$600K vs $1M ARV with Same Repair Costs. Which is Better?

[John Wooldridge]

I live in the in the "East Bay Area" of San Francisco. Housing prices in the areas I am looking to flip are extreme (can reach $2M very quickly). I am looking in 2 different neighborhoods where the ARV for neighborhood 1 is $600K and neighborhood 2 is $1M (2 "identical" houses (3BR 2BA 2000SF) that need the "same amount of work" (Paint, floors, windows, both bathrooms and a kitchen). I understand the 70% rule, however, in these higher end neighborhoods, the numbers get skewed. Does it make sense to focus on the higher end neighborhood or lower end neighborhood? The labor and material for both would be the mostly the same (maybe the $1M house needs a bit better finish on the materials). Given similar repair costs, what are the plusses and minuses of buying in the different neighborhoods?