I didn’t see your location in your profile or your post, but assume at least 17% state/federal taxes leaves you with $10k/yr. 

There is also a provision in the promissory note that states in the event of default, we must deliver the property back in the same or better condition from the time of purchase. 2: We will deed the property back to the seller & execute a contract for deed.

If you are an out of state investor the team you pick is more important than the market you pick.  

As stated above though, that method can become very risky unless you are properly capitalized, which I was.

I realize I don't have the actual NOI, but that price sounds super high for the gross income you're stating in your narrative.

or needs to be in two places across the state from one another?

Yes, unfortunately it is dead in a lot of states, but not Columbus Ohio!

My plan was to keep the condo as my residence, but after a year, refinance to fund a down payment on a multi-family property, either out of state or in the surrounding NY area.

They stated they physically moved out, but still had belongings in the property.  

Yes, the lease renewal should state the new amount of the deposit.