honestly the older CPUs are... somewhat left behind, because the New CPUs even from i5 have 6 cores, i7s have 6cores+6 Threads. So that would lead us into the Gen8 build for sure!
Here's a bit more expensive build than previous one. But I think you should have a good look.
PCPartPicker part list /
Price breakdown by merchant
CPU: Intel - Core i7-8700 3.2GHz 6-Core Processor ($339.99 @ B&H)
Motherboard: MSI - Z370 TOMAHAWK ATX LGA1151 Motherboard ($110.98 @ Newegg)
Memory: G.Skill - Ripjaws V Series 16GB (2 x 8GB) DDR4-3200 Memory ($193.99 @ Amazon)
Storage: SanDisk - SSD PLUS 480GB 2.5" Solid State Drive ($129.99 @ Amazon)
Storage: Hitachi - Ultrastar 7K3000 2TB 3.5" 7200RPM Internal Hard Drive ($56.50 @ Amazon)
Video Card: Asus - Radeon RX 580 8GB DUAL Video Card ($284.98 @ Newegg)
Case: Corsair - 200R ATX Mid Tower Case ($39.99 @ Newegg)
Power Supply: EVGA - SuperNOVA G2 550W 80+ Gold Certified Fully-Modular ATX Power Supply ($55.98 @ Newegg)
Total: $1212.40
Prices include shipping, taxes, and discounts when available
Generated by PCPartPicker 2017-11-29 20:23 EST-0500
CPU: Great performance from an i7, in Turbo outperforms an i5-8600k (high end overclock would be needed to beat this) + you get 6 HyperThreads with it.
Cooler: included... since it's non OC.. itll do. but maybe in future you might want to throw a 25$ cooler at it.
Motherboard: really... even cheaper would be pretty much as good, the problem right now is that all of the 8th gen Motherboards are Z boards (they allow overclocking, and no boards available that don't overclock - cheap ones)
Ram: Fast ram, that's it, got to make sure your motherboard supports it though (if you change it)
Storage: You really need to aim at 500gb SSD drive... anything else, just fills up wayyy too fast, OS a Couple of games and that's pretty much at the limit...
Secondary Storage: just get a good deal on whatever you think you need 1TB/ 2tb.. so on
GPU: I think you you should really consider the RX580 if you were thinking of a 1060, It's quite a good performer in that budget
Case: more of up to you choice.. I took the 200R to fit a little better into the higher budget, but it's still good and doesn't look that bad either
PSU: took something dcent quality, and enough to get your system going (could go 10$ lower in price if that really matters)