Formula use to compare the % from the bank

[Eric I.]

Hi community! I wanna know what is the best formula(cap rate, cash on c...) to find out if you are getting the better % for your money from other investing vehicles?

[Taylor L.]

Cap rate commonly gets mistaken for rate of return. It's not, it's just the multiple of net operating income you pay for a property. Value add is what really impacts your return there.

I look at IRR, Cash on Cash return, and simple interest to compare.