My arms are flushed & hot just below my shoulder and above my elbow and only on the outer part. what could be causing this? no flushing anywhere else.

Skin inflammation: A few things could cause this. If it's both arms (and therefore pretty symmetric), it could be due to some chapping/windburn or due to irritation from excess keratin (hyperkeratosis pilaris). If the skin is also hard to the touch, go to your doctor for further evaluation, as there's a remote possibility you may have cellulitis. Try gentle exfoliation and a lotion.