2.5 tohatsu 4 stroke

I'm a new member here . Started working on getting my 2.5 hp tohatsu running cleaned the carb checked fuel lines checked to see I'm my spark plug was getting spark. Got it to run but found oil on the threads of my spark plug and couldn't get water to come out with the foot in a bucket of water. Is the oil on the threads very bad and does the water not squirting out mean my water pump is bad? Any help would be appreciated.

First, we need your actual model.

Oil is common on the plug threads over time; not a big deal. Any number of things could get oil in the cylinder, including putting the motor down on the wrong side.

The pee tube only shows that the cooling system is pressurized. With the motor running, push a still monofilament or wire into the pee tube to see if you can dislodge any crud in there. You can use a cheap IR thermometer to check whether you are overheating.

A bucket is not big enough. Use at least a large garbage can, or better yet, get it in the water.

Change the water pump kit about every 3 years in cold clear fresh water; more often in cruddy water.