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, 2000

                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, 2000 were
$1,936,907.

As  of  February 28, 2001, there were 20,216.57 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 $20,216,570.

               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)

        On  July  21,  1998, the Partnership  sold  its  93.2478%
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  October,  1999, the Partnership abandoned  a  Rally's
property  in  order  to  avoid ongoing expenses.   In  the  third
quarter   of  1999,  the  Partnership  recorded  a  real   estate
impairment of $125,531, which is equal to the net book  value  of
the  abandoned property.  Additionally, in the fourth quarter  of
1999,  the  Partnership  recorded a  real  estate  impairment  of
$124,188,  which is equal to the net book value of the  remaining
Rally's,  due  to the uncertainty of retaining a  tenant  in  the
property.

        In  November  2000,  the Lease  on  the  Taco  Fiesta  in
Brownsville,  Texas expired and was not renewed  by  the  tenant.
The  restaurant  was  closed  and listed  for  sale.   While  the
property  is vacant, the Partnership is responsible for the  real
estate  taxes and other costs required to maintain the  property.
At  December  31,  2000,  the property was  reclassified  on  the
balance  sheet to Real Estate Held for Sale.  In March 2000,  the
Partnership entered into an agreement to sell the property to  an
unrelated   third   party.   The  net  sale  proceeds   will   be
approximately  $460,000,  which will result  in  a  net  gain  of
approximately $15,000.

        During  1999,  the Partnership sold its interest  in  the
HomeTown  Buffet  restaurant, in three separate transactions,  to
unrelated third parties.  The Partnership received total net sale
proceeds  of  $423,600, which resulted in a  total  net  gain  of
$146,588.  The total cost and related accumulated depreciation of
the interest sold was $303,733 and $26,721, respectively.

        In April, 2000, the Partnership entered into an Agreement
to  sell  the Pasta Fair restaurant in Belleview, Florida  to  an
affiliate  of the lessee.  On May 10, 2000, the sale closed  with
the  Partnership  receiving net sale proceeds of $730,550,  which
resulted in a net gain of $26,670.  At the time of sale, the cost
and  related accumulated depreciation was $932,862 and  $228,982,
respectively.

       In December, 1998, Gulf Coast Restaurants, Inc. (GCR), the
lessee of the Applebee's restaurant in Slidell, Louisiana,  filed
for reorganization.  GCR continued to make the lease payments  to
the Partnership under the supervision of the bankruptcy court.  A
reorganization  plan was accepted by the bankruptcy  court  which
provides  for  the  Lease to be assumed by GCR  and  assigned  to
another operator who will purchase the Partnership's share of the
property.   The  reorganization  plan  also  provides   for   the
Partnership to collect all rents outstanding under the  terms  of
the  Lease.   On  October  25, 2000, the  sale  closed  with  the
Partnership  receiving  net  sale  proceeds  of  $355,151,  which
resulted  in  a net gain of $118,740.  At the time of  sale,  the
cost  and  related  accumulated  depreciation  was  $280,019  and
$43,608, respectively.

ITEM 1.   DESCRIPTION OF BUSINESS.  (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 Operating Corporation. (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 1.   DESCRIPTION OF BUSINESS.  (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.  Effective December 25, 1998,  the  annual
rent  was increased to $73,854.  Simultaneously with the purchase
of the land, the Partnership entered into a Development Financing
Agreement under which the Partnership advanced funds to  ADC  for
the  construction of a Champps Americana restaurant on the  site.
Initially, the Partnership charged 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,  were
$1,502,252.  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.

       On June 30, 2000, the Partnership purchased a 24% interest
in  a  parcel  of land in Alpharetta, Georgia for $370,479.   The
land  is  leased  to Razzoo's, Inc. (RI) under a Lease  Agreement
with  a  primary term of 15 years and annual rental  payments  of
$32,803.   Effective  November 26,  2000,  the  annual  rent  was
increased  to $37,627.  Simultaneously with the purchase  of  the
land,  the  Partnership  entered  into  a  Development  Financing
Agreement  under which the Partnership will advance funds  to  RI
for  the  construction  of  a Razzoo's restaurant  on  the  site.
Through  December 31, 2000, the Partnership had advanced $174,229
for the construction of the property and was charging interest on
the advances at a rate of 8.5%.  Effective November 26, 2000, the
interest rate was increased to 9.75%.  The Partnership's share of
the total purchase price, including the cost of the land, will be
approximately $919,200.  After the construction is complete,  the
Lease Agreement will be amended to require annual rental payments
of   approximately  $89,600.   The  remaining  interests  in  the
property  are  owned by AEI Net Lease Income &  Growth  Fund  XIX
Limited  Partnership, AEI Income and Growth Fund 23 LLC  and  AEI
Private Net Lease Millennium Fund Limited Partnership, affiliates
of the Partnership.

Major Tenants

        During  2000,  four  of  the Partnership's  lessees  each
contributed  more  than  ten percent of the  Partnership's  total
rental  revenue.  The major tenants in aggregate contributed  72%
of  the  Partnership's  total rental  revenue  in  2000.   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  2001  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.

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.

Description of Properties

        The  Partnership's properties are all commercial,  single
tenant  buildings.  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, 2000.

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

Children's World                          ARAMARK
Daycare Center                          Educational
 Phoenix, AZ       9/29/89  $  883,486 Resources, Inc.    $121,169    $16.03

Children's World                          ARAMARK
Daycare Center                          Educational
 Blue Springs, MO  6/27/90  $  791,271 Resources, Inc.    $102,606    $12.83

Children's World                          ARAMARK
Daycare Center                          Educational
 Lenexa, KS        9/13/90  $  983,527 Resources, Inc.    $128,689    $16.06

Taco Cabana Restaurant                  Texas Taco
 San Antonio, TX  12/29/90  $1,406,426  Cabana L.P.       $215,884    $78.85

Cheddar's Restaurant                     Heartland
 Clive, IA         1/22/91  $1,392,248 Restaurant Corp.   $228,097    $31.68

ITEM 2.   DESCRIPTION OF PROPERTIES.  (Continued)

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

Children's World                          ARAMARK
Daycare Center                           Educational
 Westerville, OH   6/21/91  $  990,261  Resources, Inc.   $126,935    $15.91

Taco Cabana Restaurant
 San Antonio, TX                         Texas Taco
 (9.3699%)         7/19/91  $  107,933   Cabana L.P.      $ 16,945    $40.41

Taco Fiesta Restaurant
 Brownsville, TX    8/9/91  $  799,938      (1)

Applebee's Restaurant
 Destin, FL
 (5.8291%)         11/1/91  $   65,215  T.S.S.O., Inc.    $  9,414    $33.57

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

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

Tractor Supply Company Store
 Bristol, VA                            Tractor Supply
 (7.5158%)         4/10/96  $   96,765  Company, Inc.     $ 10,925    $ 7.75

Champps Americana
 Restaurant                              Americana
 Columbus, OH                             Dining
 (6.1688%)         8/29/96  $  158,257  Corporation       $ 18,477    $36.66

Fuddruckers Restaurant
 Thornton, CO      7/30/97  $1,405,771  Fuddruckers, Inc. $159,293    $32.01

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

Tumbleweed Restaurant
 Chillicothe, OH                        Tumbleweed,
 (45.0%)          11/20/98  $  573,831     Inc.           $ 59,629    $24.17

Tumbleweed Restaurant
 Columbus, OH                           Tumbleweed,
 (40.0%)          12/28/98  $  554,269     Inc.           $ 56,509    $25.77

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

ITEM 2.   DESCRIPTION OF PROPERTIES.  (Continued)

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

Champps Americana
 Restaurant
 Centerville, OH                         Americana
 (38.0%)           1/27/99  $1,502,252  Dining Corp.      $154,075    $43.28

Razzoo's Restaurant
 Alpharetta, GA
 (24.0%)                                 Razzoo's,
 (land only) (2)   6/30/00  $  370,479     Inc.           $ 37,627    $19.37


(1) The property is vacant and under contract to sell.
(2) Restaurant was under construction as of December 31, 2000.

        The  properties  listed above with  a  partial  ownership
percentage  are  owned with affiliates of the Partnership  and/or
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 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 remaining interests in the Razzoo's  restaurant
in Alpharetta, Georgia are owned by AEI Net Lease Income & Growth
Fund XIX Limited Partnership, AEI Income & Growth Fund 23 LLC and
AEI  Private Net Lease Millennium Fund Limited Partnership.   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 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, Rally's, Razzoo's, and 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 contain renewal options which  may
extend  the  Lease term an additional 10 years,  except  for  the
Champps Americana, Fuddruckers 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  renewal
options 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, 1995, all properties listed above
were  100%  occupied,  with  the exception  of  the  Taco  Fiesta
restaurant  in  Brownsville, Texas which  was  100%  vacant  from
January, 1997 through November, 1998 and from November,  2000  to
the present.

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, 2000, there were 1,510  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 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 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.

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

        During 2000, twenty-six Limited Partners redeemed a total
of  403.91 Partnership Units for $353,794 in accordance with  the
Partnership  Agreement.  In prior years, a total of  141  Limited
Partners  redeemed 2,157.32 Partnership Units for  $1,716,908  in
accordance  with  the  Partnership  Agreement.   The  redemptions
increase  the remaining Limited Partners' ownership  interest  in
the Partnership.

       Cash distributions of $18,788 and $15,809 were made to the
General Partners and $1,506,165 and $1,338,889 were made  to  the
Limited   Partners   in   2000  and  1999,   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 $49,589  of  proceeds  from
property  sales in 2000.  The distributions reduced  the  Limited
Partnership's Adjusted Capital Contribution.

ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS.

Results of Operations

        For  the  years  ended December 31, 2000  and  1999,  the
Partnership   recognized   rental  income   of   $1,885,816   and
$1,900,559,   respectively.   During  the   same   periods,   the
Partnership  earned  investment income of  $51,091  and  $29,077,
respectively.   In  2000, rental income  decreased  mainly  as  a
result  of the property sales discussed below.  This decrease  in
rental  income  was offset by additional rent received  from  two
property acquisitions in 1999 and 2000, rent increases on  twelve
properties  and additional investment income earned  on  the  net
proceeds from the property sales.

        In  October,  1999, the Partnership abandoned  a  Rally's
property  in  order  to  avoid ongoing expenses.   In  the  third
quarter   of  1999,  the  Partnership  recorded  a  real   estate
impairment of $125,531, which is equal to the net book  value  of
the  abandoned property.  Additionally, in the fourth quarter  of
1999,  the  Partnership  recorded a  real  estate  impairment  of
$124,188,  which is equal to the net book value of the  remaining
Rally's,  due  to the uncertainty of retaining a  tenant  in  the
property.   The abandonment and impairment of the two  properties
did not have a material effect on the Partnership's cash flow  or
financial statements.

        In  November  2000,  the Lease  on  the  Taco  Fiesta  in
Brownsville,  Texas expired and was not renewed  by  the  tenant.
The  restaurant  was  closed  and listed  for  sale.   While  the
property  is vacant, the Partnership is responsible for the  real
estate  taxes and other costs required to maintain the  property.
At  December  31,  2000,  the property was  reclassified  on  the
balance  sheet to Real Estate Held for Sale.  In March 2000,  the
Partnership entered into an agreement to sell the property to  an
unrelated   third   party.   The  net  sale  proceeds   will   be
approximately  $460,000,  which will result  in  a  net  gain  of
approximately $15,000.

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

       In December, 1998, Gulf Coast Restaurants, Inc. (GCR), the
lessee of the Applebee's restaurant in Slidell, Louisiana,  filed
for reorganization.  GCR continued to make the lease payments  to
the Partnership under the supervision of the bankruptcy court.  A
reorganization  plan was accepted by the bankruptcy  court  which
provides  for  the  Lease to be assumed by GCR  and  assigned  to
another operator who will purchase the Partnership's share of the
property.   The  reorganization  plan  also  provides   for   the
Partnership to collect all rents outstanding under the  terms  of
the  Lease.   On  October  25, 2000, the  sale  closed  with  the
Partnership  receiving  net  sale  proceeds  of  $355,151,  which
resulted  in  a net gain of $118,740.  At the time of  sale,  the
cost  and  related  accumulated  depreciation  was  $280,019  and
$43,608, respectively.

        During  the years ended December 31, 2000 and  1999,  the
Partnership   paid   Partnership   administration   expenses   to
affiliated parties of $245,707 and $220,942, 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  $37,484 and $32,591, 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.

       As of December 31, 2000, the Partnership's annualized cash
distribution  rate  was  7.0%,  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 and
income  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.

Liquidity and Capital Resources

        During  2000,  the Partnership's cash balances  increased
$352,945  as  the  result  of cash generated  from  the  sale  of
property,  which  was partially offset by cash used  to  purchase
additional  property and distributions made  in  excess  of  cash
generated  from  operating  activities.   Net  cash  provided  by
operating  activities  decreased  from  $1,710,293  in  1999   to
$1,663,608  in  2000  mainly  as  a  result  of  an  increase  in
Partnership  administration  expenses  in  2000  and  net  timing
differences  in the collection of payments from the  lessees  and
the payment of expenses.

        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.  During the years ended  December
31,  2000 and 1999, the Partnership generated cash flow from  the
sale  of  real  estate of $1,085,701 and $423,600,  respectively.
During  the  same periods, the Partnership expended $544,302  and
$337,666,  respectively, to invest in real properties  (inclusive
of  acquisition  expenses)  as  the Partnership  reinvested  cash
generated from property sales.

        During  1999,  the Partnership sold its interest  in  the
HomeTown  Buffet  restaurant, in three separate transactions,  to
unrelated third parties.  The Partnership received total net sale
proceeds  of  $423,600, which resulted in a  total  net  gain  of
$146,588.  The total cost and related accumulated depreciation of
the interests sold was $303,733 and $26,721, respectively.

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

        In April, 2000, the Partnership entered into an Agreement
to  sell  the Pasta Fair restaurant in Belleview, Florida  to  an
affiliate  of the lessee.  On May 10, 2000, the sale closed  with
the  Partnership  receiving net sale proceeds of $730,550,  which
resulted in a net gain of $26,670.  At the time of sale, the cost
and  related accumulated depreciation was $932,862 and  $228,982,
respectively.

        During 2000, the Partnership distributed $50,089  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 $2.45 per Limited Partnership Unit, respectively.
The  remaining  net sale proceeds will either be  re-invested  in
additional  properties  or distributed to  the  Partners  in  the
future.

        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.  Effective December 25, 1998,  the  annual
rent  was increased to $73,854.  Simultaneously with the purchase
of the land, the Partnership entered into a Development Financing
Agreement under which the Partnership advanced funds to  ADC  for
the  construction of a Champps Americana restaurant on the  site.
Initially, the Partnership charged 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,  were
$1,502,252.  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.

       On June 30, 2000, the Partnership purchased a 24% interest
in  a  parcel  of land in Alpharetta, Georgia for $370,479.   The
land  is  leased  to Razzoo's, Inc. (RI) under a Lease  Agreement
with  a  primary term of 15 years and annual rental  payments  of
$32,803.   Effective  November 26,  2000,  the  annual  rent  was
increased  to $37,627.  Simultaneously with the purchase  of  the
land,  the  Partnership  entered  into  a  Development  Financing
Agreement  under which the Partnership will advance funds  to  RI
for  the  construction  of  a Razzoo's restaurant  on  the  site.
Through  December 31, 2000, the Partnership had advanced $174,229
for the construction of the property and was charging interest on
the advances at a rate of 8.5%.  Effective November 26, 2000, the
interest rate was increased to 9.75%.  The Partnership's share of
the total purchase price, including the cost of the land, will be
approximately $919,200.  After the construction is complete,  the
Lease Agreement will be amended to require annual rental payments
of   approximately  $89,600.   The  remaining  interests  in  the
property  are  owned by AEI Net Lease Income &  Growth  Fund  XIX
Limited  Partnership, AEI Income and Growth Fund 23 LLC  and  AEI
Private Net Lease Millennium Fund 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.   Redemption  payments
are  paid  to redeeming Partners on a quarterly basis.  Effective
January   1,  2000,  the  Partnership's  distribution  rate   was
increased  from  6.5% to 7.0%.  As a result,  distributions  were
higher during 2000, when compared to 1999.

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

        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 2000, twenty-six Limited Partners redeemed a total
of  403.91 Partnership Units for $353,794 in accordance with  the
Partnership  Agreement.   The Partnership  acquired  these  Units
using Net Cash Flow from operations.  In prior years, a total  of
141  Limited  Partners  redeemed 2,157.32 Partnership  Units  for
$1,716,908  in  accordance with the Partnership  Agreement.   The
redemptions  increase the remaining Limited  Partners'  ownership
interest in the Partnership.

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

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

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

    Market  and  economic conditions which affect the  value
    of  the  properties the Partnership owns and  the  cash
    from rental income such properties generate;

    the  federal  income tax consequences of rental  income,
    deductions,  gain  on  sales and other  items  and  the
    affects of these consequences for investors;

    resolution  by  the General Partners of  conflicts  with
    which they may be confronted;

    the   success  of  the  General  Partners  of   locating
    properties with favorable risk return characteristics;

    the effect of tenant defaults; and

    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, 2000 and 1999

Statements for the Years Ended December 31, 2000 and 1999:

     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, 2000 and 1999 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,  2000 and 1999 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 25, 2001                Certified Public Accountants

<PAGE>
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                          BALANCE SHEET

                           DECEMBER 31

                             ASSETS

                                                   2000           1999

CURRENT ASSETS:
  Cash and Cash Equivalents                    $ 1,026,027    $   673,082
  Receivables                                       19,619         19,852
                                                -----------    -----------
      Total Current Assets                       1,045,646        692,934
                                                -----------    -----------
INVESTMENTS IN REAL ESTATE:
  Land                                           5,104,580      5,384,757
  Buildings and Equipment                        9,812,122     10,934,684
  Construction in Progress                         174,229              0
  Property Acquisition Costs                             0            407
  Accumulated Depreciation                      (2,435,065)    (2,458,655)
                                                -----------    -----------
                                                12,655,866     13,861,193
  Real Estate Held for Sale                        444,695              0
                                                -----------    -----------
      Net Investments in Real Estate            13,100,561     13,861,193
                                                -----------    -----------
           Total  Assets                       $14,146,207    $14,554,127
                                                ===========    ===========

                    LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.         $    31,767    $     5,516
  Distributions Payable                            368,669        341,984
  Security Deposit                                       0         12,500
  Unearned Rent                                     13,274         17,366
                                                -----------    -----------
      Total Current Liabilities                    413,710        377,366
                                                ----------     -----------
PARTNERS' CAPITAL (DEFICIT):
  General Partners                                 (58,139)       (53,696)
  Limited Partners, $1,000 Unit Value;
   30,000 Units authorized; 22,783 Issued;
   20,222 and 20,625 outstanding in 2000
   and 1999, respectively                       13,790,636     14,230,457
                                                -----------    -----------
     Total Partners' Capital                    13,732,497     14,176,761
                                                -----------    -----------
       Total Liabilities and Partners' Capital $14,146,207    $14,554,127
                                                ===========    ===========

 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


                                                   2000           1999

INCOME:
  Rent                                        $ 1,885,816     $ 1,900,559
  Investment Income                                51,091          29,077
                                               -----------     -----------
      Total Income                              1,936,907       1,929,636
                                               -----------     -----------

EXPENSES:
  Partnership Administration - Affiliates         245,707         220,942
  Partnership Administration and Property
     Management - Unrelated Parties                37,484          32,591
  Depreciation                                    364,643         396,413
  Real Estate Impairment                                0         249,719
                                               -----------     -----------
      Total Expenses                              647,834         899,665
                                               -----------     -----------

OPERATING INCOME                                1,289,073       1,029,971

GAIN ON SALE OF REAL ESTATE                       145,410         146,588
                                               -----------     -----------
NET INCOME                                    $ 1,434,483     $ 1,176,559
                                               ===========     ===========

NET INCOME ALLOCATED:
  General Partners                            $    14,345     $    11,766
  Limited Partners                              1,420,138       1,164,793
                                               -----------     -----------
                                              $ 1,434,483     $ 1,176,559
                                               ===========     ===========

NET INCOME PER LIMITED PARTNERSHIP UNIT
(20,385 and 20,767 weighted average Units outstanding
  in 2000 and 1999, respectively)             $     69.67     $     56.09
                                               ===========     ===========


 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


                                                     2000          1999

CASH FLOWS FROM OPERATING ACTIVITIES:
  Net Income                                     $ 1,434,483    $ 1,176,559

  Adjustments To Reconcile Net Income
  To Net Cash Provided By Operating Activities:
     Depreciation                                    364,643        396,413
     Real Estate Impairment                                0        249,719
     Gain on Sale of Real Estate                    (145,410)      (146,588)
     Decrease in Receivables                             233         33,076
     Increase (Decrease) in Payable to
        AEI Fund Management, Inc.                     26,251        (11,252)
     Decrease in Security Deposit                    (12,500)             0
     Increase (Decrease) in Unearned Rent             (4,092)        12,366
                                                  -----------    -----------
       Total Adjustments                             229,125        533,734
                                                  -----------    -----------
       Net Cash Provided By
           Operating Activities                    1,663,608      1,710,293
                                                  -----------    -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Investments in Real Estate                        (544,302)      (337,666)
  Proceeds from Sale of Real Estate                1,085,701        423,600
                                                  -----------    -----------
       Net Cash Provided By
           Investing Activities                      541,399         85,934
                                                  -----------    -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Increase in Distributions Payable                   26,685        146,699
  Distributions to Partners                       (1,521,379)    (1,352,413)
  Redemption Payments                               (357,368)      (228,518)
                                                  -----------    -----------
       Net Cash Used For
        Financing Activities                      (1,852,062)    (1,434,232)
                                                  -----------    -----------

NET INCREASE IN CASH AND CASH EQUIVALENTS            352,945        361,995

CASH AND CASH EQUIVALENTS, beginning of period       673,082        311,087
                                                  -----------    -----------
CASH AND CASH EQUIVALENTS, end of period         $ 1,026,027    $   673,082
                                                  ===========    ===========


 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, 1998  $(49,653)  $14,630,786   $14,581,133   20,910.48

  Distributions              (13,524)   (1,338,889)   (1,352,413)

  Redemption Payments         (2,285)     (226,233)     (228,518)    (285.00)

  Net Income                  11,766     1,164,793     1,176,559
                             --------   -----------   -----------  ----------
BALANCE, December 31, 1999   (53,696)   14,230,457    14,176,761   20,625.48

  Distributions              (15,214)   (1,506,165)   (1,521,379)

  Redemption Payments         (3,574)     (353,794)     (357,368)    (403.91)

  Net Income                  14,345     1,420,138     1,434,483
                             --------   -----------   -----------  ----------
BALANCE, December 31, 2000  $(58,139)  $13,790,636   $13,732,497   20,221.57
                             ========   ===========   ===========  ==========


 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, 2000 AND 1999


(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.  Robert P. Johnson, the President and  sole
     shareholder of AFM, serves as the Individual General Partner
     and  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  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  operations,
     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 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, 2000 AND 1999

(1)  Organization - (Continued)

     For  tax  purposes,  profits  from  operations,  other  than
     profits  attributable  to  the  sale,  exchange,  financing,
     refinancing  or  other  disposition  of  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 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 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, 2000 AND 1999

(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

       The  Partnership's  cash  is deposited  primarily  in  one
       financial institution and at times during the year it  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, 2000 AND 1999

(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  6.1688%  interest  in  a  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 a 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  a 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 a 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 a  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  24%  interest  in  a  Razzoo's  restaurant   under
     construction   in   Alpharetta,  Georgia.    The   remaining
     interests in this property are owned by AEI Net Lease Income
     &  Growth Fund XIX Limited Partnership, AEI Income &  Growth
     Fund  23  LLC  and  AEI  Private Net Lease  Millennium  Fund
     Limited  Partnership,  affiliates of the  Partnership.   The
     Partnership  owned  a  24% interest  in  a  HomeTown  Buffet
     restaurant.   The remaining interests in this  property  are
     owned  by  AEI  Net Lease Income & Growth Fund  XIX  Limited
     Partnership and unrelated third parties.  During  1999,  the
     Partnership  sold its interest in the property to  unrelated
     third  parties.  The Partnership owned a 27% interest in  an
     Applebee's restaurant in Slidell, Louisiana.  The  remaining
     interest in this property was owned by AEI Real Estate  Fund
     XVI Limited Partnership, an affiliate of the Partnership.


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2000 AND 1999

(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

                                                    2000         1999
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.                                      $ 245,707     $ 220,942
                                                  ========      ========
b.AEI and AFM are reimbursed for all direct
  expenses they have paid on the Partnership's
  behalf to third parties relating to Partnership
  administration and property management.
  These expenses included printing costs, legal
  and filing fees, direct administrative costs,
  outside audit and accounting costs, taxes,
  insurance and other property costs.            $  37,484     $  32,591
                                                  ========      ========

c.AEI is reimbursed for all costs and direct
  expenses 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 $21,303 and $28,975
  for 2000 and 1999, respectively.               $ (15,847)    $ (16,097)
                                                  ========      ========

d.AEI is reimbursed for all costs incurred in
  connection with the sale of property.          $       0     $  27,341
                                                  ========      ========


     The  payable  to  AEI Fund Management, Inc.  represents  the
     balance  due for the services described in 3a, b, c  and  d.
     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, 2000 AND 1999

(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, Rally's,
     Razzoo's  and  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 contain renewal options which  may
     extend the Lease term an additional 10 years, except for the
     Champps Americana, Fuddruckers 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 renewal options 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  restaurant
     and  the Children's World in Columbus, Ohio were constructed
     and  acquired in 1992.  The Tractor Supply Company store and
     Champps   Americana  restaurant  in  Columbus,   Ohio   were
     constructed   and   acquired  in  1996.    The   Fuddruckers
     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  land  for  the
     Razzoo's  restaurant in Alpharetta, Georgia was acquired  in
     2000 and construction of the restaurant will be completed in
     2001.    The  remaining  properties  were  constructed   and
     acquired  in either 1990 or 1991.  There have been no  costs
     capitalized as improvements subsequent to the acquisitions.

     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, 2000 are as
     follows:

                                  Buildings and            Accumulated
Property                 Land       Equipment      Total   Depreciation

Children's World,
 Phoenix, AZ          $  259,467  $  624,019   $   883,486   $  265,441
Children's World,
 Blue Springs, MO        162,290     628,981       791,271      245,396
Children's World,
 Lenexa, KS              185,788     797,739       983,527      302,615


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2000 AND 1999

(4)  Investments in Real Estate - (Continued)

                                  Buildings and            Accumulated
Property                 Land       Equipment      Total   Depreciation

Taco Cabana,
 San Antonio, TX         871,844     534,582     1,406,426      198,211
Cheddar's, Clive, IA     379,249   1,012,999     1,392,248      391,091
Children's World,
   Westerville, OH       157,848     832,413       990,261      292,259
Taco Cabana,
 San Antonio, TX          61,004      46,929       107,933       14,484
Applebee's, Destin, FL    30,239      34,976        65,215       13,288
Children's World,
   Columbus, OH          157,569     861,633     1,019,202      264,553
Rally's, San Antonio, TX       0      72,209        72,209       72,209
Tractor Supply Company,
   Bristol, VA            31,092      65,673        96,765       11,157
Champps Americana,
   Columbus, OH           53,296     104,961       158,257       16,109
Fuddruckers,
 Thornton, CO            444,692     961,079     1,405,771      113,712
Champps Americana,
 Troy, MI                385,295     807,201     1,192,496       65,388
Tumbleweed,
 Chillicothe, OH         234,796     339,035       573,831       25,689
Tumbleweed, Columbus, OH 216,467     337,802       554,269       23,962
Old Country Buffet,
 Northlake, IL           342,896   1,007,908     1,350,804       68,594
Champps Americana,
   Centerville, OH       760,269     741,983     1,502,252       50,907
Razzoo's,
 Alpharetta, GA          370,479           0       370,479            0
                       ----------  ----------   -----------   ----------
                      $5,104,580  $9,812,122   $14,916,702   $2,435,065
                       ==========  ==========   ===========   ==========


     In  October,  1999,  the  Partnership  abandoned  a  Rally's
     property  in order to avoid ongoing expenses.  In the  third
     quarter  of  1999, the Partnership recorded  a  real  estate
     impairment of $125,531, which is equal to the net book value
     of  the  abandoned property.  Additionally,  in  the  fourth
     quarter  of  1999, the Partnership recorded  a  real  estate
     impairment of $124,188, which is equal to the net book value
     of   the  remaining  Rally's,  due  to  the  uncertainty  of
     retaining  a  tenant in the property.  The  abandonment  and
     impairment  of  the two properties did not have  a  material
     effect   on   the  Partnership's  cash  flow  or   financial
     statements.

     In   November  2000,  the  Lease  on  the  Taco  Fiesta   in
     Brownsville,  Texas  expired and  was  not  renewed  by  the
     tenant.   The  restaurant was closed and  listed  for  sale.
     While the property is vacant, the Partnership is responsible
     for  the  real  estate  taxes and other  costs  required  to
     maintain  the property.  At December 31, 2000, the  property
     was  reclassified on the balance sheet to Real  Estate  Held
     for  Sale.  In March 2000, the Partnership entered  into  an
     agreement to sell the property to an unrelated third  party.
     The  net sale proceeds will be approximately $460,000, which
     will result in a net gain of approximately $15,000.


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2000 AND 1999

(4)  Investments in Real Estate - (Continued)

     During  1999,  the  Partnership sold  its  interest  in  the
     HomeTown  Buffet restaurant, in three separate transactions,
     to  unrelated third parties.  The Partnership received total
     net sale proceeds of $432,600, which resulted in a total net
     gain  of  $146,588.  The total cost and related  accumulated
     depreciation of the interests sold was $303,733 and $26,721,
     respectively.

     In April, 2000, the Partnership entered into an Agreement to
     sell  the Pasta Fair restaurant in Belleview, Florida to  an
     affiliate  of the lessee.  On May 10, 2000, the sale  closed
     with   the  Partnership  receiving  net  sale  proceeds   of
     $730,550, which resulted in a net gain of $26,670.   At  the
     time  of sale, the cost and related accumulated depreciation
     was $932,862 and $228,982, respectively.

     In  December, 1998, Gulf Coast Restaurants, Inc. (GCR),  the
     lessee  of  the Applebee's restaurant in Slidell, Louisiana,
     filed  for reorganization.  GCR continued to make the  lease
     payments  to  the Partnership under the supervision  of  the
     bankruptcy court.  A reorganization plan was accepted by the
     bankruptcy court which provides for the Lease to be  assumed
     by  GCR  and assigned to another operator who will  purchase
     the Partnership's share of the property.  The reorganization
     plan  also provides for the Partnership to collect all rents
     outstanding  under the terms of the Lease.  On  October  25,
     2000,  the  sale closed with the Partnership  receiving  net
     sale  proceeds of $355,151, which resulted in a net gain  of
     $118,740.   At  the  time  of sale,  the  cost  and  related
     accumulated   depreciation   was   $280,019   and   $43,608,
     respectively.

     During 2000, the Partnership distributed $50,089 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 $2.45 per Limited Partnership  Unit,
     respectively.  The remaining net sale proceeds  will  either
     be  re-invested  in additional properties or distributed  to
     the Partners in the future.

     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.  Effective December  25,  1998,
     the  annual  rent was increased to $73,854.   Simultaneously
     with  the purchase of the land, the Partnership entered into
     a   Development   Financing  Agreement   under   which   the
     Partnership advanced funds to ADC for the construction of  a
     Champps  Americana restaurant on the site.   Initially,  the
     Partnership charged 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, were $1,502,252.

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2000 AND 1999

(4)  Investments in Real Estate - (Continued)

     On  June  30, 2000, the Partnership purchased a 24% interest
     in  a  parcel  of land in Alpharetta, Georgia for  $370,479.
     The  land  is  leased to Razzoo's, Inc. (RI) under  a  Lease
     Agreement with a primary term of 15 years and annual  rental
     payments  of  $32,803.   Effective November  26,  2000,  the
     annual  rent was increased to $37,627.  Simultaneously  with
     the  purchase  of the land, the Partnership entered  into  a
     Development  Financing Agreement under which the Partnership
     will  advance funds to RI for the construction of a Razzoo's
     restaurant  on  the site.  Through December  31,  2000,  the
     Partnership  had  advanced $174,229 for the construction  of
     the property and was charging interest on the advances at  a
     rate  of  8.5%.  Effective November 26, 2000,  the  interest
     rate was increased to 9.75%.  The Partnership's share of the
     total  purchase price, including the cost of the land,  will
     be   approximately  $919,200.   After  the  construction  is
     complete,  the  Lease Agreement will be amended  to  require
     annual rental payments of approximately $89,600.

     The  Partnership owns a 9.3699% interest in  a  Taco  Cabana
     restaurant in San Antonio, Texas, a 5.8291% interest  in  an
     Applebee's  restaurant  in Destin,  Florida  and  a  7.5158%
     interest  in a Tractor Supply Company store.  The  remaining
     interests  in these properties are owned by unrelated  third
     parties,  who  own  the  property with  the  Partnership  as
     tenants-in-common.

     The   minimum  future  rentals  on  the  Leases  for   years
     subsequent to December 31, 2000 are as follows:

                       2001          $ 1,831,690
                       2002            1,841,647
                       2003            1,851,993
                       2004            1,845,452
                       2005            1,682,275
                       Thereafter     10,983,726
                                      ----------
                                     $20,036,783
                                      ==========

     In  2000  and  1999,  the Partnership recognized  contingent
     rents of $10,057 and $19,908, 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.  In November, 2000, the Lease expired
     and  was not renewed by the tenant.  The Partnership applied
     the security deposit to unpaid rent and real estate taxes.


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2000 AND 1999

(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:

                                                  2000        1999
      Tenants                     Industry

     ARAMARK Educational
        Resources, Inc.          Child Care   $  594,859  $  582,892
     Champps Americana Group     Restaurant      295,157     288,833
     Texas Taco Cabana L.P.      Restaurant      232,494     224,677
     Heartland Restaurant Corp.  Restaurant      227,366     218,621
                                               ----------  ----------

     Aggregate rent revenue of major tenants  $1,349,876  $1,315,023
                                               ==========  ==========

     Aggregate rent revenue of major tenants as
     a percentage of total rent revenue               72%         69%
                                               ==========  ==========

(7)  Partners' Capital -

     Cash  distributions of $18,788 and $15,809 were made to  the
     General Partners and $1,506,165 and $1,338,889 were made  to
     the  Limited Partners for the years ended December 31,  2000
     and 1999, respectively.  The Limited Partners' distributions
     represent  $73.89  and $64.47 per Limited  Partnership  Unit
     outstanding  using 20,385 and 20,767 weighted average  Units
     in 2000 and 1999, respectively.  The distributions represent
     $52.26  and  $45.12 per Unit of Net Income, and  $21.63  and
     $19.35 per Unit of return of contributed capital in 2000 and
     1999, respectively.

     As  part  of  the  Limited  Partner distributions  discussed
     above, the Partnership distributed $49,589 of proceeds  from
     property  sales  in  2000.   The distributions  reduced  the
     Limited Partnership's Adjusted Capital Contribution.

     Distributions  of  Net  Cash Flow to  the  General  Partners
     during  2000  and  1999  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, 2000 AND 1999

(7)  Partners' Capital - (Continued)

     During 2000, twenty-six Limited Partners redeemed a total of
     403.91 Partnership Units for $353,794 in accordance with the
     Partnership Agreement.  The Partnership acquired these Units
     using  Net  Cash Flow from operations.  In 1999,  twenty-one
     Limited Partners redeemed a total of 285.0 Partnership Units
     for   $226,233.   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
     $1,067.44 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:

                                                2000         1999
     Net Income for Financial
      Reporting Purposes                    $1,434,483   $1,176,559

     Depreciation for Tax Purposes
      Under Depreciation for Financial
      Reporting Purposes                        33,552       42,559

     Income Accrued for Tax Purposes
      Over (Under) Income for Financial
      Reporting Purposes                        (4,091)      12,366

     Real Estate Impairment Loss
      Not Recognized for Tax Purposes                0      124,188

     Gain on Sale of Real Estate for
        Tax Purposes Under Gain for
        Financial Reporting Purposes           (25,322)     (99,858)
                                             ----------   ----------
           Taxable Income to Partners       $1,438,622   $1,255,814
                                             ==========   ==========


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2000 AND 1999

(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:

                                                 2000           1999

     Partners' Capital for
       Financial  Reporting Purposes        $13,732,497     $14,176,761

     Adjusted Tax Basis of Investments
      in Real Estate Over Net
      Investments in Real Estate
      for Financial Reporting Purposes          620,161         611,931

     Income Accrued for Tax Purposes Over
      Income for Financial
      Reporting Purposes                         13,275          17,366

     Syndication Costs Treated as Reduction
       of  Capital for Financial Reporting
       Purposes                               3,336,442       3,336,442
                                             -----------     -----------
           Partners' Capital for
               Tax  Reporting Purposes      $17,702,375     $18,142,500
                                             ===========     ===========

(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:

                                    2000                     1999
                           Carrying      Fair      Carrying      Fair
                            Amount       Value      Amount       Value

     Cash                $       591  $       591   $     676  $     676
     Money Market Funds    1,025,436    1,025,436     672,406    672,406
                          -----------  -----------   ---------  ---------
       Total Cash and
        Cash Equivalents $ 1,026,027  $ 1,026,027   $ 673,082  $ 673,082
                          ===========  ===========   =========  =========


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 56, 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, 2001.  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.,  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 fifteen limited partnerships.

        Mark  E.  Larson,  age 48, is Executive  Vice  President,
Treasurer  and  Chief Financial Officer and has been  elected  to
continue in these position until December, 2001.  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,
2001.  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, 2001:

     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                        5            *
   1300 Minnesota World Trade Center
   30 East 7th Street, St. Paul, Minnesota 55101

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

   *  Less than 1%

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

ITEM 12.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

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

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

        The following table sets forth the forms of compensation,
distributions  and cost reimbursements paid by the registrant  to
the  General Partners or their Affiliates in connection with  the
operation  of  the Fund and its properties for  the  period  from
inception through December 31, 2000.

                                                           Amount Incurred
Person or Entity                                           From Inception
 Receiving                     Form and Method        (September 20, 1988) to
Compensation                   of Compensation            December 31, 2000

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

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

                                                           Amount Incurred
Person or Entity                                           From Inception
 Receiving                     Form and Method        (September 20, 1988) to
Compensation                   of Compensation            December 31, 2000

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

General Partners and  Reimbursement at Cost for all           $  519,199
Affiliates            Acquisition Expenses

General Partners and  Reimbursement at Cost for all e         $2,951,085
Affiliates            Administrative Expenses attributable
                      to the Fund, including all expenses
                      related to management of the Fund's
                      properties and all other transfer
                      agency, reporting, partner relations
                      and other administrative functions.

General Partners and  Reimbursement at Cost for all expenses  $  338,047
Affiliates            related to the disposition of the
                      Fund's properties.

General Partners      1% of Net Cash Flow in any fiscal year  $  176,352
                      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      15% of distributions of Net Proceeds of $   13,294
                      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.

        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, 2000, 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 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 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 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 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 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 on July 27, 1992).

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 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 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  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  on  July
      27, 1992).

10.9  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 on March 29, 1993).

10.10 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 on March 29, 1993).

10.11 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 on March 30, 1995).

10.12 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 on March 21, 1996).

10.13 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 on April 17, 1996).

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

         A. Exhibits -
                              Description

10.14 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 on September 12, 1996).

10.15 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 on November 14, 1996).

10.16 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 on  November
      14, 1996).

10.17 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 on November 14, 1996).

10.18 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 on  November
      14, 1996).

10.19 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  on  March
      17, 1997).

10.20 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 on March 17, 1997).

10.21 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 on March 17, 1997).

10.22 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 on March 17, 1997).

10.23 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 on March 17, 1997).

10.24 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 on May 13, 1997).

10.25 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 on May 13, 1997).

10.26 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 on May 13, 1997).

10.27 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 on May 13, 1997).

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

         A. Exhibits -
                            Description

10.28 Property  Co-Tenancy  Ownership  Agreement  dated
      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 on May 13, 1997).

10.29 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 on May 13, 1997).

10.30 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 on August
      5, 1997).

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

10.32 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 on November 4, 1997).

10.33 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 on November 4, 1997).

10.34 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 on November 4, 1997).

10.35 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 on November 4, 1997).

10.36 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 on November 4, 1997).

10.37 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 on March 23, 1998).

10.38 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 on March 23, 1998).

10.39 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  on  March
      23, 1998).

10.40 Net Lease Agreement dated April 13, 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  (incorporated by  reference  to  Exhibit
      10.2 of Form 10-QSB filed on May 8, 1998).


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

         A. Exhibits -
                             Description

10.41 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  on  May  8,
      1998).

10.42 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 on July 31, 1998).

10.43 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 on November 9, 1998).

10.44 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  on
      November 9, 1998).

10.45 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 on November 9, 1998).

10.46 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  (incorporated
      by  reference to Exhibit 10.70 of Form 10-KSB filed on March
      15, 1999).

10.47 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
      (incorporated by reference to Exhibit 10.71 of  Form  10-KSB
      filed on March 15, 1999).

10.48 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  (incorporated  by  reference   to
      Exhibit 10.72 of Form 10-KSB filed on March 15, 1999).

10.49 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 (incorporated by reference to Exhibit 10.73 of Form 10-
      KSB filed on March 15, 1999).

10.50 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 (incorporated by reference to Exhibit  10.74
      of Form 10-KSB filed on March 15, 1999).

10.51 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 (incorporated by reference to Exhibit  10.75
      of Form 10-KSB filed on March 15, 1999).

10.52 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 (incorporated by reference to Exhibit  10.76
      of Form 10-KSB filed on March 15, 1999).

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

         A. Exhibits -
                           Description

10.53 Purchase Agreement dated April 27,  2000  between
      the  Partnership  and Paul D'Alto, Trustee relating  to  the
      property   at   10401   Highway  441,   Belleview,   Florida
      (incorporated  by reference to Exhibit 10.1 of  Form  10-QSB
      filed on May 5, 2000).

10.54 Development Financing Agreement  dated  June  30,
      2000  between the Partnership, AEI Net Lease Income & Growth
      Fund  XIX Limited Partnership, AEI Income & Growth  Fund  23
      LLC,   AEI   Private  Net  Lease  Millennium  Fund   Limited
      Partnership  and Razzoo's, Inc. relating to the property  at
      5970  North Point Parkway, Alpharetta, Georgia (incorporated
      by  reference to Exhibit 10.1 of Form 10-QSB filed on August
      2, 2000).

10.55 Net  Lease Agreement dated June 30, 2000  between
      the  Partnership,  AEI Net Lease Income &  Growth  Fund  XIX
      Limited  Partnership, AEI Income & Growth Fund 23  LLC,  AEI
      Private  Net  Lease Millennium Fund Limited Partnership  and
      Razzoo's, Inc. relating to the property at 5970 North  Point
      Parkway,  Alpharetta, Georgia (incorporated by reference  to
      Exhibit 10.2 of Form 10-QSB filed on August 2, 2000).

10.56 Asset Purchase Agreement dated September 18,  2000
      between  the  Partnership, AEI Real Estate Fund XVI  Limited
      Partnership  and Southern River Restaurants LLC relating  to
      the  property  at 850 I-10 Service Road, Slidell,  Louisiana
      (incorporated  by reference to Exhibit 10.1 of  Form  10-QSB
      filed on November 7, 2000).

10.57 Purchase  Agreement dated March 5,  2000  between
      the  Partnership and Mark W. Wright, Trustee relating to the
      property at 54 South Expressway, Brownsville, Texas.

         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 9, 2001               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 9, 2001
    Robert P. Johnson   and Sole Director of Managing General
                        Partner

/s/ Mark E. Larson      Executive Vice President, Treasurer      March 9, 2001
    Mark E. Larson      and Chief Financial Officer
                         (Principal Accounting Officer)