Looking to Replace 1957 Palmer Engine

[Cortona]

I have a 1957 Cape Cod Marlin. Love everything about her but the engine. Its an old gas single cylinder inboard- probably 10 hp when new. This past weekend the the exhaust piping sheared and split. Last year had to have magneto rebuilt & water pumped out of the cylinder head.

I am thinking of alternative engine ideas - small electric, 2 stroke Yamaha outboard, replace with small diesel ( though I haven't been able to find anything in the hp I want.)

Anyone have experience here or ideas?