I was in more or less the same situation. Current Hyper-V implementation requires 64bit OS and virtualization support on the processor level. Sadly, this only exists in relatively newer (gen 3 and 4 Intel) under Windows. To verify if your CPU supports the necessary virtualization requirements, use CoreInfo by Mark Russinovich from SysInternals.
If your CPU does not have the required support, you can still use a real phone for development/debugging. The good news: a Lumia 520 is only $55 in stores (probably less on eBay).