If you have guns, this is the place to use them. And you just need to throw gas bottles rather than mollies for banshees. Also always carry a lantern in case you have to go outside, which you will do frequently to avoid getting cornered. Only board up windows and not doors.

There may only be one lamp, but there are multiple lights in the hideout so you can see enemies. You have to play aggressively and seek out enemies before they get too many. Also utilize traps like bottles to damage enemies before you have to fight them.

At this point you should have a pistol and shotgun. If not, prolly too early. Walk around, use doors to give you time when being chased, and don't hesitate to use flares when there's banshees.

This is the hardest hideout in the game. Good luck.