Looks like my post disappeared. Maybe it will reappear or can get retrieved, but in the meantime, here is a shorter (well, maybe not) substitute for it:
John, it looks to me like you’re on the right track! Your motors should certainly be capable of running great with those compression readings. A fuel system cleaning from the gas tank to the carburetor, new gear oil (specifically marked for outboard use) filled from the bottom up, and a new water pump impeller are all good to do before a test run. Your other rebuild kit items are good ones as well, but you shouldn’t need to worry about them until after a test.
Here’s a few tips I hope you’ll find helpful:
When testing an outboard in a barrel (or on a boat), make sure the water level is higher up than the water pump impeller. Normally this means 1-2+ inches above the top of the lower unit. The reason is, if the pump doesn’t self prime and it’s above the water level, it won’t have water to lubricate and/or cool it, so it will overheat and/or wear out, meaning bye bye cooling system.
If you decide to look at the ignition system, there should be a piece of felt rubbing on the cam that pushes on the points. Putting oil on the felt will lubricate this system and is a good idea.
When putting the flywheel back on, be sure to torque it down with a torque wrench to the proper torque specification. This is VERY IMPORTANT so it won’t damage the motor or you by flying off.
While I’m not familiar with the model of boat you mentioned, 35hp seems like a lot for a 12 foot boat, so you might want to double check the hp rating the manufacturer originally suggested.
When shifting gears, go one shift at a time (not forward immediately to reverse – pause in neutral first), and shift in a quick motion. This will keep your gears in good health.
When fueling up, keep in mind more oil is safer than less for these 2-stroke motors.
One final thing:
HAVE FUN!!!
