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

Made  and  entered into as of the 15th day of Oct, 1996,  by  and
between  Arel  D.  and  Louise B. Middleton  (hereinafter  called
"Middleton"), and AEI Real Estate Fund XVIII Limited  Partnership
(hereinafter called "Fund XVIII") (Middleton, 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 75.6138% interest
in  and  to, and Middleton presently owns and undivided  10.6316%
interest  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 Middleton'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 Middleton  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 any Co-Tenant 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  Middleton  as  an
insured  or additional insured in all insurance policies provided
for,  or  contemplated by, any lease on the Premises. Fund  XVIII
shall  use  its  best efforts to obtain endorsements  adding  Co-
Tenants   to  said  policies  from  lessee  within  30  days   of
commencement  of this agreement. In any event, Fund  XVIII  shall
distribute any insurance proceeds it



Co-Tenant Initial: /s/ ADM /s/ LBM
Co-Tenancy Agreement for Taco Cabana - San Antonio, TX






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 Middleton under  this
Agreement, and may pay to itself the amount of Middleton's  share
of  any legitimate expenses of the Premises which are not paid by
Middleton  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 Middleton'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
Lessee  under  terms of any triple net lease agreement  initiated
concurrently with, or subsequent to, this agreement.

Middleton   has  elected  to  retain,  and  agrees  to   annually
reimburse,  Fund  XVIII in the amount of $595 for  the  expenses,
direct   and  indirect,  incurred  by  Fund  XVIII  in  providing
quarterly  accounting and distributions of Middleton's  share  of
net   income  and  for  tracking,  reporting  and  assessing  the
calculation  of Middleton's share of operating expenses  incurred
from  the  Premises. This invoice amount shall be  pro-rated  for
partial years and Middleton authorizes Fund XVIII to deduct  such
amount from Middleton's share of revenue. Middleton may terminate
this  agreement  at  any time and collect it's  share  of  rental
stream directly from the tenant.

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,  Middleton
shall be entitled to receive 10.6316% of all items of income  and
expense  generated  by  the Premises, and  Fund  XVIII  shall  be
entitled to receive 75.6138% as its share. Upon receipt  of  said
accounting,  if the payments received by each Co-Tenant  pursuant
to  this  Paragraph 3 do not equal, in the aggregate, the amounts
which  each are entitled to receive with respect to said calendar
year  pursuant  to Paragraph 2 hereof, an appropriate  adjustment
shall be made so that each Co-Tenant receives the amount to which
it is entitled.

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

5.    Co-Tenants  may, at any time, sell, finance,  or  otherwise
create  a lien upon their interest in the Premises but only  upon
their  interest  and not upon any part of the interest  held,  or
owned, by any other Co-Tenant.  All Co-



Co-Tenant Initial: /s/ ADM /s/ LBM
Co-Tenancy Agreement for Taco Cabana - San Antonio, TX






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, including Co-Tenant Carolyn W.  Davidson
which  currently  owns  an  undivided 13.7546%  interest  in  the
Property subject to a co-tenancy agreement with Fund XVIII  dated
August  5, 1996, 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
the  expiration  date plus extensions of the net lease  agreement
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 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

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.



Co-Tenant Initial: /s/ ADM /s/ LBM
Co-Tenancy Agreement for Taco Cabana - San Antonio, TX








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/ ADM /s/ LBM
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.

Middleton     Arel D. and Louis B. Middleton

              By: /s/ Arel D. Middleton            /s/ Arel D. Middleton
                      Arel D. Middleton

              By: /s/ Louise B. Middleton         /s/ Louise B. Middleton
                      Louise B. Middleton

Witness       By: /s/ Terry O'Doherty


STATE OF             )
                        ) ss
COUNTY OF            )                       [notary seal]

The  foregoing instrument was acknowledged  before  me,  a
Notary  Public in and for the County and State  aforesaid,
this  12 day of October, 1996, by /s/ Linda Cornie, Notary
Public.


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/ Laura Steidl

Witness      By: /s/ Kelly Schueller

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 15th day of October,
1996,  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/ Catherine A. Davis    [notary seal]
                                        Notary Public






Co-Tenant Initial: /s/ ADM /s/ LBM
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 of Bexar County, Texas.