Where did the water exit?
1.) thru-prop exhaust - you should see water coming out with the exhaust through the prop
2.) thru-prop exhaust with bad exhaust bellow - water comes out of the transom assembly (where the drive hinges up when trimmed or tilted)
3.) thru-hull exhaust - water comes out with exhaust or through water dumps. Could be stern or side-mount thru-hull exhaust.
4.) or bad water impeller, no water being sucked through, and engine overheats!
The outdrive impellers don't take being run dry, so if someone runs it without a hose connected for more than a couple minutes, it would likely be toasted.