CDP or DAC?

I use a Mojo Audio EVO DAC (base version) r2r design with a SimAudio 260DT (transport only version) . To my ears very engaging sound.

For what it is worth I had the Cambridge transport in my system prior to getting the Mojo and while it was a pretty good match with the EVO moving up to the SimAudio gave more body and weight to the music . I’d recommend getting a transport that is more commensurate with the DAC of your choosing- YMMV

My Audio Note Dac may be the best purchase I’ve made for my system. I have a DAC2.1x Signature which I had upgraded by an authorised service specialist.
It's paired with a PS Audio PWT transport.

Sublime sonics, smooth, with outstanding realism. 

With your budget, you should be looking at a Level 3 or 4 (used) Dac.

@bobheinatz I run an Audio Note Dac-3 Signature, an older mid-90s version, recently upgraded the output caps and it sounds fantastic. The current crop of AN Dacs sound great and for a lot of us the AN's are an end of game Dac they just sound like music.

I own my AN thanks to a recommendation by @jond 

Seems to me you'll have greater flexibility in terms of pleasing your ears if you go with separates.  DACs can vary enormously in their presentation. 
John Darko once used a "cake" analogy, contrasting those who prefer to "taste cake" to those who prefer to "taste flour, sugar, butter and eggs". 

If you're used to vinyl, you may find a good many DACs are too clinical in terms of breaking the music down into its constituent "ingredients". . . or, you may find their ultra-resolution very exciting. Who knows? You'll have to demo some and see. If you know you prefer to "taste cake", I'd second the R2R recommendation.   

BTW; like two other posters, here, I use the Moon 260DT (transport version).