It might be technically possible, but it's certainly not supported or intended. Convention over configuration, remember. When you make a new Rails application via rails appdir
, you're making a single application, and everything in there is part of that one application. It is not an installation of Rails. Your Rails installation is off elsewhere (/var/lib/gems for me), and all that code that makes up Rails will be shared between multiple applications.
In short, the best practice is two separate apps in two seperate directories. There isn't really any reason for you to want to combine two applications. If they need to share resources or a database, it should be one app with different controllers, or two separate apps with common code distilled into a library or plugin.