I've recently removed my intercooler for a good pressure washing and noticed that oil dripped out when I turned it upside down. I also noticed oil had collected in the hose coming from the turbo, and the hose going to the throttle body. The only place I can think of that the oil is coming from is the turbo. Leaky shaft bearing, maybe? Anyone know where I can pick up a turbo rebuild kit for a Mitsu TD04 from a '90 740?

 

On a turbo car you will always have some oil making it into the Intercooler which is normal.
The new cars come with a small hole drill in it for a drain.
Yours might have a drain plug on it.

Also check the vent system make sure it isn't clogged.

 

I am assuming this oil should be drained out periodically?
I had the same thing happen
Went to drain the coolant and some oil started to come out
my car is a 1990 god knows how much oil is in there

2nd question - i cant find the coolant plug on the back of the passenger side of the engine
should i be looking for it from underneather the car?