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That's not isekai, that's reincarnation. Isekai means in another world.

But the MC starts in our world without knowledge that he was from the world he was reincarnated/transported into? Like Rimuru who was actually the first son of the Creator God, Veldanava, and his wife Lucia?

The another world part still happen but the MC just come home to his world of origin?

Rimuru was from the fantasy world originally? That's lame.

What isn't a lame version of what you describe is Lloyd Frontera. Lloyd doing that exact thing is awesome.

I was thinking of making my MC be the reincarnation of his grandpa. Not the person whose body he is possessing.

But the Lloyd solution works too. Why not make the grandson the grandpa's reincarnation too?

So long as it's relevant to the story you're trying to tell, do whatever you want with the setting and characters.

I would just make people think he is the grandpa reincarnated (but he actually isn't) then for comedic purpose.