1) Add url into hosts file pointing to the customurl you want to use instead of localhost( ie: localdev.mycompany.com)
Update: With visual studio 2015 the IIS config file is moved into your local project folder.
Path is: ProjectFolder\.vs\config
Edit applicationhost.config.
Edit site binding to look like:
<binding protocol="http" bindingInformation="*:59254:mycustomurl" />
( http://stackoverflow.com/questions/4709014/using-custom-domains-with-iis-express).
2) I then had to go into Windows Mobile Device Center and change the device settings -> Connection Settings -> This computer connected to: Work Network.