Re: 60 hp 2 cyl water in bottom cyl
The head gasket is a good choice and probably the issue.
It could also be a powerhead to mid section gasket. I doubt the latter.
Replace the head gasket.
To do it right, see following.
1. Remove head.
2. Scrape old gasket material off using only a plastic scraper.
3. Re-install, using torque spec's. Remember, these head bolts are torqued in INCH pounds, NOT FOOT pounds.
4. Run engine through complete heat up and cool down cycle.
5. Re-torque with engine cold.