NL100 Live How to play TPGK OOP with many opponents

[veryblind]

Effective stacks are $200. Loose live cash game with $2/3 blinds.
It seems whatever I do in these situations are borderline. I don't think it's a major leak to just fold in these spots but I feel there is a way to play it profitably. I'd like your thoughts on best line.

Preflop: 5 limpers, SB completes, I check in BB with K[img]/images/graemlins/diamond.gif[/img] 9[img]/images/graemlins/heart.gif[/img]
Flop ($16 and 7-way): 9 [img]/images/graemlins/spade.gif[/img] 7 [img]/images/graemlins/spade.gif[/img] 3 [img]/images/graemlins/diamond.gif[/img]
SB checks, Hero?

In this particular hand, this is how it played out...

checks around to CO who is last to act and unknown. He bets $10, SB calls, I raise to $35, folds to CO who pushes all-in, SB folds and I fold.

I felt he could be doing this with a flush draw, but he probably has at least 12 outs and I didn't feel comfortable gambling in this spot against an unknown.

What's the best line to take here?

In these loose games, I feel if I lead out with a small bet I'm likely to get a lot of callers (with 2nd and bottom pair and draws) and will build a big pot with a hand I'm not too comfortable with. If I bet big and I get a call, I feel uncomfortable firing two more rounds even if no obvious draws make it there. And again, I'm building a big pot with a not-so-great hand out of position.

I usually check in hopes of keeping pot small and firing out if a safe card turns. But if a LP bets, it could be a steal so I try to c/r to see where I'm at and get rid of draws. I will usually shutdown if called or raised as was the case here. If the board is not draw-heavy, I will usually just call the LP bet to make sure some other player behind isn't slow playing. If all folds and it's heads-up, I will usually fire out turn to fold LP's bluff.

I'd like to know what your favorite lines in these "TPGK OOP with many opponent" situations are.