I am a residential contractor. I have been building 2500 plus s.f. brick homes for 15 yr. That market has slowed to a crawl.

With the change in the economy I am looking to build a small (1000 s.f. or less) starter type home. I want the exterior to be rustic. I want to use 1/2 inch or so plywood with solid stain with batten strips for this effect. I do not want to use T-11 because it is bear to paint and I really do not want to spray. I probably would pre paint before install with roller. The house would be a gable and I plan on stepping the gable out 1 1/2 inch to flash instead of z flashing. I have used z flashing  in the past and do not like it. I plan to use 8 ft Ply stpped out the thickness of the play and at the rim board a 2×10 or 2×12 pressure treated with the top cut on an angle to shed water. The 8ft ply would run from the bottom plate to the top plate.

What type of plywood would hold up in this application with something like Porter solid stain ?

Anyone had any experience good or bad?

I do not want to do something that will cause problems in  a few years and cost is the criterior. I know I could use all sorts of mfg siding but the cost is much more. I want to build a good house but cost must be controlled from the start.