Re: Nissan Outboard below deck
There's no "secondary" cooling system. All the exhaust and the vast majority of the cooling water (aside from the telltale) exits the bottom of the powerhead. In a normal installation, the through-hub exhaust system scavenges the exhaust and cooling water at speed. At idle, the idle relief ports allow that mix to spill out up high, reducing back pressure.
If you still want to pursue this installation, in the simplest design, you would not seal the exhaust port at the LU, but would instead close off the idle port and the drains, as well as the telltale and fabricate a seal for the shift rod. Then everything would always go out of the prop hub. Otherwise, you will have exhaust and cooling water spilling out through those areas, and accumulating in the boat... or, plumbing the drains, idle port, telltale, etc., out the transom would involve some creative plumbing that could tolerate high temperatures.
Once sealed-in, all motor service would have to be done in the field. You would have essentially built a sail-drive.