So I currently have an 87 FC N/A engine with a bad water seal that will need to be replaced. However instead of rebuilding the engine immediately, I was thinking of purchasing a new one. Now I was thinking about possibly going to purchase a Turbo II engine (I was going to anyway I just hadn't anticipated it to be this early) Now I would like to know what kind of a workload it would be to throw the T-II in and what all I would need to replace. The transmission is in great condition.

 

the workload is easy.
Just search the threads on this subject as it has been beaten to death!..sorry to be blunt but it is always best to research repetitive and common questions.It allows the Forum to be filled with info "other than" the same old,same old.
If it has been done,it is on here and it has been posted,and documented..by Many.

I'll give you a good piece of advice though.
Do not trust EBay drop in engines.You'll end up rebuilding that too.

 

OP, be sure to drain all of the coolant and run the engine for a few seconds to remove all of the excess water. Then add a few squirts of oil to the spark plug holes and turn it over a few times. This will preserve what should be a rebuildable core. yw.

 

That is darn good advice if the engine is runnable or if the eng/trans is out of the car.
If it is out of the car you can jump the starter and see if any fluids come out of the exhaust.
NOTE: that oil will puke out of the oil lines so be prepared on that!!

Then you have the choice to fog it or oil it through the plug holes to prevent any corrosion while you ponder on what you are going to do with it.
You should just be able to roll the engine over with a 19mm socket(main pulley bolt) while you spray or inject oil into the plug holes.