Hope that helps,
In any case, get yourself a good real estate & contract attorney. Good luck.
Did you buy the home or just the 'right to buy' the home? If you actually purchased the home and put improvements in, then asolutely you can sell it for a profit. This is perfectly legitimate and legal. I am trying to understand how you could have only purchased the ;'right to buy' a bank owned home and put improvements in to a property you did not actually own. I cannot imagine anyone recommending you do such a thing, however, depending on how you structured your 'right to buy' agreement, you may still be able to sell those rights for a profit. I would suggest you talk to an attorney in that case as these options to buy can get tricky.