White 2-150 with Water in Oil

I just bought a White 2-150 with water in the oil. I can't spend a ton of money on it. Where would I start on it. Any chance it is an intercooler or something simple? We will probably take the pan off and look inside. The local JD dealer took it in trade and didn't know until afterwards that it had problems. We paid $3,750 delivered so I ttok the gamble and will make a project out of it if the motor is too bad.
 
Our 2-150 was doing that and after tearing off the oil pan to see where the water was coming from I found out it was the water pump leaking in through timing gear cover. Hopefully yours is that simple of a fix.The weep hole in the water pump was plugged so we couldn't see it leaking
 
It should leak out the weep hole if its cleaned out.Takea screwdriver or a piece of wire to see if its open. If the seal is out it will leak out there
 

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