But I’m looking to refi my properties into packages.

Of course i always like the cheaper material. 

We are redoing our kitchen, and lets say the cost is 60K+ 12K profit/Overhead (20%), includes cabinets, countertops, etc.Why do contractors calculate profit based on total cost including materials.

The liability exposure is materially higher and it's not the trade or business we're in. 

I put in my 2week notice January 2018 without another job lined up “all I knew was I needed to pass this test, Because I really wanted this since 2008.I studied so hard and spent so much money in the beginning on materials it was unbelievable, all I needed to do is get focused.

The sponsor should have some collateral material they can share with you to answer some of those questions. 

I was able to get some great deals on materials, so the units are both now really high end (think quartz countertops for two kitchens and one 48” bathroom vanity for under $2k).

You can often find low cost materials that still give the appearance of a high end finish.

Also good materials are galvanized steels and aluminum, they do rust differently and at a very low rate... 

The managers keep telling us that we'll get to the profit soon, but month after month is doesn't materialize.