There are four points of entry for water; propshaft seal, driveshaft seals, shiftshaft seal and lube washers. Lube washers behind the fill and vent screws are the easiest to fix and can lead to alot of water if they are bad or missing. Dig the old ones out with a pick and replace them for $1.00 if they are visibly bad. Take off the gearcase, remove the water pump housing and propeller/thrust washer and look for visibly damaged seals. Take the gearcase to a shop and have it pressure tested and you will find the leak. 12-14 psi max for the check and should hold pressure for 10-15 minutes or it will bubble through the bad seal with a little soap sprayed on it like finding a leak in a tire. Also look for fishing line on the propshaft after you remove the prop. Fishing line will cut that seal. Most outboards are pretty easy to replace the faulty seals without special tools. Get a decent manual for the engine and walk through the steps. If you can build an engine, you can do this job without issue.
By the way, my dad is a TV repair man, so I have an awesome set of tools!!!
Thanks guys.Yes I do need a manual, usually that is the first thing I do when I get a new motor. However, I'm having a hard time locating a true technician service manual for this motor. All I can find are the generic 9hp -140hp manual for motors from 1990-2011. Maybe that's all they make I don't know. My previous experience has worked so far. But I'm not going to attempt this with out a manual. I guess the generic one will have to do. That and an exploded assembly drawing.