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Leaking engine

If the water is leaking under the engine, is that a most likely cause of engine crack?

Not necessarily. Would have to see evidence of leak to see where it originates. Cracked block will often show water in the oil too.

I was looking for engines and found this

Not a bargain, but not overly expensive either. You could probably do better thru a local supplier. 2200 with shipping, meh. Keep looking. Should fit.
The world is jam packed with good running GM 305/350 engines. Ask around your local marinas and keep an eye on Craigslist. If people know you're in the market for a good running take out (RTO) then you'll be surprised how they will fall from the sky.
 
IMO i think you should do some more looking, that model is there small aft cabin so the engine compartment i assume is tight, but i would really try to see where it is coming from. it could be a waterpump (engine) weep hole, it could be a shaft seal on the raw water pump, it all travels the block and dripps off the pan. if it has frozen (dont know where your at) and pushed a freeze plug you may have even more problems IE manifolds ect. It will be worth your time to find where its from instead of condeming the motor.
 
Are you sure the block drain plugs are in place? They could have been removed to drain for winter and not put back or tightened.
 
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