Drain holes go right through the balsa. A few of mine had allowed water into the balsa core, with some modest rot. Surprisingly(to me) the deck seemed completely solid from above, lots of glass, I guess. I filled the rotted out balsa with epoxy (it wasn't all that much), filled the holes with epoxy paste and redrilled them. Worked OK, but the hole diameter is a bit small now. Holes at least as big as original, or bigger would be better. One problem with the arrangement, the water drops from the holes straight into the bilge, a loong way from the stern access. Pretty much any solids that drop through with the water are going to be trapped in the hull. Give it time and that will be a lot of crud. Several owners have reported drainage problems, maybe related to inaccessible crud. Screens on the drains would be a good idea.
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