Water behind spark plug and from muffler
 

I've wanted about a 1990 Montero since they came out when I was in college. I've found one nearby for cheap, with what could be a major or minor problem, but I can't tell.

Here is what the owner tells me:

The truck had a crack in the radiator and it ran hot. He replaced the radiator and thought it had a blown head gasket. Did a complete tear down and replaced head gaskets and still have water coming through exhaust, so he thinks it must have a cracked block or head.

He also said after he started it, water was spitting out and below the back right spark plug and leaking out of the exhaust, so he turned it off and hasn't started it since.

Any ideas? Just wondering if this could be fixable or if the engine is gone. Thanks in advance.