Should the 70% rule be used in all areas?

[Matt Van Dyk]

Hi All,

This is my first post as I am new to this site. I'm not sure if this question has already been asked, but I live in Southern California where the median home price is $750,000.00. It seems that to purchase a home, after rehab costs, for 70% of the FMV, is unrealistic, even if I do the repairs myself, as I am a general contractor. Should the 70% rule be used in high end areas?