Outside of the building is the garbage incinerator, closed.
The entrance of west hall, contains the main stairway to the other levels and the courtyard.
The courtyard houses the once beautiful Wood Side swimming pool: elevated higher than ground level, surrounded by fence, and full of plastic chairs and umbrellas. Now empty, the pool houses three Lying Figures and a baby stroller holding the snake coin. The pool is adjacent to several other apartment buildings; 101-04. Eddie Dombrowski is first met in room 101, vomiting profusely in the nearby latrine. The toilet is conveniently sitting next to a corpse, stuffed into a refrigerator, to which Eddie denies involvement.
East first floor
There are three large, king-sized apartments, 105-07. At the entrance of 107 is a pack of canned juice.
This floor houses the second floor apartments, whose numbers are in the 200s (201-12).
The public laundry room on the second floor holds a garbage chute that jammed when it was overfilled. Using the canned juice, James forces the trash out onto the closed apartment incinerator, where it bursts. The contents are strewn, revealing an old man coin and a newspaper article.
Room 202, left of the west hall's second floor staircase entrance, is home to a large amount of bug cages. Inside the bedroom are a large mass of fluttering moths and the bodies of dead butterflies lying on the bed. Adjacent to the bed is a large hole oozing with an unknown, green slime. James obtains the clock key if he reaches inside it.
Room 205 houses one of the most important tools in the game - the trusty flashlight. As soon as James enters the room the light will shine on him from the device. The tool is found on a mannequin, who is dressed in Mary Shepherd-Sunderland's clothes. As soon as James grabs the device, a Mannequin, sleeping in the room, springs into life. This is the first Mannequin the player will see as well as the third enemy encountered in-game. This room also contains a memo upon completion of the game for the first time. It gives the player hints as to how to get a different ending the second time around.
Room 208 is, at first, a seemingly decent room. In a side room, there is a large grandfather clock. When the player obtains the handgun in room 301 and returns, however, there will be a cry of pain and the player will have their first encounter with James's demonic tormentor, Pyramid Head, before re-entering the room. Once inside, there will be a corpse, seemingly bludgeoned to death on the television. James will notice a key on the shelves behind the corpse, the room 202 key, where the clock key can be found. Using the flashlight, the player can now see scratches and mutilations on the wall and clock that contain hints of some kind. Opening the clock with its key James will use the hints to solve a puzzle to gain access to room 209 and the 2nd floor stairway.
Apparently knocked down when Blue Creek Apartments were built, the Fire escape now serves as a way for James to enter the Blue Creek Apartments through an adjacent window.
This floor houses the third floor apartments, whose numbers are in the 300s (301-09). James finds the fire escape key in the halls.
Entering the room, the player will notice the bullet marked walls and the room's horrible state. In the middle of the room is an out of place shopping cart, carrying the handgun which, stated by Team Silent, is a satire of how easily guns can be purchased in American society.
Immediately entering the room, James will encounter Pyramid Head, raping and sexually abusing two Mannequins. Frightened, James conceals himself in the nearby closet. Once Pyramid Head finishes, killing a mannequin in the process, he begins to drag and beat the other, mercilessly. Pyramid Head, feeling James's presence, starts to investigate the closet. James, terrified, takes fire at the monster, who, apparently tiring of James's bullets, flees. Inside the closet James took solace in is the key to the courtyard.
- The mannequin dressed in Mary's outfit does not cast a shadow when the torch shines on it, only the pole it sits on does.
- This area is the first to include an ongoing running gag within the franchise, having the player decide whether or not to stick their hand inside of something disgusting that most would avoid.
- Outside room 102, an arrow and the words "To Hell!" are written apparently in blood, pointing towards the north.
- While in the bathroom of room 210, there is a random chance of hearing a faucet being turned periodically, but without the sound of water to accompany it.