Sorry if I am posting in the wrong section but I just bought a 1987 Cherokee I think its an XJ but I'm not sure. My plan is to turn it into and off road car. Currently its leaking oil from what i think is the rear seal and its getting hot but not over heating. I could really use some guidance and what and where to look for problems. The previous owner Jerry rigged a lot of things under the hood so I have a big mess to clean up.

 

If you can post some pictures up then that may help with working out what you have on your hands.

For your oil leak take a look at Cruiser's website linked here.
While you're there, also take a look at the homepage to find more tips that are mostly Renix era Jeeps such as your own.

 

Thank You!

 

Oil from the rear of the engine can come from a few different places. If the back of the block above the transmission is oily, then look at the valve cover first. The adapter where the oil filter attaches is a common leak as well, and you'll usually have oil on the side of the block and the starter. Again a relatively easy fix. If you think it's the rear main seal, you can get a better look by removing the inspection cover on the front lower portion of the transmission bell housing and looking up with a flash light (check the the flex plate isn't cracked and the torque converter bolts are tight while you're there).