Hello there, I have a turn of the century 1900’s balloon framed house in Zone 5. I have now began remodeling the inside of the home while we are staying here. Instead of removing the old lath and plaster, I used 1/4 sheetrock to create smooth flat walls. There is no interior vapor barrier. In the process of the remodel I have also removed a porch addition that was built around 1930. In the process I have discovered the house had a few layers of siding. The first is the original clap board nailed directly to the studs. Then there is a layer of wood siding, followed up with a layer of tar paper and asbestos siding. Then to top it off a layer foam board and 10-12 year old vinyl siding. The house has blown in fiberglass insulation into the empty cavities, and this was done 2-3 years ago. At this point I need advice on how to correctly resheathe and install a weather resistant barrier on the home. On one side I have it nearly down to the original clap board and I need advice from here. The total thickness is 1 inch from the clapboard to the asbestos siding. Do all of these layers of sidng  need to be removed in order to correctly weatherize my home?

What is the best practice to do here? Remove all the layers of additional siding and install Zip Sheathing, Foam Board, Weather Resistant barrier, vertical rain screen then vinyl siding? And what is the best order for installation? 

Is it possible to remove the vinyl siding and foam board, leaving the absestos siding tar paper, wood siding, and add foam board overtop with taped seams, rainscreen then vinyl siding? 

How thick would the foam board need to be in my zone and what is the preferred material?

This will be done to the remaining 3 sides once I have the correct formula.

Please advise