For the lender, it is tax as interest by normal methods.If you deposit any personal funds into your business it's treated just like any normal "cash injection" that you provide.  

@Cole Barthel Wow what a potentially great opportunity for you and for your neighborhood if you're able to clean up these properties and treat the tenants with the respect they deserve! 

But, for accounting simplicity sake, we apply them all to COGS and treat them the same as the purchase and renovation expenses. 

But I pivoted quickly and treated it as a business and it kicked my growth into high gear.

Since real estate for you will be treated as a passive investment, you won't be able to offset your personal income with losses.

@Martin Yip Toll So You are making a mistake treating your debt relationships as strictly transactions.

I had Allstate and when we had a fire on a property they treated us like arsonist.  

I am by no means proposing this, but just as Medicare premiums, Required Minimum Distributions (RMDs) from retirement accounts, and contribution limits for IRA/401k accounts are adjusted for inflation, would it be fair to suggest that rent increases could follow a similar model to ensure that both landlords and tenants are treated equitably?

It's sad that we treat this as exceptional behavior rather than one that is expected.

This was related to how the PM company treated tenants so you might not get as much traction with the AG's office since you are not a tenant.Finally, you are obviously hurt and angry and want to be made whole.