I just noticed that most people who are consultants say "they provide the proper paperwork" and my question was do they just provide blank documents or do also provide an example of the documents filled out.

I guess the proper answer is, it depends what type of lender you are trying to use.

What's the best way to properly "plan" for an exit?  

To answer some questions above, this is a properly executed 1031 exchange of like-kind investment properties

I've decided to place an offer for around $11,000 and subject to Joe pulling the proper permits and having the proper inspections completed by the town building inspector (and of course another couple escape clauses).

Yes I believe in proper due diligence.

Yes, Yes, with proper deposits and built in protection with rent prices via maintenance reserves.This is one method we are considering rather than trying to find a flip to increase investment capital this year.Thoughts, considering low Cash on Cash but possible increased investment capital through equity?

I properly recorded a second mortgage on a property.

Hopefully this image posts properly.  

Let me know if you have any questions on the below link.http://www.irs.gov/publications/p551/ar02.htmlIncreases to BasisIncrease the basis of any property by all items properly added to a capital account.