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

Made  and  entered into as of the 21st day of November, 1997,  by
and  between  Helen  W.  Rehwaldt, Grantor  and  Trustee  of  the
Deerwood  Revocable  Trust,  dated 5/25/95,  (hereinafter  called
"Deerwood"),  and AEI Real Estate Fund XVIII Limited  Partnership
(hereinafter called "Fund XVIII") (Deerwood, 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 7.5158% interest
in  and  to,  and  Deerwood  Revocable Trust  presently  owns  an
undivided 11.6553% interest in and to, and Ainslie presently owns
an  undivided 18.4736% interest in and to and the Thomas  Adamson
Family  Limited Partnership presently owns an undivided  29.1380%
interest in and to, and William and Hazel Mason presently owns an
undivided  11.6552%  interest in and  to,  and  Arel  and  Louise
Middleton presently own an undivided 11.6552% interest in and to,
and  Joyce R. Scott presently owns an undivided 9.9069%  interest
(also  referred  to  herein as Co-Tenant) in and  to,  the  land,
situated in the City of Bristol, County of Washington, and  State
of  Virginia,  (legally described upon Exhibit A attached  hereto
and  hereby  made  a part hereof) and in and to the  improvements
located thereon (hereinafter called "Premises");

WHEREAS,  The  parties  hereto wish to provide  for  the  orderly
operation and management of the Premises and Deerwood'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 Deerwood 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, and Fund XVIII retains  the  sole
right  to deal with, any property agent or tenant and to monitor,
execute  and  enforce  the terms of 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 Deerwood. As long as Fund XVIII owns an interest in the
Premises,  only Fund XVIII may obligate Deerwood with respect  to
any expense for the Premises.




Co-Tenant Initial: /s/ HWR
Co-Tenancy Agreement for Tractor Supply Company, Bristol, VA



As  further set forth in paragraph 2 hereof, Fund XVIII agrees to
require any Tenant of the Premises to name Deerwood as an insured
or  additional insured in all insurance policies provided for, or
contemplated by, any lease on the Premises. Fund XVIII shall  use
its best efforts to obtain endorsements adding Co-Tenants to said
policies  from  Tenant  within 30 days of  commencement  of  this
agreement.  In  any  event,  Fund  XVIII  shall  distribute   any
insurance proceeds it 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 Deerwood  under  this
Agreement,  and may pay to itself the amount of Deerwood's  share
of  any legitimate expenses of the Premises which are not paid by
Deerwood 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 Deerwood's unpaid share  of
operating  expenses,  Fund XVIII may pursue  any  and  all  legal
remedies for collection.

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

Deerwood  has no requirement to, but has, nonetheless elected  to
retain,  and  agrees to annually reimburse,  Fund  XVIII  in  the
amount of $560 for the expenses, direct and indirect, incurred by
Fund  XVIII  in providing Deerwood with quarterly accounting  and
distributions of Deerwood's share of net income and for tracking,
reporting  and assessing the calculation of Deerwood's  share  of
operating  expenses  incurred from  the  Premises.  This  invoice
amount   shall  be  pro-rated  for  partial  years  and  Deerwood
authorizes Fund XVIII to deduct such amount from Deerwood's share
of  revenue  from  the  Premises.  Deerwood  may  terminate  this
agreement  respecting quarterly accounting and  distributions  in
this  paragraph  at  any time and seek to collect  its  share  of
rental  income directly from the tenant; however, enforcement  of
all  other provisions of the lease remains the sole right of Fund
XVIII pursuant to section 1 hereof.  Fund XVIII may terminate its
obligation  under this paragraph upon 30 days notice to  Deerwood
prior  to  the end of each anniversary hereof, unless  agreed  in
writing to the contrary.

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,  Deerwood
shall be entitled to receive 11.6553% of all items of income  and
expense   generated  by  the  Premises.  Upon  receipt  of   said
accounting,  if the payments received by each Co-Tenant  pursuant
to  this  Paragraph 3 do not equal, in the aggregate, the amounts
which  each are entitled to receive with respect to said calendar
year  pursuant  to Paragraph 2 hereof, an appropriate  adjustment
shall be made so that each Co-Tenant receives the amount to which
it is entitled.

4.    If  Net Income from the Premises is less than $0.00  (i.e.,
the  Premises  operates  at a loss), or if capital  improvements,
repairs, and/or replacements, for which adequate reserves do  not
exist, need to be made to the Premises, the



Co-Tenant Initial: /s/ HWR
Co-Tenancy Agreement for Tractor Supply Company, Bristol, VA




Co-Tenants, upon receipt of a written request therefor from  Fund
XVIII, shall, within fifteen (15) business days after receipt  of
notice,  make  payment to Fund XVIII sufficient to pay  said  net
operating  losses and to provide necessary operating capital  for
the  premises  and to pay for said capital improvements,  repairs
and/or   replacements,  all  in  proportion  to  their  undivided
interests in and to the Premises.

5.    Co-Tenants  may, at any time, sell, finance,  or  otherwise
create  a lien upon their interest in the Premises but only  upon
their  interest  and not upon any part of the interest  held,  or
owned, by any other Co-Tenant.  All Co-Tenants reserve the  right
to escrow proceeds from a sale of their interests in the Premises
to obtain tax deferral by the purchase of replacement property.

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

7.    This  property management agreement shall continue in  full
force  and effect and shall bind and inure to the benefit of  the
Co-Tenant  and their respective heirs, executors, administrators,
personal representatives, successors and permitted assigns  until
April  10,  2020  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 any  poortion
of  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.  Deerwood agrees  to
notify  Fund XVIII upon the appointment of any successor trustee,
or  any  amendment of the Deerwood Revocable Trust affecting  the
powers  of  the  Trustees to manage or dispose  of  the  Deerwood
Trust's interest in the Premises.

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 Deerwood:

Deerwood Revocable Trust

Helen W. Rehwaldt, Grantor and Trustee
609 West Second Street
Muscatine, IA  52761




Co-Tenant Initial: /s/ HWR
Co-Tenancy Agreement for Tractor Supply Company, Bristol, VA


If to Ainslie:

Ernest E. and Marion B. Ainslie, Trustees
27901 Via De Costa
San Juan Capistrano, CA  92675


If to Adamson:

Thomas W. Adamson Family Limited Partnership

Wayne Adamson
1400 W. Walnut
Mrion, IL  62959

Gerald Adamson
206 Palm Avenue
Bullhead City, AZ  86430

If to Mason:

William and Hazel Mason
8300 Sawyer Brown Road
#Q308
Nashville, TN  37221

If to Middleton:

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

If to Scott:

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

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

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

10.    The  unenforceability or invalidity of  any  provision  or
provisions  of  this Agreement as to any person or  circumstances
shall  not render that provision, nor any other provision hereof,
unenforceable or invalid as to any



Co-Tenant Initial: /s/ HWR
Co-Tenancy Agreement for Tractor Supply Company, Bristol, VA




other person or circumstances, and all provisions hereof, in  all
other respects, shall remain valid and enforceable.

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

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


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

Deerwood  Deerwood Revocable Trust

          By: /s/ Helen W Rehwaldt
                  Helen W. Rehwaldt, Grantor and Trustee

          WITNESS:
          /s/ Jeannine A Nepple
          Jeannine A Nepple
          (Print Name)
     
          WITNESS:
          /s/ Scott G Nepple
          Scott G Nepple
          (Print Name)
     

STATE OF IOWA)
                   ) ss
COUNTY OF MUSCATINE)

I,  a Notary Public in and for the state and county of aforesaid,
hereby certify there appeared before me this 6th day of November,
1997,  Helen  W. Rehwaldt, Grantor and Trustee, who executed  the
foregoing instrument in said capacity and on behalf of  the  said
Trust.



                                        /s/ James A Nepple

     [notary seal]





Co-Tenant Initial: /s/ HWR
Co-Tenancy Agreement for Tractor Supply Company, Bristol, VA



Fund XVIII AEI Real Estate Fund XVIII Limited Partnership

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

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


          WITNESS:
     
          /s/ Dawn E Campbell
     
          Dawn E Campbell
          (Print Name)
     
          WITNESS:
     
          /s/ Debra L Achman
     
          Debra L Achman
          (Print Name)


State of Minnesota )
                   ) ss.
County of Ramsey   )

I,  a Notary Public in and for the state and county of aforesaid,
hereby  certify  there  appeared  before  me  this  21st  day  of
November,  1997,  Robert  P.  Johnson,  President  of  AEI   Fund
Management  XVIII, Inc., corporate general partner  of  AEI  Real
Estate Fund XVIIII 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/ Laura M Steidl
                                   Notary Public
[notary seal]




Co-Tenant Initial: /s/ HWR
Co-Tenancy Agreement for Tractor Supply Company, Bristol, VA





                    EXHIBIT A LEGAL DESCRIPTION


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

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

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

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

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

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