The story was very immersive and creepy, the graphics were good, and I was legitimately scared the entire way through. The voice acting was awesome (which is so unexpected with a free game), and overall I am very much a fan of everything this game is doing.
There are just a couple of tweaks I would recommend. I had a hard time playing this game because it is a windowed application. Due to this I kept clicking out of the game because I have a multiple monitor setup, which ruined some of the immersion as a player. The lack of a running mechanic made it hard to feel like I was being chased and my life was on the line. And, I would highly recommend adding subtitles. Obviously it's a huge help for those with hearing problems, but it also helps the player to ingest the story as it is being told.
Aside from those three things I had such a great time playing Paranormal Entities and can't wait to see what else you come up with!