No that actually looks pretty clean to me. Maybe once you take it out and run it some you could change the gear oil in the lower unit and see if it’s milky with water or if it’s all oil. If it seems to run ok I’d find a lake and go try it out on the water as a boat motor sometimes does really well in a Barrel and not so much under load. Also you will know that the clutch dogs are good (meaning it doesn’t jump in and out of gear) best of luck cool looking boat!!
Thanks. I took a look at the gear oil. Looks clean. I’m waiting on the DMV to title and register the boat. Should happen on Wednesday and I can put ‘er in the lake.