I have a friend who own's an I/o 22' Grady, and there is another guy who I met on here with an I/O Grady. Both have had the transom redone. In many cases, the I/O boats have just as much of a problem, if not more. Since the I/O boats were solid transoms, and then cut to accomodate thre I/O, they were never sealed properly with fiberglass. The outdrives were installed and sealed. Over years of use, if an owner does not check the connection between the outdrive and transom, it will begin to allow water in and it will quickly saturate the transom. As for power, my friends IMHO is underpowered, his has I think a 210hp engine, but the engine itself weighs more then an outboard, he cruises at about 23mph and tops out at maybe 32mph. Not sure about where other boaters cruise and top out at, but with an I/O there are many other power options out there. My 1989 22' was repowered around the same time as his I/O and my 200 Yamaha HPDI kicks his I/O's butt speed wise. Ask the seller about previous work, has any transom work been done, has he checked the seals on the outdrive and the connection of the outdrive to the transom. It is possible it is fine, not all boats have transom issues, but older Grady's, along with many other brands do have a tendency to absorb water over time if not properly cared for. A good way to tell is check the scuppers, if they have cracked anywhere it is likely the transom has expanded from water and is no good. Another way to check is to drill pilot holes near the outdrive, if it is solid wood, stop drilling, if you see water, you likely have a problem. Make sure the water comes out before you fully drill through, you do not want bilge water coming out, I'd suggest doing it a few inches above the bottom to prevent that, but still near the bottom so if it is wet it will drain. Only problem with doing this is that to really seal the hull back up, you need someone to fill the hole and cover it with fiberglass resin, or another similar product, a sealant itself will not work, over time it will deteriorate and be the first cause of a bad transom. Another option is have a yard with a moisture meter check the transom. Some have a good ear and can tell from the sound, but it takes experience to do that. I'd suggest checking the rest of the boat out to make sure you are positively interested, and then have it surveyed and checked for moisture. Don't just check the transom, if that has issues, it can stem to the stringers as well. Not trying to scare you off, just giving you your options. There are tons of Grady's out there with good transoms that have been taken care of. If the transom is no good on this boat, you may need to look elsewhere, or determine if the repair is in your budget. It will probably be a little over $1000 for the work, but you will need the outdrive and engine removed to do the work properly, if you know a buddy who can help you with that that is a big plus. Also, redoing the wires is a job you can do yourself if you have mechanical experience and mark it all yourself, that can also save you some money. If this boat fits your budget and needs well, doing the transom work may not be a bad thing if needed, that way you know you have a good safe transom and hull that will last you as long as you own it if it is properly upkept. All depends what type of a project you wish to undertake or not. Only bad part is getting a fiberglass guy this time of year, most good shops will have a bit of a waiting list and you may not get work done quickly. Good luck with your decision. Hopefully some other I/O owner's on here chime in and give you some input on the power issue.