"most likely place for water t
"most likely place for water to come in is via a faulty (ripped, rotted) driveshaft or shift cable bellows...these are the 2 rubber parts that can sink a boat if they rip as they are below the waterline. Check them out. You can buy a kit with both bellows and all related parts. The oil might very well be the upper seal leaking drive gear oil into the driveshaft bellows and then it's washing in with the water, (and your gear oil is white because it's milky from water getting in at either the same seal because your bellows is filling with water, or from the propshaft seal because it's got some fishing line in it) or it could just be grease as the bellows usually is greasy inside from grease flying out of the u joints."