Upgrading entry level system

+1 loomis. A better DAC is very important, but if you listen to a lot of vinyl, a good phono stage might be crucial, too.

1000.00 probably won't replace the Denon receiver (and DAC). So as @hilde45 mentioned, you should decide which is more important, digital or vinyl. Then it would be a stand alone phono stage or DAC. But that receiver really needs to go when funds allow.

Oz

The only real gripe I have is the Denon has a fatal flaw when it comes to streaming and has to be reset or unplugged every couple weeks.

Why not go for Node 2i streamer? Then when you upgrade the receiver you won’t be spending $$$ for streaming but rather you get more value and performance from the new one because it  will just concentrate on amplification.

One further thought -- seek out a good integrated, used. Here, just for an example, is a high quality unit. It lacks a phono stage but you could get a good and inexpensive one from Schiit to add to this: https://tmraudio.com/components/integrated-amplifiers/hegel-h80-stereo-integrated-amplifier-h-80-bla...

Good info from @ozzy62 & @hilde45 & @loomisjohnson

I think we all agree that you need an integrated amp to bring your system to a point that you can build a good system. IMO, your system as is, is not easily built upon because of streaming built into the receiver and phono preamp built into the turntable. You have good enough speakers now, especially with the sub. You have the full frequency covered.

I’d give a lot of consideration to the Hegel Integrated, though you will lose your streaming for the time unless you have a computer.  But then when funds are available, get the Bluesound Node 2i. Keep your eyes in the classified. many items are there because the owner upgraded from that piece