Mod, welcome. It appears that you have about $900 left in the speaker budget. My suggestion for the best setup for your room right now(consider an upstairs setup later)would be M22 mains with a vertical M2 center and QS4 surrounds. This totals roughly $1050 but with 10% off from the outlet plus an additional 5% off for 5 items ordered it comes down to the $900 area. The outlet speakers are in fact "new", but with a slight cosmetic defect that most of us have had difficulty in even finding, so no need to be concerned about that.
If you really want to go with the M2 surrounds to be switched upstairs later plan, this would even be a bit less expensive. You'll be operating in fairly close quarters, so if you use direct radiating surrounds you might consider placing them to the side but aiming them toward the back, so as to increase the proportion of reflected to direct sound. Experiment.
