Thanks folks for the words of encouragement. I have not given up on this deal yet though I don't feel all warm and fuzzy about it like I did before the mechanical inspection.
The mechanic is recommending the head gasket change as some rust stains have been noted coming off the head/block seam. I think this is behind the inspector's suspicion of corrosion damage in the block. The only way to really know is to open it up and find out.
I am hoping that this raw water problem is one that is easily addressed. I would like to clean the raw water strainer, check/replace raw water impeller etc. fix the temperature guage and install the temperature and oil pressure alarms while I'm at it and see what happens. If this does not relieve the raw water flow problem then the next step would be to open up the head.
I have forwarded the mechanical report and the large lines of my discussion with the local Yanmar dealer who performed the inspection and my concerns to the seller via the broker.
It's still not my boat. Any possible work will need to be discussed, agreed to and at least partially paid for by the the current owner. The ball is pretty much in his court.
I appreciate the offer of helping me to find another boat. However this is the only decent boat that I or my broker know of for sale on the West coast (I am in Vancouver BC). Trucking a boat in from the Eastern seaboard, Chicago or the Gulf of Mexico is not really an option. The cost would be more than a professional engine re-build. If this deal falls through I would have to start looking for a different boat altogether.
[This message has been edited by dlabrosse (edited 10-26-2007).]
