If the home is truly a 2 unit property and you claim the income on your schedule E the bank will use this income.However if it's a border income situation.  

stay away from streets like Peter Pan and Snow White... as well...be leary of zips 32202/06/08/09 especially. 32222/44 is decent enough. 32210 has its good spots bordering 32073. 17/23/57/58/59  Mandarin NW St Johns, Switzerland, Julington Creek areas are all decent esp 58/59 if you have the $ to spend. 32221/ 32234 has its good spots in rural areas and some new construction.

He is planning to move across the border to MN (much cheaper health insurance) and live in a house and step away from day to day activity. 

@Chandra Sekhar What border of South Shore? 

A lot of investors (and residents) try to stay in Columbia County which is the border county to the north.

It borders on mortgage fraud.

It's the area that sort of borders East Liberty and Lincoln-Larrimer.  

I have grown to like the NW Indiana market vs IL due to manufacturing/industrial companies moving across the border, landlord friendliness of IN, cheaper taxes and it will also give me the opportunity to get started sooner with the price of homes.

As another post mentions above, the antiquated municipality system generates wildly varying tax rates in communities that border one another. 

It's called border income.