Sorry for the slow updates. Haven't had enough time to work on the boat. However, this weekend I was able to get clear hose on all sections of the suction side of the raw water pump to look for air. Hooked it up to the plunger in the driveway and saw a lot of bubbles at higher RPMs. Wasn't sure it was from a leak or from a bad seal on the plunger so I headed to the lake. When on the lake, I saw bubbles all the way through the suction side so it may be a bad seal on the sea strainer. Truthfully, I almost hope it isn't. Otherwise I wasted some serious time on a sea strainer issue.
I messed with the strainer to try to create a better seal and nothing changed. So I just ordered a new one to see if switching it out helps.
Interestingly enough, changing all of the hoses out seems to have helped already. The motor ran about 184-189 for a while at 3300 RPM. So some progress. Also, I feel like there is way more air in the clear line I put on the heater ports than there is in suction lines from the lake. I guess once I get the air leak figured out on the suction side, if I still have air in the heater line, I'll start chasing other leaks.
As for the water leak, I sat in a cove today and I crawled all around the motor and exhaust searching with a flashlight. I did see some water coming in from under what appears to be a fiberglass fitted exhaust pipe that fits under the motor. It looks like bullet may have tried to patch it and its coming undone. Can you still get that part? And even if you can, can you put it in without pulling the motor out? I still don't think its the only leak though. I was in the cove for maybe an hour and the bilge pump ran for a good minute to get the water out.
Anyway, making some progress. And thank you again for all of the help. I wouldn't have gotten this far without it. If I get this issue figured out, new exhaust pipes and parts are the winter project!