Best to tear out any rotten portions. By not tearing them out, it could attract termites and, pose a danger especially if the flooring is rotten.
There may also be damage to the structure, posing yet another danger.
If you know where the leaks are coming in, start there and work your way throughout.
As for the water tight seal, take care of the leaks first then decide if you want to paint. If the leaks are due to the windows, consider replacing them.
All the best
How you proceed depends on how extensive the problem is and where the rot is. The first choice when dealing with rotted wood is to replace it–in the long run that’s often the most durable and cost-effective solution. But that’s not always possible, and if that’s the case you can sometimes repair non-structural rotted wood with epoxy. Here’s what’s involved:
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If replacement or epoxy repair is impractical, you can sometimes replace the rotted wood by gouging it out and replacing it with a solid-wood patch called a “Dutchman.” Here’s how:
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However, if the rot affects structural wood such as joists, rafters, studs, and decking boards, you must replace the rotted piece completely, otherwise it will not be as strong as before.
depends if you you want to bodge the job ? u could hide it by useing plastic facia to hide all the rotton wood or take frames out replace wood or try using filler depending how bad it is