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A house in Westchester is offered for sale at $1,000,000. Interest-only mortgages (you borrow money and simply pay the interest each year, no repayment of

A house in Westchester is offered for sale at $1,000,000. Interest-only mortgages (you borrow money and simply pay the interest each year, no repayment of principal) are 4% (annual compounding), and the house can be rented out for $5,000 per month. Real estate taxes to be paid by the owner are $10,000 per annum. Find an upper bound for the one-year forward price for the house. Assume any other interest rates you need are positive. State any assumptions made.

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