Figured it out. Kinda stupid on my part actually. I am building this lab in VMware Fusion on my mac and I remembered building a lab on virtualbox for a SCCM deployment which also gave me PXE problems. Turned out to be the virtual machine's network would not work with PXE. This TFTP problem turns out to be a simular issue. My lab uses the "host only" network so my DHCP won't clash with the one at the office.
So what i did was add another network in fusion (Preferences --> Network) joined my lab vm's to it and all starting working. PEBKAC error...it happens