I discarded a 40 year old diesel also, and installed a 27kg Tohatsu M9.8B two-stroke motor on the transom. I have had issues twice with the propeller coming out of the water, when the waves were 2m high, reflected waves and were a short chop, but those conditions aren't common.
My OB bracket on the transom has some 50x19 or so timber, (hardwood timber for a garden picket fence) and it seems fine.
The other thing to get is a high thrust propeller, so the engine revs at the correct RPM to deliver the maximum HP. For my 3500 kg boat that meant the Tohatsu 8.75 diameter, 5" pitch 4-bladed propeller as in the following photos.
I am currently thinking of going back to a diesel motor or making an OB well inside the lazarette area. To avoid the prop coming out of the water when the yacht is see-sawing on such rough waves.

The fuel tank set-up. A 11.3 litre tank, with hose to the motor. It could be a better set-up in future.