How to configure walls that transition from interior to exterior beyond roofline.


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I would like to create "rooms" (actually, areas) of different heights and connect them.  


My goal is that the roofline is also staggered in height.


My problem is that the material on the wall that is shared between rooms does not appropriately change from interior (drywall) to exterior) siding above the roofline.


I have created a simple example and am attaching images of the issue.  In the example provided, the "exterior" wall is extended down into the room.  I also tried changing the wall to an interior wall, but then I have a similar issue where the wall looks like an interior wall above the roofline.


Any suggestions?


Thank you in advance!!!



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