What is the best recommendation on configuring a Host and 2 VM's Networks with 2 physical ethernet ports?

There's a couple of different schools of thought on this.

1) Create a team with the 2 NIC's.... create a virtual switch in hyper-V. That way you get fault tolerance for all your VM's and the host connection.
2) Allocate one NIC for the host and one NIC for the VM's... no fault tolerance - but very simple to setup
3) if you need higher throughout, create a network team as LACP, configure the switch to support LACP, then you will get fault tolerance and higher throughput.... but realistically, i doubt that is required if your only running 2 VM's

For me - i keep things simple with most clients - and go with option 2. Most of the servers we use have a minimum of 4 ports - so we can choose to dedicate a port to a VM if its needed... in enterprise clients its a different story.... but for 2 VM's... i would keep it simple.

I created a team, and setup the first VM... works fine.  Now creating the second VM and cannot select the same virtual switch or create a new virtual switch that uses the team.  What am I missing?

i dont know sorry.... i have no idea that could happen.

Just to be sure:
1) you created a NIC team using server manager
2) In hyper-V virtual switch manager, you created a switch, and set it to use "external network" - and selected the team (also ticking the "Allow mangement OS to share this NIC" box)
3) you create a VM - and try to set the network adapter to the virtual switch you created in step 2... but cannot... ?

is that correct? ive never seen that before if it is.... not sure how that could even happen.

One can bind multiple VM's vNIC(s) to a single vSwitch.

I have the second VM installed and working on network now.  This server is still preproduction.

Thanks Philip for the how to manual on Hyper-V!