I have successfully set up my local server now but I am having some issues connecting and ESP 8266 12-E to it. I have been able to connect via the app to my admin account and can navigate to and log in to the admin UI to get the auth token for the project.
I have changed my sketch to the following:
Blynk.begin(auth, SSID, pass, IPAddress(172, 16, 0, 39), 8080);
The auth, SSID and pass variables are declared above that line as char
arrays.
At this point I cannot connect the app to the device.