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Sounds like it could be either a valve seal or reed valve. Never heard of a reed valve. In the shop now for a compression test and cylinder leak down test? Hopefully will get out of there under $350. Will let you know.

Have went through all the standard problems of buying a used toy hauler that had bad gas and a gummed up carb. Seems to be running just fine now but was wondering how much exhaust is normal? Ran last night on a still night and pretty much fogged in the area. I would say the smoke is normal...