centerville, Ohio (incorporated by  reference
                    to Exhibit 10.4 of Form 10-QSB filed with the
                    Commission on November 9, 1998).

              10.69 Net Lease Agreement dated
                    November 18, 1998 between the Partnership and
                    Sergio  Gonzalez relating to the property  at
                    54 South Expressway, Brownsville, Texas.

              10.70 First Amendment to  Net
                    Lease  Agreement  dated  November  20,   1998
                    between the Partnership, AEI Net Lease Income
                    & Growth Fund XIX Limited Partnership, Robert
                    P.  Johnson  and Tumbleweed, LLC relating  to
                    the  property  at 1150 North  Bridge  Street,
                    Chillicothe, Ohio.

              10.71 Purchase Agreement  for
                    Fee  Simple Undivided Interest and Assignment
                    of  Net  Lease  Agreement dated December  28,
                    1998  between  the Partnership  and  AEI  Net
                    Lease   Income  &  Growth  Fund  XIX  Limited
                    Partnership relating to the property at  6959
                    East Broad Street, Columbus, Ohio.

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

          A.   Exhibits -
                                    Description

              10.72 First Amendment to  Net
                    Lease  Agreement  dated  December  28,   1998
                    between the Partnership, AEI Net Lease Income
                    &  Growth  Fund  XIX Limited Partnership  and
                    Tumbleweed,  LLC relating to the property  at
                    6959 East Broad Street, Columbus, Ohio.

              10.73 First Amendment to  Net
                    Lease   Agreement  dated  January  27,   1999
                    between the Partnership, AEI Real Estate Fund
                    XVII Limited Partnership, AEI Income & Growth
                    Fund  XXI  Limited Partnership, AEI Income  &
                    Growth  Fund  XXII  Limited  Partnership  and
                    Americana  Dining  Corp.  relating   to   the
                    property  at  7880 Washington Village  Drive,
                    Centerville, Ohio.

              10.74 Purchase Agreement dated
                    February 23, 1999 between the Partnership and
                    the Linda L. Landes Family Trust relating  to
                    the   property  at  330  South  Wilmot  Road,
                    Tucson, Arizona.

              10.75 Purchase Agreement dated
                    February 24, 1999 between the Partnership and
                    the  Sherrill L. Hossom Family Trust relating
                    to  the  property at 330 South  Wilmot  Road,
                    Tucson, Arizona.

              10.76 Purchase Agreement dated
                    February  27,  1999 between the  Partnership,
                    AEI  Net  Lease  Income  &  Growth  Fund  XIX
                    Limited Partnership and Terry Harsha, Sr. and
                    Janet Sue Harsha relating to the property  at
                    330 South Wilmot Road, Tucson, Arizona.

               27   Financial Data Schedule for
                    year ended December 31, 1998.

          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 15, 1999                 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 15, 1999
    Robert P. Johnson   and Sole Director of Managing General
                        Partner

/s/ Mark E. Larson      Executive Vice President, Treasurer     March 15, 1999
    Mark E. Larson      and Chief Financial Officer
                        (Principal Accounting Officer)