Sly Stone Lives In A Van

Sly Stone -- once one of the biggest names in soul music -- now lives in a white van he routinely parks in the rough Crenshaw neighborhood of Los Angeles.

Stone, according to the NY Post, befriended a local family and showers at their house. Their son serves as his assistant and driver.

Stone, whose mega-hits include "Everyday People," says, "I like my small camper. I just do not want to return to a fixed home. I cannot stand being in one place. I must keep moving."

He says his money troubles started in 2009 when he stopped receiving royalty checks from his manager, whom he had accused of fraud. He sued the manager for $50 million.

Stone also foolishly sold his music publishing rights to Michael Jackson for just $1 million in 1984.

He says the FBI is after him and his enemies have hired hit men.

Stone says he's still recording music ... on a laptop computer. TMZ