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.

I figured it would be easier for each tenant to just transfer money to me individually instead of one person collecting it from the other tenants, but now i see the benefit of doing that instead.Once again, thanks for the input!

In essence, you would have to claim the income on your taxes and pay uncle Sam, for no real benefit to your situation.

IRS rules prohibited any direct or indirect benefit for such person from his/her retirement account, and as such you are not allowed to furnish any service, goods or facilities to your 401k:https://www.irs.gov/retirement-plans/plan-particip...While in some instances it might be possible to get into an investment together with a disqualified person you must be very careful!