Every no brings you closer to a yes.With a limited track record you could get a partner on a deal, wholesale a deal until you have enough money to have a bigger deposit, or like @Peter Sanchez and @Alexander Felice mentioned house hacking.Real estate is amazing because you have unlimited options and have to develop the mindset that you are a real estate transactor.Let me know if you need help with anything and I would be happy to help!

This book truly changed my life, so much so that I bought a copy just to give to my brother in the hopes that he at age 27 could take advantage of what I'd already passed at age 31 (he's single and doesn't own a house yet, whereas I'm married and have a home).I have to admit, when I started listening to and reading Bigger Pockets I was thinking all about increasing earnings and didn't understand why I would "rob" myself in the mean time and be "needlessly frugal."

If I was you I would retain a lawyer for your court appearance and give him a heads up on the bigger picture.

Between having minimal liability risk in my own personal activities, renting to only the very best tenants, having excellent independent tenant screening, long time property management relationships, adequate per property insurance coverage and tack on umbrella coverage as/if necessary, I am more than adequately covered.

Quick update: we decided not to move into the bigger house in the burbs (it didn’t appraise and the seller wouldn’t come down) and are happily still living below our means.The Financial freedom that comes with living modestly is so sweet it will take a very special house to get us to move at this point.ALSO, similar townhome/same community as ours just sold for $30k MORE than what we had ours under contract for a month ago, so I feel like the low new house appraisal causing our deal to fall through was a blessing in disguise.

Bigger Pockets is a phenomenal resource connecting with those in the industry and getting started in REI.

@Logan Allec provided an outstanding explanation, and @Basit Siddiqi added couple good points.I just want to frame the bigger picture: the new law does NOT hurt ("hose", using your word) people who receive 1099-G for prior overpayment. 

Hello Bigger pockets, I am a new long distance investor.

@Ramon Vazquez you might get some good responses here but Bigger Pockets also has a Texas forum. 

@Alain Mario Eboli Jr.Welcome to Bigger Pockets.