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The culprit
Now take a look at the crack directly above the light fixture in this picture.

They match exactly.

Now think - if one little tiny crack can let in enough water to discolor the wall in a spot that is fairly well-protected by the eaves then all the rot we found makes perfect sense. Suddenly it is crystal clear why the corners (which had a lot of cracks and the most exposure to the weather) would be the worst as far as water damage.
Panasonic DMC-FZ1 Full EXIF / IPTC
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