help, odd spot on my meow baby

My darling 4 year old male Salem has a spot right next to one of his nipples. It's about a dime size and there's a white spot, as if it were like a pimple. It's hard under it, but not deep. It doesn't seem to bother him unless I'm poking around the area. There was a flap hanging off of it like a dry skin bit or something. I am trying a hot compress, I would like any suggestions or maybe similar situations? I could take him to the vet but I don't have extra funds but can defiantly make it happen if there is room for concern. Any help?

He seems awfully young for a skin tag, but what you describe kind of sounds like one, at least in people.  Otherwise, I have no idea what it might be.  It's really impossible for us to diagnose something via the internet, particularly since we aren't Vets. 

Maybe by bumping this up, someone who's seen some thing similar will pipe up,