Taxes from personal residence to house hacking to rental

[JD Barrera]

Hi everyone, I have a question about taxes. I know I need to talk to a CPA about this really, and I will, just wanted to hear form the community also..  so here is the deal: 

I am under contract right now on a 3/2 townhouse in San Jose, CA hoping to close soon (fingers crossed!). I will be living there with my wife as our personal residence to finally get out of this insane rental market in Silicon Valley. I know that as a personal residence we will be able to deduct mortgage interest and property taxes to lower our overall housing cost (since we would not be able to deduct this otherwise by renting.. so I am including this as a way to lower housing expenses). In a couple months of living there, we plan to have a good friend of ours move in to one of the bedrooms to take advantage of the house hacking strategy. So my first line of questions is this: 1) How will this change my tax situation... Will we still be able to deduct mortgage interest and property taxes? Will we also be able to take advantage of depreciation?  

Down the line, after we have built up enough equity, we plan to refi and make this thing potentially cash flow as a rental. So my second line of questions, similar to the first, is: 2) How will this change my tax situation... Are mortgage interest and property taxes still deductible as a full rental? I'm pretty sure depreciation will certainly be an option here as will and just want to confirm. 

Let me know what you think and if I am missing anything big!