Having trouble applying the 70% rule

[Ralph Plumley]

Hey BP! It's my first post :O

I'm looking into doing a flip (also a first). I'm running numbers in my area, but I'm having a hard time believing I'll be able to purchase a place using the  70% rule. 

Here's an example: Say a remodeled 3br / 2ba in my area is selling for $250K. 70% would be $175K. Say $20K for upgrades and $5K for holding costs. That makes my offer $150K using the 70% rule. But most homes in this area are going for $180 - $220 (outdated designs / not remodeled). So, again, I have a hard time believing I'll get something under contract by offering the 70% rule.

Do you guys still find the 70% rule applicable?

Thanks!

Ralph