Yamaha 40 ELG 1988- water spitting out of exhaust

[tmorriss]

Question on this motor for anyone out there.
Just purchased this boat. It had been sitting for a long time unused.
It's in great shape and the price was right, but the prior owner did tell me that
the last time he took it out it ran rough.

I fired the motor up(started right up) but it does run a little rough.
I noticed the exhaust is sputtering water out

Is this normal? Or, do I have something worse wrong here(head gasket?)
I was told that the water is normal as it helps to keep the smoke down, but I am not sure about that one?

[Silvertip]

Water passing through the engine also cools the exhaust as it passes down the leg. It exits through the middle of the prop. Perfectly normal.