Who handles operations, how are disputes mediated, how do you handle selling ownership interest (or handling death/divorce), do you have pro rata ownership interest, is there a management fee, etc. 

I’ve heard about mediation, arbitration and court.

Prepare for the fact the judge will expect you to mediate a settlement.

We will be doing that as our next step.And yes, my agent just said that mediation/arbitration/court will be the way to get the EMD back.

Who will mediate?

In California you have to go through Mediation and Arbitration before court.  

I received a violation notice of house sharing this past Feb but my lawyer says it has to be violation happening now (I should have evicted her then) but instead I started mediation through LA County DCBA where she actually admitted to subleasing and said she will continue to sublease knowing I cannot use mediation conversations in court.  

Did Alameda County Court mandate a pre-trial mediation in order to try to settle before your trial?

I honestly thought as landlords we have more power and responsibility to help mediate disputes between tenants.

What you are basically doing is creating a IDM position that skips the intent of the IDM position and goes straight to arbitration...yet having the option to go to a arbitrator or mediator afterwards...