SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C.  20549
                                
                           FORM 10-QSB
                                
           Quarterly Report Under Section 13 or 15(d)
             of The Securities Exchange Act of 1934
                                
           For the Quarter Ended:  September 30, 1996
                                
                Commission file number:  0-23778
                                
                                
    AEI NET LEASE INCOME & GROWTH FUND XX LIMITED PARTNERSHIP
(Exact Name of Small Business Issuer as Specified in its Charter)


      State of Minnesota                   41-1729121
(State or other Jurisdiction of         (I.R.S. Employer
Incorporation or Organization)        Identification No.)


  1300 Minnesota World Trade Center, St. Paul, Minnesota 55101
            (Address of Principal Executive Offices)
                                
                          (612) 227-7333
                   (Issuer's telephone number)
                                
                                
                         Not Applicable
 (Former name, former address and former fiscal year, if changed
                       since last report)
                                
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 preceding 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
                                
         Transitional Small Business Disclosure Format:
                                
                         Yes          No   [X]
                                
                                
                                
                                
    AEI NET LEASE INCOME & GROWTH FUND XX LIMITED PARTNERSHIP
                                
                                
                              INDEX
                                
                                
                                                    

PART I. Financial Information

 Item 1. Balance Sheet as of September 30, 1996 and December 31, 1995  

         Statements for the Periods ended September 30, 1996  and 1995:

            Income                                     

            Cash Flows                                 

            Changes in Partners' Capital               

          Notes to Financial Statements                

 Item 2.  Management's Discussion and Analysis     

PART II.  Other Information

 Item 1.  Legal Proceedings                          

 Item 2.  Changes in Securities                      

 Item 3.  Defaults Upon Senior Securities            

 Item 4.  Submission of Matters to a Vote of Security  Holders 

 Item 5.  Other Information                          

 Item 6.  Exhibits and Reports on Form 8-K           


<PAGE>
                                
    AEI NET LEASE INCOME & GROWTH FUND XX LIMITED PARTNERSHIP

                          BALANCE SHEET
                                
            SEPTEMBER 30, 1996 AND DECEMBER 31, 1995
                                
                           (Unaudited)
                                
                                
                             ASSETS
                                
                                                        1996         1995
CURRENT ASSETS:
   Cash and Cash  Equivalents                       $  1,078,239  $  4,833,630
   Receivables                                            38,182        13,671
                                                      -----------   -----------
        Total Current Assets                           1,116,421     4,847,301
                                                      -----------   -----------
INVESTMENTS IN REAL ESTATE:
   Land                                                7,337,686     6,075,887
   Buildings and Equipment                            11,617,222     9,218,410
   Construction Advances                               1,215,483       880,088
   Property Acquisition Costs                            130,839       174,903
   Accumulated Depreciation                             (629,152)     (352,389)
                                                      -----------   -----------
           Net Investments in Real Estate             19,672,078    15,996,899
                                                      -----------   -----------
               Total  Assets                        $ 20,788,499  $ 20,844,200
                                                      ===========   ===========

                       LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
   Payable to AEI Fund Management, Inc.             $     57,569  $     50,011
   Distributions Payable                                 468,725       468,725
   Unearned Rent                                          34,862             0
                                                      -----------   -----------
        Total Current Liabilities                        561,156       518,736
                                                      -----------   -----------

MINORITY INTEREST                                      1,027,753       789,000

PARTNERS' CAPITAL (DEFICIT):
   General Partners                                      (14,945)      (11,576)
   Limited Partners, $1,000 Unit value;
   24,000 Units authorized and issued;
   23,869 Units outstanding                           19,214,535    19,548,040
                                                      -----------   -----------
       Total Partners' Capital                        19,199,590    19,536,464
                                                      -----------   -----------
          Total Liabilities and Partners' Capital   $ 20,788,499  $ 20,844,200
                                                      ===========   ===========
                                
 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>

<PAGE>                                
    AEI NET LEASE INCOME & GROWTH FUND XX LIMITED PARTNERSHIP
                                
                       STATEMENT OF INCOME
                                
               FOR THE PERIODS ENDED SEPTEMBER 30
                                
                           (Unaudited)
                                

                             Three Months Ended      Nine Months Ended
                             9/30/96    9/30/95      9/30/96    9/30/95

INCOME:
 Rent                      $ 525,527   $ 331,177   $ 1,474,543   $  960,965
 Investment Income            43,383     126,249       159,627      406,000
                            ---------   ---------   -----------  -----------
        Total Income         568,910     457,426     1,634,170    1,366,965
                            ---------   ---------   -----------  -----------

EXPENSES:
 Partnership Administration -
   Affiliates                 60,315      60,514       171,081      193,030
 Partnership Administration 
  and Property Management - 
  Unrelated Parties            6,973       4,822        30,917       30,218
 Depreciation                102,210      61,640       284,023      178,448
                            ---------   ---------   -----------  -----------
        Total Expenses       169,498     126,976       486,021      401,696
                            ---------   ---------   -----------  -----------

OPERATING INCOME             399,412     330,450     1,148,149      965,269

GAIN ON SALE OF REAL ESTATE   35,944      66,797        35,944       66,797

MINORITY INTEREST IN
  OPERATING INCOME           (23,047)     (3,586)      (66,426)      (3,586)
                            ---------   ---------   -----------  -----------

NET INCOME                 $ 412,309   $ 393,661   $ 1,117,667  $ 1,028,480
                            =========   =========   ===========  ===========

NET INCOME ALLOCATED:
   General Partners        $   4,124   $   3,937   $    11,177  $    10,285
   Limited Partners          408,185     389,724     1,106,490    1,018,195
                            ---------   ---------   -----------  -----------
                           $ 412,309   $ 393,661   $ 1,117,667  $ 1,028,480
                            =========   =========   ===========  ===========

NET INCOME PER
 LIMITED PARTNERSHIP UNIT
 (23,869, 24,000, 23,869 and 
 23.755 weighted average 
 Units outstanding for the
 periods, respectively)    $  17.10   $  16.24     $    46.36   $    42.86
                            =========  =========    ===========  ===========

 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>

<PAGE>
    AEI NET LEASE INCOME & GROWTH FUND XX LIMITED PARTNERSHIP
                                
                     STATEMENT OF CASH FLOWS
                                
               FOR THE PERIODS ENDED SEPTEMBER 30
                                
                           (Unaudited)
                                
                                                        1996         1995

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net  Income                                      $  1,117,667  $  1,028,480

   Adjustments to Reconcile Net Income to Net Cash
   Provided by Operating Activities:
     Depreciation                                        284,023       178,448
     Gain on Sale of Real Estate                         (35,944)      (66,797)
     (Increase) Decrease in Receivables                  (24,511)       31,973
     Increase (Decrease) in Payable to
        AEI Fund Management, Inc.                          7,558        (7,346)
     Increase in Unearned Rent                            34,862             0
     Minority Interest                                   (11,812)         (702)
                                                      -----------   -----------
        Total Adjustments                                254,176       135,576
                                                      -----------   -----------
        Net Cash Provided By
        Operating Activities                           1,371,843     1,164,056
                                                      -----------   -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Investments in Real Estate                        (3,854,189)   (2,691,685)
   Proceeds from Sale of Real Estate                    181,496       365,678
                                                     -----------   -----------
        Net Cash Used For
        Investing Activities                         (3,672,693)   (2,326,007)
                                                     -----------   -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Capital Contributions from Limited Partners                0     1,942,224
   Organization and Syndication Costs                         0      (224,098)
   Increase in Distributions Payable                          0        90,420
   Distributions to Partners                         (1,454,541)   (1,439,397)
                                                     -----------   -----------
        Net Cash Provided By (Used For)
        Financing Activities                         (1,454,541)      369,149
                                                     -----------   -----------

NET DECREASE IN CASH AND CASH EQUIVALENTS            (3,755,391)     (792,802)

CASH AND CASH EQUIVALENTS,
   beginning of period                                4,833,630     7,526,387
                                                     -----------   -----------
CASH AND CASH EQUIVALENTS,
     end  of  period                                $ 1,078,239   $ 6,733,585
                                                     ===========   ===========

 The accompanying Notes to Financial Statements are an integral
                    part of this statement.
</PAGE>

<PAGE>                                
    AEI NET LEASE INCOME & GROWTH FUND XX LIMITED PARTNERSHIP
                                
            STATEMENT OF CHANGES IN PARTNERS' CAPITAL
                                
               FOR THE PERIODS ENDED SEPTEMBER 30
                                
                           (Unaudited)
                                

                                                                     Limited
                                                                  Partnership
                              General      Limited                   Units
                              Partners     Partners     Total     Outstanding


BALANCE, December 31, 1994  $  (6,286)   $18,354,747   $18,348,461   22,057.78

  Capital Contributions             0      1,942,224     1,942,224    1,942.22

  Organization and
    Syndication Costs               0       (224,098)     (224,098)

  Distributions               (14,394)    (1,425,003)   (1,439,397)

  Net Income                   10,285      1,018,195     1,028,480   
                             ---------    -----------   -----------  ----------
BALANCE, September 30,1995  $ (10,395)   $19,666,065   $19,655,670   24,000.00
                             =========    ===========   ===========  ==========


BALANCE, December 31, 1995  $ (11,576)   $19,548,040   $19,536,464   23,868.50

  Distributions               (14,545)    (1,439,996)   (1,454,541)

  Net Income                   11,177      1,106,490     1,117,667
                             ---------    -----------   -----------  ----------
BALANCE, September 30,1996  $ (14,944)   $19,214,534   $19,199,590   23,868.50
                             =========    ===========   ===========  ==========



 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>

                                
    AEI NET LEASE INCOME & GROWTH FUND XX LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                       SEPTEMBER 30, 1996
                                
                           (Unaudited)

(1)  The  condensed  statements included herein have been  prepared
     by  the Partnership, without audit, pursuant to the rules  and
     regulations  of  the Securities and Exchange  Commission,  and
     reflect   all  adjustments  which  are,  in  the  opinion   of
     management,  necessary to a fair statement of the  results  of
     operations for the interim period, on a basis consistent  with
     the  annual audited statements.  The adjustments made to these
     condensed   statements  consist  only  of   normal   recurring
     adjustments.   Certain information, accounting  policies,  and
     footnote    disclosures   normally   included   in   financial
     statements  prepared  in  accordance with  generally  accepted
     accounting principles have been condensed or omitted  pursuant
     to  such  rules  and  regulations,  although  the  Partnership
     believes  that  the  disclosures  are  adequate  to  make  the
     information  presented not misleading.  It is  suggested  that
     these  condensed financial statements be read  in  conjunction
     with  the  financial statements and the summary of significant
     accounting  policies  and  notes  thereto  included   in   the
     Partnership's latest annual report on Form 10-KSB.
 
(2)  Organization -

     AEI  Net  Lease Income & Growth Fund XX Limited  Partnership
     (Partnership)  was  formed to acquire and  lease  commercial
     properties   to   operating  tenants.    The   Partnership's
     operations  are  managed  by AEI Fund  Management  XX,  Inc.
     (AFM),  the  Managing  General Partner of  the  Partnership.
     Robert  P.  Johnson, the President and sole  shareholder  of
     AFM,  serves  as  the  Individual  General  Partner  of  the
     Partnership.   An  affiliate of AFM,  AEI  Fund  Management,
     Inc.,  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  June  30,  1993   when   minimum
     subscriptions    of   1,500   Limited   Partnership    Units
     ($1,500,000)  were  accepted.   On  January  19,  1995,  the
     Partnership's   offering   terminated   when   the   maximum
     subscription  limit  of  24,000  Limited  Partnership  Units
     ($24,000,000) was reached.
     
     Under  the  terms of the Limited Partnership Agreement,  the
     Limited  Partners and General Partners contributed funds  of
     $24,000,000 and $1,000, respectively.  During the  operation
     of the Partnership, any Net Cash Flow, as defined, which the
     General Partners determine to distribute will be distributed
     90% to the Limited Partners and 10% to the General Partners;
     provided,  however, that such distributions to  the  General
     Partners will be subordinated to the Limited Partners  first
     receiving an annual, noncumulative distribution of Net  Cash
     Flow equal to 10% of their Adjusted Capital Contribution, as
     defined,  and, provided further, that in no event  will  the
     General Partners receive less than 1% of such Net Cash  Flow
     per  annum.  Distributions to Limited Partners will be  made
     pro rata by Units.
                                
    AEI NET LEASE INCOME & GROWTH FUND XX LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                           (Continued)
                                
(2)  Organization - (Continued)

     Any  Net  Proceeds  of Sale, as defined, from  the  sale  or
     financing of the Partnership's properties which the  General
     Partners determine to distribute will, after provisions  for
     debts  and  reserves, be paid in the following  manner:  (i)
     first,  99%  to the Limited Partners and 1% to  the  General
     Partners until the Limited Partners receive an amount  equal
     to:  (a)  their Adjusted Capital Contribution  plus  (b)  an
     amount  equal  to 12% of their Adjusted Capital Contribution
     per  annum, cumulative but not compounded, to the extent not
     previously  distributed  from  Net  Cash  Flow;   (ii)   any
     remaining  balance will be distributed 90%  to  the  Limited
     Partners and 10% to the General Partners.  Distributions  to
     the Limited Partners will be made pro rata by Units.
     
     For  tax  purposes,  profits  from  operations,  other  than
     profits  attributable  to  the  sale,  exchange,  financing,
     refinancing   or  other  disposition  of  the  Partnership's
     property,  will  be  allocated first in the  same  ratio  in
     which,  and  to the extent, Net Cash Flow is distributed  to
     the Partners for such year.  Any additional profits will  be
     allocated in the same ratio as the last dollar of  Net  Cash
     Flow  is  distributed.  Net losses from operations  will  be
     allocated 99% to the Limited Partners and 1% to the  General
     Partners.
     
     For  tax purposes, profits arising from the sale, financing,
     or  other disposition of the Partnership's property will  be
     allocated  in  accordance with the Partnership Agreement  as
     follows:  (i) first, to those partners with deficit balances
     in  their capital accounts in an amount equal to the sum  of
     such  deficit  balances; (ii) second,  99%  to  the  Limited
     Partners  and 1% to the General Partners until the aggregate
     balance in the Limited Partners' capital accounts equals the
     sum  of the Limited Partners' Adjusted Capital Contributions
     plus  an  amount  equal  to 12% of  their  Adjusted  Capital
     Contributions  per annum, cumulative but not compounded,  to
     the  extent  not  previously  allocated;  (iii)  third,  the
     balance of any remaining gain will then be allocated 90%  to
     the  Limited  Partners  and  10% 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.

                                
    AEI NET LEASE INCOME & GROWTH FUND XX LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                           (Continued)
                                
(3)  Investments in Real Estate -

     In  1995,  the  Partnership elected early  adoption  of  the
     Statement  of  Financial  Accounting  Standards   No.   121,
     "Accounting for Impairment of Long-Lived Assets and for Long-
     Lived Assets to be Disposed Of."  This standard requires the
     Partnership to compare the carrying amount of its properties
     to  the estimated future cash flows expected to result  from
     the  property and its eventual disposition.  If the  sum  of
     the  expected  future cash flows is less than  the  carrying
     amount   of   the  property,  the  Statement  requires   the
     Partnership to recognize an impairment loss by the amount by
     which  the carrying amount of the property exceeds the  fair
     value  of the property.  Adoption of this Statement  is  not
     expected  to  have  a material effect on  the  Partnership's
     financial statements.
     
     The  Partnership  leases its properties to  various  tenants
     through   non-cancelable  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 20 years  except
     for  the  Media Play property (18 years) and the  Red  Robin
     restaurants,  whose Lease Agreements expire on November  30,
     2004,  and  December 31, 2007.  The Leases  contain  renewal
     options which may extend the Lease term an additional 10  to
     25 years.  The Leases contain rent clauses which entitle the
     Partnership to receive additional rent in future years based
     on stated rent increases.  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.
     
                                
    AEI NET LEASE INCOME & GROWTH FUND XX LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                           (Continued)

                                
(3)  Investments in Real Estate -  (Continued)

     The  Partnership's  properties are all  commercial,  single-
     tenant  buildings.   The cost of the  property  and  related
     accumulated  depreciation  at  September  30,  1996  are  as
     follows:

                                     Buildings and                Accumulated
Property                   Land        Equipment       Total      Depreciation

HomeTown Buffet
  Albuquerque, NM       $   602,859  $   720,987    $ 1,323,846    $  43,243
Red Robin
  Colorado Springs, CO      979,057    1,323,210      2,302,267      115,781
Red Robin
  Colorado Springs, CO      721,168    1,034,273      1,755,441       90,499
Arby's/Mrs. Winner's
  Smyrna, GA                516,705      723,775      1,240,480       51,674
Applebee's
  Middletown, OH            330,557      765,405      1,095,962       65,823
Denny's
  Burleson, TX              374,721      548,759        923,480       34,356
Applebee's
  McAllen, TX               463,553      856,551      1,320,104       59,483
Applebee's
  Lafayette, LA             416,197      760,362      1,176,559       46,419
Applebee's
  Brownsville, TX           523,042      855,694      1,378,736       36,497
Denny's
  Grapevine, TX             722,668      632,053      1,354,721       19,483
Media Play
  Apple Valley, MN          425,360      997,340      1,422,700       27,110
Garden Ridge
  Pineville, NC             526,382    1,097,604      1,623,986       18,293
Champps Americana
  Lyndhurst, OH             731,677    1,301,209      2,032,886       20,491
                         -----------  -----------    -----------   -----------
                        $ 7,333,946  $11,617,222    $18,951,168   $  629,152
                         ===========  ===========    ===========   ===========


     On  March  28,  1996,  the Partnership  purchased  a  18.50%
     interest  in  a  Garden  Ridge  store  in  Pineville,  North
     Carolina  for $1,623,986.  The property is leased to  Garden
     Ridge,  Inc. under a Lease Agreement with a primary term  of
     20  years  and  annual  rental payments  of  $174,319.   The
     remaining interest in the property was purchased by AEI  Net
     Lease  Income & Growth Fund XIX Limited Partnership and  AEI
     Income & Growth Fund XXI Limited Partnership, affiliates  of
     the Partnership.
     
                                
    AEI NET LEASE INCOME & GROWTH FUND XX LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                           (Continued)
                                
(3)  Investments in Real Estate -  (Continued)

     In  August, 1995, the Partnership entered into an  Agreement
     to  purchase an Italianni's restaurant in Columbus, Ohio for
     approximately  $1,440,000.   The Agreement  with  Ristoranti
     Karlo,  Inc. included a Lease Agreement with a primary  term
     of  15  years  and  annual rental payments of  approximately
     $162,000.   Through September 30, 1996, the Partnership  had
     advanced $1,215,483 for the construction of the property and
     was  charging interest on the Note at the rate of 7.0%.   On
     May  1, 1996, the Partnership began charging interest on the
     Note at the rate of 11.25%.
     
     In  October,  1996,  the  parties agreed  to  terminate  the
     Agreement.   Ristoranti  Karlo,  Inc.  will  reimburse   the
     Partnership for all construction advances, accrued  interest
     and for certain expenses.
     
     On  April  10, 1996, the Partnership purchased  a  90.71346%
     interest  in  a  Champps Americana restaurant in  Lyndhurst,
     Ohio  for  $1,928,515.  The property is leased to  Americana
     Dining  Corporation under a Lease Agreement with  a  primary
     term  of  20  years and annual rental payments of  $208,550.
     The  remaining interest in the property was purchased by the
     Individual  General  Partner of  the  Partnership,  and  AEI
     Institutional  Net  Lease  Fund '93,  an  affiliate  of  the
     Partnership.
     
     On  September 27, 1996, the Partnership sold 12.3188% of the
     Arby's/Mrs.  Winner's restaurant in Smyrna,  Georgia  to  an
     unrelated  third party.  The Partnership received  net  sale
     proceeds  of  $181,496  which resulted  in  a  net  gain  of
     $35,944.   At  the  time  of  sale,  the  cost  and  related
     accumulated  depreciation of the interest sold was  $152,812
     and $7,260, respectively.
     
     During  1995, the Partnership sold 59.8646% of the  HomeTown
     Buffet  restaurant  in  Albuquerque,  New  Mexico,  in  four
     separate  transactions  to  unrelated  third  parties.   The
     Partnership  received  total net sale proceeds  of  $988,838
     which  resulted in a total net gain of $225,180.  The  total
     cost and accumulated depreciation of the interests sold  was
     $792,515 and $28,857, respectively.
     
     The  Partnership  owns the above properties  as  tenants-in-
     common with the unrelated third parties.  The management  of
     the properties are governed by co-tenancy agreements between
     the Partnership and the unrelated third parties, which grant
     the  Partnership the authority to control the management  of
     the  property.  For property owned as tenants-in-common with
     third  parties,  other  than  affiliated  partnerships,  the
     Partnership  accounts  for  its  interest  under  the   full
     consolidation  method whereby the unrelated  third  parties'
     interests  in the property is reflected in the Partnership's
     financial  statements as a minority interest.  For  purposes
     of   financial   reporting,  the  Partnership   consolidates
     properties  in  which it is the controlling tenant-in-common
     despite  having  only  a  minority equity  interest  in  the
     property.   The Partnership also consolidates the Individual
     General   Partner's   interest  in  the  Champps   Americana
     restaurant in Lyndhurst, Ohio.
     
                                
    AEI NET LEASE INCOME & GROWTH FUND XX LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                           (Continued)
                                
(3)  Investments in Real Estate -  (Continued)

     During the first nine months of 1996 and the year 1995,  the
     Partnership  distributed $100,570 and $486,375 of  net  sale
     proceeds  to  the Limited and General Partners  as  part  of
     their  regular quarterly distributions, which represented  a
     return   of   capital  of  $4.17  and  $20.24  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.
     
     The  Partnership has incurred net costs of $731,893 relating
     to  the review of potential property acquisitions.  Of these
     costs, $601,054 have been capitalized and allocated to land,
     building  and  equipment.  The remaining costs  of  $130,839
     have  been  capitalized  and will be allocated  to  property
     acquisitions in future periods.
     
(4)  Payable to AEI Fund Management, Inc. -

     AEI  Fund  Management, Inc. performs the administrative  and
     operating functions for the Partnership.  The payable to AEI
     Fund   Management  represents  the  balance  due  for  those
     services.    This  balance  is  non-interest   bearing   and
     unsecured  and  is  to  be  paid in  the  normal  course  of
     business.


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS

Results of Operations

       For the nine months ended September 30, 1996 and 1995, the
Partnership recognized rental income of $1,474,543 and  $960,965,
respectively.   During the same periods, the  Partnership  earned
$159,627  and  $406,000  in investment income  from  subscription
proceeds which were invested in short-term money market accounts,
commercial   paper,  federal  agency  notes,   and   construction
advances.   This  investment income constituted 10%  and  30%  of
total  income  for the nine months ended September 30,  1996  and
1995,  respectively.  The percentage of total income  represented
by  investment  income  declines  as  subscription  proceeds  are
invested in properties.

        The annual rent from the thirteen properties acquired, as
of  September 30, 1996, is approximately $1,985,000.   Since  all
properties  are  leased under triple-net leases, the  Partnership
has  not  incurred,  and  does  not  expect  to  incur,  expenses
associated  with the operation or maintenance of  properties  and
the  rental  income  represents the cash flow  generated  by  the
properties to the Partnership.

        During the nine months ended September 30, 1996 and 1995,
the  Partnership  paid  Partnership  administration  expenses  to
affiliated parties of $171,081 and $193,030, respectively.  These
administration  expenses  include  initial  start-up  costs   and
expenses  associated  with  the  management  of  the  properties,
processing    distributions,    reporting    requirements     and
correspondence  to  the  Limited  Partners.   The  administrative
expenses   decrease  after  completion  of   the   offering   and
acquisition phases of the Partnership's operations.   During  the
same periods, the Partnership incurred Partnership administration
and  property  management  expenses  from  unrelated  parties  of
$30,917  and  $30,218,  respectively.  These  expenses  represent
direct  payments  to  third parties for legal  and  filing  fees,
direct  administrative costs, outside audit and accounting costs,
insurance and other property costs.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS  (Continued)

        The  Partnership distributes all of its net income during
the  offering  and  acquisition phases, and if net  income  after
deductions  for  depreciation  is  not  sufficient  to  fund  the
distributions,  the  Partnership may distribute  other  available
cash that constitutes capital for accounting purposes.

         As   of  September  30,  1996,  the  Partnership's  cash
distribution rate was 8.0% on an annualized basis.  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.

       Since the Partnership has only recently purchased its real
estate,  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

        The  Partnership's  primary  sources  of  cash  are  from
proceeds from the sale of Units, investment income, rental income
and proceeds from the sale of property.  Its primary uses of cash
are  investment in real properties, payment of expenses  involved
in  the  sale of units, the organization of the Partnership,  the
acquisition  of  properties, the management  of  properties,  the
administration   of   the  Partnership,  and   the   payment   of
distributions.

        While the Partnership is purchasing properties, cash flow
from  investing  activities (investment in  real  property)  will
remain  negative  and will constitute the principal  use  of  the
Partnership's  available cash flow.  This use of  cash  flow  for
investing  activities was partially offset by proceeds  from  the
sale of property.

        On  September 27, 1996, the Partnership sold 12.3188%  of
the  Arby's/Mrs.  Winner's restaurant in Smyrna,  Georgia  to  an
unrelated  third  party.   The  Partnership  received  net   sale
proceeds of $181,496 which resulted in a net gain of $35,944.  At
the  time  of sale, the cost and related accumulated depreciation
of the interest sold was $152,812 and $7,260, respectively.

       During 1995, the Partnership sold 59.8646% of the HomeTown
Buffet  restaurant in Albuquerque, New Mexico, in  four  separate
transactions   to  unrelated  third  parties.   The   Partnership
received total net sale proceeds of $988,838 which resulted in  a
total  net  gain  of  $225,180.  The total cost  and  accumulated
depreciation  of  the  interests sold was $792,515  and  $28,857,
respectively.

        The  Partnership owns the above properties as tenants-in-
common  with the unrelated third parties.  The management of  the
properties  are  governed by co-tenancy  agreements  between  the
Partnership  and  the unrelated third parties,  which  grant  the
Partnership  the  authority  to control  the  management  of  the
property.   The Partnership accounts for its interest  under  the
full  consolidation method whereby the unrelated  third  parties'
interests  in  the  property are reflected in  the  Partnership's
financial  statements  as a minority interest.   The  Partnership
also  consolidates the Individual General Partner's  interest  in
the Champps Americana restaurant in Lyndhurst, Ohio.


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS  (Continued)

        During  the first nine months of 1996 and the year  1995,
the  Partnership distributed $100,570 and $486,375  of  net  sale
proceeds  to  the Limited and General Partners as part  of  their
regular  quarterly distributions, which represented a  return  of
capital  of  $4.17  and  $20.24  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.

        Before  the  acquisition of properties,  cash  flow  from
operating  activities  is  not  significant.   Net  income  after
adjustment for depreciation, which becomes the largest  component
of  cash flow from operating activities and the largest component
of  cash  flow after the completion of the acquisition phase,  is
lower  during the first few years of operations as administrative
expenses  remain  high  and a large amount of  the  Partnership's
assets  remain  invested on a short-term basis in  lower-yielding
cash equivalents.

         Until   the   offering  of  Units  was  completed,   the
Partnership's primary source of cash flow was from  the  sale  of
Limited  Partnership Units.  From January 20, 1993  to  June  30,
1993,  the  minimum number of Limited Partnership  Units  (1,500)
needed to form the Partnership were sold and on June 30, 1993,  a
total  of 1,637.473 Units ($1,637,473) were transferred into  the
Partnership.   On  January 19, 1995, the  Partnership's  offering
terminated when the maximum subscription limit of 24,000  Limited
Partnership  Units ($24,000,000) was reached.  From  subscription
proceeds, the Partnership paid organization and syndication costs
(which constitute a reduction of capital) of $3,282,051.

         After   completion   of  the  acquisition   phase,   the
Partnership's  primary  use  of cash  flow  is  distribution  and
redemption  payments to Partners.  The Partnership  declares  its
regular  quarterly distributions before the end of  each  quarter
and pays the distribution in the first week after the end of each
quarter.    The  Partnership  attempts  to  maintain   a   stable
distribution  rate from quarter to quarter.  Redemption  payments
are  paid  to  redeeming Partners in the fourth quarter  of  each
year.

        The  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.

        On  October 1, 1996, sixteen Limited Partners redeemed  a
total of 216.2 Partnership Units for $194,115 in accordance  with
the  Partnership Agreement.  The Partnership acquired these Units
using  Net  Cash  Flow from operations.  In  1995,  five  Limited
Partners  redeemed  a  total  of  131.5  Partnership  Units   for
$118,350.    The  redemptions  increase  the  remaining   Limited
Partners' ownership interest in the Partnership.

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


                   PART II - OTHER INFORMATION
                                
ITEM 1. LEGAL PROCEEDINGS

       There  are no material pending legal proceedings to  which
  the  Partnership  is  a  party or of  which  the  Partnership's
  property is subject.

ITEM 2. CHANGES IN SECURITIES

        None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

        None.

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

        None

ITEM 5. OTHER INFORMATION

        None.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

        a. Exhibits -
                            Description

           10.1  Purchase  Agreement dated  September 10, 1996
                 between the Partnership and  the
                 Margaret   E.   Brust  Irrevocable   Trust
                 relating  to  the property at  4950  South
                 Cobb Drive, Smyrna, Georgia.

           10.2  Property   Co-tenancy    Ownership
                 Agreement   dated   September   27,   1996
                 between  the Partnership and the  Margaret
                 E.  Brust  Irrevocable Trust  relating  to
                 the  property  at 4950 South  Cobb  Drive,
                 Smyrna, Georgia.

            27   Financial Data Schedule  for  period
                 ended September 30, 1996.

        b.       Reports  filed on Form  8-K  -   None.


                           SIGNATURES
                                

     In accordance with the requirements of the Exchange Act, the
Registrant has caused this report to be signed on its  behalf  by
the undersigned, thereunto duly authorized.


Dated:  November 13, 1996     AEI Net Lease  Income & Growth Fund XX
                              Limited Partnership
                              By:  AEI Fund Management XX, Inc.
                              Its: Managing General Partner



                              By: /s/ Robert P. Johnson
                                      Robert P. Johnson
                                      President
                                      (Principal Executive Officer)



                              By: /s/ Mark E. Larson
                                      Mark E. Larson
                                      Chief Financial Officer
                                      (Principal Accounting Officer)