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

Made  and entered into as of the 25th day of September, 1997,  by
and   between   Nick  DeVito,  Inc.,  a  California  Corporation,
(hereinafter  called "DeVito"), and AEI Real  Estate  Fund  XVIII
Limited  Partnership (hereinafter called "Fund  XVIII")  (DeVito,
Fund  XVIII  (and  any other Owner in Fee where  the  context  so
indicates)  being hereinafter sometimes collectively called  "Co-
Tenants" and referred to in the neuter gender).

WITNESSETH:

WHEREAS, Fund XVIII presently owns an undivided 35.0623% interest
in  and  to,  and  DeVito  presently owns an  undivided  15.6724%
interest  in and to, and Anton Kuster presently owns an undivided
11.5896%  interest  in  and  to,  and  The  Hesson  Family  Trust
presently owns an undivided 13.2895% interest in and to, and Arel
D.  and Louise B. Middleton presently owns and undivided 10.6316%
interest (also referred to herein as Co-Tenant)  in and  to,  and
Carolyn W. Davidson presently owns an undivided 13.7546% interest
(also  referred  to  herein as Co-Tenant) in  and  to  the  land,
situated  in the City of San Antonio, County of Bexar, and  State
of  Texas, (legally described upon Exhibit A attached hereto  and
hereby made a part hereof) and in and to the improvements located
thereon (hereinafter called "Premises");

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

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

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

As  further set forth in paragraph 2 hereof, Fund XVIII agrees to
require  any lessee of the Premises to name DeVito as an  insured
or  additional insured in all insurance policies provided for, or
contemplated by, any lease on the Premises. Fund XVIII shall  use
its best efforts to obtain endorsements adding


Co-Tenant Initial: /s/ V.D.F
Co-Tenancy Agreement for Taco Cabana - San Antonio, TX



Co-Tenants  to  said  policies from  lessee  within  30  days  of
commencement  of this agreement. In any event, Fund  XVIII  shall
distribute  any insurance proceeds it may receive, to the  extent
consistent  with any lease on the Premises, to the Co-Tenants  in
proportion to their respective ownership of the Premises.

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

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

DeVito  has  no requirement to, but has, nonetheless  elected  to
retain,  and  agrees to annually reimburse,  Fund  XVIII  in  the
amount of $900 for the expenses, direct and indirect, incurred by
Fund  XVIII in providing monthly accounting and distributions  of
DeVito's  share  of  net income and for tracking,  reporting  and
assessing the calculation of DeVito's share of operating expenses
incurred  from  the Premises. This invoice amount shall  be  pro-
rated  for  partial  years and DeVito authorizes  Fund  XVIII  to
deduct  such  amount  from DeVito's share  of  revenue  from  the
Premises.  DeVito may terminate this agreement in this  paragraph
respecting  accounting and distributions at any time and  attempt
to  collect its share of rental income directly from the  tenant;
however, enforcement of all other provisions of the lease remains
the  sole right of Fund XVIII pursuant to Section 1 hereof.  Fund
XVIII  may terminate its obligation under this paragraph upon  30
days  notice  to  DeVito  prior to the end  of  each  anniversary
hereof, unless agreed in writing to the contrary.

3.    Full, accurate and complete books of account shall be  kept
in  accordance  with generally accepted accounting principles  at
Fund  XVIII's  principal office, and each  Co-Tenant  shall  have
access  to  such books and may inspect and copy any part  thereof
during  normal business hours. Within ninety (90) days after  the
end  of  each  calendar year during the term hereof,  Fund  XVIII
shall  prepare an accurate income statement for the ownership  of
the  Premises for said calendar year and shall furnish copies  of
the same to all Co-Tenants. Quarterly, as its share, DeVito shall
be  entitled  to  receive 15.6724% of all  items  of  income  and
expense   generated  by  the  Premises.  Upon  receipt  of   said
accounting,  if the payments received by each Co-Tenant  pursuant
to  this  Paragraph 3 do not equal, in the aggregate, the amounts
which  each are entitled to receive proportional to its share  of
ownership  with  respect  to  said  calendar  year  pursuant   to
Paragraph  2 hereof, an appropriate adjustment shall be  made  so
that each Co-Tenant receives the amount to which it is entitled.

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


Co-Tenant Initial: /s/ V.D.F
Co-Tenancy Agreement for Taco Cabana - San Antonio, TX




Fund  XVIII  sufficient to pay said net operating losses  and  to
provide necessary operating capital for the premises and  to  pay
for  said capital improvements, repairs and/or replacements,  all
in  proportion  to  their  undivided  interests  in  and  to  the
Premises.

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

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

7.    This  property management agreement shall continue in  full
force  and effect and shall bind and inure to the benefit of  the
Co-Tenant  and their respective heirs, executors, administrators,
personal representatives, successors and permitted assigns  until
July  19,  2016  or  upon  the sale of  the  entire  Premises  in
accordance with the terms hereof and proper disbursement  of  the
proceeds   thereof,   whichever  shall   first   occur.    Unless
specifically   identified  as  a  personal  contract   right   or
obligation herein, this agreement shall run with any interest  in
the  Premises and with the title thereto. Once any person,  party
or entity has ceased to have an interest in fee in any portion of
the  Premises,  it shall not be bound by, subject to  or  benefit
from  the terms hereof; but its heirs, executors, administrators,
personal representatives, successors or assigns, as the case  may
be, shall be substituted for it hereunder.

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

If to Fund XVIII:

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

If to Davidson:

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

If to Middleton:

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



Co-Tenant Initial: /s/ V.D.F
Co-Tenancy Agreement for Taco Cabana - San Antonio, TX


If to Hesson:

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

If to Kuster:

Tony Kuster
4214 Danbury
Amarillo, TX  79109

If to DeVito

Vito DeVito Francesco, Secretary/Treasurer
P.O, Box 591
Ontario, CA  91762

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

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

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

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


Co-Tenant Initial: /s/ V.D.F
Co-Tenancy Agreement for Taco Cabana - San Antonio, TX




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

DeVito    Nick DeVito, Inc., a California Corporation

          By: /s/ Vito DeVito Francesco
                  Vito DeVito Francesco, Secretary/Treasurer

Witness   By:/s/ Warren Stewart

Witness   By:/s/ Sharon Rose


STATE OF                                  )
                              ) ss
COUNTY OF                             )

The  foregoing instrument was acknowledged  before  me,  a
Notary  Public in and for the County and State  aforesaid,
this          day  of            ,1997, by               ,
Notary Public.




Co-Tenant Initial: /s/ V.D.F
Co-Tenancy Agreement for Taco Cabana - San Antonio, TX



Fund XVIII AEI Real Estate Fund XVIII Limited Partnership

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

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

Witness    By:/s/ Dawn E Campbell

Witness    By:/s/ Jennifer Seck

State of Minnesota )
                                   ) ss.
County of Ramsey  )

I,  a Notary Public in and for the state and county of aforesaid,
hereby  certify  there  appeared  before  me  this  25th  day  of
September,  1997,  Robert  P.  Johnson,  President  of  AEI  Fund
Management  XVIII, Inc., corporate general partner  of  AEI  Real
Estate Fund XVIII Limited Partnership, who executed the foregoing
instrument  in said capacity and on behalf of the corporation  in
its  capacity  as corporate general partner, on  behalf  of  said
limited partnership.

                                   /s/ Linda A Bisdorf
                                       Notary Public





Co-Tenant Initial: /s/ V.D.F
Co-Tenancy Agreement for Taco Cabana - San Antonio, TX












                         Exhibit A


                    Legal Description


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