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1992 Yamaha 40 MSHQ with water coming out everything

Well while addressing the last problem this came up today. I’m waiting to lake test on Monday for the last issue so I decided to run the motor today to check out an idling issue of loosing rpms after warm up. I had the motor in a tank this time so I would have back pressure. I keep water flowing in the tank while doing this.
There was water coming from around the shift rod where it comes out of the lower unit. Directly in front of where that is there is a hole (I think is to drain the unit when tilted up I’m not sure) anyway there’s water shooting out of it more than the tail tale. Also a good amount coming out of the upper exhaust port. The motor was running just under 140 degrees which I think is operating temperature and thermostat is new. I’ve been turning wrenches for a long time but this is my first outboard. I’ve done a lot to get it running with the help of you great people on these forums. First thing I did was replace the water pump and changed the oil but as far as the lower unit that’s the extent of my knowledge. Any ideas as far as a seal or whatever to look for or replace is greatly appreciated. If there is a problem I want to fix it before going to the lake. I’ve really enjoyed the time I’ve had on the water with it and grandkids. Especially since it’s a project boat that I have enjoyed working on. Again any help would be awesome. Thanks
 
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