I am still a novice but they treat me fairly and never insult my ignorance. 

You have to treat REI like a business, which means you need to understand how to have a REI investment plan (this isn't a traditional business plan), and you have to understand how money works within the realm of REI. 

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

@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 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.