Primary residence to rental for first deal

[John White]

Hey everyone.
I have been looking at this site for months now, but this is my first post. I am about to close on my first house this week. It is a Fannie Mae property but I am paying cash for it. (Borrowing the money from a family member and then paying them a balloon payment.)

I signed the Owner Occupant Agreement saying I will occupy this house for one year. My plan is to live in this house while I do as much of the rehab work myself. (It needs a lot.) I am going to get a friend of mine to move in with me and pay rent.

After a year is up, and I have the house fixed up, I plan to buy another and use this as a rental.

I recently read the NOLO book "Every Landlords Tax Deduction Guide," but still have a few questions about this topic.

1. When I convert this to a rental property, what will my deprecation basis be?
2. Will I be able to transfer items of personal property or do they get eaten up in the one depreciation basis of the whole house that I will have to deduct over 27.5 years. (Flooring, appliances, blinds)
3. Also, I will be planning my repairs around the "General plan of improvement." Does anyone have any input on that? I was going to try to save a few things to do next year so that I can expense them as operating expenses instead of having them fall into this category.

I know this is a long post but I really appreciate all of the input. I have already learned a lot on this site and hope to learn even more!

Thanks!