i am so pissed i just wrote a whole thing and it didnt post ahhhhhh
anyways here it is again:
Yes you can do this, the closer you are to the city center the better you will rank. You might also want to add your keyword into the title this also helps. I personally have used real addresses and fake addresses in certain cities. My business is not located at any of these locations and i rank #1 for mostly all the keywords i want to and has been this way for the past 8 months.
I have used addresses that do not exist to rank as well so say you are on Main Street and this street has #'s from 1- 100 i would tell google i live at 101 Main Street and there we go all done. This method is not mail fraud or anyhting else but if you think it is use the non existent address method and you will be good, it cant be mail fraud if the address dont exist. You will also want to use different numbers for each listing you make you can use google voice for this because google places will merge your listing if it has the same telephone numbers. (Google determines listings by telephone numbers)
hope this helps and by the way it was much better put the first time around lol but i diid my best.