PURCHASE AGREEMENT
                  Taco Cabana, San Antonio, TX

This  AGREEMENT,  entered  into  effective  as  of  the  30th  of
September, 1997 .

l.  Parties.  Seller  is  AEI  Real  Estate  Fund  XVIII  Limited
Partnership  ("Seller"),  which  presently  holds  an   undivided
50.7347%  interest in the fee title to that certain real property
legally  described  in  the attached Exhibit  "A".  (the  "Entire
Property")    Buyer is 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 ("Buyer"). Seller wishes  to
sell  and  Buyer wishes to buy a portion as Tenant in  Common  of
Seller's interest in the Entire Property.

2. Property. The Property to be sold to Buyer in this transaction
consists   of   an   undivided   12.8462%   percentage   interest
(hereinafter, simply the "Property")  as Tenant in Common in  the
Entire Property.  To the best of Seller's knowledge, the purchase
of  the  Property is the purchase of an interest in real property
under Texas law.

3.  Purchase  Price  .  The purchase price  for  this  percentage
interest in the Property is $250,000, all cash.

4.  Terms.  The purchase price for the Property will be  paid  by
Buyer as follows:

     (a)  When this agreement is executed, Buyer will pay  $5,000
     to  Seller (the "First Payment"). The First Payment will  be
     credited  against  the purchase price  when  and  if  escrow
     closes  and  the  sale is completed, or otherwise  dispersed
     pursuant to the terms of this Agreement.
     
     (b)  Buyer  will deposit the balance of the purchase  price,
     $245,000  (the  "Second Payment") into escrow in  sufficient
     time to allow escrow to close on the Closing Date.
     
     (c)  Seller hereby acknowledges receipt of the sum of $50.00
     cash   (the   "Option   Consideration")   from   Buyer,   as
     consideration for execution of this Agreement by Seller.  If
     the  purchase  and  sale  of  the  Property  is  consummated
     pursuant  to this Agreement, the Option Consideration  shall
     be applied toward the purchase price paid by Buyer.  If this
     Agreement  is  terminated pursuant to a  default  by  Seller
     hereunder,  the  Option Consideration shall  be  immediately
     returned   by  Seller  to  Buyer.   If  this  Agreement   is
     terminated  for  any reason other than a default  by  Seller
     hereunder,  Seller  shall be entitled to retain  the  Option
     Consideration.

5.  Closing  Date.   Escrow shall close on or before  October  3,
1997.

6.  Due  Diligence. Buyer will have until the expiration  of  the
fifth  business day (The "Review Period") after delivery of  each
of  following items, to be supplied by Seller, to conduct all  of
its  inspections  and due diligence and satisfy itself  regarding
each  item, the Property, and this transaction.  Buyer agrees  to
indemnify and hold Seller harmless for any loss or damage to  the
Leased  Premises or persons caused by Buyer or its agents arising
out of such physical inspections of the Entire Property.

     (a)   The  original  and  one  copy  of  a  title  insurance
     commitment  for  an  Owner's  Title  insurance  policy  (see
     paragraph 8 below).
     
     (b)  Copies  of  a Certificate of Occupancy  or  other  such
     document  certifying completion and granting  permission  to
     permanently  occupy the improvements on the Entire  Property
     as are in Seller's possession.
     
     
     
     
     Buyer Initial: /s/ DH /s/ RH
     Purchase Agreement for Taco Cabana - San Antonio, TX
     
     
     
     (c)  Copies  of  an "as built" survey of the  Property  done
     concurrent with Seller's acquisition of the Property.
     
     (d)  Lease  of  the Entire Property showing occupancy  date,
     lease   expiration  date,  rent,  and  Guarantys,  if   any,
     accompanied by such tenant financial statements as may  have
     been  provided most recently to Seller by the Tenant  and/or
     Guarantors.
     
     It is a contingency upon Seller's obligations hereunder that
two  (2)  copies  of  Co-Tenancy Agreement in the  form  attached
hereto  duly  executed by Buyer and Seller and  dated  on  escrow
Closing Date be delivered to the Seller on the Closing Date.

      Buyer may cancel this agreement for ANY REASON in its  sole
discretion  by  delivering a cancellation notice, return  receipt
requested,  to Seller and escrow holder before the expiration  of
any  Review  Period.  Such notice shall be deemed effective  only
upon receipt by Seller.  If this Agreement is not canceled as set
forth  above,  the  First Payment shall be non-refundable  unless
Seller shall default hereunder.

      If  Buyer  cancels this Agreement as permitted  under  this
Section,  except  for  any  escrow  cancellation  fees  and   any
liabilities  under sections 15(a) of this Agreement  (which  will
survive),  Buyer  (after execution of such  documents  reasonably
requested by Seller to evidence the termination hereof) shall  be
returned  its  First Payment, and Buyer will have  absolutely  no
rights,  claims  or interest of any type in connection  with  the
Property  or this transaction, regardless of any alleged  conduct
by Seller or anyone else.

      Unless this Agreement is canceled by Buyer pursuant to  the
terms  hereof, if Buyer fails to make the Second Payment,  Seller
shall   be  entitled  to  retain  the  First  Payment  and  Buyer
irrevocably will be deemed to be in default under this Agreement.
Seller  may, at its option, retain the First Payment and  declare
this Agreement null and void, in which event Buyer will be deemed
to  have canceled this Agreement and relinquish all rights in and
to  the  Property or Seller may exercise its rights under Section
14  hereof.   If  this Agreement is not canceled and  the  Second
Payment  is  made  when required, all of Buyer's  conditions  and
contingencies will be deemed satisfied.

7.  Escrow. Escrow shall be opened by Seller and funds  deposited
in  escrow upon acceptance of this Agreement by both parties. The
escrow  holder  will  be a nationally-recognized  escrow  company
selected by Seller. A copy of this Agreement will be delivered to
the  escrow holder and will serve as escrow instructions together
with the escrow holder's standard instructions and any additional
instructions required by the escrow holder to clarify its  rights
and  duties  (and  the  parties agree to  sign  these  additional
instructions).  If  there  is any conflict  between  these  other
instructions and this Agreement, this Agreement will control.

8.  Title.  Closing will be conditioned on the  commitment  of  a
title  company selected by Seller to issue an Owner's  policy  of
title  insurance, dated as of the close of escrow, in  an  amount
equal  to  the  purchase  price, insuring  that  Buyer  will  own
insurable  title  to  the Property subject  only  to:  the  title
company's  standard exceptions;  current real property taxes  and
assessments;  survey  exceptions;  the  rights  of   parties   in
possession pursuant to the lease defined in paragraph  11  below;
and  other  items of record disclosed to Buyer during the  Review
Period.

      Buyer shall be allowed five (5) days after receipt of  said
commitment  for examination and the making of any  objections  to
marketability thereto, said objections to be made in  writing  or
deemed  waived.  If any objections are so made, the Seller  shall
be  allowed eighty (80) days to make such title marketable or  in
the  alternative  to  obtain  a commitment  for  insurable  title
insuring over Buyer's objections.  If Seller shall decide to make
no  efforts to make title marketable, or is unable to make  title
marketable or obtain insurable title, (after execution  by  Buyer
of  such documents reasonably requested by Seller to evidence the
termination hereof) Buyer's First Payment



     Buyer Initial: /s/ DH /s/ RH
     Purchase Agreement for Taco Cabana - San Antonio, TX




shall  be returned and this Agreement shall be null and void  and
of no further force and effect.

     Pending correction of title, the payments hereunder required
shall  be postponed, but upon correction of title and within  ten
(10)  days  after written notice of correction to the Buyer,  the
parties shall perform this Agreement according to its terms.

9.  Closing Costs.  Seller will pay one-half of escrow fees,  the
cost  of  the  title  commitment and  any  brokerage  commissions
payable  except  those brokerage commissions incurred  by  Buyer.
The  buyer  will pay the cost of issuing a Standard Owners  Title
Insurance  Policy  in the full amount of the purchase  price,  if
Buyer desires to purchase the same.  Buyer will pay all recording
fees,  one-half of the escrow fees, and the cost of an update  to
the  Survey  in Sellers possession (if an update is  required  by
Buyer.)  Each party will pay its own attorney's fees and costs to
document and close this transaction.

10. Real Estate Taxes, Special Assessments and Prorations.

     (a)  Because the Entire Property (of which the Property is a
     part) is subject to a triple net lease (as further set forth
     in  paragraph 11(a)(i), the parties acknowledge  that  there
     shall  be no need for a real estate tax proration.  However,
     Seller  represents  that to the best of its  knowledge,  all
     real  estate  taxes and installments of special  assessments
     due  and  payable in all years prior to the year of  Closing
     have  been paid in full.  Unpaid levied and pending  special
     assessments  existing on the date of Closing  shall  be  the
     responsibility  of Buyer and Seller in proportion  to  their
     respective  Tenant in Common interests, pro-rated,  however,
     to  the  date  of closing; for the period prior to  closing,
     such  taxes  and  asessments shall be the responsibility  of
     Seller, if Tenant shall not pay the same.  Seller and  Buyer
     shall   likewise  pay  in  proportion  to  their   ownership
     interests  all  taxes  due and payable  in  the  year  after
     Closing  and  any unpaid installments of special assessments
     payable therewith and thereafter, if such unpaid levied  and
     pending  special assessments and real estate taxes  are  not
     paid by any tenant of the Entire Property.
     
     (b)   All income and all operating expenses from the  Entire
     Property  shall be prorated between the parties and adjusted
     by them as of the date of Closing.  Seller shall be entitled
     to  all  income  earned  and shall be  responsible  for  all
     expenses  incurred prior to the date of Closing,  and  Buyer
     shall  be entitled to its proportionate share of all  income
     earned and shall be responsible for its proportionate  share
     of  all  operating expenses of the Property incurred on  and
     after  the date of closing, if the same are not paid by  any
     tenant of the Entire Property.
     
11. Seller's Representation and Agreements.

     (a)  Seller represents and warrants as of this date that:

     (i)   Except  for the lease in existence between Seller  and
     Taco Cabana, Inc. ("Lessee"), dated July 19, 1991 which  was
     assigned  to  Texas Taco Cabana LP pursuant to  the  General
     Assignment  and  Assumption of Leases between  Taco  Cabana,
     Inc. and TC Lease Holdings III, V and VI, Inc. dated October
     31,   1993  and  pursuant  to  the  General  Assignment  and
     Assumption of Leases between TC Lease Holding III V and  VI,
     Inc.  and  Texas Taco Cabana LP dated October 31,  1993  and
     pursuant to the Consents and Acknowledgments Concerning  Net
     Lease  Agreements  between Taco Cabana, Inc.  and  AEI  Real
     Estate  Fund XVIII Limited Partnership dated June  2,  1994,
     Seller  is not aware of any leases of the Property.  A  copy
     of  the above referenced documents is incorporated herein as
     "Exhibit "B".   The above referenced lease agreement has  an
     option  to purchase in favor of the Lessee as set  forth  in
     article 34 of said lease agreement.
     
     
     
     
     Buyer Initial: /s/ DH /s/ RH
     Purchase Agreement for Taco Cabana - San Antonio, TX
     

     (ii)   It  is  not  aware  of  any  pending  litigation   or
     condemnation  proceedings against the Property  or  Seller's
     interest in the Property.
     
     (iii)   Except as previously disclosed to Buyer and  as  set
     forth  in  paragraph (b) below, Seller is not aware  of  any
     contracts Seller has executed that would be binding on Buyer
     after the Closing Date.
          
     (b)   Provided  that  Buyer performs  its  obligations  when
     required, Seller agrees that it will not enter into any  new
     contracts  prior  to the Closing Date that would  materially
     affect  the  Property  and be binding  on  Buyer  after  the
     Closing  Date without Buyer's prior consent, which will  not
     be  unreasonably withheld.  However, Buyer acknowledges that
     Seller retains the right both prior to and after the Closing
     Date  to  freely  transfer  all or  a  portion  of  Seller's
     remaining undivided interest in the Entire Property provided
     such sale shall not encumber the Property being purchased by
     Buyer  in  violation of the terms hereof or the contemplated
     Co-Tenancy Agreement.
     
12. Disclosures.

     (a)   To the best of Seller's knowledge: there are now,  and
     at  the  Closing  there  will be, no material,  physical  or
     mechanical  defects  of  the  Property,  including,  without
     limitation,   the   plumbing,  heating,  air   conditioning,
     ventilating, electrical systems, and all such items  are  in
     good  operating condition and repair and in compliance  with
     all  applicable  governmental , zoning and  land  use  laws,
     ordinances, regulations and requirements.
     
     (b)   To  the  best  of  Seller's  knowledge:  the  use  and
     operation of the Property now is, and at the time of Closing
     will  be, in full compliance with applicable building codes,
     safety,   fire,  zoning,  and  land  use  laws,  and   other
     applicable   local,  state  and  federal  laws,  ordinances,
     regulations and requirements.
     
     (c)   Seller  knows  of no facts nor has  Seller  failed  to
     disclose  to  Buyer  any fact known to  Seller  which  would
     prevent  the  use  and operation of the Property  after  the
     Closing  in the manner in which the Property has  been  used
     and operated prior to the date of this Agreement.
     
     (d)  To the best of Seller's knowledge: the Property is not,
     and  as  of  the  Closing will not be, in violation  of  any
     federal,  state  or  local  law,  ordinance  or  regulations
     relating  to  industrial  hygiene or  to  the  environmental
     conditions  on, under, or about the Property including,  but
     not  limited  to, soil and groundwater conditions.   To  the
     best  of  Seller's  knowledge: there  is  no  proceeding  or
     inquiry  by any governmental authority with respect  to  the
     presence  of  Hazardous Materials on  the  Property  or  the
     migration  of Hazardous Materials from or to other property.
     Buyer agrees that Seller will have no liability of any  type
     to  Buyer  or Buyer's successors, assigns, or affiliates  in
     connection  with any Hazardous Materials on or in connection
     with  the Property either before or after the Closing  Date,
     except such Hazardous Materials on or in connection with the
     Property  arising  out  of  Seller's  gross  negligence   or
     intentional misconduct.
     
     (e)   Buyer agrees that it shall be purchasing the  Property
     in  its  then present condition, as is, where is, and Seller
     has  no  obligations to construct or repair any improvements
     thereon  or to perform any other act regarding the Property,
     except as expressly provided herein.
     
     (f)    Buyer  acknowledges  that,  having  been  given   the
     opportunity  to  inspect  the Property  and  such  financial
     information  on the Lessee and Guarantors of  the  Lease  as
     Buyer or its advisors shall request, Buyer is relying solely
     on its own investigation of the Property and not on any
     
     
     Buyer Initial: /s/ DH /s/ RH
     Purchase Agreement for Taco Cabana - San Antonio, TX
     
     
     
     
     
     information provided by Seller  or to be provided except  as
     set  forth  herein.   Buyer further  acknowledges  that  the
     information  provided  and to be  provided  by  Seller  with
     respect to the Property and to the Lessee and Guarantors  of
     Lease  was  obtained  from a variety of sources  and  Seller
     neither   (a)   has   made  independent   investigation   or
     verification   of  such  information,  or  (b)   makes   any
     representations as to the accuracy or completeness  of  such
     information.   The  sale  of the Property  as  provided  for
     herein  is  made  on an "AS IS" basis, and  Buyer  expressly
     acknowledges  that, in consideration of  the  agreements  of
     Seller  herein, except as otherwise specified herein, Seller
     makes no warranty or representation, express or implied,  or
     arising by operation of law, including, but not limited  to,
     any  warranty  or  condition,  habitability,  tenantability,
     suitability  for  commercial purposes,  merchantability,  or
     fitness  for  a  particular  purpose,  in  respect  of   the
     Property.
     
     The provisions (d) - (f) above shall survive closing.
     
13. Closing.

     (a)   Before  the  Closing Date, Seller  will  deposit  into
     escrow an executed special warranty deed conveying insurable
     title  of the Property to Buyer, subject to the encumbrances
     contained in paragraph 8 above.
     
     (b)   On or before the Closing Date, Buyer will deposit into
     escrow:  the  balance  of the purchase price  when  required
     under  Section  4; any additional funds required  of  Buyer,
     (pursuant to this agreement or any other agreement  executed
     by  Buyer) to close escrow.  Both parties will sign the  Co-
     Tenancy  Agreement,  and deliver to the  escrow  holder  any
     other documents reasonably required by the escrow holder  to
     close escrow.
     
     (c)   On  the  Closing Date, if escrow is in a  position  to
     close,  the  escrow  holder will: record  the  deed  in  the
     official  records  of  the  county  where  the  Property  is
     located;  cause  the title company to commit  to  issue  the
     owners  title policy purchase by Buyer; immediately  deliver
     to  Seller the portion of the purchase price deposited  into
     escrow by cashier's check or wire transfer (less debits  and
     prorations,  if any); deliver to Seller and Buyer  a  signed
     counterpart   of  the  escrow  holder's  certified   closing
     statement  and  take  all other actions necessary  to  close
     escrow.

14.  Defaults.  If Buyer defaults, Buyer will forfeit all  rights
and  claims  and  Seller will be relieved of all obligations  and
will  be  entitled to retain all monies heretofore  paid  by  the
Buyer.   In  addition, Seller shall retain all remedies available
to Seller at law or in equity.

     If Seller shall default, Buyer irrevocably waives any rights
to file a lis pendens, a specific performance action or any other
claim,  action or proceeding of any type in connection  with  the
Property or this or any other transaction involving the Property,
and  will  not  do  anything to affect title to the  Property  or
hinder,  delay  or  prevent  any  other  sale,  lease  or   other
transaction involving the Property (any and all of which will  be
null  and void), unless: it has paid the First Payment, deposited
the  balance  of the second payment for the purchase  price  into
escrow, performed all of its other obligations and satisfied  all
conditions  under  this  Agreement, and unconditionally  notified
Seller  that it stands ready to tender full performance, purchase
the  Property and close escrow as per this Agreement,  regardless
of  any  alleged  default  or misconduct  by  Seller.   Provided,
however, that in no event shall Seller be liable for any  actual,
punitive, consequential or speculative damages arising out of any
default by Seller hereunder.
     
15. Buyer's Representations and Warranties.
     
     a.  Buyer represents and warrants to Seller as follows:



     Buyer Initial: /s/ DH /s/ RH
     Purchase Agreement for Taco Cabana - San Antonio, TX




     (i)   In  addition to the acts and deeds recited herein  and
     contemplated  to  be performed, executed, and  delivered  by
     Buyer, Buyer shall perform, execute and deliver or cause  to
     be  performed,  executed, and delivered at  the  Closing  or
     after  the  Closing,  any and all further  acts,  deeds  and
     assurances as Seller or the Title Company may require and be
     reasonable   in   order  to  consummate   the   transactions
     contemplated herein.
     
     (ii)   Buyer  has  all  requisite  power  and  authority  to
     consummate  the  transaction contemplated by this  Agreement
     and  has by proper proceedings duly authorized the execution
     and  delivery of this Agreement and the consummation of  the
     transaction contemplated hereby.
     
     (iii)   To  Buyer's  knowledge, neither  the  execution  and
     delivery  of  this  Agreement nor the  consummation  of  the
     transaction  contemplated  hereby  will  violate  or  be  in
     conflict with (a) any applicable provisions of law, (b)  any
     order  of  any  court or other agency of  government  having
     jurisdiction  hereof, or (c) any agreement or instrument  to
     which Buyer is a party or by which Buyer is bound.
     
16. Damages, Destruction and Eminent Domain.

     (a)   If, prior to closing, the Property or any part thereof
     be  destroyed  or further damaged by fire, the elements,  or
     any cause, due to events occurring subsequent to the date of
     this Agreement to the extent that the cost of repair exceeds
     $10,000.00,  this Agreement shall become null and  void,  at
     Buyer's  option exercised, if at all, by written  notice  to
     Seller within ten (10) days after Buyer has received written
     notice  from Seller of said destruction or damage.   Seller,
     however,  shall  have  the right to  adjust  or  settle  any
     insured  loss  until  (i)  all contingencies  set  forth  in
     Paragraph 6 hereof have been satisfied, or waived; and  (ii)
     any  five-day period provided for above in this Subparagraph
     16a  for  Buyer  to  elect to terminate this  Agreement  has
     expired  or  Buyer has, by written notice to Seller,  waived
     Buyer's right to terminate this Agreement.  If Buyer  elects
     to  proceed  and  to  consummate the purchase  despite  said
     damage  or  destruction, there shall be no reduction  in  or
     abatement of the purchase price, and Seller shall assign  to
     Buyer the Seller's right, title, and interest in and to  all
     insurance  proceeds  (pro-rata in  relation  to  the  Entire
     Property) resulting from said damage or destruction  to  the
     extent  that the same are payable with respect to damage  to
     the  Property, subject to rights of any Tenant of the Entire
     Property.
     
     If  the cost of repair is less than $10,000.00, Buyer  shall
     be  obligated  to  otherwise  perform  hereinunder  with  no
     adjustment  to  the Purchase Price, reduction or  abatement,
     and  Seller shall assign Seller's right, title and  interest
     in and to all insurance proceeds pro-rata in relation to the
     Entire  Property,  subject to rights of any  Tenant  of  the
     Entire Property.
     
     (b)   If,  prior  to  closing, the  Property,  or  any  part
     thereof,  is  taken by eminent domain, this Agreement  shall
     become null and void, at Buyer's option.  If Buyer elects to
     proceed  and to consummate the purchase despite said taking,
     there  shall  be  no  reduction in,  or  abatement  of,  the
     purchase  price,  and  Seller  shall  assign  to  Buyer  the
     Seller's  right,  title, and interest in and  to  any  award
     made, or to be made, in the condemnation proceeding pro-rata
     in relation to the Entire Property, subject to rights of any
     Tenant of the Entire Property.
     
      In the event that this Agreement is terminated by Buyer  as
provided  above  in  Subparagraph 16a or 16b, the  First  Payment
shall  be immediately returned to Buyer (after execution by Buyer
of  such documents reasonably requested by Seller to evidence the
termination hereof).

17. Buyer's 1031 Tax Free Exchange.



     Buyer Initial: /s/ DH /s/ RH
     Purchase Agreement for Taco Cabana - San Antonio, TX





      While  Seller  acknowledges that Buyer  is  purchasing  the
Property  as  "replacement property" to  accomplish  a  tax  free
exchange,   Buyer   acknowledges  that   Seller   has   made   no
representations,  warranties, or agreements to Buyer  or  Buyer's
agents  that  the transaction contemplated by the Agreement  will
qualify  for such tax treatment, nor has there been any  reliance
thereon by Buyer respecting the legal or tax implications of  the
transactions contemplated hereby.  Buyer further represents  that
it has sought and obtained such third party advice and counsel as
it  deems  necessary in regards to the tax implications  of  this
transaction.

      Buyer  wishes  to  novate/assign the ownership  rights  and
interest  of this Purchase Agreement to Chicago Deferred Exchange
who  will  act  as  Facilitator to perfect the 1031  exchange  by
preparing  an  agreement  of exchange of  Real  Property  whereby
Chicago  Deferred  Exchange will be an  independent  third  party
purchasing the ownership interest in subject property from Seller
and  selling the ownership interest in subject property to  Buyer
under  the  same  terms  and conditions  as  documented  in  this
Purchase  Agreement.  Buyer asks the Seller to cooperate  in  the
perfection  of such an exchange at no additional cost or  expense
or  delay  in  time.  Buyer hereby indemnifies and  holds  Seller
harmless  from  any  claims and/or actions  resulting  from  said
exchange.    Pursuant  to  the  direction  of  Chicago   Deferred
Exchange, Seller will deed the Property to Buyer.

18. Cancellation

     If  any party elects to cancel this Contract because of  any
     breach by another party, the party electing to cancel  shall
     deliver  to escrow agent a notice containing the address  of
     the party in breach and stating that this Contract shall  be
     canceled unless the breach is cured within 13 days following
     the  delivery  of  the notice to the escrow  agent.   Within
     three  days  after receipt of such notice, the escrow  agent
     shall  send it by United States Mail to the party in  breach
     at the address contained in the Notice and no further notice
     shall be required. If the breach is not cured within the  13
     days  following  the delivery of the notice  to  the  escrow
     agent, this Contract shall be canceled.

19. Miscellaneous.

     (a)  This Agreement may be amended only by written agreement
     signed by both Seller and Buyer, and all waivers must be  in
     writing  and signed by the waiving party.  Time  is  of  the
     essence.   This  Agreement  will not  be  construed  for  or
     against  a party whether or not that party has drafted  this
     Agreement.  If there is any action or proceeding between the
     parties relating to this Agreement the prevailing party will
     be  entitled to recover attorney's fees and costs.  This  is
     an  integrated  agreement containing all agreements  of  the
     parties  about the Property and the other matters described,
     and  it  supersedes any other agreements or  understandings.
     Exhibits  attached  to this Agreement are incorporated  into
     this Agreement.
     
     (b)   If  this  escrow  has not closed by  October  3,  1997
     through  no  fault  of Seller, Seller  may  either,  at  its
     election,  extend  the Closing Date or exercise  any  remedy
     available   to   it  by  law,  including  terminating   this
     Agreement.
     
     (c)  Funds to be deposited or paid by Buyer must be good and
     clear  funds in the form of cash, cashier's checks  or  wire
     transfers.
     
     (d)   All notices from either of the parties hereto  to  the
     other  shall be in writing and shall be considered  to  have
     been  duly  given or served if sent by first class certified
     mail,  return receipt requested, postage prepaid,  or  by  a
     nationally recognized courier service guaranteeing overnight
     delivery to the party at his or its address set forth below,
     or  to  such  other  address  as such  party  may  hereafter
     designate by written notice to the other party.
     
     
     Buyer Initial: /s/ DH /s/ RH
     Purchase Agreement for Taco Cabana - San Antonio, TX
     
     
     
     
     If to Seller:
     
          Attention:  Robert P. Johnson
          AEI Real Estate Fund XVIII Limited Partnership
          1300 Minnesota World Trade Center
          30 E. 7th Street
          St. Paul, MN  55101
     
     If to Buyer:
     
          Reginald Hill
          Donna Hill
          1912 Lakeside Lane
          Indianapolis, IN  46229
     
     
      When  accepted, this offer will be a binding agreement  for
valid  and  sufficient consideration which will bind and  benefit
Buyer, Seller and their respective successors and assigns.  Buyer
is  submitting  this offer by signing a copy of  this  offer  and
delivering it to Seller.  Seller has five (5) business days  from
receipt within which to accept this offer.

      IN WITNESS WHEREOF, the Seller and Buyer have executed this
Agreement effective as of the day and year above first written.

BUYER:   THE REGINALD O. HILL TRUST DATED 5/25/95

          By: /s/ Reginald O Hill, Trustee
                  Reginald O. Hill, Trustee

          THE DONNA JEAN HILL TRUST DATED 5/25/95

          By: /s/ Donna Jean Hill, Trustee
                  Donna Jean Hill, Trustee


SELLER:   AEI  REAL  ESTATE  FUND XVIII  LIMITED  PARTNERSHIP,  a
Minnesota limited partnership.

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

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





     Buyer Initial: /s/ DH /s/ RH
     Purchase 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.