IMHO, you may want to also have a full inspection and at least a termite inspection. I had a similar situation back up North, and ended up having to completely replace the entire wall. Termites had taken up residence in the 2 by 4 studs as well as the plywood. The problem was traced to the way the siding and drip edge were installed.
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Pennsylvania, for 60+ years, most recently, Allentown, now TV. 
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