Househacking - Tax Deductions and Section 121

[Toni Baca]

Hello, 

I am under contract for my first house hack! My ideal plan for the first home is to live in it for 2 years (with 3 roommates), rent for 3 and sell before the end of 5th year. Under IRS Section 121 - if you live in your primary residence for 2 out of the last 5 years you can exclude up to $250K of capital gains as a single taxpayer. 

My question is can I still take annual depreciation, and deduct expenses during the time I'm living in the property and still qualify for Section 121? I understand I would need to ratio 3/4 of the property as an investment and 1/4 would not be deductible for the first two years because that portion is my primary residence. 

Or if I take investment deductions (annual depreciation, write-offs etc.) during all five years, will I no longer qualify for Section 121? Even with Section 121, will I have to pay Recaptured Depreciation tax?

Thoughts?