70% Rule in High Priced Areas(CA)

[Brian Gerace]

Does the 70% rule hold relatively true in higher priced areas such as CA. I am looking at a home listed at 1M needs about 100K rehab and has an ARV of 1.3M. Using the 70% rule, my max purchase price should be 810,000. Seems a little implausible to obtain for 190k under ask. It seems like as priced there is enough profit to make the deal go. I am sure I am missing something so any thoughts would be appreciated.