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What is this stuff dripping from my Overflow tube

Hi, i've recently purchased a 1998 Suzuki Rm80 2 stroke, The first day i had it, the bike worked 100% flawlessly the owner did tell me that he ran water through the cooling system but i didn't see it as a huge deal at the time and i planned to drain and replace with coolant asap. the second day was when the leaking started. (the night before we had a huge rainstorm) i started riding it the next day noticed a small puddle of some sort of oily white sludge coming out of the lower overflow drain, but i shrugged it off as something normal, but i caught myself in a rainstorm later that evening and my bike was soaked, i parked it inside and let it dry overnight. The next day was much worse. i ran it for no less then 20 minutes, and shut it off, and it started pouring the same fluid out, at a quick pace, does anyone know what this might be? should i try draining the water out and replace with 50/50 coolant? or is it something more serious like a head gasket or leaking water pump? I litterally can't find any type of answers to this, i still have to phone my local mechanic about this, so i thought i'd try here. I'll post a video below. Thanks!

https://www.youtube.com/watch?v=ZTyRWm4u...

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You want to make sure your fuel mix is correct and that your using ash-less oil This looks like the fuel mix had to much oil or was not mixed well . If its not mixed well and the oil was settled near the bottom most of the oil will have gone through the bike before the gas and you can end up with a lean burn and not enough lubrication . . It can also be moisture getting into the mix either by coolant leaking into the bottom end . Are you going through coolant and is there white smoke coming from the exhaust . If so this is a head gasket problem . You may also want to check your compression . Hope this helps

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There was a little bit of smoke, but it wasn't extreme, the smoke goes away when it warms up. The guy was running only distilled water through it, that may be the issue, but i'm not sure. Im gonna go and buy some 50/50 coolant tomarrow and see if that helps, and i'm gonna put some new premix in it. if non helps, ill have it looked at by someone. thanks for the help! :)

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Yeah, I put new gas in it and changed the coolant. But discovered that my tranny oil was completely white and sludgy. That's what was mixing with the water. I probably need a new head gasket due to the new coolant leaking out of the head. Any tips on getting the old sludgy tranny oil out? I tried draining it, but it would slowly ooze out.

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Blayne Girard will be eternally grateful.
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