Heads Up: Fold the best hand?

[troymclur]

I'm in a series of heads-up matches with a friend. Blinds are 100/200 with stacks of 10k. My stack is down to 5k.

I'm on the button with Ks2c. I call, villain checks.

Flop: Kc4s7c

Villain checks, i bet out 500 vilain pushes, i call.

I'm pretty sure that i have the best of it, putting villain on the flush draw and possibly bottom pair. Which means that villain has seven solid outs, and possibly 5 more for trips or two-pair. Granted he COULD have a king, but my read tells different.

Now my question is: did i make a mistake in not raising the pot PF so that i could bet out more on the flop to scare him away? Should I fold, thinking that i could get my money in when i'm a larger favorite?

How would you have played the hand?

EDIT:

Another hand that was bothering me. First hand of the match.

I'm dealt AcQs on the button. I raise to 500, villain calls.

Flop: Jc8s2d

Villain checks, i bet out 700 and villain calls.

Turn: 7d

Villain checks, i check.

River: 9h

Villain bets 700 i call.

[EMcWilliams]

FYI: WAAYYYY wrong forum, try HU and short handed or the 1 table tourny forum.