AEI REAL ESTATE FUND 86-A LTD PARTNERSHIP
10KSB/A, 1996-08-30
REAL ESTATE
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               SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C. 20549
                                
                         FORM 10-KSB/A2
                                
             Annual Report Under Section 13 or 15(d)
             Of The Securities Exchange Act Of 1934
                                
          For the Fiscal Year Ended:  December 31, 1995
                                
                Commission file number:  0-14090
                                
             AEI REAL ESTATE FUND 86-A LIMITED PARTNERSHIP
             (Name of Small Business Issuer in its Charter)

      State of Delaware                 41-6273958
(State or other Jurisdiction of     (I.R.S. Employer)
Incorporation or Organization)     Identification No.)

  1300 Minnesota World Trade Center, St. Paul, Minnesota 55101
            (Address of Principal Executive Offices)

                          (612) 227-7333
                   (Issuer's telephone number)

Securities registered pursuant to Section 12(b) of the Act:
                                 Name of each exchange on
     Title of each class             which registered
             None                          None

Securities registered pursuant to Section 12(g) of the Act:

                    Limited Partnership Units
                        (Title of class)
                                
Check  whether  the issuer (1) filed all reports required  to  be
filed  by Section 13 or 15(d) of the Securities Exchange  Act  of
1934  during the past 12 months (or for such shorter period  that
the  registrant was required to file such reports), and  (2)  has
been subject to such filing requirements for the past 90 days.

                        Yes   [X]         No

Check if disclosure of delinquent filers in response to Rule  405
of  Regulation  S-B  is  not  contained  in  this  Form,  and  no
disclosure  will  be contained, to the best of  the  registrant's
knowledge,   in   definitive  proxy  or  information   statements
incorporated by reference in Part III of this Form 10-KSB or  any
amendment to this Form 10-KSB. [X]

The  Issuer's  revenues  for year ended December  31,  1995  were
$661,618.

As  of  February 29, 1996, there were 7,198.32 Units  of  limited
partnership interest in the registrant outstanding and  owned  by
nonaffiliates  of  the registrant, which Units had  an  aggregate
market  value (based solely on the price at which they were  sold
since there is no ready market for such Units) of $7,198,320.

               DOCUMENTS INCORPORATED BY REFERENCE

 The registrant has not incorporated any documents by reference
                        into this report.
                                
         Transitional Small Business Disclosure Format:
                                
                      Yes          No   [X]



                             PART I

ITEM 1.  DESCRIPTION OF BUSINESS.

        AEI  Real  Estate  Fund  86-A  Limited  Partnership  (the
"Partnership" or the "Registrant") is a limited partnership which
was  organized pursuant to the laws of the State of  Delaware  on
April  2,  1986.   The  registrant  is  comprised  of  AEI   Fund
Management  86-A, Inc. (AFM) as Managing General Partner,  Robert
P.  Johnson as the Individual General Partner, and purchasers  of
partnership  units as Limited Partners.  The Partnership  offered
for  sale up to $7,500,000 of limited partnership interests  (the
"Units")  (7,500  Units  at  $1,000  per  Unit)  pursuant  to   a
registration   statement  effective  February   18,   1986.   The
Partnership  commenced operations on April 2, 1986  when  minimum
subscriptions  of  1,300 Limited Partnership  Units  ($1,300,000)
were  accepted.   The Partnership's offering terminated  July  9,
1986  when  the  maximum  subscription  limit  of  7,500  Limited
Partnership Units ($7,500,000) was reached.

        The Partnership was organized to acquire, initially on  a
debt-free   basis,  existing  and  newly  constructed  commercial
properties located in the United States, to lease such properties
to  tenants under triple net leases, to hold such properties  and
to  eventually sell such properties.  From subscription proceeds,
the  Partnership purchased eight properties, including a  partial
interest  in one property, totaling $6,364,078.  The  balance  of
the   subscription  proceeds  was  applied  to  organization  and
syndication  costs,  working capital reserves and  distributions,
which  represented a return of capital.  The properties  are  all
commercial,  single tenant buildings, with the exception  of  the
Kearney office building, leased under triple net leases.

       The Partnership will hold its properties until the General
Partners  determine  that the sale or other  disposition  of  the
properties   is   advantageous  in  view  of  the   Partnership's
investment  objectives.  In deciding whether to sell  properties,
the  General  Partners will consider factors  such  as  potential
appreciation,  net  cash flow and income tax considerations.   In
addition,  certain lessees have been granted options to  purchase
properties  after  a  specified portion of  the  lease  term  has
elapsed.   It is anticipated that the Partnership will  sell  its
properties  within twelve years after acquisition.  At  any  time
prior to selling the properties, the Partnership may mortgage one
or  more  of its properties in amounts not exceeding 50%  of  the
fair market value of the property.

Leases

       Although there are variations in the specific terms of the
leases,  the following is a summary of the general terms  of  the
Partnership's  leases.   The properties  are  leased  to  various
tenants   under  noncancelable  triple  net  leases,  which   are
classified  as operating leases.  Under a triple net  lease,  the
lessee  is  responsible  for all real  estate  taxes,  insurance,
maintenance,  repairs and operating expenses  for  the  property.
The  initial  lease  terms are for 10 to 20  years.   The  leases
provide  for  base  annual rental payments,  payable  in  monthly
installments,  and  contain  rent  clauses  which   entitle   the
Partnership to receive additional rent in future years  based  on
stated  rent  increases  or if gross receipts  for  the  property
exceed certain specified amounts, among other conditions.

        The leases provide the lessees with two five-year renewal
options  subject to the same terms and conditions as the  initial
lease.  Certain lessees have been granted options to purchase the
property.   Depending on the lease, the purchase price is  either
determined  by  a formula, or is the greater of the  fair  market
value of the property or the amount determined by a formula.   In
all  cases, if the option were to be exercised by the lessee, the
purchase  price would be greater than the original  cost  of  the
property.

ITEM 1.  DESCRIPTION OF BUSINESS. (Continued)

        Effective  May  1,  1992,  the Partnership  replaced  the
original tenant in the office building in Kearney, Nebraska, with
a  new tenant who, in March, 1993, filed for reorganization.  The
Partnership  obtained possession of the property and  listed  the
property  for  sale or lease.  The Partnership received  rent  of
$975  per  month through March, 1994, from a tenant who was  sub-
leasing  part of the building from the new tenant.   Since  March
1994, the Partnership has received no rent from the property.

        As of November, 1993, the lessee was in default under the
amended Lease Agreement.  In November, 1993, after reviewing  the
Sizzler's operating results, the Partnership determined that  the
lessee  would be unable to operate the restaurants  in  a  manner
capable  of maximizing the restaurant's sales.  Consequently,  at
the   direction  of  the  Partnership,  a  multi-unit  restaurant
operator   assumed  operation  of  this  restaurant   while   the
Partnership reviewed the available options.  In June,  1994,  the
Partnership  closed  the restaurant and listed  it  for  sale  or
lease.  While the property is being re-leased, the Partnership is
responsible for the real estate taxes and other costs required to
maintain  the  property.  The Partnership's  investment  in  this
property   represents  a  minor  portion  of  the   Partnership's
portfolio.   The loss of rent from this property has  not  had  a
material impact on the Partnership's Net Cash Flow.

        On  July  6,  1995,  the Partnership sold  the  Cheddar's
restaurant  in  Columbus, Ohio, to the lessee.   The  Partnership
received net sale proceeds of $314,826, which resulted in  a  net
gain  of  $44,137.   At the time of sale, the  cost  and  related
accumulated  depreciation  of  the  property  was  $306,711   and
$36,022, respectively.

       In March, 1995, the lessee of the Applebee's restaurant in
Fort  Myers, Florida, exercised an option in the Lease  Agreement
to purchase the property.  On July 28, 1995, the sale closed with
the  Partnership receiving net sale proceeds of $1,646,608  which
resulted  in  a net gain of $686,548.  At the time of  sale,  the
cost  and  related accumulated depreciation of the  property  was
$1,179,405  and  $219,345, respectively.   The  Managing  General
Partner  is  in  the  process of preparing a proxy  statement  to
propose  an  amendment to the Limited Partnership Agreement  that
would  allow the Partnership to reinvest the majority of the  net
proceeds in additional properties.

Major Tenants

        During  1995,  five  of  the Partnership's  lessees  each
contributed  more  than  ten percent of the  Partnership's  total
rental  revenue.  The major tenants in aggregate contributed  83%
of  the  Partnership's  total rental  revenue  in  1995.   It  is
anticipated  that, based on the minimum rental payments  required
under  the  leases, each major tenant will continue to contribute
more  than ten percent of the Partnership's total rental  revenue
in  1996  and future years.  The only exception is the tenant  in
the  Applebee's property will not continue to be a  major  tenant
since  the property was sold in 1995.  Any failure of these major
tenants could materially affect the Partnership's net income  and
cash distributions.

Competition

        The  Partnership is a minor factor in the commercial real
estate  business.   There are numerous entities  engaged  in  the
commercial  real  estate  business which have  greater  financial
resources  than  the  Partnership.  At the time  the  Partnership
elects to dispose of its properties, the Partnership will  be  in
competition  with other persons and entities to find  buyers  for
its properties.


ITEM 1.  DESCRIPTION OF BUSINESS. (Continued)

Employees

        The  Partnership  has  no direct  employees.   Management
services   are  performed  for  the  Partnership  by   AEI   Fund
Management, Inc., an affiliate of AFM.

ITEM 2.  DESCRIPTION OF PROPERTIES.

Investment Objectives

        The  Partnership's investment objectives were to  acquire
existing or newly-developed commercial properties throughout  the
United  States that offer the potential for (i) preservation  and
protection  of  the  Partnership's capital; (ii)  partially  tax-
deferred  cash distributions from operations which  may  increase
through  rent  participation clauses or mandated rent  increases;
and  (iii) long-term capital gains through appreciation in  value
of   the  Partnership's  properties  realized  upon  sale.    The
Partnership  does not have a policy, and there is no  limitation,
as  to the amount or percentage of assets that may be invested in
any  one  property.  However, to the extent possible, the General
Partners  attempt  to  diversify the type  and  location  of  the
Partnership's properties.

Description of Properties

        The  Partnership's properties are all commercial,  single
tenant  buildings  with  the  exception  of  the  Kearney  office
building.  All the properties were acquired on a debt-free  basis
and  are leased to various tenants under noncancelable triple net
leases, which are classified as operating leases. The Partnership
holds an undivided fee simple interest in the properties.  At any
time  prior  to  selling  the  properties,  the  Partnership  may
mortgage  one or more of its properties in amounts not  exceeding
50% of the fair market value of the property.

        The  Partnership's properties are subject to the  general
competitive conditions incident to the ownership of single tenant
investment  real estate.  Since each property is leased  under  a
long-term   lease,   there  is  little  competition   until   the
Partnership  decides to sell the property.   At  this  time,  the
Partnership will be competing with other real estate  owners,  on
both a national and local level, in attempting to find buyers for
the   properties.   In  the  event  of  a  tenant  default,   the
Partnership would be competing with other real estate owners, who
have  property vacancies, to attract a new tenant  to  lease  the
property.   The Partnership's tenants operate in industries  that
are  very  competitive and can be affected  by  factors  such  as
changes  in regional or local economies, seasonality and  changes
in consumer preference.

ITEM 2.  DESCRIPTION OF PROPERTIES.  (Continued)

        The  following table is a summary of the properties  that
the Partnership acquired and owned as of December 31, 1995.

   
<TABLE>

<S>                    <C>        <C>             <C>           <C>            <C>   

                                   Total Property
                        Purchase    Acquisition               Annual Lease      Annual Rent   
Property                  Date         Costs       Lessee       Payment         Per Sq. Foot 

Office/Warehouse
 Kearney, NE           12/12/86    $ 434,623      (F1)

Auto Max Automotive Center
 Bloomington, MN         6/3/87    $ 838,749      Thomas            $ 110,400     $ 14.84
                                                  Graffunder

DeLisi's Italian                                  DeLisi's Italian
Restaurant and Lounge                             Restaurant 
 Brooklyn Park, MN      6/16/87    $ 968,958      and Lounge, Inc.  $  72,000     $  9.93       
                                                  

Auto Max Automotive Center                        Annabelle, Inc. and
 Coon Rapids, MN        7/24/87    $ 795,818      Motorscope,Inc.   $  82,075     $ 11.42    

am/pm Mini Market                                 B. Wells
 Carson City, NV        8/21/87    $ 779,896      O'Brien & Co.     $  99,947     $ 40.01

Sizzler Restaurant
 Springboro, OH
 (6.7522%)              8/24/90    $  89,097      (F1)

Taco Cabana Restaurant
 Houston, TX
 (61.7638%)             7/31/91    $ 859,159     Taco Cabana, Inc.  $ 120,044     $ 71.99


(F1)   The property is vacant and listed for sale or lease.


</TABLE>     



        The  properties  listed above with  a  partial  ownership
percentage  are  owned with affiliates of the  Partnership.   AEI
Real  Estate  Fund XVIII Limited Partnership owns  the  remaining
interest in the Sizzler restaurant in Springboro, Ohio.  AEI  Net
Lease  Income  &  Growth Fund XIX Limited  Partnership  owns  the
remaining  interest  in  the Taco Cabana restaurant  in  Houston,
Texas.

        Each  Partnership owns a separate, undivided interest  in
the  properties.   No  specific agreement  or  commitment  exists
between the Partnerships as to the management of their respective
interests in the properties, and the Partnership that holds  more
than  a  50% interest does not control decisions over  the  other
Partnership's interest.

        The  initial Lease terms are for 20 years except for  the
Taco  Cabana and Auto Max properties which are 15 years  and  the
DeLisi's  property  which is 10 years.  The Leases  have  renewal
options which may extend the lease term an additional 10 years.

ITEM 2.  DESCRIPTION OF PROPERTIES.  (Continued)

       Pursuant to the Lease Agreements, the tenants are required
to provide proof of adequate insurance coverage on the properties
they  occupy.   The General Partners believe the  properties  are
adequately covered by insurance and consider the properties to be
well-maintained and sufficient for the Partnership's operations.

         For  tax  purposes,  the  Partnership's  properties  are
depreciated  under the Modified Accelerated Cost Recovery  System
(MACRS).  The largest depreciable component of a property is  the
building  which  is depreciated, using the straight-line  method,
over  31.5  years.   The remaining depreciable  components  of  a
property  are personal property and land improvements  which  are
depreciated,  using an accelerated method, over 5 and  15  years,
respectively.  Since the Partnership has tax-exempt Partners, the
Partnership is subject to the rules of Section 168(h)(6)  of  the
Internal  Revenue  Code  which  requires  a  percentage  of   the
properties' depreciable components to be depreciated over  longer
lives using the straight-line method.  In general the federal tax
basis of the properties for tax depreciation purposes is the same
as the basis for book depreciation purposes.

   
        During  the  last  five years, all  properties  were  100
percent occupied by the lessees noted, with the exception of  the
Sizzler  property,  which was 100 percent  occupied  until  June,
1994,  and  the office/warehouse property which was  100  percent
occupied  until  May,  1992, and then 30 percent  occupied  until
March,  1994.   The  Sizzler  property and  the  office/warehouse
property  have  been  100  percent  vacant since June, 1994,  and  
March,  1994, respectively.      

ITEM 3.  LEGAL PROCEEDINGS.

         None.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

         None.


                             PART II

ITEM 5.  MARKET FOR THE REGISTRANT'S PARTNERSHIP UNITS AND
         RELATED SECURITY HOLDER MATTERS.

        As of December 31, 1995, there were 950 holders of record
of the registrant's Limited Partnership Units.  There is no other
class  of  security outstanding or authorized.  The  registrant's
Units  are  not  a traded security in any market.   However,  the
Partnership  may  purchase Units from Limited Partners  who  have
tendered  their  Units to the Partnership.   Such  Units  may  be
acquired  at  a  discount.  The Partnership is not  obligated  to
purchase  in any year more than 5% of the total number  of  Units
outstanding  at  the  beginning of the  year  and  in  no  event,
obligated  to  purchase Units if such purchase would  impair  the
capital or operation of the Partnership.

        During 1995, seventeen Limited Partners redeemed a  total
of  55  Partnership  Units for $34,815  in  accordance  with  the
Partnership  Agreement.  In prior years, a total  of  twenty-nine
Limited  Partners redeemed 223.75 Partnership Units for $177,047.
The   redemptions   increase  the  remaining  Limited   Partners'
ownership interest in the Partnership.

ITEM 6.  MANAGEMENT'S DISCUSSION AND ANALYSIS.

        Cash distributions of $5,431 and $5,745 were made to  the
General  Partners  and $502,883 and $562,502  were  made  to  the
Limited   Partners   in   1995  and  1994,   respectively.    The
distributions  were made on a quarterly basis and  represent  Net
Cash   Flow,  as  defined,  except  as  discussed  below.   These
distributions  should  not be compared  with  dividends  paid  on
capital stock by corporations.

        As  part  of the Limited Partner distributions  discussed
above, the Partnership distributed $221,627 of proceeds from  the
Applebee's  and  Cheddar's  sales  in  1995.   The  distributions
reduced the Limited Partners' Adjusted Capital Contributions.

Results of Operations

       The Partnership's rental income is derived from long-term,
triple net lease agreements on the Partnership's properties.  For
the  years  ended  December 31, 1995 and  1994,  the  Partnership
recognized  rental income of $616,054 and $688,888, respectively.
During the same periods, the Partnership earned investment income
of  $45,564  and  $1,991, respectively.  In 1995,  rental  income
decreased as a result of two property sales discussed below.  The
decrease  in  rental  income was partially offset  by  additional
investment  income earned on the net proceeds from  the  property
sales.

        Effective  May  1,  1992,  the Partnership  replaced  the
original tenant in the office building in Kearney, Nebraska, with
a  new tenant who, in March, 1993, filed for reorganization.  The
Partnership  obtained possession of the property and  listed  the
property  for  sale or lease.  The Partnership received  rent  of
$975  per  month through March, 1994, from a tenant who was  sub-
leasing  part of the building from the new tenant.   Since  March
1994,  the  Partnership has received no rent from  the  property.
The  total  amount  of rent not collected in 1995  and  1994  was
$62,008  and  $59,081,  respectively.   These  amounts  were  not
accrued for financial reporting purposes.

        During  the years ended December 31, 1995 and  1994,  the
Partnership   paid   Partnership   administration   expenses   to
affiliated parties of $126,948 and $125,257, respectively.  These
administration  expenses  include  costs  associated   with   the
management of the properties, processing distributions, reporting
requirements  and correspondence to the Limited Partners.  During
the   same   periods,   the  Partnership   incurred   Partnership
administration  and property management expenses  from  unrelated
parties  of  $50,831 and $68,476, respectively.   These  expenses
represent  direct payments to third parties for legal and  filing
fees,  direct administrative costs, outside audit and  accounting
costs,  taxes, insurance and other property costs.  The  decrease
in  these expenses in 1995, when compared to 1994, is the  result
of  increased  reimbursements from the  tenant  of  the  DeLisi's
restaurant  property which reduced the Partnership's real  estate
tax expense.

       As of December 31, 1995, the Partnership's annualized cash
distribution  rate  was  6.5%,  based  on  the  Adjusted  Capital
Contribution.   Distributions of Net Cash  Flow  to  the  General
Partners were subordinated to the Limited Partners as required in
the Partnership Agreement.  As a result, 99% of distributions and
income  were allocated to Limited Partners and 1% to the  General
Partners.

ITEM 6.  MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

        Inflation  has  had  a  minimal  effect  on  income  from
operations.   It is expected that increases in sales  volumes  of
the  tenants, due to inflation and real sales growth, will result
in  an  increase  in rental income over the term of  the  leases.
Inflation  also  may  cause  the  Partnership's  real  estate  to
appreciate in value.  However, inflation and changing prices  may
also  have  an  adverse impact on the operating  margins  of  the
properties' tenants which could impair their ability to pay  rent
and subsequently reduce the Partnership's Net Cash Flow available
for distributions.

Liquidity and Capital Resources

        During  1995,  the Partnership's cash balances  increased
$1,812,717   due  to  the  sale  of  two  of  the   Partnership's
properties.  Net cash provided by operating activities  decreased
from $501,743 in 1994 to $483,881 in 1995.  The decrease was  due
to  a  reduction  in rental income, as a result of  the  property
sales, which was partially offset by additional investment income
earned  on  the net sale proceeds and a reduction in  Partnership
expenses.

        Net  cash  provided  by  investing  activities  increased
$1,961,434, which represents the net cash proceeds from the  sale
of  two  of  the Partnership's properties.  On July 6, 1995,  the
Partnership sold the Cheddar's restaurant in Columbus,  Ohio,  to
the  lessee.   The  Partnership received  net  sale  proceeds  of
$314,826, which resulted in a net gain of $44,137.  At  the  time
of  sale,  the cost and related accumulated depreciation  of  the
property was $306,711 and $36,022, respectively.

       In March, 1995, the lessee of the Applebee's restaurant in
Fort  Myers, Florida, exercised an option in the Lease  Agreement
to purchase the property.  On July 28, 1995, the sale closed with
the  Partnership receiving net sale proceeds of $1,646,608  which
resulted  in  a net gain of $686,548.  At the time of  sale,  the
cost  and  related accumulated depreciation of the  property  was
$1,179,405  and  $219,345, respectively.   The  Managing  General
Partner  is  in  the  process of preparing a proxy  statement  to
propose  an  amendment to the Limited Partnership Agreement  that
would  allow the Partnership to reinvest the majority of the  net
proceeds in additional properties.

        During 1995, the Partnership distributed $223,865 of  the
net sale proceeds to the Limited and General Partners as part  of
their regular quarterly distributions, which represented a return
of capital of $30.55 per Limited Partnership Unit.

       The Partnership's primary use of cash flow is distribution
and  redemption  payments to Partners.  The Partnership  declares
its  regular  quarterly  distributions before  the  end  of  each
quarter and pays the distribution in the first week after the end
of  each quarter.  The Partnership attempts to maintain a  stable
distribution  rate from quarter to quarter.  Redemption  payments
are  paid  to  redeeming Partners in the fourth quarter  of  each
year.   The  redemption payments generally are funded  with  cash
that  would  normally  be paid as part of the  regular  quarterly
distributions.   As a result, distributions have fluctuated  from
year  to year due to cash used to fund redemption payments.  This
is  one  of the reasons why distributions to Partners were higher
in 1994 when compared to 1995.

        The  Partnership may purchase Units from Limited Partners
who have tendered their Units to the Partnership.  Such Units may
be  acquired at a discount.  The Partnership is not obligated  to
purchase  in any year more than 5% of the total number  of  Units
outstanding at the beginning of the year.  In no event shall  the
Partnership  be  obligated to purchase  Units  if,  in  the  sole
discretion  of the Managing General Partner, such purchase  would
impair the capital or operation of the Partnership.


ITEM 6.  MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

        During 1995, seventeen Limited Partners redeemed a  total
of  55  Partnership  Units for $34,815  in  accordance  with  the
Partnership  Agreement.   The Partnership  acquired  these  Units
using Net Cash Flow from operations.  In prior years, a total  of
twenty-nine  Limited Partners redeemed 223.75  Partnership  Units
for  $177,047.   The  redemptions increase the remaining  Limited
Partners' ownership interest in the Partnership.

        In  January, 1994, the Partnership established a $100,000
unsecured  line  of credit at Fidelity Bank of Edina,  Minnesota.
On  January 5, 1995 the line of credit was increased to $150,000.
The  line  of  credit bears interest at the prime rate  plus  one
percent on the outstanding balance, which was due on demand,  but
in  any  event no later than January 5, 1996.  The line of credit
was  established  to provide short-term financing  to  cover  any
temporary cash deficits.  In September, 1995, the line of  credit
was  cancelled.  As of December 31, 1994, the amount due  on  the
line  of  credit  was $35,000.  In 1995 and 1994, total  interest
expense was $4,061 and $2,553, respectively.

       The continuing rent payments from the properties, together
with  cash generated from the property sales, should be  adequate
to  fund  continuing  distributions and  meet  other  Partnership
obligations on both a short-term and long-term basis.

ITEM 7.   FINANCIAL STATEMENTS.

       See accompanying index to financial statements.

                                
                                
          AEI REAL ESTATE FUND 86-A LIMITED PARTNERSHIP

                  INDEX TO FINANCIAL STATEMENTS




                                                       

Independent Auditor's Report                            

Balance Sheet as of December 31, 1995 and 1994          

Statements for the Years Ended December 31, 1995 and 1994:

     Income                                             

     Cash Flows                                         

     Changes in Partners' Capital                       

Notes to Financial Statements                     

                                
                                
                    INDEPENDENT AUDITOR'S REPORT





To the Partners:
AEI Real Estate Fund 86-A Limited Partnership
St. Paul, Minnesota




      We  have audited the accompanying balance sheet of AEI REAL
ESTATE   FUND  86-A  LIMITED  PARTNERSHIP  (a  Delaware   limited
partnership)  as  of December 31, 1995 and 1994 and  the  related
statements of income, cash flows and changes in partners' capital
for  the  years then ended.  These financial statements  are  the
responsibility    of   the   Partnership's    management.     Our
responsibility  is  to  express an  opinion  on  these  financial
statements based on our audits.

      We  conducted  our  audits  in  accordance  with  generally
accepted  auditing standards.  Those standards  require  that  we
plan  and perform the audit to obtain reasonable assurance  about
whether   the   financial  statements  are   free   of   material
misstatement.   An  audit includes examining, on  a  test  basis,
evidence  supporting the amounts and disclosures in the financial
statements.   An  audit  also includes assessing  the  accounting
principles used and significant estimates made by management,  as
well  as evaluating the overall financial statement presentation.
We  believe  that our audits provide a reasonable basis  for  our
opinion.

      In  our opinion, the financial statements referred to above
present  fairly, in all material respects, the financial position
of  AEI  Real Estate Fund 86-A Limited Partnership as of December
31, 1995 and 1994, and the results of its operations and its cash
flows  for  the  years then ended, in conformity  with  generally
accepted accounting principles.




Minneapolis,  Minnesota          /s/ Boulay, Heutmaker, Zibell & Co. P.L.L.P.
February 6, 1996                     Certified Public Accountants

                                



<PAGE>
          AEI REAL ESTATE FUND 86-A LIMITED PARTNERSHIP
                                
                          BALANCE SHEET
                                
                           DECEMBER 31
                                
                             ASSETS
                                
                                                      1995           1994

CURRENT ASSETS:
  Cash and Cash Equivalents                       $ 1,822,519    $     9,802
  Receivables                                           3,240         11,604
                                                   -----------    -----------
      Total Current Assets                          1,825,759         21,406
                                                   -----------    -----------
INVESTMENTS IN REAL ESTATE:
  Land                                              1,810,273      2,458,967
  Buildings and Equipment                           2,956,027      3,793,449
  Accumulated Depreciation                         (1,031,715)    (1,139,101)
                                                   -----------    -----------
      Net Investments in Real Estate                3,734,585      5,113,315
                                                   -----------    -----------
          Total Assets                            $ 5,560,344    $ 5,134,721
                                                   ===========    ===========


                      LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.            $    16,401    $    20,662
  Distributions Payable                                74,425        128,894
  Security Deposit                                      5,000          5,000
  Line of Credit                                            0         35,000
                                                   -----------    -----------
      Total Current Liabilities                        95,826        189,556
                                                   -----------    -----------
PARTNERS' CAPITAL (DEFICIT):
  General Partners                                     (8,507)       (13,701)
  Limited Partners, $1,000 Unit value;
     7,500 Units authorized and issued;
     7,221 and 7,276 outstanding in 1995
     and 1994, respectively                         5,473,025      4,958,866
                                                   -----------    -----------
      Total Partners' Capital                       5,464,518      4,945,165
                                                   -----------    -----------
         Total Liabilities and Partners' Capital  $ 5,560,344    $ 5,134,721
                                                   ===========    ===========

 The accompanying notes to financial statements are an integral
                     part of this statement.

</PAGE>

<PAGE>                                
          AEI REAL ESTATE FUND 86-A LIMITED PARTNERSHIP
                                
                       STATEMENT OF INCOME
                                
                 FOR THE YEARS ENDED DECEMBER 3l


                                                      1995           1994

INCOME:
  Rent                                            $   616,054    $   688,888
  Investment Income                                    45,564          1,991
                                                   -----------    -----------
      Total Income                                    661,618        690,879
                                                   -----------    -----------

EXPENSES:
  Partnership Administration - Affiliates             126,948        125,257
  Partnership Administration and Property
     Management - Unrelated Parties                    50,831         68,476
      Interest                                          4,061          2,553
  Depreciation                                        147,981        163,389
                                                   -----------    -----------
      Total Expenses                                  329,821        359,675
                                                   -----------    -----------

OPERATING INCOME                                      331,797        331,204

GAIN ON SALE OF REAL ESTATE                           730,685              0
                                                   -----------    -----------

NET INCOME                                        $ 1,062,482    $   331,204
                                                   ===========    ===========

NET INCOME ALLOCATED:
  General Partners                                $    10,625    $     3,312
  Limited Partners                                  1,051,857        327,892
                                                   -----------    -----------
                                                  $ 1,062,482    $   331,204
                                                   ===========    ===========

NET INCOME PER LIMITED PARTNERSHIP UNIT
(7,262 and 7,283 weighted average Units outstanding
  in 1995 and 1994, respectively)                 $    144.84    $     45.02
                                                   ===========    ===========


 The accompanying notes to financial statements are an integral
                     part of this statement.

</PAGE>


<PAGE>
          AEI REAL ESTATE FUND 86-A LIMITED PARTNERSHIP
                                
                     STATEMENT OF CASH FLOWS
                                
                 FOR THE YEARS ENDED DECEMBER 31

                                                      1995           1994

CASH FLOWS FROM OPERATING ACTIVITIES:
 Net Income                                       $ 1,062,482    $   331,204

 Adjustments To Reconcile Net Income
 To Net Cash Provided By Operating Activities:
     Depreciation                                     147,981        163,389
     Gain on Sale of Real Estate                     (730,685)             0
     Decrease in Receivables                            8,364          6,911
     Increase (Decrease) in Payable to
        AEI Fund Management, Inc.                      (4,261)           239
                                                   -----------    -----------
       Total Adjustments                             (578,601)       170,539
                                                   -----------    -----------
       Net Cash Provided By
           Operating Activities                       483,881        501,743
                                                   -----------    -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Proceeds from Sale of Real Estate                 1,961,434              0
                                                   -----------    -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Increase (Decrease) in Distributions Payable        (54,469)        27,429
  Distributions to Partners                          (507,963)      (568,184)
  Redemption Payments                                 (35,166)        (6,345)
  Increase (Decrease) in Line of Credit               (35,000)        35,000
                                                   -----------    -----------
       Net Cash Used For
           Financing Activities                      (632,598)      (512,100)
                                                   -----------    -----------

NET INCREASE (DECREASE) IN CASH                     1,812,717        (10,357)

CASH AND CASH EQUIVALENTS, beginning of period          9,802         20,159
                                                   -----------    -----------

CASH AND CASH EQUIVALENTS, end of period          $ 1,822,519    $     9,802
                                                   ===========    ===========

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
  Interest Paid During the Year                   $     4,061    $     2,553
                                                   ===========    ===========

 The accompanying notes to financial statements are an integral
                     part of this statement.

</PAGE>


          AEI REAL ESTATE FUND 86-A LIMITED PARTNERSHIP
                                
            STATEMENT OF CHANGES IN PARTNERS' CAPITAL
                                
                 FOR THE YEARS ENDED DECEMBER 31


                                                                      Limited
                                                                   Partnership
                              General      Limited                     Units
                              Partners     Partners       Total    Outstanding


BALANCE, December 31, 1993  $ (11,268)   $ 5,199,758   $ 5,188,490    7,285.25

  Distributions                (5,682)      (562,502)     (568,184)

  Redemption Payments             (63)        (6,282)       (6,345)      (9.00)

  Net Income                    3,312        327,892       331,204
                             ---------    -----------   -----------  ----------
BALANCE, December 31, 1994    (13,701)     4,958,866     4,945,165    7,276.25

  Distributions                (5,080)      (502,883)     (507,963)

  Redemption Payments            (351)       (34,815)      (35,166)     (54.93)

  Net Income                   10,625      1,051,857     1,062,482
                             ---------    -----------   -----------  ----------
BALANCE, December 31, 1995  $  (8,507)   $ 5,473,025   $ 5,464,518    7,221.32
                             =========    ===========   ===========  ==========



 The accompanying notes to financial statements are an integral
                     part of this statement.

</PAGE>



          AEI REAL ESTATE FUND 86-A LIMITED PARTNERSHlP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 1995 AND 1994

(1)  Organization -
     
     AEI  Real Estate Fund 86-A Limited Partnership (Partnership)
     was  formed  to  acquire and lease commercial properties  to
     operating tenants.  The Partnership's operations are managed
     by  AEI  Fund  Management  86-A, Inc.  (AFM),  the  Managing
     General Partner of the Partnership.  Robert P. Johnson,  the
     President  and  sole  shareholder  of  AFM,  serves  as  the
     Individual General Partner of the Partnership.  An affiliate
     of  AFM,  AEI  Fund  Management, Inc.  (AEI),  performs  the
     administrative and operating functions for the Partnership.
     
     The   terms   of  the  Partnership  offering  call   for   a
     subscription  price of $1,000 per Limited Partnership  Unit,
     payable   on  acceptance  of  the  offer.   The  Partnership
     commenced   operations  on  April  2,  1986   when   minimum
     subscriptions    of   1,300   Limited   Partnership    Units
     ($1,300,000)  were  accepted.   The  Partnership's  offering
     terminated  on  July  9, 1986 when the maximum  subscription
     limit  of  7,500 Limited Partnership Units ($7,500,000)  was
     reached.
     
     Under  the  terms of the Limited Partnership Agreement,  the
     Limited  Partners and General Partners contributed funds  of
     $7,500,000  and $1,000, respectively.  During the  operation
     of the Partnership, any Net Cash Flow, as defined, which the
     General Partners determine to distribute will be distributed
     90% to the Limited Partners and 10% to the General Partners;
     provided,  however, that such distributions to  the  General
     Partners will be subordinated to the Limited Partners  first
     receiving an annual, noncumulative distribution of Net  Cash
     Flow equal to 10% of their Adjusted Capital Contribution, as
     defined,  and, provided further, that in no event  will  the
     General Partners receive less than 1% of such Net Cash  Flow
     per  annum. Distributions to Limited Partners will  be  made
     pro rata by Units.
     
     Any  Net  Proceeds  of Sale, as defined, from  the  sale  or
     financing of the Partnership's properties which the  General
     Partners determine to distribute will, after provisions  for
     debts  and  reserves, be paid in the following manner:   (i)
     first,  99%  to the Limited Partners and l% to  the  General
     Partners until the Limited Partners receive an amount  equal
     to:  (a)  their Adjusted Capital Contribution  plus  (b)  an
     amount  equal  to 6% of their Adjusted Capital  Contribution
     per  annum, cumulative but not compounded, to the extent not
     previously distributed from Net Cash Flow; (ii) next, 99% to
     the  Limited  Partners and 1% to the General Partners  until
     the Limited Partners receive an amount equal to 14% of their
     Adjusted Capital Contribution per annum, cumulative but  not
     compounded, to the extent not previously distributed;  (iii)
     next, to the General Partners until cumulative distributions
     to the General Partners under Items (ii) and (iii) equal 15%
     of cumulative distributions to all Partners under Items (ii)
     and (iii).  Any remaining balance will be distributed 85% to
     the  Limited  Partners  and  15% to  the  General  Partners.
     Distributions to the Limited Partners will be made pro  rata
     by Units.

          AEI REAL ESTATE FUND 86-A LIMITED PARTNERSHlP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 1995 AND 1994

(1)  Organization - (Continued)
     
     For  tax  purposes,  profits  from  operations,  other  than
     profits  attributable  to  the  sale,  exchange,  financing,
     refinancing   or  other  disposition  of  the  Partnership's
     property,  will  be  allocated first in the  same  ratio  in
     which,  and  to the extent, Net Cash Flow is distributed  to
     the Partners for such year.  Any additional profits will  be
     allocated 90% to the Limited Partners and 10% to the General
     Partners.  In  the event no Net Cash Flow is distributed  to
     the  Limited  Partners,  90% of  each  item  of  Partnership
     income,  gain  or credit for each respective year  shall  be
     allocated to the Limited Partners, and 10% of each such item
     shall be allocated to the General Partners.  Net losses from
     operations will be allocated 98% to the Limited Partners and
     2% to the General Partners.
     
     For  tax purposes, profits arising from the sale, financing,
     or  other disposition of the Partnership's property will  be
     allocated  in  accordance with the Partnership Agreement  as
     follows:  (i) first, to those partners with deficit balances
     in  their capital accounts in an amount equal to the sum  of
     such  deficit  balances; (ii) second,  99%  to  the  Limited
     Partners  and 1% to the General Partners until the aggregate
     balance in the Limited Partners' capital accounts equals the
     sum  of the Limited Partners' Adjusted Capital Contributions
     plus  an  amount  equal  to 14% of  their  Adjusted  Capital
     Contributions  per annum, cumulative but not compounded,  to
     the  extent  not previously allocated; (iii) third,  to  the
     General Partners until cumulative allocations to the General
     Partners equal 15% of cumulative allocations.  Any remaining
     balance  will  be allocated 85% to the Limited Partners  and
     15%  to the General Partners.  Losses will be allocated  98%
     to the Limited Partners and 2% to the General Partners.
     
     The  General Partners are not required to currently  fund  a
     deficit   capital   balance.   Upon   liquidation   of   the
     Partnership or withdrawal by a General Partner, the  General
     Partners will contribute to the Partnership an amount  equal
     to  the  lesser  of  the deficit balances in  their  capital
     accounts  or  1%  of  total Limited  Partners'  and  General
     Partners' capital contributions.
         
(2)  Summary of Significant Accounting Policies -

     Financial Statement Presentation

       The  accounts  of  the Partnership are maintained  on  the
       accrual  basis of accounting for both federal  income  tax
       purposes and financial reporting purposes.

     Accounting Estimates
     
       Management  uses  estimates and assumptions  in  preparing
       these  financial statements in accordance  with  generally
       accepted  accounting  principles.   Those  estimates   and
       assumptions may affect the reported amounts of assets  and
       liabilities,  the  disclosure  of  contingent  assets  and
       liabilities,  and  the  reported  revenues  and  expenses.
       Actual results could differ from those estimates.


                                
          AEI REAL ESTATE FUND 86-A LIMITED PARTNERSHlP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 1995 AND 1994

(2)  Summary of Significant Accounting Policies - (Continued)

       The  Partnership regularly assesses whether market  events
       and conditions indicate that it is reasonably possible  to
       recover  the carrying amounts of its investments  in  real
       estate  from  future operations and sales.   A  change  in
       those  market events and conditions could have a  material
       effect on the carrying amount of its real estate
       
     Cash and Cash Equivalents
       
       Cash  and  cash  equivalents include all cash  and  highly
       liquid   investment   securities   with   maturities    at
       acquisition  of  three  months or less.   Such  investment
       securities are carried at cost plus accrued interest which
       approximates fair market value.

     Cash Concentrations of Credit Risk

       At  times  throughout  the year,  the  Partnership's  cash
       deposited  in  financial  institutions  may  exceed   FDIC
       insurance limits.

     Income Taxes

       The  income or loss of the Partnership for federal  income
       tax  reporting  purposes is includable in the  income  tax
       returns of the partners.  Accordingly, no recognition  has
       been  given to income taxes in the accompanying  financial
       statements.
       
       The  tax  return, the qualification of the Partnership  as
       such  for  tax  purposes, and the amount of  distributable
       Partnership  income or loss are subject to examination  by
       federal   and  state  taxing  authorities.   If  such   an
       examination  results  in  changes  with  respect  to   the
       Partnership  qualification or in changes to  distributable
       Partnership  income  or loss, the taxable  income  of  the
       partners would be adjusted accordingly.
              
     Real Estate

       The  Partnership's real estate is leased  under  long-term
       triple  net  leases classified as operating  leases.   The
       Partnership  recognizes  rental  revenue  on  the  accrual
       basis  according  to  the terms of the individual  leases.
       For  leases  which contain cost of living  increases,  the
       increases  are  recognized in the year in which  they  are
       effective.
       
       Real  estate is recorded at the lower of cost or estimated
       net  realizable value.  The Financial Accounting Standards
       Board  has issued Statement No. 121, "Accounting  for  the
       Impairment of Long-Lived Assets and for Long-Lived  Assets
       to   be   Disposed   Of"  which  is  effective   for   the
       Partnership's  fiscal year ended December 31,  1996.   The
       Partnership  regularly reviews the carrying value  of  its
       properties  and  will  reduce  properties  to  their   net
       realizable value as needed.  Adoption of Statement 121  is
       not   expected   to  have  a  material   effect   on   the
       Partnership's financial statements.
       
                                
          AEI REAL ESTATE FUND 86-A LIMITED PARTNERSHlP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 1995 AND 1994

(2)  Summary of Significant Accounting Policies - (Continued)

       The  Partnership  has capitalized as Investments  in  Real
       Estate   certain   costs  incurred  in  the   review   and
       acquisition  of the properties.  The costs were  allocated
       to the land, buildings and equipment.
       
       The   buildings  and  equipment  of  the  Partnership  are
       depreciated  using the straight-line method for  financial
       reporting purposes based on estimated useful lives  of  30
       years and 10 years respectively.

(3)  Related Party Transactions -

     On  June 7, 1990, the Partnership acquired a 20% interest in
     the   Cheddar's  restaurant.   On  August  24,   1990,   the
     Partnership  acquired  a  6.7522% interest  in  the  Sizzler
     restaurant.  The remaining interest in these properties  are
     owned by AEI Real Estate Fund XVIII Limited Partnership,  an
     affiliate  of  the  Partnership.   On  July  31,  1991,  the
     Partnership acquired a 61.7638% interest in the Taco  Cabana
     restaurant.   The  remaining interest in  this  property  is
     owned  by  AEI  Net Lease Income & Growth Fund  XIX  Limited
     Partnership, an affiliate of the Partnership.
     
     Each Partnership owns a separate, undivided interest in  the
     properties.   No  specific agreement  or  commitment  exists
     between  the  Partnerships as to  the  management  of  their
     respective  interest in the properties, and the  Partnership
     that  holds  more  than  a  50% interest  does  not  control
     decisions  over  the  other  Partnership's  interest.    The
     financial   statements  reflect  only   this   Partnership's
     percentage  share  of  the properties'  land,  building  and
     equipment, liabilities, revenues and expenses.
     
     AFM   and  AEI  received  the  following  compensation   and
     reimbursements for costs and expenses from the Partnership:


                                          Total Incurred by the Partnership
                                           for the Years Ended December 3l

                                                       1995       1994
a.  AEI and AFM are reimbursed for all costs
    incurred in connection with managing the
    Partnership's operations, maintaining the
    Partnership's books and communicating
    the results of operations to the Limited
    Partners.                                       $ 126,948   $ 125,257
                                                     ========    ========


                                
          AEI REAL ESTATE FUND 86-A LIMITED PARTNERSHlP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 1995 AND 1994

(3)  Related Party Transactions - (Continued)

b.  AEI and AFM are reimbursed for all direct
    expenses they have paid on the Partnership's
    behalf to third parties. These expenses included
    printing costs, legal and filing fees, direct
    administrative costs, outside audit and
    accounting costs, taxes, insurance and other
    property costs.                                 $  50,831   $  68,476
                                                     ========    ========

     The  payable  to  AEI Fund Management, Inc.  represents  the
     balance  due for the services described in 3a and  b.   This
     balance is non-interest bearing and unsecured and is  to  be
     paid in the normal course of business.
     
(4)  Investments in Real Estate -

     The  Partnership  leases its properties to  various  tenants
     through   non-cancelable  triple  net  leases,   which   are
     classified  as operating leases.  Under a triple net  lease,
     the  lessee  is  responsible  for  all  real  estate  taxes,
     insurance,  maintenance, repairs and operating  expenses  of
     the  property.   The initial Lease terms are  for  20  years
     except for the Taco Cabana and Auto Max properties which are
     15  years and the DeLisi's property which is 10 years.   The
     Leases have renewal options which may extend the lease  term
     an  additional  10 years.  The Leases contain  rent  clauses
     which entitle the Partnership to receive additional rent  in
     future  years  based on stated rent increases  or  if  gross
     receipts  for the property exceed certain specified amounts,
     among other conditions.  The leases provide the lessees with
     two  five-year renewal options subject to the same terms and
     conditions as the initial lease.  Certain lessees have  been
     granted options to purchase the property.  Depending on  the
     lease, the purchase price is either determined by a formula,
     or  is  the greater of the fair market value of the property
     or the amount determined by a formula.  In all cases, if the
     option  were  to  be exercised by the lessee,  the  purchase
     price  would  be  greater  than the  original  cost  of  the
     property.
     
     The  Partnership's  properties are all  commercial,  single-
     tenant  properties with the exception of the Kearney  Office
     Building.   The  Kearney office building and warehouse  were
     constructed  in 1978 and 1981, respectively.   The  building
     was   remodeled   in  1986.   The  Sizzler  restaurant   was
     constructed   and  acquired  in  1990.   The   Taco   Cabana
     restaurant  was constructed and acquired in 1991.   All  the
     remaining  buildings were constructed in 1987.  The  Kearney
     office  building  was acquired in 1986.  All  the  remaining
     properties  were acquired during 1987.  There have  been  no
     costs   capitalized  as  improvements  subsequent   to   the
     acquisitions.
     
                                
          AEI REAL ESTATE FUND 86-A LIMITED PARTNERSHlP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 1995 AND 1994

(4)  Investments in Real Estate - (Continued)
     
     The   cost   of   the  properties  and  related  accumulated
     depreciation at December 31, 1995 are as follows:


                                          Buildings and             Accumulated
Property                           Land     Equipment      Total    Depreciation

Office Building, Kearney, NE  $    64,498  $   370,125  $   434,623  $   118,736
Auto Max, Bloomington, MN         361,269      477,480      838,749      155,738
DeLisi's, Brooklyn Park, MN       317,355      651,603      968,958      249,218
Auto  Max,  Coon Rapids, MN       382,263      413,555      795,818      132,923
am/pm Mini Market,
  Carson City, NV                 135,760      644,136      779,896      311,922
Sizzler,  Springboro,  OH          24,181       64,916       89,097       13,974
Taco  Cabana,  Houston, TX        524,947      334,212      859,159       49,204
                               -----------  -----------  -----------  ----------
                              $ 1,810,273  $ 2,956,027  $ 4,766,300  $ 1,031,715
                               ===========  ===========  ===========  ==========
     
     Effective May 1, 1992, the Partnership replaced the original
     tenant  in the office building in Kearney, Nebraska, with  a
     new  tenant  who,  in March, 1993, filed for reorganization.
     The  Partnership  obtained possession of  the  property  and
     listed  the  property  for sale or lease.   The  Partnership
     received rent of $975 per month through March, 1994, from  a
     tenant,  who was sub-leasing part of the building  from  the
     new tenant.  Since March, 1994, the Partnership has received
     no  rent  from the property.  The total amount of  rent  not
     collected   in  1995  and  1994  was  $62,008  and   $59,081
     respectively.  These amounts were not accrued for  financial
     reporting purposes.
     
     On   July  6,  1995,  the  Partnership  sold  the  Cheddar's
     restaurant   in   Columbus,  Ohio,  to  the   lessee.    The
     Partnership  received net sale proceeds of  $314,826,  which
     resulted in a net gain of $44,137.  At the time of sale, the
     cost  and  related accumulated depreciation of the  property
     was $306,711 and $36,022, respectively.
     
     In  March, 1995, the lessee of the Applebee's restaurant  in
     Fort  Myers,  Florida,  exercised an  option  in  the  Lease
     Agreement  to purchase the property.  On July 28, 1995,  the
     sale closed with the Partnership receiving net sale proceeds
     of  $1,646,608 which resulted in a net gain of $686,548.  At
     the   time   of  sale,  the  cost  and  related  accumulated
     depreciation  of the property was $1,179,405  and  $219,345,
     respectively.   The  Managing  General  Partner  is  in  the
     process  of  preparing  a  proxy  statement  to  propose  an
     amendment  to the Limited Partnership Agreement  that  would
     allow  the Partnership to reinvest the majority of  the  net
     proceeds in additional properties.
     
                                
          AEI REAL ESTATE FUND 86-A LIMITED PARTNERSHlP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 1995 AND 1994

(4)  Investments in Real Estate - (Continued)
     
     During 1995, the Partnership distributed $223,865 of the net
     sale proceeds to the Limited and General Partners as part of
     their  regular quarterly distributions, which represented  a
     return of capital of $30.55 per Limited Partnership Unit.
     
     The  minimum future rentals on the non-cancelable Leases for
     years subsequent to December 31, 1995 are as follows:
     
                       1996          $   484,466
                       1997              461,749
                       1998              450,391
                       1999              450,391
                       2000              450,391
                       Thereafter      2,200,559
                                      -----------
                                     $ 4,497,947
                                      ===========

     In  1995  and  1994,  the Partnership recognized  contingent
     rents of $27,471 and $18,581, respectively.

(5)  Security Deposit -

     In  April, 1992, the Partnership received a deposit from the
     tenant  of  the DeLisi's Italian Restaurant as security  for
     future  rent payments.  The funds are invested  in  a  short
     term money market account and will be refunded at the end of
     the Lease, without interest, to the tenant provided there is
     no default in the Lease Agreement.

(6)  Line of Credit -

     In  January,  1994, the Partnership established  a  $100,000
     unsecured  line  of  credit  at  Fidelity  Bank  of   Edina,
     Minnesota.   On  January  5, 1995 the  line  of  credit  was
     increased to $150,000.  The line of credit bears interest at
     the  prime rate plus one percent on the outstanding balance,
     which  was  due  on demand, but in any event no  later  than
     January  5,  1996.   The line of credit was  established  to
     provide  short-term  financing to cover any  temporary  cash
     deficits.   In  September, 1995,  the  line  of  credit  was
     cancelled.  As of December 31, 1994, the amount due  on  the
     line  of  credit  was  $35,000.  In  1995  and  1994,  total
     interest expense was $4,061 and $2,553, respectively.

                                
          AEI REAL ESTATE FUND 86-A LIMITED PARTNERSHlP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 1995 AND 1994

(7)  Major Tenants -

     The following schedule presents rent revenue from individual
     tenants,   or  affiliated  groups  of  tenants,   who   each
     contributed more than ten percent of the Partnership's total
     rent revenue for the years ended December 31:
     
     Tenants who individually generate
     10% or more of total rent revenue:

                                                      1995            1994
       Tenants                  Industry

     Apple South, Inc.         Restaurant         $  102,495      $  156,863
     Taco Cabana, Inc.         Restaurant            117,676         113,728
     B. Wells O'Brien & Co.    Convenience Store     110,687         110,750
     Thomas Graffunder         Automotive Service    110,400         110,400
     DeLisi's Italian Restaurant
        and Lounge, Inc.       Restaurant             72,000          72,000
                                                   ----------      ----------

     Aggregate rent revenue of major tenants      $  513,258      $  563,741
                                                   ==========      ==========

     Aggregate rent revenue of major tenants as
     a percentage of total rent revenue                  83%             82%
                                                   ==========      ==========

(8)  Partners' Capital -

     Cash  distributions of $5,431 and $5,745 were  made  to  the
     General Partners and $502,883 and $562,502 were made to  the
     Limited  Partners for the years ended December 31, 1995  and
     1994,  respectively.   The  Limited Partners'  distributions
     represent  $69.25  and $77.23 per Limited  Partnership  Unit
     outstanding using 7,262 and 7,283 weighted average Units  in
     1995  and  1994, respectively.  The distributions  represent
     $69.25 and $44.16 per Unit of Net Income and $-0- and $33.07
     per  Unit of return of contributed capital in 1995 and 1994,
     respectively.
     
     As  part  of  the  Limited  Partner distributions  discussed
     above, the Partnership distributed $221,627 of proceeds from
     the   Applebee's   and  Cheddar's  sales   in   1995.    The
     distributions reduced the Limited Partners' Adjusted Capital
     Contributions.
     
     Distributions  of  Net  Cash Flow to  the  General  Partners
     during  1995  and  1994  were subordinated  to  the  Limited
     Partners  as  required in the Partnership Agreement.   As  a
     result,  99%  of distributions and income were allocated  to
     the Limited Partners and 1% to the General Partners.
     
                                
          AEI REAL ESTATE FUND 86-A LIMITED PARTNERSHlP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 1995 AND 1994

(8)  Partners' Capital - (Continued)

     The  Partnership may acquire Units from Limited Partners who
     have  tendered their Units to the Partnership.   Such  Units
     may  be  acquired  at  a discount.  The Partnership  is  not
     obligated to purchase in any year more than 5% of the  total
     number  of  Units outstanding at the beginning of the  year.
     In  no  event shall the Partnership be obligated to purchase
     Units  if,  in  the sole discretion of the Managing  General
     Partner, such purchase would impair the capital or operation
     of the Partnership.
     
     During 1995, seventeen Limited Partners redeemed a total  of
     55  Partnership  Units for $34,815 in  accordance  with  the
     Partnership Agreement.  The Partnership acquired these Units
     using Net Cash Flow from operations.  In 1994, three Limited
     Partners redeemed a total of 9 Partnership Units for $6,280.
     The  redemptions  increase the remaining  Limited  Partners'
     ownership interest in the Partnership.
     
     After  the  effect of redemptions and the return of  capital
     from   the   sale   of   property,  the   Adjusted   Capital
     Contribution,  as defined in the Partnership  Agreement,  is
     $986.54 per original $1,000 invested.
     
(9)  Income Taxes -

     The   following  is  a  reconciliation  of  net  income  for
     financial reporting purposes to income reported for  federal
     income tax purposes for the years ended December 31:
     
                                                      1995            1994
     
     Net Income For Financial
       Reporting Purposes                         $ 1,062,482     $   331,204
     
     Depreciation for Tax Purposes
      Under Depreciation For Financial
      Reporting Purposes                               46,656          49,908
     
     Property Expenses For Tax Purposes
      Under Expenses For Financial Reporting
      Purposes                                         22,238          37,134
     
     Gain on Sale of Real Estate For Tax Purposes
      Under Gain For Financial Reporting Purposes     (16,994)              0
     
                                                   -----------     -----------
            Taxable  Income to Partners           $ 1,114,382     $   418,246
                                                   ===========     ===========
     
     
                                
          AEI REAL ESTATE FUND 86-A LIMITED PARTNERSHlP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 1995 AND 1994

(9)  Income Taxes - (Continued)

     The  following is a reconciliation of Partners' capital  for
     financial  reporting purposes to Partners' capital  reported
     for federal income tax purposes for the years ended December
     31:
     
                                                      1995            1994
     
     Partners' Capital For
       Financial  Reporting Purposes              $ 5,464,518      $ 4,945,165
     
     Depreciation For Tax Purposes Over
      Depreciation For Financial
      Reporting Purposes                              (31,080)         (77,736)
     
     Capitalized Start-Up Costs
      Under Section 195                               273,183          273,183
     
     Amortization of Start-Up and
      Organization Costs                             (280,829)        (280,829)
     
     Property Expenses For Tax Purposes
      Under Expense For Financial Reporting
      Purposes                                        114,304           92,066
     
     Gain on Sale of Real Estate For Tax
      Purposes Over Gain For Financial
      Reporting Purposes                               59,407           76,401
     
     Organization and Syndication Costs
      Treated as Reduction of Capital
      For Financial Reporting Purposes              1,093,184        1,093,184
                                                   -----------      -----------
           Partners' Capital For
               Tax  Reporting Purposes            $ 6,692,687      $ 6,121,434
                                                   ===========      ===========


                                
          AEI REAL ESTATE FUND 86-A LIMITED PARTNERSHlP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 1995 AND 1994

(10) Fair Value of Financial Instruments -

     The estimated fair values of the financial instruments, none
     of  which  are held for trading purposes, are as follows  at
     December 31, 1995:
     
                                                        1995
                                               Carrying         Fair
                                                Amount          Value
     
     Cash                                    $ 1,822,519    $ 1,822,519
     

     The carrying value of cash approximates fair value.
     
     
ITEM  8.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
          AND FINANCIAL DISCLOSURE.

          None.


                            PART III

ITEM 9.  DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL
         PERSONS;  COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT.

        The  registrant  is  a  limited partnership  and  has  no
officers,  directors, or direct employees.  The General  Partners
of  the  registrant are Robert P. Johnson and AFM.   The  General
Partners  manage and control the Partnership's affairs  and  have
general  responsibility and the ultimate authority in all matters
affecting the Partnership's business.  The director and  officers
of AFM are as follows:

        Robert  P.  Johnson, age 51, is Chief Executive  Officer,
President  and  Director and has held these positions  since  the
formation  of  AFM  in December, 1985, and has  been  elected  to
continue in these positions until March, 1997.  From 1970 to  the
present,  he  has  been employed exclusively  in  the  investment
industry,  specializing  in  tax-advantaged  limited  partnership
investments.   In  that  capacity, he has been  involved  in  the
development,  analysis, marketing and management  of  public  and
private investment programs investing in net lease properties  as
well  as  public  and  private investment programs  investing  in
energy  development.   Since  1971,  Mr.  Johnson  has  been  the
president,  a  director  and  a  registered  principal   of   AEI
Incorporated,  which  is  registered  with  the  Securities   and
Exchange Commission as a securities broker-dealer, is a member of
the  National Association of Securities Dealers, Inc. (NASD)  and
is  a  member  of  the Security Investors Protection  Corporation
(SIPC).   Mr.  Johnson has been president,  a  director  and  the
principal shareholder of AEI Fund Management, Inc., a real estate
management  company founded by him, since 1978.  Mr.  Johnson  is
currently  a general partner or principal of the general  partner
in fifteen other limited partnerships.

        Mark  E.  Larson,  age 43, is Executive  Vice  President,
Treasurer  and  Chief Financial Officer and has been  elected  to
continue  in these positions until March, 1997.  Mr.  Larson  has
been  Treasurer and Executive Vice President since December, 1987
and  Chief  Financial Officer since January,  1990.   In  January
1993,  Mr.  Larson was elected to serve as Secretary of  AFM  and
will  continue to serve until March, 1997.  Mr. Larson  has  been
employed  by  AEI  Fund Management, Inc. and affiliated  entities
since  1985.   From  1979  to 1985, Mr. Larson  was  with  Apache
Corporation as manager of Program Accounting responsible for  the
accounting  and reports for approximately 45 public partnerships.
Mr.   Larson   is  responsible  for  supervising  the  accounting
functions of AFM and the registrant.

ITEM 10.  EXECUTIVE COMPENSATION.

        The General Partner and affiliates are reimbursed at cost
for  all  services performed on behalf of the registrant and  for
all  third party expenses paid on behalf of the registrant.   The
cost for services performed on behalf of the registrant is actual
time  spent  performing such services plus  an  overhead  burden.
These  services include organizing the registrant  and  arranging
for  the  offer  and  sale  of Units,  reviewing  properties  for
acquisition and rendering administrative and management services.

ITEM 11.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
          MANAGEMENT.

        AFM, the Managing General Partner of the registrant,  and
Robert  P.  Johnson, its Individual General Partner,  contributed
$1,000 in total for their interest in the registrant.  See Item 1
for  a discussion of their share of the registrant's profits  and
losses.  During 1989, AFM purchased 23 Limited Partnership  Units
(less  than  1%  of the Units outstanding) from  certain  Limited
Partners.

ITEM 12.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

        The  registrant,  AFM  and  its  affiliates  have  common
management and utilize the same facilities.  As a result, certain
administrative  expenses  are  allocated  among   these   related
entities.   All  of  such activities and any  other  transactions
involving the affiliates of the General Partner of the registrant
are  governed  by,  and  are conducted in  conformity  with,  the
limitations set forth in the Limited Partnership Agreement of the
registrant.   Reference is made to Note 3 on page  19  ,  and  is
incorporated  herein by reference, for details of  related  party
transactions.

                                
                             PART IV

ITEM 13.  EXHIBITS AND REPORTS ON FORM 8-K AND FORM 8-K/A.

          A.  Exhibits -
                               Description

               27    Financial  Data  Schedule
                     for year ended December 31, 1995.

          B.  Reports on Form 8-K and Form  8-K/A - During the quarter ended 
                                                    December 31, 1995, the
                                                    Partnership filed a Form
                                                    8-K dated November 15,1995,
                                                    reporting  the  disposition 
                                                    of the Applebee's 
                                                    Restaurant in Fort Myers.


                           SIGNATURES

      Pursuant to the requirements of Section 13 or 15(d) of  the
Securities  Exchange Act of 1934, the registrant has duly  caused
this  report  to  be  signed on its behalf  by  the  undersigned,
thereunto duly authorized.

                            AEI REAL ESTATE FUND 86-A
                            Limited Partnership
                            By: AEI Fund Management 86-A, Inc.
                                Its Managing General Partner


July 24, 1996               By: /s/ Robert P. Johnson
                                    Robert P. Johnson, President and Director
                                    (Principal Executive Officer)


      Pursuant to the requirements of the Securities Exchange Act
of  1934,  this  report has been signed below  by  the  following
persons on behalf of the registrant and in the capacities and  on
the dates indicated.

 Name                                     Title                         Date


 /s/ Robert P. Johnson   President(Principal Executive Officer)  August 29, 1996
     Robert P. Johnson   and Sole Director of Managing General
                         Partner

 /s/ Mark E. Larson      Executive Vice President, Treasurer     August 29, 1996
     Mark E. Larson      and Chief Financial Officer (Principal
                         Accounting Officer)




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