The differential equation is separable; that is,

On the right hand side,

for some constant
On the left hand side, we factor and use partial fractions.

This must be true for all . In particular, at , , hence, . At , , hence . Therefore,

for some constant
The initial condition is so at least for small , we know that . This means that y-1 is negative and y+1 is positive. Hence

Therefore

Equating the left and right sides of our first equation, we have

where . From the initial condition, , must be equal to 1. Hence,

Note that this solution does satisfy for all .
Remember: It is important (and usually easy) to check that your solution actually satisfies the differential equation.
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