So I have an aftermarket mechanical water temp sensor installed, also oil pressure but that's not an issue. I NEVER hit 180 deg F with it. Sometimes I am even like around 165-170. So my question is... Is this normal?

And if I am correct I have it placed in a proper place (the out from motor hose)???

It has a stock thermostat in it, and 50/50 coolant mix.

 

Might try to put it in the other hose. That will be the hotter of the two.

 

No, the upper hose is output from the motor and is definitely the hotter hose.

OP: Your stock thermostat should be trying to keep the engine at 184°.
What fan are you running and is the radiator stock?

 

The car is stock... Radiator and oil cooler were cleaned and flow tested before re-installation, and the stock clutch fan is what I am using for cooling it. It hasn't been too warm here so that helps. I have seen it hit like 178-179 F tops temp. I just wanted to make sure this was all good. The thermostat wouldn't pop unless its getting to proper temp, and the gauge won't read anything unless the thermostat pops. So I know its popping just wonder if maybe the gauge is off or something. Its a Autometer mechanical style.