What to do with this?
 

Any ideas? Things are pretty rusty on the engine and I found water mixed in with the oil in the crankcase. The manifolds are probably the culprit due to the amount of rust on them but without further inspection I can not rule out a possible cracked block????? The engine ran in the boat but had to be primed every time and the mechanic from where I bought the boat had done a compression check and it came back with almost 150 psi in all cyclinders. I know I do not want to rebuilt because I will still be underpowered in my opinion and that money could be used elsewhere on the boat. Any clue what the complete motor could be sold for as is?

I do know that I can not wait til I get the rest of my funds together (selling my 1999 Donzi Z23 Deckboat) to get my new engine which I think is going to be a freshly rebuilt and updated 502 Mag MPI from a company out of Texas that rebuilds them to better than new and sells them for around $9500 complete ready to drop in and go.

Steve-Boatcrazy.

Craigslist... You are going to have a hard time getting much for that motor without knowing more about its mechanical status. Ask the mechanic that checked it out if he would be willing to trade the motor for work or parts. If you start tearing into it, and find out which parts are good/bad you may have an easier time getting rid of them. However, you then have to deal with all the small parts and sales etc.

You might consider taking it apart and putting the various pieces on Ebay. You may do better than selling it as a whole with unknown problems.

Just my $0.02 worth...Good luck!