Opportunity Zone Funds and BRRRR

[Trago WAllace]

I have been looking into Opportunity Zone Funds (OZF) to defer capital gains I made in December (plus make more long term capital gains without paying taxes).  I have a decent grasp of how OZF works.  

What I am trying to clear up is if I can combine OZ investing with the BRRRR
process. Here is what I would picture that looking like:
1) Create the OZF and “deposit” the gains I'm trying to defer into it.
2) purchase property A and rehab it with the OZF (the rehab needs to
cost at least as much as the acquisition of the property, right?).
3) rent out property A
4) refinance it and the cash out gets deposited back into the OZF (this is
where I am unclear on the process)
5) Find property B and repeat the process.

Is step 4 legit?  Is this how it could work? 

Also, any cashflow from the properties in the fund can be paid to investors (me), right?  Or do they need to stay in the fund?