I was using a Denon DCD1650AR CD player, when I also decided to run the digital coax output to an external DAC. (I'm using a BAT VK-20, Aragon 8008BB and Thiel 3.6's.) I chose a used Dodson Audio DA217MkIID, which is probably more than your budget allows, but the point I am making here is that the sound was totally transformed. The Denon makes an excellent transport, with solid, reliable and error-free operation with any CD I load into it. You may find that it might be worthwhile to get a better quality DAC, because you might be willing to live with your Denon longer than you think. For what it's worth ....
Good luck!
Good luck!