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Hello,
It sounds like that your DNS was setup correctly. I believe that it is either an issue with your Nginx configuration or file permissions problem.
What I would suggest is:
nginx -t
Syntax OK then restart Nginx:systemctl restart nginx
Then test your site again. If this is still not working, then I would recommend making sure that your root directory for your second domain has the correct ownership:
chown -R nginx:nginx /var/www/second_rails_app
Then test the site again, try to clear the cache of your browser before testing the site.
If this still does not work, I would recommend sharing your Nginx server blocks here so that I could advise you further.
Regards, Bobby