Bluesound Node 2 - Next level up

For that sort of budget, I think you’re better off dividing it between a streamer and an outboard DAC with most of it on the DAC. I can tell you first hand that the sound quality out of a Node2 fed through a Schiit Modi Multibit is very good. I also tried running a Chromecast Audio ($35) through the same Modi and the sound quality was still quite good which makes me think that the DAC makes the biggest difference in this audio chain and not the streamer.

@kalali, 
I had the Modi, and it was pretty good. But, I think it is comparable to the internal DAC of the Node. You need to go to a Gungnir or Yggy to really get the best out of the music, and at under $2K used, I think it is a great value.
I do agree that outputting to an external DAC with the Node will make a huge difference.
I went to Audioconnection and John had the BS Node set up using the internal DAC and switching to an Ayre Codex. The difference was like night and day.
B

+1, Bob.
Most of the inexpensive streamers will suffice, with their internal Dac's. But when you add a high quality Dac to a streamer the SQ takes a huge jump. I have a Bluesound Node 2 feeding an Ayre Codex. Just incredible sound for the money.

+2 for sending Node 2 S/PDIF output into a good quality DAC. I’m listening to a Tunein radio stream right now and am very impressed. 

if you like Roon, which is really great, you can get a Roon ROCK core device that will feed a DAC with a digital stream.  You can also tap into hard drive based digital files should you decide to.  Cost for an Intel Nuc to run Roon ROCK is about $600 all in.  Leaves a healthy budget for a DAC.