Step 1: Concept
The equation $|z - z_0| = r$ represents a circle with centre $z_0$ and radius $r$.
Step 2: Analysis
Rewrite $|z - 1 + i| = 5$ as $|z - (1 - i)| = 5$.
Step 3: Conclusion
The centre is $z_0 = 1 - i$, which corresponds to the point $(1, -1)$, and the radius is 5.
Final Answer: (E)