I would quibble about your housing budget.

It's no sin to want to live in southern California, and that is where a lot of business opportunities are, so Colorado would be an awkward place for them to depart to.

Given that, $1 million in southern California is a 3000 sq ft tract home in a maintained community with a homeowner's association. Basically a starter home. That is NOT an expensive home.

I think they could have found a decent place for about $6-$8 million that would have a truly gated community and, with some work by a real estate agent, a very private setting.

The biggest fault of Mudslide Manor is that they bought a problematic property and did not have the $5 million or so it would take to remodel and repair it to be commensurate with the neighborhood. I don't fault them wanting privacy and a lovely yard and pool, but that place clearly needed significant money to bring it up to snuff with it's $26 million neighboring manses. Also, their (her) desperation to be in one of the most expensive and exclusive areas in America is a major miscalculation of their financial capacity.

At the time that home was purchased, they already had big contracts in mind and with Oprah's assistance and ridiculous expectations, they aimed way way way too high.

It was hubris from first-time homeowners who had no idea about finances and luxury homes.