12a won't start

My '84 with a 12a won't start. I replaced the carb with one that has larger jets and all the emmissions blocked off. I replaced the cats with a straight pipe. I got some aftermarket proformance coils. I know that it is getting spark, fuel, and the compression is good. It seems to be flooding really bad. I know that on fuel injected rotaries you can pull the fuse for the injectors. Could I put some sort of fuel cut off to prevent flooding? I have also noticed that there is water in my oil. I assume that the seals on the rotor housing are causing this. Could it be that water in the combustion chamber is preventing it from starting? I don't think it is that bad 'cause when it was running (not too long ago) it wasn't smoking except upon startup, and that was just all the gas in the cats burning. Any help would be apreciated.
Thanks