Okay, so, what you need to do...lets not worry about a water logged boat just yet. Check compression 1st. These motors can have a ring failure occasionally. 2nd, check spark with an air gap tester set to 7/16". Just grounding a plug and seeing if it sparks tells you nothing, really. We want to determine if you have a sound motor. The steps to do these checks are in the FAQ's if you are unsure.
3rd, if possible talk to previous owner. Ask him if it ever reached higher RPM's. Ask him if he put a new prop on. Ask him if he put a new prop on because he wanted it to go faster. Many people think that you can just put a longer pitch prop on to gain speed but this is not really the case. I realize it may not be possible to get ahold of him. If you can reach him I would suggest killing him with kindness to get the real answer. He may have decided to re-prop his boat to gain speed, lost speed with his new $400 SS prop, and sold the boat. Lie if you have to to get the real answer. This does not matter if we find bad compression or missing spark.
4th, If you find good compression-all within 10% and over 100psi ( unless this is one of the low comp motors but I dont think so ), AND good bright blue snappy spark then we will worry about the prop, weight, length,water logging and such.