Louie/Louise was a resident of the building and the inhabitant of apartment 4B before Penny moved in. He was originally mentioned in the pilot episode, being described as a "200 pound transvestite with a skin condition". He was mentioned again in the second episode of the series, "The Big Bran Hypothesis". Sheldon states that Louie/Louise's closet was "immaculate", keeping his dresses, cocktail gowns and police uniforms in order. Sheldon had helped him install a webcam in his bedroom.
The only time Louie/Louise appears is in a flashback scene in the episode "The Staircase Implementation" (S03E22) when Leonard accidentally knocks on the wrong door when responding to Sheldon's ad for a roommate. Louie/Louise opens the door and responds that Leonard wants the "crazy guy across the hall", signifying that a transvestite is not the most unusual person in the apartment building.