your technique seems to be ok your problem may follow with your choice of 
user though.

> Will it be a problem since I am doing this as root?
> And also, will it be a problem not having a root
> password?

quite possibly.  root may not be allowed ssh access.  i don't remember if 
that's a default setting or not.  but regardless, it's generally a bad idea 
to allow root to have a remote login. 

what you will want to do is create another user account and add that user to 
the wheel group and use su(1) to gain root access if necessary.  if you 
really don't want to type in the root password every time, you can install 
and configure sudo (pkgsrc/security/sudo) to execute commands as root without 
a passwd.

--joe