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My question is this: From an SEO standpoint, what is the most beneficial:
Ond domain for each keyword vs. one directory domain with subdomains for each keyword.
if one directory, then individual IP addresses for each subdomain?
The whole focus of this excercise is to focus more on the small cities (i.e. encino, ca) within the larger metropolitan areas (i.e. los angeles, ca)
Any advice is appreciated.
That being said...I'd go with multiple IP's, domains, hosting, whois, and make sure that you vary the IP address you call to the site with, don't install search engine toolbars...um, etc, etc. Even if the plan is to 'unique' each domain, trust me, one large site has economies of scale that do far better in the SERPs that multiple smaller sites.
Hope that helps.