Always tilt outboards up out of the water. Prevents corrosion and re-painting and keeps stuff from growing in the water passages within the motor.
Stern drives can be left up or down, does not matter, but it's easier on the u-joints if it's down when starting/running. Some weill say leave it down to avoid stressing the rubber bellows, I think that if your bellows are brittle enough to be damaged by trimming up, you should replace them.
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