Synopsis does not sound good at all.

I just got done watching the first one, and I have to say the synopsis that I've read for the second seems like they are going in a completely different direction, and will definitely be worst than the first one. It seems like Blair Witch Project all over again, where the first one was a "found footage" of sorts, and the second one was a cinematic piece.

Cinematic movies are fine, but not as a follow up to the found footage piece. It a complete separation from the first one, and just doesn't feel the same.

I think a better way to go about it is to have a sort of disconnect from the first events, in that you have people who have no relation to the first events besides perhaps the girl. If it were me, I'd set it up that there have been rumors of cult activity in an area. A crew decides to debunk the conspiracy of "satanic cults" and goes to the town to investigate further. It would make sense for the cult from the original movie to possibly move to another area; a known exorcist goes to the area to perform an exorcism, goes missing, and is potentially found dead. Too much attention on that area, so they move away.

Neil could still be part of the movie, but not the main focus.