Turntable - The Next Step

First, you need to decide if you will stick to MM or change to MC in the future.

I would first upgrade the cartridge. If Phonomena II supports MC, I would try something like Denon DL103r. I think you will feel the difference immediately. 

Then, you can think about upgrading the phono stage to something like Allnic H1202 or Herron VTPH-2A. 

I use Denon DL103r and Allnic H1202 and it sounds pretty good.

I also use Ortofon MC20 super, SoundTradition's Live! MC-10 SUT, and Magi Phonomenal MM which sound better than Denon and Allnic.

I will probably stick with a MM cartridge. No experience with MC. Thanks for all the responses thus far.

I believe your next step is a VPI Scout or ScoutMaster. The original Scout got rave reviews. The Scoutmaster was its big brother and even better. I had one before I got my Teres and was well pleased. But the cocobolo just begged me to come get it.. The Prime Signature seems to have taken its place with updates. I'd probably take the whole budget and move to this TT

VPI Prime Signature Turntable

I've had 2 or 3 VPI TT's. Their customer service is very good as are their products. They usually have a good upgrade path if you want to upgrade. You won't need much if any with this one. But keep it in mind if you decide on another VPI,. FWIW I have no affiliation with the seller. Its a little above your budget but you may get it for that if you make an offer.

I also had an MMF 7 TT. when they came out. It was good for the price. But the VPI was a big upgrade from it. Good luck to you

@gnoworyta  which arm is fitted to the P3?

Recent experience.  I have a Linn Lp12 with Kore, Cirkus and an Ekos 1 with sticky dial issue.  It sounds wonderful, in tune now for almost 2 years. I spend alot of time on setup.  I was using the old vintage tonearm cable as the sound was excellent saw no reason to change.  

While at my local dealer saw a trade in Revelation DIN cable at a decent price. Purchased it.  I can only say change of cable made such a noticeable difference.  i am a believer in cable effects and have several upgrade cables.  But I wasnt expecting the magnitude of the difference the cable made.

Thats something you might want to try.