Water vapor coming from exhaust

Just bought my first Honda cbr250 1989 mc19 as a project bike, having great fun working on the bike and facing the challenge head on. My first time digging into an engine but I'm happy to have some experience.

Got the bike running and after a carbie clean I noticed vapor coming from the exhaust with water dripping out the bottom, this time round I started the bike with the radiator cap off and all of a sudden no water, no vapor but I thought I smelt exhaust just didn't see any bubbles. Then same run I put the cap back on and vapor again.

I'm thinking it's a head gasket, well hopping.
Any idea helps before I start ripping the engine apart
Thank you!!