Keep in mind the rental limitations condos can have, they normally have a limit on how many rentals in a complex. 

Keep your common areas clean and neat, possibly have a house cleaner come in twice a month for these areas if your budget allows it, have solid house rules that you enforce regarding at a minimum quiet hours, parking, smoking, pets, and visitors just for starters and be sure to run it like a business and decide if you will have month to month terms, 6 month terms or yearly terms.

I also keep hearing that STR is rather saturated overall, whereas midterm is chronically undersupplied.

Ask them when they issue distributions (anything before the 15th of the month is a red flag), do they require reserves, how is maintenance charged, do you see copies of outside contractor bills, do they upcharge materials (PM's have LAR accounts with Lowes and often get 20% off), do they keep all late fees or just the management fee, what other fees do they charge (renewals, inspections, etc), where are tenant security deposits held, how are evictions handled and are you consulted before filing, what screenings do they run, what qualifications do they require from tenants, ask for a couple other owners to visit with for a reference. 

There are some differences for sure but I don't think they are substantial.3) What laws should I watch out for (for example am I allowed to have the water/electricity be under the tenant's name) - You can put all utilities in the tenant's name, but I would advise keeping water in your name since that utility is a lien on the house itself.

Would you be willing to keep the mortgage in your name and allow someone to take over the payments? 

We honestly do not currently have the time/bandwidth to keep chasing this tenant down. 

To answer your last question, I have a good sized portfolio so I keep about $100k in a bank to mitigate any risk.

Keep up that good work! 

We work in NYC and need to keep the commute under 90 mins, but will consider any good investment in that radius (think New Paltz as the northern limit).