I ended up installing alum F channel on the house and used vinyl soffit since its over the garage. Drilled and nailed the vinyl soffit to the bottom edge of the plywood T 1-11 siding after cutting off 3/8". Cutting off the 3/8" leveled the T 1-11 (sagging 1/2" over the garage) and also removed the weathered tails which were standing proud in some spots. It also raised the soffit so that it is recessed 1/4" higher than the siding yet to be installed. I then wrapped the bottom with alum fascia cap just like I did on the roof soffit. Took longer than I wanted but looks great. Its raining now but I will post pictures soon if you want.
I looked at other houses like mine and only about 10% took the time to install a soffit. The others looked like hell with nails and splinters showing everywhere. Lots of hacks out there. This home owner (me) wont settle for that since vinyl looks cheesy from the get go anyway.