Re: Grinding sounds and shaking when going into reverse? Is that normal?
I don't know. What do you mean by major? Just wrenching, or will welding and fabricating or use of specialized tools be involved? I can and enjoy working on cars. I know people who think replacing brake pads is major. I know people who don't think it's major unless they're doing engine internals. The hardest thing about work on cars is getting access to certain areas. it seems like it'd be easier to gain access on things on an outboard by far.
I know jack squat about outboards though. I just learned how a 2 stroke works from youtube in fact.
If theres metal particles in there, can I just replace the lower unit? Is that where all the "transmission" of an outboard is located?
Of course you can replace the lower unit if you want to. Usually not a good choice unless yours is trash and you are assured you are getting one that doesn't need repair also.
The "transmission" is in the lower unit gearcase. You can get an idea what it looks like by visiting the BRP website and look at the parts catalog.
http://shop.evinrude.com/ You might also make a visit to a library and see if they have a service manual you can look at.
I would expect metal "dust" in the oil, that is one of the reasons that oil changes are required as normal maintenance. Large chunks and grindings, no. One or two small slivers----well at least you know they aren't stuck in a roller bearing somewhere.
If I were the buyer and if it works OK when shifted properly, I would be inclined to take a chance on it, if everything else about the deal is acceptable.
A bit of advice I gave my son when we went shopping for his first car: Always assume a used car has SOMETHING wrong with it. The challenge is figuring out what it is, and decide if you can live with it if there is something wrong. Then if there is nothing wrong, you made out very well.