Kenny Robert McEwin has appeared before Albury Local Court after the incident on Monday night.

The Lavington man acted strangely while he was in the court, keeping his eyes closed as he was led from the cells and into the courtroom by security staff.

His eyes remained closed and when he returned after a brief break, McEwin kept his hands on his face and peeked through his fingers at his lawyer and around the courtroom.

He admitted to stalking two men outside his unit during the incident on Monday night.

It's alleged he was heavily intoxicated when he walked out of his unit and threatened the men with the tomahawk.

He was arrested about 9.20pm.

The court heard while McEwin had pleaded guilty to two counts of stalking, submissions would have to be made on a charge of using an offensive weapon to commit an indictable offence.

Lawyer Sue Robey said her client was unwell following the incident.

He had only been released from jail in February, the court heard.

"It's fair to say he's not tracking very well at the moment," Ms Robey said. 

McEwin applied to be released from custody but a sticking point was where he would live.

McEwin had wanted to return to the property where the incident occurred.

Police held concerns about the safety of the victims, one of whom lives at a nearby unit with the other a regular visitor.

The court heard McEwin was unable to offer an alternative address to live at.

His family members live in Queensland. 

He was also on a bond for an assault, which the court heard was an aggravating feature.

Ms Robey said her client had an acquired brain injury from a serious car crash about a decade ago. 

Magistrate Rodney Brender said he had to weigh up the risk to the community, and said he was unable to let him return to the same address that the incident occurred.

The matter will return to court on May 21.