They weren't able to use traditional financing (religious purposes), so I wanted to figure out a way for us both to be happy.

Chalk it up to folks of the local religious persuasion being naive to certain sinful substances and confusing them with other things.

I know there are some peak periods with festivals etc, but wondering what the rest of the year looks like in terms of occupancy rates. 

Your competition won't be AS high for STRs (both in acquisition and marketing your own) as tourists tend to frequent Destin moreso than Pensacola Beach, but there are still plenty of folks that visit P-Cola and nearby beaches for concerts, festivals, conferences, TDYs, Blue Angels Weekend, etc. 

I'm not surprised D.R. polarizes, he's a huge star with a lot of extreme opinions,  many based in religious beliefs. 

Some people want extra income for retirement, to fund religious missions, control over their investments, tax advantages, freedom from their job, funding for their kids’ future, etc.

As far as loss of value, when I sold property in CA that had hospice deaths of elderly people who choose to die at home the realtor said that any Asian purchasers, due to religious beliefs, would not be interested in buying the house. 

These services (some government-provided, some religious-affiliated, some business-related, and some charity related,) all require the citizen to be extremely delinquent on a bill before offering assistance. 

If I did multi I'd be in an fha loan and would have to live there.Its a veryyyyyyyy secular and religious place.

I’d also look into seeing if it can used for local events such as a food festival, cultural festival, holiday celebrations, etc.