65% rule in CA?

[Andrew Bassuk]

Hi. I'm new on the forum and have a ?? The flipping rule of thumb of 65% ARV minus repair costs makes sense in markets where houses are affordable. I'm wondering if it needs to be modified in southern CA. If I could buy a house with and ARV of $500k for $400k that had $10k of repairs that leaves $90k to cover holding and sales costs and leaves room for a reasonable profit. Do most investors in high $$ markets modify the 65% rule and will hard money lenders go along with deals that might be 75% but have a good profit potential? Thanks Andrew