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"""""""" Not sure tape, affects ground or not, assuming so? """"""""""
Note: The threads do NOT get any sealer. The threaded section of both are the ground path.
Honestly, you don't really need any help to replace the gimbal housing. It's not a tough job. However, if it were my boat, I would look for a good used drive and just swap the whole shebang. It takes a mighty whack to crack a gimbal, and if the drive took such a hit, it may have more damage that hasn't yet revealed.
You should be able to find one in the $500-1000 price range and I wouldn't go a penny over as these are not the most desirable (4.3 engine gearing ratio) by far. You can test for moisture in the transom in two ways. One is with a moisture meter that is used by professional yacht surveyors. The other is with a drill. On the inside of the transom, drill into the core and see if the wood particles that come out of the inside are wet. If it is, you're sunk and you might as well start looking for a new ride. If it's dry, then refill the holes with thickened epoxy and be happy.
$8K for a 1994 20 footer is just beyond ridiculous unless it has been kept in a time capsule. If they get $5K for it they should have a party. I would MAYBE offer $3500 if it was super nice. Just because someone else is willing to pay stupid money for an old wheezer doesn't mean you should too.
I ask because what you describe, left, right, hinge point, zerk fittingS. Sounds like the gimbal RING.
Not my part, but this is where it is..
Parts. Mercruiser Alpha 1 Gen 1 transom assy assembly gimbal ring housing | eBay
Quick update, I got the boat back home and there is defiantly a crack on the port side gimbal Ring. The Zerk fitting is gone and i can see the crack right where the zerk was, if I wiggle the lower back and forth I can see it move. If I had to guess the cast iron was fatigued at that spot. I knew it had been used and or even probably docked in salt water as there is pitting. I think it's a newer drive as well.
All that said I picked up a 93 SeaRay 200BR. 700 hours, freshwater only, 1 owner that passed away last month. His wife was selling it. He also had 30 years of service records, with nothing but the normal maintenance stored inside. He also had the original bill if sale for 18,500 and the original brochure. Asking 8 I got it for 6500, which in our market up here in the great PNW is a good price. The engine is immaculate, the interior is still very nice, 1 tear on the drivers seat. I went over every inch of the deck and it is solid, original carpet is still in good shape. The hull is solid with a few dings and dent up higher.
Probably going to sell the other for parts and or a project boat. Hopefully get 3 to 4000 for it. Guessing there will be a few cracked blocks popping up as people get their boats out if it ever warms up around here. It was pretty cold last winter. So will see..