Does buying multiple domains within the niche you are targeting a good way to rank higher in google? Can google tell if they are all hosted by the same person?
Yes, that is a good way of ranking higher and it depends on competition. Google does not care how many domains you have. Before I sold my diet pill website (brazilian diet pills) i bought the domain name braziliandietpills.net (google brazilian diet pills). See where it is ranked. So yeah it helps.
You can do this and easily take more then 1 spot in search engine... Try to host them on different C class IP and then connect them... Enjoy quality and theme based links pointing to your sites...
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