I bought the bike off a garage that restores them, mine originally came from Michigan. They replaced the fuel lines, brake lines, throttle cable, cleaned up the carbs, replaced the brake pads/shoes/fluid, etc. I'm not sure if it had been sitting before they bought it and fixed it up but it definitely hasn't been sitting since then.
The white vapor only starts flowing after I've ridden the bike for 20 minutes or so. It comes out from under the gas tank on the right side of the bike near the seat. It doesn't smell like fuel, I stuck my face in there and got a good whiff (and almost a good burn!). It's quite light and fluffy and disperses easily, which is why it was so tricky to track down. It sort of "puffs" out in jets (as opposed to leaking out in a diffuse fashion), like it's being run through a nozzle that I can't quite see.