Mr. Red's house is a location in It Lives In The Woods. It is one of the primary settings in the book. It is where Redfield originally lived and it is where Jane Marshall lives when she becomes the new monster.
History
Mr. Red's house was originally a meeting house for those who worshipped the Power in the woods, including Cora Pritchard. According to Cora, once Douglas Redfield became greedy and took more of the power than he could handle, he became corrupted. The survivors were forced to bind him in the old meeting house, trapping him there.
Events in It Lives in the Woods
Jane brings you to the woods to show you the abandoned house. You and Jane enter and are greeted by a spirit name Redfield. Although you and Jane are initially frightened of him, you quickly befriend Mr. Red. You and your other friends return to the house often to play, until Mr. Red kills Jane during a game of "Are You Scared?"
For years, none of you return to the house. Eventually, Dan Pierce goes back in an attempt to prove to himself that what happened was not real, setting off Redfield's return. Later, Redfield kidnaps Andy and uses him to lure you back to the house. You find out that Jane has been trapped in the house as Redfield since her death, and she forces you to play another game of "Are You Scared" to free her. Either you or Noah Marshall becomes Redfield to free her and become the new Redfield, though the house itself is at least partially destroyed in the final confrontation.