UNITED STATES
             SECURITIES AND EXCHANGE COMMISSION

                   Washington, D.C. 20549


                          FORM 8-K


                       CURRENT REPORT

             PURSUANT TO SECTION 13 OR 15(d) OF
           THE SECURITIES AND EXCHANGE ACT OF 1934


Date of Report (Date of Earliest Event Reported)  January 6,2004


       AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
   (Exact Name of Registrant as Specified in its Charter)

                     State of Minnesota
      (State or other Jurisdiction of Incorporation or
                        Organization)




           0-18289                      41-1622463
   (Commission File Number)          (I.R.S. Employer
                                   Identification No.)


  30 East 7th Street, Suite 1300, St. Paul, Minnesota 55101
          (Address of Principal Executive Offices)


                       (651) 227-7333
    (Registrant's telephone number, including area code)


    (Former name or former address, if changed since last
                           report)

Item 2.   Acquisition or Disposition of Assets.

       On  January 6, 2004, the Partnership sold a Cheddar's
restaurant in Clive, Iowa to an unrelated third party.   The
Partnership   received   net   proceeds   of   approximately
$2,100,000 for the property, which resulted in a net gain of
approximately $1,194,000.

Item 7. Financial Statements and Exhibits.

        (a)  A  limited  number of proforma adjustments  are
             required  to  illustrate  the  effects  of  the
             transaction  on  the balance sheet  and  income
             statement.      The     following     narrative
             description  is  furnished  in  lieu   of   the
             proforma statements:

             Assuming  the Partnership had sold the property
             on   January   1,   2002,   the   Partnership's
             Investments  in  Real Estate  would  have  been
             reduced  by  $969,518 and  its  Current  Assets
             (cash)  would  have increased by  approximately
             $2,100,000  and  Partner's Capital  would  have
             increased by $1,130,482.

             The  Rental  Income  for the Partnership  would
             have  decreased from $1,929,826  to  $1,685,963
             for  the year ended December 31, 2002 and  from
             $1,023,451  to  $853,962 for  the  nine  months
             ended  September  30, 2003 if  the  Partnership
             had not owned the property during the periods.

             Depreciation  Expense would have  decreased  by
             $30,931   and  $23,198  for  the   year   ended
             December  31,  2002 and the nine  months  ended
             September 30, 2003, respectively.

             Partnership    Administration   and    Property
             Management  Expense  would  have  decreased  by
             $7,426 for the year ended December 31, 2002.

             The  net  effect of these pro forma adjustments
             would  have caused Net Income to decrease  from
             $1,893,642  to $1,688,136 and to decrease  from
             $3,703,080  to  $3,556,789,  which  would  have
             resulted  in  Net Income of $84.38 and  $179.52
             per  Limited  Partnership Unit outstanding  for
             the  year ended December 31, 2002 and the  nine
             months ended September 30, 2003, respectively.

        (c)  Exhibits

              Exhibit 10.1 - Purchase Agreement dated October
                             15, 2003 between the Partnership
                             and    Steward    Real    Estate
                             Services,  LLC relating  to  the
                             Property  at  1301  N.W.   114th
                             Street,       Clive,        Iowa
                             (incorporated  by  reference  to
                             Exhibit  10.4  of  Form   10-QSB
                             filed on November 11, 2003).


                         SIGNATURES

     Pursuant to the requirements of the Securities Exchange
Act  of 1934, the registrant has duly caused this report  to
be  signed  on  its behalf by the undersigned hereunto  duly
authorized.

                              AEI REAL ESTATE FUND XVIII
                              LIMITED PARTNERSHIP

                              By: AEI Fund Management XVIII, Inc.
                              Its: Managing General Partner


Date:  January 8, 2004        /s/ Patrick W Keene
                              By: Patrick W. Keene
                              Its: Chief Financial Officer
[{"type": "8-K", "sequence": "1", "filename": "chd18-8k.txt", "secsgml_size_bytes": 4649}]
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UNITED STATES
             SECURITIES AND EXCHANGE COMMISSION

                   Washington, D.C. 20549

                          FORM 8-K

                       CURRENT REPORT

             PURSUANT TO SECTION 13 OR 15(d) OF
           THE SECURITIES AND EXCHANGE ACT OF 1934

Date of Report (Date of Earliest Event Reported)  January 6,2004

       AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
   (Exact Name of Registrant as Specified in its Charter)

                     State of Minnesota
      (State or other Jurisdiction of Incorporation or
                        Organization)

           0-18289                      41-1622463
   (Commission File Number)          (I.R.S. Employer
                                   Identification No.)

  30 East 7th Street, Suite 1300, St. Paul, Minnesota 55101
          (Address of Principal Executive Offices)

                       (651) 227-7333
    (Registrant's telephone number, including area code)

    (Former name or former address, if changed since last
                           report)

Item 2.   Acquisition or Disposition of Assets.

       On  January 6, 2004, the Partnership sold a Cheddar's
restaurant in Clive, Iowa to an unrelated third party.   The
Partnership   received   net   proceeds   of   approximately
$2,100,000 for the property, which resulted in a net gain of
approximately $1,194,000.

Item 7. Financial Statements and Exhibits.

        (a)  A  limited  number of proforma adjustments  are
             required  to  illustrate  the  effects  of  the
             transaction  on  the balance sheet  and  income
             statement.      The     following     narrative
             description  is  furnished  in  lieu   of   the
             proforma statements:

             Assuming  the Partnership had sold the property
             on   January   1,   2002,   the   Partnership's
             Investments  in  Real Estate  would  have  been
             reduced  by  $969,518 and  its  Current  Assets
             (cash)  would  have increased by  approximately
             $2,100,000  and  Partner's Capital  would  have
             increased by $1,130,482.

             The  Rental  Income  for the Partnership  would
             have  decreased from $1,929,826  to  $1,685,963
             for  the year ended December 31, 2002 and  from
             $1,023,451  to  $853,962 for  the  nine  months
             ended  September  30, 2003 if  the  Partnership
             had not owned the property during the periods.

             Depreciation  Expense would have  decreased  by
             $30,931   and  $23,198  for  the   year   ended
             December  31,  2002 and the nine  months  ended
             September 30, 2003, respectively.

             Partnership    Administration   and    Property
             Management  Expense  would  have  decreased  by
             $7,426 for the year ended December 31, 2002.

             The  net  effect of these pro forma adjustments
             would  have caused Net Income to decrease  from
             $1,893,642  to $1,688,136 and to decrease  from
             $3,703,080  to  $3,556,789,  which  would  have
             resulted  in  Net Income of $84.38 and  $179.52
             per  Limited  Partnership Unit outstanding  for
             the  year ended December 31, 2002 and the  nine
             months ended September 30, 2003, respectively.

        (c)  Exhibits

              Exhibit 10.1 - Purchase Agreement dated October
                             15, 2003 between the Partnership
                             and    Steward    Real    Estate
                             Services,  LLC relating  to  the
                             Property  at  1301  N.W.   114th
                             Street,       Clive,        Iowa
                             (incorporated  by  reference  to
                             Exhibit  10.4  of  Form   10-QSB
                             filed on November 11, 2003).

                         SIGNATURES

     Pursuant to the requirements of the Securities Exchange
Act  of 1934, the registrant has duly caused this report  to
be  signed  on  its behalf by the undersigned hereunto  duly
authorized.

                              AEI REAL ESTATE FUND XVIII
                              LIMITED PARTNERSHIP

                              By: AEI Fund Management XVIII, Inc.
                              Its: Managing General Partner

Date:  January 8, 2004        /s/ Patrick W Keene
                              By: Patrick W. Keene
                              Its: Chief Financial Officer