Multiple K1s from syndication funds

[Brian M.]

I've seen this topic get brought up in other passive RE forums but am curious to hear from the BP community. It seems we're seeing more and more operators move to a fund model, which I like for diversification. However, I'm wondering if funds could have costly tax ramifications. 

If a fund has a $50k minimum and buys properties in say 8 states that have state income tax, aren't you potentially adding a lot of costs to your taxes by now needing to file multiple K1s and potential state income tax returns if gains are large enough? Thoughts?