I have a home built in the late 1960s in Massachusetts. The prior owner covered the house with vinyl, which was not done with care. Water gets behind the vinyl. The cedar wood clapboard and trim is rotted in some places. Also, behind the cedar is missing and or torn tar paper. There is a heavy mildew smell outside in places. Inside there is a dry musty smell as well sometimes mostly on hot days. To fix these problems, we are considering removing the vinyl and replacing the siding with new cedar wood along with putting in a rainscreen. However, my main concern is that everyone wants to wrap the house airtight. I am concerned that wrapping the house airtight will prevent the house from breathing and trap dry musty and mildew smells inside the house more so than it already does. If I put in a rainscreen, however, it seems that I should wrap the house with something. My house does not have central air, which makes an air exchange less practical as an alternative solution.
What do you recommend for my house?