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post #10 of Old 06-14-2019
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Re: looking for advice

As others have said; get a professional opinion on the engine. It may be a reasonable DIY project, or something worse. Point is that without that info, you really can't make a good decision on the outboard. And you are much better off with the inboard.

As for the outboard option:

What kind of sailing will you do with this boat, and where? Will you have to fight current? Any chance of getting caught in a blow where you'll need to motor against weather and wave action?

The outboard won't let you maneuver like the inboard; no prop wash over the rudder, no prop walk, which would matter in a tight space, or sub-optimal docking conditions.

You'll need a long enough shaft to keep the prop in the water in rough weather (if that's a thing in your sailing are). Looking at the transom on an islander, it looks like it may be mounted in a difficult to reach place, so remote start and throttle controls? Where will the gas tank go? If below deck, you'll need a blower.

Your outboard option could end up costing as much as fixing the engine.
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