Re: 86 OMC cobra 400 losing oil
Probably the most likely is the propeller shaft if it is leaking into the water and not the drive shaft bellows. Less likely to leak between upper and lower unless the drive was split and 0-rings were not replaced when reassembled. Also, just for info, you always want to replace the o-rings/gaskets on drain/fill plugs when you drain and refill the drive.
When you refill the drive, do you fill from the middle hole? Filling from the bottom will cause an air pocket to form which may look like you are losing oil once the air pocket releases.