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As bad as mountain view is, you'll want to be there for at least the time during YC.

IIRC, YC will send you leads on places to live shortly after interviews.

Yeah we want to go close to the YC offices if possible. Do you know if most people do houses or apartments?

Some homes have short term sublet rentals. (airbnb, homeaway). For short term apts in Mountain view, try here: http://bit.ly/ZSpLCS