Question 1: Is it necessary to file the LLC separately for tax purposes or can we still include it on the Schedule E form in our joint tax return?

I think it will be a great joint venture for us to grow our wealth.

This was given to us from family and it intended to set it up as joint tenancy so as the brothers died it would end up with one person owning. 

Both me and my wife have W2s, 1099s and few LLCs that either owns real estates, having an active retail business, and for investing with other joint ventures.   

Checks in a lock box, ACH, just no cash and I don't do the websites.

As said above that is when the length of ownership becomes important to your CPA.However if you want to avoid that complication and you reside in a non-community property state  and you file a joint tax return with your husband you could have the properties quit claimed into a true single member LLC (either you or your husband as sole member) and elect to be taxed as a sole proprietor. 

I've learned that you get a tax exemption for capital gains up to $500k for our joint return when you sell a primary residence.

I prefer to avoid any excess joints or fittings in the plumbing lines and would have recommended not adding the shutoffs unless you have access to them later.  

Looking to align with wholesalers to help fill their training shortfall and Joint Venture the learning and earning...  

We file a 1065 that includes all our properties, and all the income flows through to our joint return via the K1.