Lower unit issue. Help a brother out!

Ok so I started my engine for just a minute to warm it up before changing the fluid in the lower unit.

So I shut it off and open the drain plug. First thing that comes pouring out is water. Then thick sludge crap.

I am not a rocket scientist but I got a feeling this aint good. Anyhow here are some pics. What should I do about this issue?

First pick is of the bottom plug and gasket.

If water came out, or if the lower unit lube is the color of coffee with creamer, it means water has gotten into the gearcase somehow.

As you noticed, there are seals on the drain and fill screws, and from the looks of that one in the pic, you need to replace those.

Also, there are seals on the prop shaft, as well as the drive shaft. Most likely this is where the water has infiltrated. First thing to do is to pull the prop and see if there is fishing line wrapped around the prop shaft, this can chew a seal up pretty quick.

If that seal looks OK, then you need to pull the lower unit, and leak test it to find the bad seal. To do that, you need to make some type of hose/adapter that will thread into one of the screw holes, then use a small hand pump, or a pressure regulator on an air hose, set it to about 1-2 PSI. No more than this, or it can blow out the seals. Slowly pressurize the lower unit, then spray some soapy water around the prop shaft seal and around the driveshaft seal. if there is a leak, you should immediately see some bubbles.

There is also a seal on the shift shaft that is often missed. [-X

Well after removing the fill bolt there was not even a washer (seal) on that bolt.

What are the chances that these two washers are the issue since one was not even on the top screw and the bottom one was pretty worn?

I will pull the prop and check that seal as well but from what I understand the prop was just replaced.

You think I should fill it up with gear fluid once and run it, then come back and see if she took in any water or drop the unit?

Thanks for all your advice.

By the way Water came pouring out first. The oily sludge came out last. Not milky though. Just like it was setting on top of the water.

I just love when you buy a boat and the guy says it runs great and then you find this crap! Jeez!!

By the way. This is a 1976 Evinrude here is the model and diagram. Thanks

https://www.boats.net/parts/search/BRP/EVINRUDE/1976/25653E/GEARCASE/parts.html

It could just need new vent/fill plug washers. Replace those first and put in fresh 80-90w outboard gear case oil. Run it a while and check it again for water. Just my 2 cents.

You know I think I am going to play it safe here and have a tech look at it. I got a guy who charges me $30 bucks an hour plus parts and he has been doing it for a long time.

The tech cam out and said it was the bottom gasket as well. Tested everything and ran her. Said the thing sounds awesome and the only problem is it is sitting in the driveway and not on the lake!

I am pumped!!