Homestead offers some good benefits in Florida. The most significant benefits are tax benefits and creditor protections. With regard to tax benefits, up to $50,000 worth of a property’s taxable value can be exempt from property tax calculations (about $700 or so off your annual property tax bill) and the annual increases of ad valorem taxes is limited by the Save Our Homes’ Law, which limits the annual increase in the assessed value of homesteaded properties to a maximum of three percent. With regard to creditor protections, with limited exceptions, a creditor cannot force the sale of homestead property to satisfy a judgment.
If your multifamily property is your primary residence, then you can homestead it. However, if you only occupy one part of your multifamily property as your primary residence, then you can only homestead that part. For instance, if you own a triplex and you live in one unit as your primary residence and rent out the other two units, then you can only homestead the one unit you live in, which amounts to you homesteading 1/3 of the property. If, instead of renting out the other two units, you live in all three units, then you can homestead the entire property.