Moving to an area specifically for your startup, even if you were told to do so, can really show your dedication (not just by saying it). You are proving that you are willing to do whatever it takes. I've known many who have moved for the 3 months @ YC and then have rightfully moved back... I don't think any of them have regretted. YC may be looking for someone who can make it work, if there is a will, there is a way. THAT is what they are looking for.
There is a method to the madness. They have proven it.