Thank you so much for responding, these questions are really helpful and put things into perspective. I applied to 3 Ph.D. programs: NYU (got into MA not Ph.D.), Rutgers (waitlisted), CUNY Grad Center (rejected) and 3 M.A.s: Hunter (accepted), UT Austin (rejected; called and they said that they only took ONE Latin Americanist this year because one of the professors left), and UT San Antonio (accepted with funding).
I want to pursue a Ph.D. eventually, but I am fine doing an MA and re-applying.
I am in love with my topic and your friend's experience is a good lesson, and I guess I can cross Hunter off the list.
I am not independently wealthy nor did I save up enough money to attend an expensive program. NYU is a dream because of its amazing faculty, but it is true that I may not even be able to take seminars and meet with professors because of the amount of students and the preference given to Ph.D. students.
UT San Antonio's faculty was very helpful and the staff is professional. My only worry is that it only focuses on Latin American Art, and I don't know if that it will be a detriment when I apply for Ph.D. programs. At this point, I want to attend a program that will benefit my Ph.D. application. The Art History department is combined with the Studio Art department, so it would be great to study both with art historians and artists. I think there are a lot of other opportunities there too. Most of their students don't move on to Ph.Ds, so that may be hinting to something as well.