'American Horror Story' Star Gets KILLED on House Sale ... Loses $1 Million

"American Horror Story" star Morris Chestnut is in real-estate HELL ... he just unloaded his Hidden Hills, CA home, and got screwed out of a million bucks in the process.

The 43-year-old actor bought the 5,522 square-foot digs back in 2007 for a whopping $3.3 million.

It must have seemed like a good investment at the time -- 6-bedrooms, 7-baths, horse stables, a giant pool ... tennis courts ... fruit trees ... the whole nine yards.

Fast forward to Jan 2011 ... Chestnut tried to sell off the estate for $3 million, but no cigar. He finally managed to unload it in July 2012 ... but for a mere $2.3 million, aka a 7-figure screw job.