Upgrading my VR PC

Hi everyone
Actually I just bought old parts for my VR PC (My budget is tight and old parts are cheap to get)

Currently I have:

CPU - Intel i5 4590
CPU Cooler - Intel stock
MB - ASUS Z97I-PLUS (1150)
RAM - Corsair 8GB DDR3 1600 (some low budget one)
GPU - MSI 980 Gaming 4G
Case - Corsair Obsidian 250D
SSD - Toshiba 240GB
HDD - Samsung 1TB

I have spent around 300$ for the build.
My opinion is to upgrade the CPU to a Xeon E3-1240 v3 that I can get for around 80$ and a cooler.

As both Ram slots are occupied I plan to wait until the price on DDR3 drops and then replace them with 2x 8gb sticks.

Is it better to use a AIO in a ITX build? The case is crowded is a understatement. The 980 fits with about 5mm of space on top and on the end. But there is still a lot of airflow for the CPU

What would you replace ? I don’t want to spent more than another 100$ but I am willing to sell all the stuff that I don’t need anymore.

Ah btw the PC is for VR Gaming and Netflix watching only. No streaming or work is done on this PC

really depends on the ITX case

With your case you could probably do air just fine