My house was an eyesore, but it was a small eyesore, so it got overlooked.

Literal

My [genitive-の] house [topic-は] eyesore was [but-けれど], small eyesore was [because-から], was-overlooked.

A neat little parallelism that turns on the contrast between 目障り ('eyesore') and 小さな目障り ('small eyesore'). 目障り (めざわり) literally means 'obstructing the eye' and is the standard word for something visually offensive or unwelcome. The structure repeats the noun deliberately to make the qualifier do the work — yes, it was an eyesore, but specifically a small one, so the verdict turned out merciful. 見逃されていた is the past progressive/resultative passive of 見逃す ('to overlook, let pass'), so 'was being / had been overlooked.' The plain ~けれど is a slightly softer 'but' than けど or が.