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

Made and entered into as of the 9th day of October, 1997, by  and
between  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  (hereinafter called "Hill"), and  AEI  Real
Estate  Fund XVIII Limited Partnership (hereinafter called  "Fund
XVIII")  (Hill, 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 22.2161% interest
in and to, and Hill presently owns an undivided 12.8462% interest
in  and  to,  and Nick DeVito, Inc. 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 Hill'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  Hill  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 Hill with respect  to  any
expense for the Premises.


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



As  further set forth in paragraph 2 hereof, Fund XVIII agrees to
require any lessee of the Premises to name Hill 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 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  Hill  under  this
Agreement,  and may pay to itself the amount of Hill's  share  of
any  legitimate expenses of the Premises which are  not  paid  by
Hill  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 Hill'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.

Hill  has  no  requirement to, but has,  nonetheless  elected  to
retain,  and  agrees to annually reimburse,  Fund  XVIII  in  the
amount of $740 for the expenses, direct and indirect, incurred by
Fund XVIII in providing quarterly accounting and distributions of
Hill's  share  of  net  income and for  tracking,  reporting  and
assessing  the calculation of Hill's share of operating  expenses
incurred  from  the Premises. This invoice amount shall  be  pro-
rated  for partial years and Hill authorizes Fund XVIII to deduct
such  amount from Hill's share of revenue from the Premises. Hill
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  Hill  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, Hill  shall
be  entitled  to  receive 12.8462% 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 Fund XVIII sufficient to pay said net operating losses
and to provide


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




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.  Hill agrees to notify
Fund XVIII upon the appointment of any successor trustee, or  any
amendment  of the Reginald O. Hill Trust or the Donna  Jean  Hill
Trust  affecting the powers of the Trustees to manage or  dispose
of the Hill Trust's interest in the Premises.

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/ RH /s/ DH
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

If to Hill:

Reginald Hill
Donna Hill
1912 Lakeside Lane
Indianapolis, IN 46229


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/ RH /s/ DH
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.

Hill      Reginald O. Hill Trust dated 5/25/95 and the Donna Jean
          Hill Trust dated 5/25/95

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

Witness   By: /s/ Thomas E Crawford

Witness   By:/s/ Judith L. Crawford


STATE OF Indiana)
                 ) ss
COUNTY OF Koseiusku)

The  foregoing instrument was acknowledged  before  me,  a
Notary  Public in and for the County and State  aforesaid,
this 18th day of September,1997, by Janet A Miller, Notary
Public.

                  /s/ Janet A Miller
                      My commission expires 3/2/98

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

Witness   By: /s/ Thomas E Crawford

Witness   By:/s/ Judith L Crawford


STATE OF Indiana)
                  ) ss
COUNTY OF Koseiusku)

The  foregoing instrument was acknowledged  before  me,  a
Notary  Public in and for the County and State  aforesaid,
this  18th  day  of September, 1997, by  Janet  A  Miller,
Notary Public.

                  /s/ Janet A Miller
                      My commission expires 3/2/98



Co-Tenant Initial: /s/ RH /s/ DH
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 9th day of October,
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/ Brian K Schulz
                                       Notary Public


[notary seal]




Co-Tenant Initial: /s/ RH /s/ DH
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.