Just my opinion but one residential property per LLC is an overkill in my mind and just ends up costing a lot more money down the road in administrative / accounting fees. 

I don't want to ruin this relationship but would you suggest trying to get this firm to own some of the mistake ( credit to my billable account) or just move on?

Plan was a long term hold as a short term rental.Step 2 - the plan to fund this project was through the sale of another property and monthly income/savings.

My primary focus for this investment is on long-term appreciation potential and leveraging rental income to pay down the mortgage, in this case I have no cashflow.Given the current market conditions, I understand that cash flow might not be immediate, but I'm more interested in the potential for appreciation over time and the ability to offset expenses through rental income.

Do we both record 50% in our own separate QuickBook accounts or do we need a joint account now??

I am using Stessa right now, but this seems more accounting oriented and their forms are very generic and not specific to an area. 

You can get a free account with TenantCloud or other management software, enter your property once, click a button, and it will be published out to multiple sites at once.Knowing the market requires regular research.

What is the tax basis for the lot and what income tax will you owe?

You can claim depreciation on the owned property and this can offset the income from the property.

We both have stable income from full-time jobs (2+ years).