dac and streamer or seperates

@jbuhl 

That would be a tempting combination, but the DAC is the old version.  They are selling the trade-ins when people buy the MkII.

May I ask how you listen to music and what type of music you listen to? What are the important criterion?  Since your room is well treated, i expect you pay attention to those details. 

An audition of the variations you’re considering will inform better than any of us can. That said, since you asked, I will offer that my experience brought me to the conclusion that  the streamer is more important than the DAC. I’ve listened to a fair number of DACs well above the price point you’re considering. They’re different of course. But the better streamers opened up the music with a given DAC more than a better DAC did with a modest streamer. My experience only - YMMV so an audition is a must. 

Complicating things is that most DACs have certain inputs that are better than others and may be revealing of the cables used to connect them. So, you’ll want to pay attention to those details too.  In any case - let us know of your progress. 

Best,

I recommend separates.
 

I’ve been doing streaming by about every possible way in the last twenty years. Typically the streamer and DAC should be of about equal investment. You want as high a quality you can get in each (picking the very best you can). Particularly in the DAC you want it to support your musical preferences. Pay particular to the sonic characteristics. Particularly in this price category you can get highly detailed fatiguing DACs. 
 

I recommend Aurrender streamers… used would be required since their lowers price models are over your budget. I am not familiar enough with current DACs in this price range to specify a DAC. But… you might leverage the sound quality here as well by getting a DAC less than five years old. It is likely to put you at a higher level of performance. 
 

Typically SP/DiIF / AES are the best performing connection… but depending on the streamer / DAC USB might. But the difference is not likely to be large. Something you can play with after you get them.

I was in the same thought process not long ago. I ended up with an Aurender A15, for half of list price. Streamer/DAC. From what I have read it is pretty much their N200 streamer, which is excellent, but with a DAC.

I figure I could get a separate DAC at some point.Anyway I think the A15 sounds great. Paired with ARC ref5se and ref75se.

@asmithkash 

I’m not familiar with the Krell, but it appears to be an integrated amp introduced around 2009.  You don’t have your system posted on your profile and I’m not clear on what piece of equipment has a built in streamer/DAC.  Am I looking at the wrong K300?  Were there modern streamers in 2009?  I’m guessing that I’m looking at the wrong K300.  The reason I was looking for your equipment was my concern that it is a challenge to get great streamer, DAC separates with great cables for $5000, so I was wondering what would happen if you bought a great $5K DAC, or streamer and upgrade the second component at a later date.  Would put a used Aurender, or used Holo May DAC, or similar DAC within your budget.