It's a 3/2 , 1,680sqft house in Braselton with a finished basement (2 bedrooms, den) and a recently converted garage.

My Father has been renting us a house in OBX every summer since I was a kid and were both pretty affluent now and I'm floating the idea of us going in together on an Oceanfront somewhere in OBX that we can use a few weeks a year and have it pay for itself via rentals the rest of the year. 

Would it be smart for us save 10% to 15% percent for our new primary, then rent out this house.

It's not investment, and it's certainly riskier, but it's not some absurd concept.Leasing an item to use in business is pretty standard.I don't see why leasing an apartment or house to use as a short term rental is any crazier than renting a crane and using it in construction.

I recommend you print, study, and highlight the HUD guide: https://www.hud.gov/sites/dfiles/PA/documents/HUDAsstAnimalN...You should also check with a local HUD office to see if they have any additional guidance they can provide you.Keep in mind, not everyone is subject to Fair Housing requirements and you may be exempt from allowing the ESA! 

However it seems that things are changing, even if housing prices settle out in the coming months and years, they still are and still will be at record breaking highs, which has left my generations purchasing power significantly lower than any others.

You've probably heard of big Landlords losing property, but only because they were flagrantly violating Fair Housing, running a slum, or otherwise violating the law in an egregious manner.

You find out up front if they have any cash or not, vs burning 30-45 days to find it appraises at your listing price, and they don't have the cash to close.Get a VA checklist from one of your trusted lenders and make sure everything in the house meets the checklist. 

I did that with my parents and it worked out perfectly when i bought their house.

I'd like to start small with 1-2 STR tiny house(s) or other less expensive "alternate housing" options (yurt, airstream, etc).