Everyone here was right on the mark. My mechanic called me this morning and stated that the Yanmars are merely bullet proof and unless it starts hard and you see smoke at cruising rpm(s), no overhaul should be done. If maintain, you can put 5000 hrs on them.
It was recommended that we pull the engine this winter which I have agreed to. Going to replace the engine mounts (collapses), replace the water pump, belt, complete tune up, adjust the valves, replace the alternator and starter, wash engine and repaint, etc... basically going through the engine from top to bottom. This will also give me a good base line for maintenance and give me a chance to replace the hoses in the engine compartment (as needed), go through the shaft and drive train, secure the loose wiring, and clean up / paint the engine compartment.
By the way, two budgets received to date completely overhaul the Yanmar engine was $6,000 to $9,000. (ouch!!!) Everything I am talking about above will costs $2,000 to $2,800.
S2 11.0A 36'