Prior to this flight, the aircraft had not been flown for an extended period. On the day of the accident, it had been sold. The aircraft did not have a current annual inspection and had several maintenance discrepancies. These included problems that prevented gear retraction and flap extension. The new owner/pilot was informed that the aircraft needed a ferry permit. He was advised several times to wait until additional maintenance was performed; however, he seemed determined to depart with the aircraft on that day. After performing some minor maintenance and draining considerable water from the fuel system, the pilot took off. The aircraft was observed departing at low altitude with the gear extended. About 15 minutes later, it was seen in a shallow descent with the gear extended and in a left yaw. Before crashing, a witness observed the right wing raise and the nose drop. Water was found in the left engine fuel pump and fuel line to the carburetor.