https://www.ecfr.gov/current/title-8/chapter-I/subchapter-C/part-319/section-319.1
https://www.ecfr.gov/current/title-8/chapter-I/subchapter-C/part-316/section-316.5
It's worth quoting the definition of residence:
"General. Unless otherwise specified, for purposes of this chapter, including § 316.2 (a)(3), (a)(5), and (a)(6), an alien's residence is the same as that alien's domicile, or principal actual dwelling place, without regard to the alien's intent, and the duration of an alien's residence in a particular location is measured from the moment the alien first establishes residence in that location."
In other words, this is the place you sleep at night. The actual physical location. You cannot call your friend's address that place.
In addition, don't forget, the burden of proof is on you. If your car is not registered at the address, if you don't pay the utility bills at the address, if your your and wife's IDs doesn't show this address (this is typically one of the first questions at the interview) - you're not going to have a smooth ride.
This is why I highly recommend following the steps to ensure there's no denial:
- Establish a firm physical address in the US
- Get all the IDs, other evidence updated to that address
- Live there for 3 months
- Apply for N-400
I'm not a lawyer, but based on how I understand the law, your case will be in trouble if you don't take steps to overcome these potential issues.
Good luck and keep us updated!