PURCHASE AGREEMENT
                                
                         Fairfield, Ohio

      This  AGREEMENT, entered into effective as of the 31 st  of
May, 1997.

l.     Parties.  Seller  is AEI Real Estate  Fund  XVIII  Limited
Partnership ("Seller").  Seller holds an undivided 100%  interest
in  the fee title to that certain real property legally described
in  the attached Exhibit "A" (the "Property").  Buyer is Shun Chu
Young  and Chung Hsi Ho, as Tenants in Common ("Buyer").   Seller
wishes to sell and Buyer wishes to buy the Property.

2.    Property.  The  Property  to  be  sold  to  Buyer  in  this
transaction  is  legally described on Exhibit A attached  hereto,
subject to all easements, covenants, conditions, restrictions and
agreements of record that do not affect marketability of title or
affect   adversely   the   use   of  the   Property   ("Permitted
Exceptions"), subject to the provisions of Buyer review of  title
as set forth below in paragraph 9.

3.    Purchase  Price. The purchase price for  this  Property  is
$560,000 cash, based on the following terms:

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
     in  cash  or  good funds (the "First Payment")  to  Escrowee
     Lawyer's Title of Cincinnati, Inc. The First Payment will be
     credited  against  the purchase price  when  and  if  escrow
     closes  and  the  sale is completed, or otherwise  disbursed
     pursuant to the terms of this Agreement.

     (b) Buyer will pay the balance of the purchase price for the
     Property,  $555,000  in  cash or  good  funds  (the  "Second
     Payment")(less the additional First Payment, if made, as set
     forth  in  paragraph 5 below) at closing to the ("Escrowee")
     who  shall  close  the transaction according  to  the  terms
     hereof.

5.    Closing  Date.  Escrow shall close on or before  August  1,
1997.

6.     Contingencies:  Buyer agrees to use its  best  efforts  to
secure a commitment for financing of the Purchase Price on  terms
reasonably  satisfactory  to  it and  to  execute  all  documents
reasonably required to consummate said financing.  In  the  event
Buyer  cannot secure a commitment for such financing on or before
August 1, 1997, and in the event Buyer delivers to Seller  on  or
before  said  date written notice of its failure to  secure  said
commitment,  then in such event this agreement shall become  null
and  void and the First Payment paid herein shall be refunded  to
Buyer.   Absent delivery of said notice by Buyer to  Seller,  and
absent  default by Seller hereunder, after August 1,  1997,  this
contingency  to  Buyer's obligations hereunder  shall  be  deemed
satisfied, the First Payment shall be non-refundable and shall be
the sole property of Seller, except as may otherwise be set forth
herein.


7.    Due  Diligence. Buyer will have until August 1,  1997  (the
"Review  Period"),  to  conduct all of its  inspections  and  due
diligence and satisfy itself regarding title to the Property, and
to  inspect  the  Property.  Buyer agrees to indemnify  and  hold
Seller harmless for any loss or damage to the Property or persons
caused  by  Buyer  or  its agents arising out  of  such  physical
inspections  of  the Property. Buyer expressly acknowledges  that
the sale of the Property as provided for herein is made on an "AS
IS" basis, and such provision shall survive closing.

      Buyer may cancel this agreement for ANY REASON in its  sole
discretion by delivering a cancellation notice by certified mail,
return  receipt requested, or by personal delivery to Seller  and
escrow  holder before the expiration of the Review  Period.  Such
notice shall be deemed effective only upon receipt (as defined by
Subparagraph 19(d)) by Seller.  If this Agreement is not canceled
as  set  forth  herein, 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  title  insurance   and/or   escrow
cancellation fees and any liabilities under sections 16  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.

      Unless  Seller  shall  be  in  default  of  any  obligation
hereunder, or 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 have canceled this  Agreement  and
relinquish all rights in and to the Property.  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.

8.    Escrow.  Escrow  shall be opened by  Buyer  and  the  First
Payment shall be deposited by Buyer with Escrowee Lawyer's  Title
of  Cincinnati, Inc. ("Escrowee").  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.

9.    Title. Closing will be conditioned on the commitment  of  a
nationally recognized title company selected by Buyer 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 marketable and insurable fee simple title to  the
Property subject only to: the Permitted Exceptions as defined  in
paragraph  2 above;  current real property taxes and assessments;
and, survey exceptions.

      Buyer  shall be allowed until the expiration of the  Review
Period  for examination of the commitment and the making  of  any
objections  to  marketability  of  title  thereto,  or  that   an
exception  to  title adversely affects the use of  the  Property,
said  objections to be made in writing or deemed  waived.   Buyer
shall  provide  Seller with a copy of said title commitment.   If
any objections thereto are so made by Buyer, the Seller shall  be
allowed  ten  (10)  days to make such title  marketable  or  cure
Buyer's  objections, 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
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.

      If  Buyer shall make no written objection to Seller  within
the  Review Period setting forth Buyer's objections to the status
of  title, Buyer shall have been deemed to have waived  any  such
objections.

10.   Closing  Costs.  Seller will pay the deed stamp  taxes,  if
any,  and  one-half of escrow fees, and any brokerage commissions
payable  except  those brokerage commissions incurred  by  Buyer.
Seller  shall  pay for the cost of issuing the title  commitment.
Buyer  will  pay the cost of the title insurance premium  for  an
Owner's policy, (if Buyer shall decide to purchase the same)  all
recording  fees, one-half of the escrow fees, (if  an  update  is
required by Buyer).  Each party will pay its own attorneys'  fees
and costs to document and close of this transaction. Seller shall
pay the County Auditor transfer tax.

11.   Real  Estate  Taxes,  Special Assessments  and  Prorations.
Seller  represents  that to the best of its knowledge,  all  real
estate taxes and installments of special assessments due and  pay
able in all years prior to the year of Closing have been paid  in
full.    Responsibility  for  real  estate  taxes   and   special
assessments  shall be prorated as of the date  of  closing  based
upon  the  most recently available tax bill with no  readjustment
for the taxes due for the year in which closing shall occur.  All
real estate taxes and special assessments due and payable in  the
years  following the year in which closing occurs shall otherwise
be the responsibility of Buyer.

12.  Seller's Representation and Agreements.

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

     (i)  The Property is not subject to any leases.

     (ii)   It  is  not  aware  of  any  pending  litigation   or
     condemnation  proceedings against the Property  or  Seller's
     interest  in  the Property that have not been  disclosed  to
     Buyer.

     (iii)  Seller has not executed any contracts that  would  be
     binding on Buyer after the closing date.

     (iv)   In addition to the acts and deeds recited herein  and
     contemplated  to  be performed, executed, and  delivered  by
     Seller,  Seller 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  Buyer or the Title Company may  require  and
     Buyer  deems  to  be reasonable in order to  consummate  the
     transactions contemplated herein.

     (v)   Seller  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.

     (vi)   To  Seller'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 Seller is a party or by which Seller is bound.

     (vii)    Seller agrees to indemnify and hold Buyer  harmless
     from any and all claim of any persons or entities claiming a
     brokerage  or  other  fee arising out of  representation  of
     Seller or through or on behalf of Seller.

     (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  consent
     will not be unreasonably withheld or delayed.

13.  Disclosures.

     (a)  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 ground water 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
     and  there are no underground storage tanks on the Property.
     Except as otherwise provided in this Agreement and except to
     the  extent  that  Seller  has knowledge  of  any  hazardous
     substances  or  materials  on  or  in  connection  with  the
     Property  which Seller is not disclosing to Buyer hereunder,
     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.

     (b)   Subject to Seller's representations contained  in  the
     Agreement, including subparagraphs 13(a) above, 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.

     (c)    Buyer  acknowledges  that,  having  been  given   the
     opportunity to inspect the Property as Buyer or its advisors
     shall   request,  Buyer  is  relying  solely  on   its   own
     investigation of the Property and not on any information pro
     vided  by  Seller   or to be provided except  as  set  forth
     herein.  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,  profitability   or
     fitness  for  a  particular  purpose,  in  respect  of   the
     Property.

     The provisions (a) through (c) shall survive closing.

14.  Closing.

     (a)   Before  the  Closing Date, Seller  will  deposit  into
     escrow  a  standard Seller's Affidavit regarding  liens  and
     judgments  and  an executed limited warranty deed  conveying
     insurable  title of the Property to Buyer,  subject  to  the
     Permitted  Exceptions,  and  will  provide  Buyer  with   an
     affidavit  that  Seller  is not a "foreign  person",  and  a
     customary  owner's  affidavit  requested  by  the   Escrowee
     (limited where reflective of the state of Seller's knowledge
     and   belief)   for  purposes  of  deleting   the   standard
     exceptions.

     (b)   On or before the closing date, Buyer will deposit into
     escrow:  the  balance  of the purchase price  when  required
     under  paragraph 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  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
     title  policy; 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.

15.   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 the First Payment heretofore paid  by
the  Buyer.  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  hin
der,  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  condi
tions  under this Agreement, and unconditionally notifies  Seller
that  it  stands ready to tender full performance,  purchase  the
Property  and  close  escrow  as per this  Agreement.   Provided,
however,  that  in  no  event shall  Seller  be  liable  for  any
punitive, consequential or speculative damages arising out of any
default by Seller hereunder.

16.  Buyer's Representations and Warranties.

     Buyer represents and warrants to Seller as follows:

     (i)   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.

     (ii)   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.

     (iii)    Buyer agrees to indemnify and hold Seller  harmless
     from any and all claim of any persons or entities claiming a
     brokerage  or  other  fee arising out of  representation  of
     Buyer.

17.  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 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,  and the First Payment shall be returned  to  Buyer.
     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  ten  day period provided for above in this Subparagraph
     17a  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 resulting from said damage or destruction
     to  the  extent  that the same are payable with  respect  to
     damage to the Property.  If the cost of repair is less  than
     $10,000.00,  Buyer  shall be obligated to otherwise  perform
     hereunder   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.

     (b)   If,  prior  to  closing, the  Property,  or  any  part
     thereof,  is  taken (other than as disclosed in  writing  to
     Buyer  prior  to  the  date of this  Agreement)  by  eminent
     domain,  this Agreement shall become null and void,  at  Buy
     er'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 all the Seller's right, title,
     and interest in and to any award made, or to be made, in the
     condemnation proceeding.

      In the event that this Agreement is terminated by Buyer  as
provided  above  in  Subparagraph 17a or 17b, 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).

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.   Buyer  has  the  right  to  assign  this
     Agreement  to  another party without Seller's  consent,  but
     shall  not  be binding upon Seller until receipt of  written
     notice  thereof,  and provided, further,  that  Buyer  shall
     remain  liable for the obligations of Buyer hereunder  until
     the  same  are  fulfilled  or this Agreement  is  terminated
     according to the provisions hereof.

     (b)  If escrow has not closed through no fault of Seller, by
     August  1, 1997, Seller may either, at its election,  extend
     the  closing date, exercise any remedy available  to  it  by
     law, including terminate this Agreement.

     (c)  Funds to be deposited or paid by Buyer will 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.

     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

with copy to:
          Michael B. Daugherty
          Attorney at Law
          1300 Minnesota World Trade Center
          St. Paul, MN.  55101

     If  to Buyer:
          Mrs. Chung Hsi Ho
          313 west McKinley Avenue
          Mishawaka, Indiana  46545

     with copy to:
          Mr. Henry Martin
          Attorney at Law
          1732 Glen Echo Road
          Nashville, Tennessee  37215

      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 and Escrowee  (along  with  the  First
Payment  to  Escrowee.  Seller has three (3) business days  after
receipt  of the executed offer within which to accept this  offer
and  to  notify Escrowee of the same; if not accepted  by  Seller
within  said  three days, Escrowee shall immediately  return  the
First Payment to Buyer.




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

          BUYER:
          /s/ Shun Chu Young
              Shun Chu Young

          WITNESS:
          /s/ Alberta N Martin

              Alberta N Martin
              (Print Name)

          WITNESS:
          /s/ Henry E Martin

              Henry E Martin
              (Print Name)

          /s/ Chung Hsi Ho
              Chung Hsi Ho

           WITNESS:
          /s/ Alberta N Martin

              Alberta N Martin
              (Print Name)

            WITNESS:
          /s/ Henry E Martin

              Henry E Martin
              (Print Name)

[Seller's signature on the following page]



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



     WITNESS:
         /s/ Glen Ihle

             Glen Ihle
             (Print Name)

     WITNESS:

         /s/ Sadie-jo D Hansen

             Sadie-jo D Hansen
             (Print Name)













                         EXHIBIT "A"


     Situate in the City of Fairfield, County of Butler and State
     of  Ohio and being Lot Numbered Eleven Thousand Five Hundred
     Forty  Eight  (11548) as the same is known as designated  on
     the  list  of lots in the City of Fairfield, Butler  County,
     Ohio.