You definitely need to speak to a CPA for a final definitive answer regarding your question.
My personal understanding is that one can still take the mortgage interest deduction (MID) and rent their personal residence out tax-free for up to 14 days a year; HOWEVER, once you surpass 14 days:
1) You have to claim all the rent as income (if you do not exceed the 14 day rule the rent is tax-free),
2) You lose your right to claim the MID and
3) You cannot claim business expenses or depreciation.
Topic 415 - Renting Residential and Vacation Property (formerly Renting Vacation Property and Renting to Relatives)
Publication 527 (2011), Residential Rental Property
Publication 936 (2011), Home Mortgage Interest Deduction
Drew de la Houssaye
The Brokerage Real Estate Group Beverly Hills