Each year they can use their annual limits to gift to you part of the property or return any rent to you that you pay during the year to keep it arms length. 

In most markets a $400,000 house would have to bring in a pretty high monthly rent to cover not only the mortgage , taxes and insurance but also set-asides for future capital expenditures and annual repairs.

Attach IRS Form 8996 to the annual partnership tax return for your OZ fund, certifying that at least 90% of your funds assets were qualified opportunity zone property.  6. 

As a passive investor in MF, I have seen annualized returns (IRR) far above that number, but that was after holding for 3 or so years and selling; the big lump of money was at the sale, not during the hold. 

I would encourage you to at least chat with an attorney to ensure that you create and operate the entity correctly, since the will be different annual requirements for LLCs between different states.

Annual taxes are extremely low for the area (anywhere really!)

That's about 200% annually, or maybe a little less on the front end if you want to think about compounding.

Using 3% annual inflation on $60-75K it will be $122-$152K in 25 years when you retire at 59.

Also, and maybe I'm missing the calculations, but how would I be paid in the event the IRR is not beaten on an annual basis, but most of the returns come on the ultimate sale of the property? 

I make 16k a year with a roommate that makes 9k a year, for a total annual income of 25k a year.