Can I remote install OS X via dmg? I'm having a lot of trouble finding anything that can help with my specific issue, and it really bugs me because I feel like I cannot be the first person to try and figure this out.

I have one of the new 2016 Touch Bar MacBook Pros that I need to reinstall macOS. Typically whenever I need to reinstall OS X I just use my external SSD with a preinstalled El Capitan and run the DMG after some configuring, but with the latest MBP I've realized that I have to use Sierra since El Capitan is not supported. I only have about 1gb left of free space on my external SSD so I can't just upgrade to Sierra and go from there. 

Is it possible to host my Sierra DMG on my local network via something like OS X Server or DeployStudio on my other Mac? 

That way I can just hold the Option key down as I boot up and connect to my Wi-Fi network and have it "see" the hosted image like a NetInstall or something similar.
What you propose works just fine on Mac OS Sierra with HFS + filesystems. Both deploy studio and server.app work fine for network installs. 

Whether this continues for High Sierra and APFS remains to be seen, but OS at 10.12.5 and lower all include network install functionality in addition to network boot and the setup steps are well documented publicly for both. 

The only wrinkle added for 10.12 is the touch bar and EFI component. As long as your Mac can connect to both the NetBoot server and Apple's servers you will be prompted to update the Touch Bar if needed. 


https://support.apple.com/en-us/HT207567


If you can’t do that, plain old internet recovery might be better for your situation.