Fortunately, since you also live in the house, that makes you exempt from both Sacramento’s local rent control (Tenant Protection Program) and California’s statewide rent control (AB1482).Now, with regard to how to raise the rent, after the lease expires and it transitions to a month-to-month (MTM) agreement, you are free to raise the rent by any amount you choose. 

How would we all protect against that?

@Nick Liu, Stable rentors are a treasure to be protected. 

Despite relief to tenants in the form of stimulus payments and bolstered unemployment benefits, they would not be expected to make housing payments for months and face no negative repercussions. http://phlcouncil.com/councilmembers-gym-brooks-and-gauthier-introduce-emergency-housing-protection-package/If you would be impacted by this bill please share your opinion with the Council. http://phlcouncil.com/social/Stay Healthy.

If you only own one property, it's probably more complicated than it's worth.LLC's are for liability protection (and not fool proof in that regard), not for taxes.

Or is there a way to protect us from them backing out of the deal?

This typically takes a few months and I am unsure how to dialogue with the sellers on the process, I don’t want to put in too low an offer and have them reject it but I also need to protect my downside should the town not grant my highest and best use.

Does this still protect you from piercing the corporate veil? 

(dont beat me up in the comments too much bitcoin lovers) Guns can also be used to put food on the table, protect your family and have a good time at the range.2.

However it is not per se an asset protection.