I recently bought a $350 civic with a blown motor. Just got a replacement from a salvage yard inspected it today. Pulled cylinders 1 and 2 spark plugs out and the both seem to have a little moisture on both plugs. While the other 2 cylinders are bone dry could the gasket have failed in those 2 holes.

 

It's a salvage yard motor, it could be in any condition, including worse than your current motor. You will have to run through a bunch of tests and inspect several things to know.

 

The original motor had 2 holes on the block indicating that it was probably run with no oil the exterior look good just those 2 cylinder I'm worried about. I took the valve cover off and looks good as well no oil mixing with water I really won't know until I pull the head. I've heard the head can blow without it mixing with the oil or no white smoke. It not currently installed in the car yet want to change everything while its out the car

 

You can attach a transmission and starter to do a compression test.

Or you can do a leak down test on it without a transmission.

These tests can give you some insight.
The leak down is most informative I believe.

 

I wanna video on YouTube and the leak down test. The video had a civic like mines with a blown gasket and he said if you hear hissing noise when turning the crank then that probably a blown gasket probably gonna take the head to the shop to get it resurfaced amd check for cracks