This run down ranch house is hardly a star quality property. As a matter of fact, in any other market, they’d be hard pressed to get $300,000 for it, let alone $3 million. So why did Kim Kardashian and Kanye West buy this $3 million tear down? Location, my dears. It’s all about location. It seems this particular 1.49 acre property with a 2,842 square foot house containing four bedrooms and three baths in various states of disrepair, was worth whopping $2,925,000 to the celeb couple, because it borders on their brand new $20 million estate, and is a particular eyesore.

You have to give the owners of the all but abandoned shack credit for patience and timing. The property was the blight of posh Hidden Hills, and I noted it when I was touring the lavish property that Kimye would soon be purchasing. The ramshackle is located just behind and up the hill from one of the two (count ’em) two full sized swimming pools. The purchase was absolutely essential for aesthetic, and well as security purposes, and the previous owners were cunningly biding their time.

Kimye could well just demo the house and landscape the property, but there are rumors of perhaps building a studio there, or perhaps winemaking facilities. Their new estate already has a vineyard, after all. It also has eight bedrooms, 11.5 baths, eight fireplaces, three fountains, a master suite wing that’s over 2,000 square feet, a massive kitchen with three islands, a chic mother-in-law/assistant/guest house, and a 1,000-plus square foot entertainment  pavilion. Both properties are bordered by riding trails and a huge state park.

The grand estate was built on property formerly owned by Lisa Marie Presley, and is in the same private, gated community where the celebrity couple is currently living with Kim’s mom, Kris Jenner. They previously purchased a home in Bel Air, but put it back on the market before they even moved in, opting instead to purchase this one closer to family. Rupert Murdoch considered the property before he bought his current vineyard home. See more photos of the shack and the adjacent mansion in my gallery on HGTV.com.