How to get into high end digital? (Feeding a DAC)

@holmz
Your Thread Title and OP make it very clear that you are inquiring and looking to have a input to help improve your understanding of the requirements.
If that is being shown as difficult to embrace by a contributor, it is not really something to be concerned about.
A more compatible Mentor will show up

Maybe there is some light in there?
(As it looks like my near term solution is close to what he/she is doing.)

• Just I will rip them using a MacBook
  
• The Melco equivalent will start as what is in the AVR
  
• The $5 app would be Roon.
  
• I’ll defer the DAC for now, but will see if I can come out of the AVR optically into an R2R DAC.
  

I will share what I do. I have a DAC3 from Bryston. I use a Melco N100 as a NAS/Player. I rip my CDs with a Melco 100 ripper/disc transport. The music sounds the same to me whether played from the transport or the N100. It is simply the best sound that I have ever had, much more detailed and open than using my Oppo 105 or a Sony 5100 as a transport into the same DAC. The Melco/DAC combo can probably be had for 6K. Another $5 for a decent app controls the whole thing from a phone or tablet and allows Tidal/Qobuz integration and Internet Radio.

He has a tt from Audio Research. I have no idea what that costs, but I haven’t seen AR equipment at WalMart recently.

The phonostage is the AR. The TT is a SOTA, which is sorta like a CD transport, and the phono stage is akin to what a DAC is doing.

Well I don’t often shop at Walmart, but I suspect you are correct.

All that ask from the OP is that before he issues some proclamation on the merits of digital vs analog is that he not compare apples to oranges. Don’t compare your Neiman Marcus analog rig to a Costco digital setup. Otherwise, good luck

You’re reading into this as being some attack on your digital system.
But it is not about you.

Obviously I am comparing the Bestbuy CD player to the analogue.
Those are the two sources in the living room so there is not a lot else to A/B against each other.

@holmzn
In high end audio, stand alone DACs typically perform significantly better than a DAC that is bundles with an preamp/amp.  You have to go up the $ chain to get a inbuilt DAC to sound as good as a standalone such as a Hegel.  Often built-in DACs are made to a cost point and convenience rather than to emphasize performance, therefore not designed to compete with stand alone DACs.  I suspect your AVR built-in DAC will not be to the level of even a Yggy, and maybe your insistence on using the AVR's DAC may seem opposite to some as a step backwards to box store sound.  But if you are satisfied with the results, great for you! - you saved $.

5 years ago, I decided to do in-depth audio component research on building my first high end analog+digital system. Seeing you're on hold until you evaluate the AVR sonics, I'll also wait on product suggestions. 

BTW $10k is a generous budget relative to your system, you can easily spend less to achieve good sonic results.  

I have read all of this but have a question. I have all my cds stored FLAC on my Synology  NAS. I stream music through SONOS through the house being happy with the general outcome. But for my serious listening I feed to a SONOS Connect to my main stereo. The feed goes to my Bryston dac, then to my Cronus Magnum. Am I missing anything here?  How can I make this set up better?

@lbarbish
Your question is off the OP topic which is generally frowned upon - you’d be much better served by opening a new thread with your inquiry

OP glad to see you are setting in on something amongst all these what I will call various responses.  Sign up for Roon after you rip and get the AVR setup.  If you are going to be using the coax or optical out will really limit your range on an external DAC. No high res I believe. Need usb.  
My suggestion would Play with before you do anything and see if you like Roon. If you do new DAC unless your Avr is serious hi end then a new DAC would be great. Feed it back to avr to amp via analog pass through if it has it.  This works great and you can find the right DAC.  For your budget it’s wide open.  
Good luck.