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Ok i bought the boat with 5.7 mercruiser 1990 350 cdi . It has water
oil mix on the oil stik and it is not starting where shuld I start
looking. I did notice small water driping on the sides of manifolds

Besides bad head gaskets there are a couple other common causes of this on
boats. If it has not run since winter and you are in a climate that has
freezing weather it could be a cracked block. Small blocks are pretty weak
on the inside of the block adjacent to the valve push rods. If the exhaust
manifolds are old they may be leaking into the cylinders. Then the sitting
water in the cylinder(s) will make it's way down past the rings into the
oil.