Install errors on Beta Develop Setup

Do I need to uninstall python3?

Still getting…

"[WARNING]: Host file not found: /etc/ansible/hosts
[WARNING]: provided hosts list is empty, only localhost is available

When running

python install.py --develop

python3 --version
Python 3.4.2
which python
/usr/bin/python
/usr/bin/python --version
Python 2.7.9