You can deduct the mortgage interest, but not the principal portion.
Depreciation only applies to the structure, not the land, so you'll need to figure out the relative values of those.
In your specific case (something like $850 a month in rent is TERRIBLE for a $150k property, btw) assuming your numbers are correct you'll probably have no taxes due, and possibly a small loss to offset other income after accounting for depreciation.
You may in fact lose quite a bit more money than you think after paying for insurance and management, accounting for some amount of vacancy, and building in a SHTF factor for the possibility of getting meth-makers for tenants or the sewer line bursting.
I'd suggest going to the library and getting a few books on RE (rental RE, not flipping) investing. Or just stroll over to the RE forum here.
-Walt