Secondly, I'd chat with a realtor and get some recs on lenders to truly see what you're working with in terms of buying power.

Hi Jonathan, what is your buying criteria in GA and what counties are you looking to purchase in?

Sorry, I'm not buying this story.From make-ready's.

It’s never as simple as it first appears, which is why we always advise our clients to let the math guide the choice.

-are you buying with conventional or DSCR financing? 

It's either that, or try to buy 33 sq feet of land from one of my neihbors. haha...

Simply gifting him half the property now wouldn’t immediately allow him to claim the exclusion without fulfilling this residency requirement, I don't believe.One thought would be to use a HELOC to pull just enough equity out of the current home and use it to buy a smaller home, or at least the down payment.

This would likely take coordination with a tenant at some point - (ie - plenty of notice to them that they must vacate in order for you to sell the property)Since your current home is free and clear -  you could do a cash out refi or take out a new mortgage on the new house to be able to buy your paren't house and pay off the mortgage.  

Are you looking to buy a duplex for your house hack?

I would not buy something right now just to buy something.