Franklin Henry Smith III, 31, of 2401 Churchill Road, was charged with possession with intent to sell and deliver marijuana, possession with intent to sell and deliver prescription medication and maintaining a dwelling for the purpose of sale or delivery of controlled substances.
He was released on a $15,000 bond.
Joseph Huber Smith, 22, also of 2401 Churchill Road, was charged with possession of heroin and possession of drug paraphernalia and released on a $5,000 bond.
Both men are due in court Thursday morning.
Because evidence was still being processed Wednesday afternoon, a police spokesman could not say how much drugs were recovered from the house, but he estimated it to be pounds.
Neighbors cheered the arrests, saying they had been working with Raleigh police for months about suspicious activity at the home.
"I was ecstatic (about the arrests)," said one neighbor, who did not want to be identified. "It's been a long road of everybody just watching what was going on and getting sick and tired of seeing this constantly going on, like a revolving door over there."
He and others told officers that, almost daily, they would see the two men openly dealing drugs and exchanging wads of money in front of the house.
They said some of those alleged deals happened in the presence of young children.
"It was a group effort to get rid of this element out of the neighborhood," the neighbor said. "It shouldn't be anywhere, but we don't want it around our children."