What painting equipment is needed to restore a derelict wooden house?
You will need:


Carbide scrapers of different sizes
Paint spray gun (will save you TONS of time)
Several good quality brushes -- edging and flat shapes
Wood hardener for any isolated rotted spots of wood
Wood filler or bondo to spot-patch rotted areas
Extra replacement siding
Saw(s) -- circular, oscillating multitool, etc
Hammer, nails (galvanized)
Aluminum flashing if needed
GOOD quality caulk (I like to use Quad, sold at Lowe's)
Primer (Zinnser or BIN)
Paint


TBH, I've seen siding in much worse shape.  DO be concerned about lead exposure if that is lead paint.  Some clearer pictures of the worst problem-spots would allow us to give you an idea of other special considerations to take.