He'll probably end up being one of your better neighbors. My dad had a half-way house, and a lot of the guys were the type that really tried so hard to please those that they got close enough to, but not necessarily friends with. Usually you'll be the last person they'll bother too.
Hell, I'm 21, wear baggy clothes, we'll get drunk and make a ton of noise in the front yard, my 96 Impala is on 22s, sometimes I come in bumping some rap music at 2 a.m. But I'm a 3.5 GPA college student, on track to graduate on time, never been in trouble with the law, speak properly, and am one of the nicer guys you could meet. Looks can be deceiving.
With the racism thing, crap man, everyone is racist in one way or another, but to different extremes. Yeah, so it's a character flaw. Just remember if some black guy ever tries to break into your place, he'll probably take care of the situation
You are just a little stirred up about everything. Yeah, he laughed about it all. At the time he did it, it probably wasn't a big deal to him, and I think that a lot of people have a hard time changing their view on things after the fact. I laugh about my ND, my buddies laugh about it, but that doesn't mean it didn't affect me. Sometimes you have to look at the humorous side of things because the negative side will eat you up. And some people deal with things differently.
And, if it makes anything better, just remember the state decided he was safe enough to be put back on the street, so he must be okay.