We recently bought a home that has 40% T-111 and 60% Beveled Cedar Siding. The home is listed as built in 1955 and it has been completely remodeled inside and out except for the siding (I think). It looks like the contractor just threw some exterior kelly moore latex paint over it and didn't bother sanding/priming/painting some areas. Now it is summer and the blistering is showing up a lot worse, there is some chipping now. We haven't had much rain. The T-111 siding is vertical and is also starting to show signs of weathering most notably on the side facing the sunlight. I'm thinking of sanding, priming and repainting all siding to eliminate any possibilities but it will be a mammoth task and Im sure will cost a ton in money. Is it best to do this or simply replace the siding entirely? Both will be expensive endeavors. Although replacing the siding will probably cost more.

Has anyone used specific outdoor paint/primer on this type of siding before? Any advice?