"Yesterday we had a good rest."
Translation:Мы хорошо отдохнули вчера.
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"Вчера у нас был хороший отдых" I wouldn't call it incorrect, but it sounds awkward / unnatural to me, we just don't usually speak this way.
There are probably some exceptions (can't think of anything offhand), as always, but normally you won't hear / should avoid saying this.