Sorry, pal, but I tend to agree with scuffpuppy in that 'found footage' is the shabbiest approach to moviemaking out there, and 99.99% of the time the end result reflects that. However, look at the two examples below. Each made for $7000, I'll let them apeak for themselves:
http://www.imdb.com/title/tt0104815/
http://www.imdb.com/title/tt0390384/
Obviously, it takes a huge amount of talent and the dedication of many like minded individuals to make magic, but that's why I can remember those titles years after seeing them, but I've forgotten many hundreds with budgets which were exponentially higher.
Just my two cents, but good luck and I hope the finished product is neither found footage nor rubbish.
Oh, and one other thing: low budget does not mean getting some tweaked out meth headed Parkinson's patient to hold the camera!
"In a time of universal deceit,
telling the truth is a revolutionary act."
George Orwell
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