Hi Ben, whilst I totally agree with the advice you have been given so far, I just thought I'd mention what I run a similar model on.
Mine is a 16 inch Swordsman based on the George Turner plastic hull. It is fitted with a 1000kv brushless motor, a seaking 25 amp speed controller & runs a 30 mm prop ( i have tried a prop shop 3 blade & a graupner 28mm hydro prop, but there seems little difference)
I started running it with 7.2 volt 4500 mah nimh pack, which gave me around 35 mins running time ( it only ever goes flat out).
Just for fun I tried it on a 3s lipo pack ( 11.4 volts), the performance was brilliant, it spent more time in the air than on the water.
The brushless set up is more expensive, but still costs less than £30 for motor & speed controller.
I didn't use water cooling on the motor, but i connected water cooling to the speed controller, the controller is never anything but ice cold after a run, the motor gets slightly warm on 7.2 volts, but hotter on 11.4. If i was building it again i would fit a water cooled motor mount.
Sorry if I have confused things, just wanted to show you an alternative that works well. You could start off with 7.2 nimh batteries & with brushless you have the opportunity to upgrade to 11.4 volt lipo's at a later date.