You're hitting the same bug that the rest of us always do when getting started with this platform. Host and Edge TEPs cannot coexist on the same switch with the same physical network adapters.
VMware won't admit this is a bug, but they "fixed" it in 3.1. 
One workaround we were using was to put the Edge TEP on a Standard vSwitch with separate physical NICs, and leave the Host TEPs on the VDS. This works fine, and you can then have a single Geneve VLAN, but traffic between Host and Edge TEP still needs to go through the top of rack switch, even if it's on the same physical host.
If you can't afford the extra physical NICs, then you had to use an external router to route between your Host TEP and Edge TEP networks, which was, of course, ridiculous. After all, we're building software defined networks here!
Again, however, VMware has "fixed" this in 3.1 and you should be able to put everything on a single network now.