Best DAC for my system?

In the $500 dollar range I probably would be looking for a used Schitt Bifrost.
Saw where they had one over at TMR.
In terms of something new, your options at this price point in my opinion are much more limited. Could take a look at Pro-Ject’s Pre Box S2 Digital which retails for $399.

Have you every heard of Topping DACs? I hadn’t either, but the brand is a favorite of an audio forum that believes in OBJECTIVE test results. Topping has a line of sub-$300 DACs many sub-$200 that in the test results there are state of the art.
https://www.audiosciencereview.com/forum/index.php

Fair warning. I don’t agree with their slant on things. They call folks like me "subjectiveists" because I go by sound quality and not blind devotion to objective test results. But who knows, the test results of the Topping DACs are very good.

I had the Pro-Ject’s Pre Box S2 Digital DAC for a while and it wasn’t bad. I also had a Schiit Modi Multibit that I licked. But I have a Chord Qutest DAC now and love, love, love it. Unfortunately, it’s $1800 so above your budget.

PS. The Bluesound Node2 can be bettered - but get a dedicated DAC first.

I'll second the recommendation of the Pro-Ject Pre Box S2 Digital. I have one in my office and think it's exceptional for the $399 price. I've compared it to the Bel Canto DAC 3 in my main system and it's close. It's also a very good preamp and headphone amp and won an EISA Best Product of the Year award for 2017-2018.

Yes, spend more.
No. not a fortune.
$1,200 will do it.
Buy used.

Benchmark 2 or 3.
Chord Qutest

Worth it.

Spend a bit more for a MHDT DAC, R2R, non over-sampling, no digital filter, no op-amp with a Tube :)

I have created a separate linear power supply for my Khadas tone board generic edition, and I bought a Nordost USB cable.
Well... this combo greatly improved the sound quality of the Khadas.
I have done 2 blind listening tests with friends, against the Schiit Gungnir and the Denafrips Ares II.
Nobody, I mean nobody was able to identify the Khadas. LMAO.
So clearly the winner is the Khadas tone board generic edition if we compared the sound quality and money.

Have you tried the DAC on the MX119? That would be the first thing I’d try. If you still feel you need an external DAC, I’d suggest upping your budget, plus consider used. 

crn3371..yes I compared them and the Node 2 sounds better.  The MX119 was a little dull and not as defined.  Thanks for the suggestion though.

Talk to Tommy at the Digital Amplifier Company (DAC) the DAC DAC HS is exceptional. Contact him for a price he always has demos available. 
https://www.cherryamp.com/

Seems you have about 7.5k to 8k invested in your system so far... You owe it to your self to upgrade your source, streamer/dac... 2k to 2.5k seems about the right balance with your current kit... Benchmark and Chord are good suggestions... You might also look at Lumin... And some room tuning/treatment would not be a bad idea at this point if you have not already done so...

Kick the node and go straight to a Lumin D2 streaming DAC.
$1600 to $1800 used but your ears will thank you immensely.

Pro- Ject Pre Box S2 is  $400 at Music Direct with a 60 trial period. If you use Tidal it will do MQA if that matters to you. 

I have a node 2I and bought a used Benchmark DAC2 HGC from a member here and am very pleased. Just my 2 cents.

ddude003 makes a good point, you’re feeding some higher end gear with a lower end streamer. If streaming is a major part of your listening experience you owe it to yourself to have your streaming components be of the same caliber as the rest of your system. At the very least, a GOOD external DAC for the Node. I honestly don’t think you’ll find that for $500. Also, there are much better streamers out there than the Node.

The Pro-Ject Pre Box S2 at $400 is a stereophile class A recommended DAC. Someone mentions what they are comfortable paying I'll guide them to the best I can find at that price not something 5 times the price.

I was pleasantly surprised by the Pro-Ject Pre Box S2 Digital. This tiny, inexpensive box offers almost state-of-the-art measured digital performance.

Purplejester-I was looking for a DAC at specific pricepoints and came upon this thread. Don't let the title turn you away. It's a good place to compare. The chart at the top of the thread is good. 

https://www.superbestaudiofriends.org/index.php?threads/marveys-dac-chart-of-awesomeness.63/

Be well!
David

Bluesound Node 2i with Topping D90.  This made a huge improvement for me.  It improved every aspect of my system's sound.  Apos Audio matches prices and I got mine for 630.  The other day they were available for 640.  30 day money back trial.  The Denafrips also looks good but haven't heard it.  Sabaj D5 also gets very good reviews and it is 450 or less.  Both Sabaj and Topping are brand new models. 

Anyone have an opinion on how a Black Ice FX Tube DAC would sound with my system? Seems like the reviews are really good on it. Its a little over my original budget but I think I can get there.

Also does this DAC work with MQA?

Thoughts?

From what I have read about Topping Dacs I would pass on those.
Plus there is way more in what we hear than just measurements, but that’s another topic! Also forget about MQA. Not any better.  I would pick up a Schiit r2r Dac Bifrost or Modi. Excellent stuff. No listener fatigue and beautiful. Great American company that sells direct.

Topping DACs are a good value another good value is the Schiit Modi 3 at $99