Upgrade Path - Preamp or DAC?


I need some advice on what to upgrade next - preamp or DAC. I don’t currently have a DAC. This is for my second system, which may or may not end up being my primary system. I will be streaming Tidal via Heos on both systems.

My second system is:
Rotel RC-980BX
B&K ST2140
Paradigm Monitor 9

The weak link is the pre. The Heos has analog outputs so I could use it as a DAC and send straight to my pre. The Rotel pre has all analog inputs. So I could upgrade to a pre that has a better DAC than the Heos and optical/coax inputs. Or I could keep the pre for now and get a better DAC. I am lusting after the Cambridge Audio 851D on agon right now. The third option is to just get the Heos now and see how it goes before upgrading. I really want that 851D though, but have just spent a lot on recent upgrades to system #1.

Thanks.

Ken
treebeard1
buy a cheap DAC like a Dragonfly, and then only buy upgrades that can be returned; use blind listening tests to see if you can tell the difference - if not, back it goes

meanwhile assemble some program material to test - not just your favorites but whatever people claim shows a big difference between DACs (which range up to the $30,000 Nagra)

why the lust for the 851D?

(I am a big fan of Cambridge Audio and have one of their original Dacmagics, but you need to think about the components of gear lust to make the best choice.  This also has the salutary effects of 1. slowing down your rush to buy, and 2. satisfying that itchy feeling somewhat.)
What other sources do you use in this system? The answer drives need for a preamp. Some DACs have variable output which may remove need for the pre. Is this true for the 851D? See other threads regarding direct connection of digital source to amplifier.

If you don't need USB input you could search for a older DAC having a solid power supply and analog output stage which remain quite good using SPDIF input streaming. Can be bought far less expensively than many newer DACs and in this context just as good. Many come up used here on AG. Also less expensive than a quality preamp.

If needing a preamp, i believe that piece remains the heart of a system, and therefore requires a well thought out purchase. I owned a B&K ST-140, predecessor to your amp I believe. You could easily find a quality used line level pre to compliment this amp at a reasonable budget (<$1000). What would your budget be?

 

 
randy-11,
I'm not sure a Dragonfly would be any better than the DAC on the HEOS.  I get your point though.  I do need a break because I just upgraded my primary system (https://systems.audiogon.com/systems/6318), and I'm already looking at upgrading the system that it replaced.

junzhang10,
Duely noted.

mesch,
My sources will be CD, Tidal and vinyl (P3).  Any yes, the 851D can serve as a pre but I can't use it because in need vinyl.  I would put my budget at 1K.

I'm thinking the pre is the way to go.  I think I will hold on to the Rotel and see how the HEOS sounds with an RCA connection before making any more decisions.  When I still had the ST2140 in the primary system, I replaced the Rotel with the CA 851N and it was night and day.  I don't see any preamps under 1K that have both digital and analog inputs.  It looks like you need to pony up for that.  So a DAC may still be in my future.

Thanks everyone.