Yes, many people have benefited from this in the past too. similar concept.In addition to that: As of now, the zones are approved for these states. 

What would be the benefit to them over a standard offer?

The benefit is in the ability to use the same pot of cash over and over again to scale up your portfolio quicker with Infinite CCR!

If your small town is anything like mine you will be providing a very necessary benefit to your community.

One benefit of using private money is that you probably don't have a due on sale clause in the contract. 

This page can be googled by searching for "Property Depreciation: Why the Tax Benefits Could Come Back to Bite You" - shows stressed guy in front of laptop. -  A home depreciates every year.  

If they can give you answers relating to the dangers of violating the B&P Code, how to mitigate these dangers as much as possible through the way the contract is drafted, how to find a wholesale-friendly escrow company, what contracts are required for a wholesale, etc... then you found the right one.

My plan is to use my VA benefit to househack a value-add multifamily (2-4 units). 

The benefits of doing so is 1.

You may find the legal fees and trouble may outweigh the benefits.