Does the 70% rule in buy apply to more expensive properties?

[Jared MontBlanc]

The BP folks are saying 70% for a deal after repairs, but at the higher end, does this math still hold? Knocking off such a large amount of cash seems almost unrealistic, but I believe the guidance comes from the fact then when the rehab is done, you can Refi and leave the 25% equity in the home and move on to the next property. Without the 20-30% deal, you'll need to leave some of your cash there to avoid PMI, is this right? I recently lost a great deal because I think my numbers were off due to this... The math I did was FMV -30% -Est rehab costs. This resulted in a $420k -$126k -$60k = $234k. I didn't get the house... looking back, I think I should have just set a target discounted of say $50k, minus rehab costs. My offer could have then been around $310k and I might have got the deal. Less margin for error though on my first rehab, and I'm a bit worried about a correction, so was baking in a little extra margin (hopeful but alas). Thoughts?