I assume the solution to this question might be a more general principle, but the problem itself is very specific and I do not know how to generalize it. Given the following set, there apparently are alternate definitions of the set for various $r$'s, such as $r = 2$, which are to be found.
$$\left\{ z \in \mathbb{C} : \left| \frac{z - 1}{z + 1}\right| < r\right\}$$
However, I do not know how to approach this. Mere algebraic manipulation does not seem to lead anywhere:
\begin{align*} \left| \frac{z - 1}{z + 1}\right| & = \left| \frac{(a + bi) - 1}{(a + bi) + 1}\right|\\ & = \left| \frac{(a-1 + bi)}{(a+1 + bi)}\right|\\ & = \left| \frac{((a-1) + bi)((a+1) - bi)}{((a+1) + bi)((a+1) - bi)}\right|\\ & = \left| \frac{(a-1)(a+1) -(a-1)bi + (a+1)bi + b^2 }{(a+1)^2 +b^2}\right|\\ & = \left| \frac{a^2 - 1 -abi + bi + abi + bi + b^2 }{(a+1)^2 +b^2}\right|\\ & = \left| \frac{a^2 - 1 + 2bi + b^2 }{(a+1)^2 +b^2}\right|\\ \end{align*}
What could be a more promising approach to find alternate definitions for the set?
Again, sorry this is such a un-generic question, but maybe there is something generic hidden in the problem.