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We would like to implement a Multi-Store Implementation where one Store is connected to our Main Warehouse for Online orders while the second store runs our POS system and can only debit stock from our Physical Retail Location's stock.

Is this something that is possible in Magento where we can implement both Multi-Store as well as Multi-Source model so that I run one unified back end but have it debit from a different physical location depending on where the order comes from?

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Yes, this is possible and I have implemented a similar setup before. M2 supports multiple stores, multiple stocks and multiple sources.

Take a look at the inventory management documentation here:

https://devdocs.magento.com/guides/v2.3/inventory/

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