2. Post to Craigslist that you saw an obviously hot bike and bought it so it can be reunited with its rightful owner, like this:
We recovered your stolen Miyata! - $50 (mission district)
My roommate bought this Miyata for $50. The bike is very obviously hot and we'd like to return it to its rightful owner. If this bike belongs to you or a friend of yours, please email me. I'm sure they miss it dearly. We'll gladly give it back for the $50 we paid for it and some sandwiches and/or a case of beer. In order to claim your bike, you must tell me what kind of pedals are on the bike.
3. Receive cash from naive and grateful victims!
Note: It turns out this guy is probably honest. I guess I'm too old and cynical.