Looking for help, bought a used hd mud buddy and noticed at the top of the out drive right behind the motor itself (if your looking back at your motor sitting in the boat), there is a 1" hole that is female threaded inside. I ran motor with prop engaged and some oil sprayed out. I'm pretty sure there should be some kind of PVC plug there to prevent this just by looking at pictures of these motors online. Should it be some kind of 1" PVC 90 degree or just a plug to prevent this?

If you got oil spraying out of that hole you got a problem. That's a breather tube to cool the clutch.

Did u run it before buying it? You have to watch people these days. I could never sell something to someone that was forked up.

That's the vent for the belt housing. If grease is coming out of it, you've probably got a blown front seal on the outdrive, allowing the grease to seep out into the housing, where the belt is slinging it out the vent. If you've got oil coming out, could possibly be a bad rear main shaft seal on the motor.

My $ is on it being outdrive seal tho

Thanks for the info, I bought it from someone I know, so not a big deal, so I need to get a new seal put in and another breather tube if I understand right

And it definitely oil coming out of that breather .