Was there water in the bilge? Sometimes the flywheel will make it look like water is coming out oth the front of the starter when the motors running.Water is pouring out around the starter and i was losing oil pressure. not sure whats up but gonna yank the motor and start taking it apart. Looks like thats how im going to be spending my 4th
Cut the oil filter open and see whats in there it will tell you if your wiping out bearings. Loose valve adjustment will cause low oil pressure.
Just throwin stuff out there. Good Luck.