Go up to the door and the action icon will appear. There is a house with a blue door just right of the telephone booth. Look at your right and you should see a telephone booth (on the sidewalk). Now place yourself so that you're looking down the street. When you start free ride extreme, go to the most north eastern point of Oakwood. This will put you in front of the finish line in first place, just repeat this until you win. Keep going until another checkpoint message appears, and then press NUM0. On the race mission, after you go through the first checkpoint turn left down what looks like a shortcut. While reloading, perform a sideways roll.
Enter, and walk down the steps into a cellar with every gun in the game. Walk around the side of the building until you see an open door. Yellow Pete's Gun Shop is located at the ''H'' in ''Hoboken''.