So I looked through the output file and noticed that the file path is :
/root/.local/share/7DaysToDie/Saves/
instead of the .local one that you listed so maybe I misunderstood what you were meaning due to being frustrated or something.
I had to install nautilus-admin to see the /root/.local directories if anyone has a similar issue to what I have had. For some reason I was unable to access root (it would change my ~ to / but not show me any additional hidden folders) so by installing the nautilus-admin I was able to verify the generation of the serveradmin.xml file. I could have sworn it was a lot easier to get to this file when I played during Alpha 18 *shrug*
Once you do that you can navigate to /share/7DaystoDie/Saves to verify the serveradmin.xml file. With nautilus-admin installed you can right click to edit the serveradmin.xml file if you are using a linux gui.
Once I realized I was missing the /root/ at the beginning of the file path I was able to sudo nano the file and am able to modify it accordingly.
Thank you for your help. This thread can be closed.