ATC 110 newbie

[Ndub19]

I just picked up an ATC 110. Its my first wheeler and is running pretty good especially after I cleaned the carb. Today I was running some seafoam through it while attempting to adjust the idle. Anyway I noticed some smoke or exhaust coming from the hole that the pull rope comes out of. Is this bad and something I should be concerned with? Also I am having trouble with gas leaking from the fuel strainer cup, can I just seal it? THANKS

[Ghostv2]

Do you have the original recoil handle on it? If not it might allow water inside and what you are seeing is steam coming out as the motor gets up to temp. Something to think about.