Preflop
K3s from CO is a somewhat loose open, but its ok to do this from time to time especially if you have tight players to your left.
Flop
I would certainly C-bet with a flushdraw on this board, but when he raise, I would just call. I think, few people in these soft games are able to raise for value and then fold to a 3-bet jam. So I would just put in the other 20$ and try to hit my hand. A situation like this is also why, its nice to start with a bigger stack, because it would give you more room to draw and then still get paid, if you hit.
Results
Always nice to complete your draws, and hopefully he did not show you the nut flush