Thanks for all the great advice.

Couldnt see if smoke coming out of the engine but I didnt allow it to fully warm up. Didnt want any warping on the head if thats teh issue.

I opened the oil cap and dont see any residue or weird mixture smell.

Buddy is going to bring by a leak down test and we ll find out if its the engine. As of today, hose coming out and flushing the whole system. I did buy the car but for a good price. Even with head work at the dealership costing $3700, my amount put in will be under 10k. . Ill post more updates. Thanks again!

 

The same car was offered to me ...but I opted not to go ahead with the deal as there were too many issues involved

 

I've seen this before with a warped head. This is caused from continuous driving while overheated....basically until the car shuts itself down.
Sounds like this could be the issue from what you stated the previous owner told u.

This would mean the head needs to be taken out, checked for integrity and machined down. A new gasket installed and then head put back on.
I am not saying this is your issue but after seeing the pics I knew what it could be and then your story followed it up. Take to indy to get checked and do not play stupid. Don't tell them what the issue is either.

 

P.S. that's not tranny fluid. It's oil and glycol/water mix. I'm about 95% that it's the head. A gasket? most definitely. A warped head only way to know is to have it removed.

 

I wanted to do a update for future searches. I've been working on it for the last few days. Everything up and running. Leak down test showed great results so we narrowed it down to the cooling system. I took off the engine oil cooler to examine the gasket and found a very small dip. Dont know if that could cause oil to leak in but replaced it anyways. Bought a new radiator, transmission thermo, transmission cooler, major hoses, thermostat housing and replaced it all. When removing the hoses connected to the trans cooler, only oil leaked out so what a relief! But so i wont worry, i bought a new trans filter and oil to replace. I did find a leak coming from the sensor connected to the transmission. I believe the speedsensor?

So over all, I spent $1200 with my hours of labor and waiting for parts to get this running. Well worth it! Amazing machine.

 

Hmmm. Known overheating incident followed by oil in the coolant? I'm with Achtung on this one, despite the leak down test results. Good luck, keep us posted.

 

It's a blown head gasket.

 

Overheating is bad for these cars, as aluminum block can be damage and be unrepairable anymore.

 

+100

 

I've put 100 miles on it so far. Monitoring it closely.