PROPERTY CO-TENANCY
                       OWNERSHIP AGREEMENT
                 (Taco Cabana - San Antonio, TX)
                                
                                
THIS CO-TENANCY AGREEMENT,

Made  and  entered into as of the 16th day of Dec, 1996,  by  and
between  The  Hesson  Family  Living  Trust  (hereinafter  called
"Hesson"),  and  AEI  Real Estate Fund XVIII Limited  Partnership
(hereinafter  called "Fund XVIII") (Hesson, Fund XVIII  (and  any
other  Owner  in  Fee  where  the  context  so  indicates)  being
hereinafter   sometimes  collectively  called  "Co-Tenants"   and
referred to in the neuter gender).

WITNESSETH:

WHEREAS, Fund XVIII presently owns an undivided 62.3243% interest
in  and  to,  and  Hesson  presently owns an  undivided  13.2895%
interest in and to, and Arel D. and Louise B. Middleton presently
owns and undivided 10.6316% interest (also referred to herein  as
Co-Tenant)  in and to, and Carolyn W. Davidson presently owns  an
undivided  13.7546%  interest (also referred  to  herein  as  Co-
Tenant)  in and to the land, situated in the City of San Antonio,
County  of  Bexar,  and State of Texas, (legally  described  upon
Exhibit A attached hereto and hereby made a part hereof)  and  in
and  to  the  improvements  located thereon  (hereinafter  called
"Premises");

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

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

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

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



Co-Tenant Inital: /s/ IDH /s/ ICH
Co-Tenancy Agreement for Taco Cabana - San Antonio, TX




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

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

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

Hesson  has  elected to retain, and agrees to annually reimburse,
Fund  XVIII  in the amount of $720 for the expenses,  direct  and
indirect,   incurred   by  Fund  XVIII  in  providing   quarterly
accounting and distributions of Hesson's share of net income  and
for tracking, reporting and assessing the calculation of Hesson's
share  of  operating  expenses incurred from the  Premises.  This
invoice  amount shall be pro-rated for partial years  and  Hesson
authorizes  Fund XVIII to deduct such amount from Hesson's  share
of revenue from the Premises. Hesson may terminate this agreement
at any time and collect it's share of rental stream directly from
the tenant.

3.    Full, accurate and complete books of account shall be  kept
in  accordance  with generally accepted accounting principles  at
Fund  XVIII's  principal office, and each  Co-Tenant  shall  have
access  to  such books and may inspect and copy any part  thereof
during  normal business hours. Within ninety (90) days after  the
end  of  each  calendar year during the term hereof,  Fund  XVIII
shall  prepare an accurate income statement for the ownership  of
the  Premises for said calendar year and shall furnish copies  of
the same to all Co-Tenants. Quarterly, as its share, Hesson shall
be  entitled  to  receive 13.2895% of all  items  of  income  and
expense  generated  by  the Premises, and  Fund  XVIII  shall  be
entitled to receive 62.3243% as its share. Upon receipt  of  said
accounting,  if the payments received by each Co-Tenant  pursuant
to  this  Paragraph 3 do not equal, in the aggregate, the amounts
which  each are entitled to receive with respect to said calendar
year  pursuant  to Paragraph 2 hereof, an appropriate  adjustment
shall be made so that each Co-Tenant receives the amount to which
it is entitled.

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

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




Co-Tenant Initial: /s/ IDH /s/ ICH
Co-Tenancy Agreement for Taco Cabana - San Antonio, TX





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

6.    If any Co-Tenant, including Co-Tenant Arel D. and Louise B.
Middleton which currently owns an undivided 10.6316% interest  in
the  property subject to a co-tenancy agreement with  Fund  XVIII
dated  October  15,  1996  and  including  Co-Tenant  Carolyn  W.
Davidson  which currently owns an undivided 13.7546% interest  in
the  Property subject to a co-tenancy agreement with  Fund  XVIII
dated August 5, 1996, shall be in default with respect to any  of
its  obligations hereunder, and if said default is not  corrected
within  thirty  (30)  days after receipt by said  defaulting  Co-
Tenant  of written notice of said default, or within a reasonable
period  if  said default does not consist solely of a failure  to
pay money, the remaining Co-Tenant(s) may resort to any available
remedy to cure said default at law, in equity, or by statute.

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

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

If to Fund XVIII:

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

If to Davidson:

Carolyn W. Davidson
4407 Ortega Forest Drive
Jacksonville, FL  32210

If to Middleton:

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

If to Hesson:

Ivan Hesson, Trustee
3864 Via Lasbrisas
Santa Barbera, CA  93110




Co-Tenant Initial: /s/ IDH /s/ ICH
Co-Tenancy Agreement for Taco Cabana - San Antonio, TX








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

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

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

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

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

Hesson        The Hesson Family Living Trust

              By: /s/ Ivan D Hesson, Trustee
                      Ivan D. Hesson, Trustee

              By: /s/ Irene C. Hesson, Trustee
                      Irene C. Hesson, Trustee

Witness       By: /s/ C Horwald


STATE OF CALIFORNIA     )
                        ) ss
COUNTY OF SANTA BARBARA )

The  foregoing instrument was acknowledged  before  me,  a
Notary  Public in and for the County and State  aforesaid,
this 6 day of December, 1996, by C Horwald, Notary Public.


                                               [notary seal]


Co-Tenant Initial: /s/ IDH /s/ ICH
Co-Tenancy Agreement for Taco Cabana - San Antonio, TX







Fund XVIII   AEI Real Estate Fund XVIII Limited Partnership

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

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

Witness      By: /s/ Laura Steidl

Witness      By: /s/ Rona Newtson

State of Minnesota )
                      ) ss.
County of Ramsey   )

I,  a Notary Public in and for the state and county of aforesaid,
hereby  certify  there  appeared  before  me  this  16th  day  of
December,  1996,  Robert  P.  Johnson,  President  of  AEI   Fund
Management  XVIII, Inc., corporate general partner  of  AEI  Real
Estate Fund XVIII Limited Partnership, who executed the foregoing
instrument  in said capacity and on behalf of the corporation  in
its  capacity  as corporate general partner, on  behalf  of  said
limited partnership.

                                   /s/ Linda A. Bisdorf
                                       Notary Public




                                        [notary seal]



Co-Tenant Initial: /s/ IDH /s/ ICH
Co-Tenancy Agreement for Taco Cabana - San Antonio, TX





                              Exhibit A

                           Legal Description



Lot 31, Block 1, New City Block 15600, CKE Subdivion, Unit 3,  an
addition  to  the  City  of  San Antonio,  Bexar  County,  Texas,
according  to  the map or plat thereof, recorded in Volume  9504,
Page 182, Deed and Plat Records of Bexar County, Texas.