Kubota with water in oil.

   / Kubota with water in oil. #11  
I would think that is its most likely condensation in the oil as well. Like others have said I would change the oil and watch it real closely. With no real previous service history on the motor it's best just to start clean than to think you have serious mechanical issue.

If it were me I would change out the oil refill with a cheap oil with a motor flush or sea foam until the engine oil got warm and drain. It might cost a little extra due to having to buy an extra filter, flush and oil but than you will know the internals should be pretty void of any previous oil that had water in it. Than fill it back up and keep an eye on it. If you like get another oil sample taken to see if the new oil will have water in it as well.
 
   / Kubota with water in oil. #12  
Check the oil fill location cap and the dipstick cap to make sure they're not loose. Sometimes the smallest gaps cause the biggest problems in the end.
 

Tractor & Equipment Auctions

2007 Hyundai Sonata GLS Sedan (A54815)
2007 Hyundai...
2016 RAM 5500 Bucket Truck - Cummins Diesel - Auto Trans - 4X4 - Altec AT41M Boom (A55218)
2016 RAM 5500...
1998 INTERNATIONAL 4700 4X2 LIQUID TRANSFER TRUCK (A51406)
1998 INTERNATIONAL...
2021 Allmand Bros Maxi-Lite II 20kW Towable Light Tower (A52377)
2021 Allmand Bros...
PALLET OF SCAFFOLDING (APPROX. 12 PC) (A52706)
PALLET OF...
1982 GOOSENECK 24FT TRAILER (A52472)
1982 GOOSENECK...
 
Top