Here is a list of all the recent CL computer gigs in NYC that demand only a local candidate:
http://newyork.craigslist.org/search/cpg?query=local
Cast your social net wide and deep. Talk to everyone. Usually you start your freelancing career with accounts you get from previous employers, coworkers or people in your daily life who know what you do AND that you're available for freelancing work.
Here is a tip: instead of just reading the available jobs section, read the services offered section. What might seem to you as "competition" might just be someone with complementary skillsets. Partner with them. Try a post like "software engineer seeks competent business person"; grab everyone who replies to you and kick some ideas back and forth. Offer them hefty cuts and they will go out and source you a project.
Scratch backs and offer kickbacks. Most people just need a "computer guy" and they have no clue what sort of service they need. Offer free consulting help ("hey, let me come with you for that meeting, I can suss out the guy for you and see if he is really good", etc.) Once people consider you "their guy", they will turn to you for help.
However, it takes ALLOT of fucking socializing, chit chatting, catching up and going out for coffee and beer. You're gonna kiss the REPL and that debugger good bye for a few months my friend.
P.S. Don't hesitate to take a side white-collar gig (sales, support, billing, etc.) you will get some killer domain knowledge, make contacts, and you can always resurface as a software developer when you know of their needs. Right now, in this economy? I wouldn't hold out for that $120k C++ Architect job that we all had a while ago.
Cheers!