Tax strategies converting primary with equity into rental

[Wilson L.]

I currently live in CA. I currently have about 50% equity in my primary home, we are thinking of moving into a quieter area in the next city over, a few years down the road, and want to retain our current primary residence as a rental property. 

From what I researched, the two largest deductions available to me is depreciation, and mortgage interest. Would it make sense to take equity out of my current primary home, wait the required minimum time I must reside as a primary residence, and just the cash to purchase my next primary? From what I've seen, if the cash out refinance isn't use for capital improvements of the home, interest is non deductible. 

Any advice is greatly appreciated.