Bay Area 20/40: How bad a fold?

[bovine_boat]

9-handed.
Fold to --
CO+1 raises (He's an off-duty dealer, loose and straightforward -- Ax+, 55+, JTo+)
CO calls (He'll call anything to the Turn, and continue if he has any piece, but if he hits he'll get tricky -- Jx+, 66-, or small suited connectors, maybe some middle offsuit connectors)
Fold to me in the SB w/ AKs. I raise.
BB folds, all call, 3 to the flop.

10 SB to the flop
Flop: AJs x

CO+1 bets (Anything but AAA)
CO calls (Anything)
I raise.
CO+1 raises (Same read, I tend to think bigger hands are more likely at the table though)
CO raises (Scares me)
I fold.

Notes: 4 bets is a cap.
At the table, I thought I was behind too often to call getting 14:3 (for the whole hand). Best case I could come up with was Ax for the CO+1 and a flush draw with a pair for the CO, in which case I only have about 40% pot equity, and one of my opponents is ahead of me often enough to make this a fold.

However, upon reflection the tricky player in the CO with a 4 bet cap might raise with just a flush draw, in which case that is the most likely hand I'm against (and with better equity), so I should call here.

Also, with the large pot I should probably wait for the turn instead of raising, and bet out for any blank, yes?
Any other major problems with my thinking?

[MitchL]

I think we need to know what x is, but in general I dont like the fold.

[bovine_boat]

x is an offsuit 6

[Captain R]

Why are you c/r'ing this flop?

[bovine_boat]

Good Question. CO was a player I had seen bet most of the time when it was checked to him on the flop. I also thought he was unlikely to fold to a raise, but CO+1 might, so I checked hoping CO would bet and I could get the CO+1 to fold a smaller pair or straight draw.

I then ended up actually raising because the CO called, and I expect he would make this call with any cards he would have seen the flop with. I was intending to cap if the CO+1 3-bet.

(BTW, when I think about it now I think I try to C/R the flop out of position too often, especially when I disregard who the original pre-flop better is. It means I reliably bet the flop 3 handed as a bluff, yet check mostly when I actually have a hand. -- thanks for asking)