Awesome. Thanks all!

My bottom bracket socket came in the mail today (just in time!) and I was able to remove and inspect the frame in that spot. Looks like a bit of surface rust (similar to seat tube) and nothing major.

One last question! Is it too late to think about applying frame saver at this stage? I would need to buy it but not sure if it's worth it.

I do have some motorcycle chain lube/wax spray that I can possibly use. I saw something like that being mentioned elsewhere on the web.