ARV / 70% Rule

[David Lowe]

If the ARV of a property in San Diego is $500k, the rehab cost is $40k and you use the 70% rule, that means you have to buy the place for $310,000.

My questions:
- is that possible in the SD market? The purchase price is almost $200k under the sale price which seems way too low.
- Do investors always use the 70% rule in SD area?
- what kind of ROI are you getting?