Let's say I put $100,000 in a CD at 3% interest. In a year I have $103,000.
Let's say I put $100,000 on a $400,000 house and it appreciates 3% a year. We'll assume rent = costs for now.
In a year the house is worth $412,000 that requires no repairs. That's $12,000 in appreciation because I earn appreciation on the part of the house I own but haven't yet paid for.
If I'm making a profit on the rent my return is even higher. I also get depreciation on $400,000 - land value worth of depreciation on the house which will shelter some of my rental income from taxes. (I'm not positive on the mortgage interest and depreciation, that part confuses me.)
Now, if I sold by owner in the first year I would lose money in realtor commissions and fees. But if I hang onto it for a number of years, I'll keep most of the appreciation gains and, of course, collect more rent.
CDs have many advantages over rental property as a storage of wealth, but rental property has many advantages over CDs as a way to make money.