My lower unit seal bad?

[Bass1980]

Just picked up a boat. Everything tested fine during that day. Came back the next weekend to buy the boat. During the one week seller decided to change out new spark plugs but forgot to plug the wires back. Seller also had a 21 pitched prop on there but gave me options on what prop I want. I decided to go with a bigger pitch prop and he changed it out for me before I came to pick it up.

When I got the boat I took it to the lake to test it out. Obviously it did not start after trying and trying to crank it on the water. Pulled the boat back up the ramp and parked it. I notice the water by the ramp had some oil on the top surface. While the boat was parked I decided to crank it again and saw water shoot out a little from the exhaust. There was water mixed with brown oil. Took the cover off and notice the plugs not on and plugged it back up. Crank the motor and yup started right up. Then I started to notice very light brown oil started to leak. Oil was slowly and lightly coming out where the prop meets the lower unit. Oil was very thin and does not feel like lower unit oil or 2 cycle oil. It just cover enough of the edge of the prop but did not leak down onto the pavement. A buddy said it was just 2 cycle oil from excessive cranking the motor to fire it up. Another buddy believes it may be a blow lower unit seal.

Anyone have recommendation what it could be? After motor fired up it was late and I just went home and parked it. Have not had time to check anything on the boat.

[Wackyjig]

If you tried to crank it for a while before pulling it out and finding the plug wires not plugged in it's probably just unburnt 2 stroke oil and gas coming out of the exhaust like your 1 buddy said.