So the way to think about this is the actually try to "spell out" the definition with the proof. The symbolic definition is:
If $f$ is defined on a subset $D$ then
$$ \lim_{x\mapsto c}f(x)=L \iff \left (\forall \varepsilon > 0,\,\exists \ \delta >0,\,\forall x\in D,\,0<|x-c|<\delta \ \Rightarrow \ |f(x)-L|<\varepsilon \right ) $$
So, we know that $\varepsilon > 0$, thus we need to find a $\delta > 0$ so that $|x-c| < \delta$ implies that $|f(x)-L|<\varepsilon$. As i remember it, the tricky part is finding a form for the $\delta$ as a function of $\epsilon$. In this case:
$$ |x-1| < \delta, \\
|\frac{1}{x+1} - \frac{1}{2}| = \frac{|x-1|}{2|x+1|} < \varepsilon \Leftrightarrow \frac{|x-1|}{|x+1|} < 2\varepsilon $$
so if i pick $\delta = 2\varepsilon$ we can state that
$$ 2\varepsilon > |x-1| $$
should imply that
$$ 2\varepsilon > \frac{|1-x|}{|x+1|} $$
This is true if there is a inequality
$$|x-1| \geq \frac{|1-x|}{|x+1|} \Leftrightarrow 1 \geq \frac{1}{|x+1|}\Leftrightarrow |x+1| \geq 1 $$
And this inequality exists if $-2 \geq x \geq 0$, this implies that if we limit $\delta < 1$, then we know that $0 < x < 2 $ and since this is within the frame of the inequality we know that $|x+1| \geq 1$ and thus the proof is done.