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