Higher ARV % For Competitive Markets

[Austin Joseph]

Hey everyone, 

I've always been under the impression that investors try to purchase properties for 70% of ARV (Example: $60k purchase, $10k repairs, $100k ARV).. but today I was listening to a podcast and the host said not to get too hung up on the ARV value because in his market (Phoenix) many cash buyers will settle for 80% or even 85% of ARV due to the competitiveness. Are Austin buyers running similar numbers or are they sticking to the 70% rule?