yeah you can do it with free electricity, i would try for sure if i was you
I would not count internet in it. Assuming you would have internet without it, it is not really an additional cost.
The good thing about PSU's if you buy a good one it will last multiple generations of miners. So once you pay it off, you can still use it with future miners with no additional cost.
better to buy new in the HW technology, just my personal preference, you can always resell it later, these things are sold easily
I will agree in most cases new is better. The only reason I ask is some with very low electricity I have seen pull a good profit of off used S3's. Its a small market, but some are able to get ROI surprisingly small amount of time if got for a good price.
But yes S5, SP20, Avalon 4.1, etc are better for most with efficiency.