For people who have low mortgage rates, it's better to put excess cash in a money market, savings account, CD, or treasury note and earn 5% rather than to pay down a mortgage that has a rate that less than 5%. 

For me it doesn't matter if I spend 90k or 500k, the comparison is like you save your money into a CD.

The same reason you get to make money being a landlord is the same reason you might not get paid for a few months, now hopefully you’ve saved money for a downturn but this idea that you should get to make money with no risk and no downside ( especially the people with thier c/d class that was on paper 10% roi.) is so entitled.

.- Your estimates are correct but there are other investors willing to take a smaller return on investment or are volume players.- You're not missing anything and these investors' optimism is going to get them extremely hurt.Based on what I see a lot in my market, it's more of the latter two. 

Recently this market has become a little saturated with many new entrants - primarily local investors but also some national players like Sayco and Havenbrook.

I have been in this market a long time and I know all the players, good and bad. 

That is not other people’s money and that is not leveraging.The same $100,000 I can do a CD or Money market account at our banks under their control.  

@Thuy Pham-Satrappe For many the lower barrier of entry to these lower C/D properties is a beginning.

@Ringo Yip there are opportunities in the Bessemer area but you have to be selective if you are purchasing in the C/D class arena.

@Daniel Botvynko you already have heard of most of the main players here in the Chicago market.