Air Conditioning

Bought a small 110 unit at Wally World. My question for my build . Enclose it completely and vent it to the outside or let it hang out of the back? I have searched here and seen photos ot them enclosed and then the cabnet area it is enclosed in is vented. What about the water that developes in the unit that builds up. On a humid day I have seen a window unit produce alot of water. My only thought is if I enclose it make the area vented waterproof and maybe place a drain hose in the compatment for an overflow condition to drain out. Anyont that has had expericances both ways let me know which is the best method.
Thanks
Greg
Thanks
Greg