Re: mercury 500
I agree - great motors. However, there were some weaknesses. Keep an eye on all wiring under the cowling. Older Merc wiring had a problem with the sheathing cracking and crumbling. Also, the early 1970s models still had steel shafts that were prone to rusting, particularly under the waterpump cup where the upper main seal is. If you're getting water in your lower unit oil, there's a good chance that's where it is coming from.
Unless the guy you're buying the motor from can produce an invoice showing that the waterpump was changed within the last year, replace it. Cheap insurance...
- Scott