Handgun – Resident Evil 7 Midnight Demo
In the demo’s Twilight update, players discovered some handgun ammunitaion in the attic and in some boxes that could be smashed open with the axe. However, no one was able to actually find a proper firearm. Not until the release of the Midnight update, that is.
Once you’ve collected the fuse from the hidden room, opened up the path to the attic, then head up there to collect the Basement Key. Go back to the first floor and open the mold-covered door next to the room where you started out in. Make a note of the bathroom on your right – this is where you’ll come to collect the handgun later on. For now, continue down the corridor until you reach the gate at the end. Use the Basement Key here and go down the flight of stairs until you come to a room with hanging body bags. Take the Valve Handle, but ignore the Attic Window Key on the shelves. Come back for it later. At this point, the mold-covered monster will show up to attack you.
Kick down the door you came in from, and go back to the bathroom. Use the Valve Handle on the pipe next to the toilet bowl. After that, flush the toilet, and collect the handgun sitting inside. You can now go back to the basement to kill the monster. If you didn’t collect the Attic Window Key, the monster will still be there, and you can shoot it. If you did collect it, it might have already despawned.
There doesn’t seem to be any other use for the firearm anywhere else in the Resident Evil 7 demo aside from killing the monster.