Does anyone really use the 70% rule when buying in today's market?

[CK Hwang]

Hi everyone, I was just reading through this article today,

http://www.biggerpockets.com/renewsblog/2013/01/16/how-to-lose-money-flip/?utm_source=BiggerPockets+Newsletter&utm_campaign=65d81ad5e0-January_17_2013_Newsletter&utm_medium=email

when I came across this paragraph

So based on the typical house flip formula of 70% of after-repaired-value, minus repairs, he should not pay more than $65,000 ($100,000 * .7 – $5,000 = $65,000).

And I was just wondering if anyone is really sticking to the 70% rule in this competitive buying market? The reason why I'm asking is because i'm currently working on a flip in Orange County, CA, which I believe I should be able to make a profit on, but my buying was way off the 70% of ARV mark.More like 80% of ARV.

But if I was to offer 70% of ARV value less repairs, I am pretty much 100% sure there is no way I would have a shot at purchasing the property or any property I have been making offers on, because even in REOs and short sales, the banks will give a discount, but not even that much of a discount based on my experience of past offers.

So was wondering if anyone was actually sticking to the 70% rule and actually managing to buy inventory? Also does the rule of thumb, 70%, vary depending on states or cities? ie, 70% works well in AZ but perhaps 75% in Coastal CA would be more accurate?

Thanks in advance.