Water runs out of the lower unit all kinds of places when hooked up to a hose. You only see it because it's hooked up to a hose instead of in the water. As long as the tell-tale pee hole is spitting water you should be fine as long as your thermostat is working properly. Lots of people forget about their thermostats. Don't forget about it as it can rust shut or fail and you won't know it as the tell-tail pee hole will keep on spitting. Result... You fry an engine. I check my thermostat every year just to be safe and change it every 2-3 years even if it looks good as I run in salt water. Oil, thermostats, marine sta-bil in the fuel ALL THE TIME, and fuel filters are cheap, new outboards are EXPENSIVE. I learned the hard way long ago and have never be penny wise and dollar foolish since.